Value, trust and choice paramount for buyers in new retail report

Good value for money is a top priority for shoppers this year, along with trust and choice, according to new research by Klarna, which surveyed more than 4,000 consumers across the UK, Europe, the US and Australia.

The report ‘Clicks and Cliques: Understanding Modern Shoppers’ is aimed at understanding how shopping behaviour has changed over the past twelve months. It reveals that good value is a priority for two-thirds (67 percent) of consumers, which Klarna suggest has become more important since the start of the pandemic.

Next to good value, consumers want promotions and deals (60 percent), to deal with retailers and brands with a good reputation and trustworthiness (60 percent) as well as having a wide range of products available (58 percent).

Other key findings included over half of the respondents adding that an easy returns process (55 percent) and next or same-day delivery options (51 percent) had become more important this year, while 49 percent added that they are doing more of their shopping online, while 44 percent said they are doing most or all their shopping online now.

Klarna’s research is based on a survey of 4,085 consumers in the UK, US, Australia, Germany, France, Italy and Spain, conducted between October 5 and 10. They added that while these ‘non-negotiables’ are consistent across the board, they did also discover five key shopper tribes with subtle differences in the priorities and preferences that alter the way brands and retailers should engage with them.

Klarna identifies five shopper tribes in new retail report

The first shopping tribe is family-focused with a busy life that makes online shopping invaluable and interruptions unavoidable. ‘Family Firsts’ are the most likely to be indifferent to who they buy from (30 percent), suggesting brands and retailers must work harder to keep them coming back, while over half (55 percent) added that they are more open to trying new brands now than they have been previously, which is more than any other tribe.

The next tribe ‘Aspirational Achievers’ is a financially comfortable tribe that tend to shop around and will invest in premium products. Klarna states that this tribe is most likely to say they are loyal to a couple of brands and retailers that they love within each category that they shop, with 45 percent making this claim. Over other tribes, high-quality products are a must, with over half (57 percent) saying these must be offered by brands or retailers.

‘Here and Nows’ are a tribe that lives in the moment, spending what they earn on the things they want and often finding inspiration on social media. Six out of ten (58 percent) say they still want to treat themselves to nice items, even though they are going out less, and they are more likely than any other tribe to turn to TV adverts for inspiration, with almost a quarter (24 percent) saying they do this.

The fourth tribe ‘Savvy Fashionistas’ earn less than they’d like to and regularly seek inspiration online and look for hacks to help them get the best products and deals. This tribe is most likely to buy more from brands and retailers that offer promotions and deals (45 percent) and that have a wide range of products available (45 percent). They’re also most likely to consider it important for brands or retailers to offer flexible payment options (36 percent), which Klarna adds encourage them to shop regularly (33 percent) and buy more (35 percent).

The final tribe is ‘Conscious Consumers’, which are less focused on hitting life’s traditional milestones and living by the system, this tribe seeks fulfilment in pursuits like learning and discovery and shop as sustainably as they can. Conscious Consumers are the only tribe to rely more on brand or retailer websites for inspiration than family or friends, with 36 percent ranking them as a top source. In addition, trustworthiness and a good reputation are more likely to encourage Conscious Consumers to shop regularly with a brand or retailer, with 42 percent reporting this effect, more than any other tribe.

Pandemic has shifted shopping behaviour, according to new research from Klarna

These five shopper tribes Klarna says means that retailers need to forget demographics and focus on “passions and personality types to create a more emotional connection” for future retail success.

Commenting on the research, Luke Griffiths, chief commercial officer at Klarna, said in a statement: “This year’s events have transformed the way we browse and buy, reinventing our relationships with brands and retailers and accelerating change at an unprecedented rate.

“Merchants must keep a finger on the pulse of their customers wants and needs and adapt their products and service offers accordingly to build a connection with shoppers to drive loyalty and, ultimately, sales.”

Natalie Berg, retail analyst and founder of NBK Retail, added: “The retail industry is no stranger to disruption, yet nothing in our lifetime has jolted the industry like Covid. As retailers look to navigate the new normal, resilience and agility will be essential for survival. There will be no return to the status quo.

“The days of being everything to everyone are well and truly over: in order to find their tribe, retailers need to be bold about who they are and what they stand for. Opportunities have emerged, enabling retailers to reimagine both physical and digital commerce for the future.”

Image: courtesy of Klarna

 

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