Survey: Tech-savvy shoppers setting the pace in Canada

MARKHAM, On. — A new IBM global survey which included 4,000 Canadians reveals that Canadians are more loyal than most to their primary retailers. The study also revealed technology is giving Canadian shoppers a new source of power, driving an increasing need for retailers to engage them with more personalized promotions and offerings, and reach them via social media rather than relying strictly on traditional marketing.

The survey, which included an additional 28,000 consumers from five other countries, demonstrates how the changing economy is giving rise to the smarter consumer — one who uses technology to make more informed buying decisions, exchange information with peers, make purchases on-the-go and shop across multiple channels. Not only are consumers becoming more demanding, but they are also more willing to participate in the shaping and success of brands they like. Sixty-nine percent of Canadian respondents said they want to work with retailers to co-design new products and provide suggestions on services that better meet their personal needs.

Canadians ranked behind people from China, India, Brazil and the U.K. among those who said they would move their purchases away from their primary retailer because of better prices, product selection or customer loyalty programs. Only shoppers in the U.S. were less likely to shift purchases for those reasons.

The study also revealed that while shoppers are showing increased demand for multiple technology channels, they want to use different technologies for different activities.

• 84 percent want to use Web sites to access and print coupons.
• 75 percent want to use mobile phones to find out where the nearest store is located.
• 72 percent want to see what goods are in stock before going into the store.

"Canadian retailers need more sophisticated analytics of product and customer segmentation, at the household and individual level," said John Dawkins, IBM's Canadian retail sector lead. "The reality is most retailers have built a product-centric approach and have challenges when it comes to integrating constantly changing customer profiles though multiple touch points like call centers, kiosks, point of sale, employee interaction and mobile. In addition, new methods for integrating social media tracking and input are required to manage retailers' brand experience."

From the consumers' eyes, the top areas of improvement for retailers centered on delivering customized promotions and access to knowledgeable sales associates. The good news is 54 percent of respondents said they would spend more with a retailer if they got these two areas right.

When it comes to adopting new technologies to shop or make purchases, Canadians still favor Web sites as the most popular choice, at 48 percent, while in-store kiosks, TVs and mobile phones ranked 31, nine and four percent respectively.

However, for those willing to use their TVs for shopping, 51 percent were willing to use their TV remotes to make a purchase. For those willing to shop by mobile phones, 43 percent were willing to use texting to make a purchase. Sixteen percent of respondents said they were likely to follow a retailer on a social network such as Facebook or Twitter.

In Canada, those between the ages of 15 and 30 are the key influencers, as they are the most instrumented, meaning they desire two or more technologies to browse and purchase, are willing to try alternative channels and are likely to follow a retailer via social media.

"Retailers must constantly search for new and innovative ways to reach their customers and meet their demands. Building and maintaining customer loyalty is critical in the highly competitive retail market. Incorporating new technologies that enhance a customer's shopping experience go a long way toward solidifying brand loyalty and increasing sales," said Diane J. Brisebois, president and CEO, Retail Council of Canada.