Addendum: Focal Points from the Italian Survey White Paper

As the preceding white paper authored by the Institute for Commerce & International Marketing (H.I.M.A.) indicates, today’s busy, digitally enabled self-service consumers expect retailers to offer technologies in support of the shopping experience that reflect the ease of use found in personal consumer technologies. The shift to a consumer-to-business (C2B) model in retailing is well under way with the consumer decidedly in control: They expect 24x7 seamless connectivity across all channels and recognition of their individual preferences as they shop for goods and services. This shift in retailing toward personalized interaction based on a consumer’s preferences and their presence in a channel is described as the converged retailing, or c-tailing™, revolution.

The 360o European c-tailing survey commissioned by NCR provided the data framework for the white paper, which presents the summary view of the attitudes of both consumers and retailers in France, Germany, Italy and the United Kingdom regarding converged retailing and key elements of preference, presence and personalization. The purpose of this addendum is to highlight the Italy-specific findings. Brick-and-Mortar Stores Still Bring In Shoppers Although 59% of Italian households have access to the Internet, the Italian consumers interviewed for NCR’s European c-tailing survey revealed that brick-and mortar shopping remains the norm. However, there is a desire for convergence between online and brickand-mortar shopping: 39% of Italian consumers said they would be more willing to make a purchase from a retailer online to save on shipping costs if the retailer offered an option for picking up the item in-store.

Based on their interest in self-service technologies, the in-store portion of the merchandise pick-up should have a retail kiosk or mobile-enabled component. Another area of differentiation is the level of consistency that Italian consumers perceive in terms of communications from retailers. While the average of consumers across Europe stated that 25% of retailer communications were always consistent, only 12% of Italian consumers saw that consistency. Consistency of information (pricing, product descriptions, etc.) is a key enabler of c-tailing; accordingly, Italian retailers would do well to expand their efforts in providing more consistent communications to consumers.

Connecting Across Channels
The Italian consumer relies on a number of means for accessing information to aid their shopping experience. For example, 63% of Italian consumers research product information online before making their in-store purchase, which was highest among all the four countries surveyed. Another 43% read instore signage, followed by 36% of Italian consumers who preferred to read the store’s advertising inserts. However, they also preferred to have email communications: 54% of shoppers.

When asked which types of personalized information based on their shopping preferences they wanted included in communications from a retailer, 64% of consumers in Italy stated they wanted promotions for the products they usually purchase. Another 54% were interested in receiving information about new product arrivals, while 40% stated a desire to receive information about their preferred brands.

Italian consumers also reported wanting to have their preferences acknowledged from a variety of retailers. Forty-six percent were interested in hearing from bookstores, 44% from electronics stores, 43% from department stores, 42% from fashion stores, and 38% from hypermarkets.

The data gleaned from the NCR-commissioned study present Italian retailers with a compelling reason for providing a personalized shopping experience across multiple channels by cross-pollinating known consumer preferences with technology. The deployment of self-service technologies, for example in the form of in-store retail kiosks, is one powerful way that retailers can satisfy the consumer’s demand for a personalized, independent, convenient and speedy shopping experience.

Consumers Weigh In on Kiosks and Internet Shopping
When Italian consumers venture into brick-andmortar retail stores, 35% surveyed preferred to use self-checkout stations to complete in-store transactions. Another 34% reported being willing to take advantage of mobile in-aisle technology. Eleven percent of Italian consumers still preferred only to be checked out by a sales associate; conversely, 89% prefer having selfservice options available, the highest of the countries surveyed. Survey respondents acknowledged that they would utilize in-store kiosks for the following purposes: to learn about available products (31%); to make product comparisons (28%); to locate products within the store in different departments (26%); to take advantage of customer loyalty programs (24%); or to order a product (16%).

While the surveyed consumers specified a strong preference for using in-store kiosks to enhance their shopping experience, the survey also suggests that the trend will be for a growing number of Italian shoppers to use the Internet to make their purchases. In the coming year, 63% expect to make more purchases online versus the 42% who stated they still expected to increase purchases via a cashier in-store. Retailers Must Adopt Channel Convergence to

Keep Competitive
The retailers interviewed for this survey confirmed that technology has transformed how consumers engage them. Not only has technology created opportunities to expand their business channels, but it has also impacted how they manage these channels. Nearly 90% the retailers surveyed across Europe acknowledged that the emergence of the C2B model puts the consumer squarely in control of the “who, what, where, when and how” of the shopping experience. In light of this development, retailers are now emphasizing the importance of channel convergence and recognize the value of cross-channel consumers. Three out of four retailers surveyed stated that channel convergence had a high or very high importance for their company. Another 65% further acknowledged that cross-channel consumers are their most valuable consumer segment.

European retailers also showed themselves to be poised to seize the opportunity to align their businesses with c-tailing, which they believe will add tremendous value to the consumer’s shopping experience. Eighty-two percent of retailers stated they believe that c-tailing will result in higher consumer loyalty, while 76% saw the potential for differentiation through c-tailing in their respective market. Several factors, including the potential growth of sales and margin, were cited by retailers as important outcomes for expanding their business operations to include c-tailing; however, listening and responding appropriately to consumer preferences were seen by European retailers as the most important value drive for adopting the new model.