61% of premium online shoppers say they will not reduce spending in 2012
Tuesday May 29th 2012
A survey of consumers’ online shopping habits has revealed that as the UK economy slides back into recession a significant 61% of consumers buying premium products and services say they will not reduce their online spending in 2012.
Conducted by online retail marketing agency Leapfrogg, the survey found that 30% of respondents said they will purchase more online this year due to good service and increased confidence in using online channels.
Leapfrogg said this was surprising considering the average household income of those surveyed was £23,000 per annum.
The survey also revealed the significance of understanding the online shopping journey, with over a third of consumers saying that they used the internet to compare and check prices. For 20% of respondents, online search was used for product inspiration and research. Surprisingly, only 14% used online to search for offers or vouchers, which Leapfrogg said emphasised the need for premium retailers to provide quality products, competitive pricing, useful information and good service over quick-win approaches such as voucher codes.
39% of the survey’s respondents said that lower prices would encourage them to shop with a premium brand but for 21% of consumers quality of product and good service was enough of a pull to encourage a luxury spend.
Rosie Freshwater, managing director of Leapfrogg said: “Premium and high-end brands shouldn’t be tempted to undersell themselves by overusing voucher codes and heavy discounting. Consumers are willing to commit to higher prices as long as the shopping experience and customer service is as premium as their purchase.”
Commenting on the importance of the shopping experience, Freshwater added: “Considering customer needs and optimising the online shopping journey at every stage is paramount for increasing customer acquisition and sales. Premium brands need to know their customers inside out and consider every angle of the shopping experience from the perspective of the consumer; this should be a core aspect of retail marketing strategy for high end brands. Premium retailers need to make the whole consumer journey easy, from start to finish, not overlooking the importance of offline interactions such as delivery options and of course post-purchase customer care.”