ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

WHAT COMES NEXT

IN THE OMNICHANNEL
EXPERIENCE?
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

CONTENTS

Executive summary 3
Background 5
The profile of modern shopping 7
Current perceptions of the omnichannel experience 10
Readiness for next stage of the omnichannel experience 13
The growing need for adaptive privacy 15
The store of the future 17
How can Acxiom help 19
About Acxiom 20

2
ACXIOM
EXECUTIVE SUMMARY
Rarely a month goes by without hearing one
of these phrases about the retail industry:
“retail apocalypse”, “death of the high street”
or “retail is going through an unprecedented
change”. These phrases hide more than
they illuminate. It conjures up the image
of an industry that is both helpless and
inexperienced, an industry that is too inflexible
to contend with the forces that define the
modern era. The reality is that retail has
overcome many significant challenges over the
last couple of centuries, and in doing so it has
taken on many forms.
1
Internet Sales as a Percentage of Total Retail Sales (ONS)
WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?
The retail industry is changing, but we should look at it as a further evolution
in one of the most successful, robust industries in modern history. The
future is omnichannel and, as in all previous eras of retail, there will be
some winners and losers. What determines those winners and losers will
never change. The history of retail has been the story of anticipating and
responding to changing customer needs, by carefully understanding the
economic, technological and legal changes that influence them, and by
simply listening to customers. This report will examine both.
We looked at a number of trends across a diverse set of topics: the
importance of reviews and desire for more authentic reviews, appetite
for alternative meats and hyperlocal food, interest in clothes made out of
recycled or unusual material, perceptions of the death of the high street and
the focus on the in-store experience. Review culture is real, the conscious
consumer is no longer a minority, and there are a range of views on what
the in-store experience needs. However, the focus of this report will be on
the omnichannel experience, particularly on what the development of IoT,
“hyper-personalisation” and other technologies and techniques will mean,
and how ready consumers are.
The most important technological trend of the last decade is, of course,
the growth of eCommerce. Just 3.4% of UK retail sales were made online
in 2007 and that had almost quintupled a decade later1. According to
our study, the average person now buys more than half of their clothes
online, increasing to two-thirds of Gen Z and Millennials. More than
half of shopping enthusiasts use their phone and PC to shop for non-
grocery items every other week or more. Online shopping is here to stay.
However, we shouldn’t conflate that with the idea that the high street is no
longer relevant.
3
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

Executive Summary

The majority of every generation is now an omnichannel shopper. Half of

Overall channel shopping proportions by generations shopping enthusiasts go shopping Socialin-store,
shoppingon their phone and on their
PC every month for non-grocery items. Younger generations prefer online
shopping, but few consider “the death of the high street” to be a sign of
Gen Z (16-22) 64.3 37.5 Every day 5%
progress, instead most think retail is an important part of the economy.
3-6 times per week
When people do visit retail stores, most 5% people still go to the high street.
Millennials (23-38) 63.2 36.8
1-2 times per week 7%
Gen X (39-54) 52.4 47.6 Looking ahead tocouple
Once every newoftechnology,
weeks most shopping
12% enthusiasts think IoT can
Baby Boomers (55-73) 41.0 59.0
improve their in-store experience, and they are open to sharing their data to
Once a month 12%
create more personalised in-store and online experiences. However, many
The Silent Generation (74+) 33.4 66.6 of them expressed a Less often
desire for clear consent and the ability26%
to set controls
on what information could Neverbe used. A notable minority would reject some
34%
Online Solo In-Store new forms of “hyper-personalisation”.

According to Deloitte
Clothes we are entering a new
shopping Perceptions of fastof
era where misuse
personal data is now
omnichannel a more important reason to stop usinginto
purchasing fashion moving a company
Non-grocery item shopping frequency bricks-and-mortar
than exploiting overseas workers or environmental damage2. This is the

50%
era of retail everywhere, no longer about a location or a channel, and
On your PC / laptop / tablet 5% 11% 23% 21% 16% 17% 7%
which requires the development of adaptive retail3 – carefully balancing
22%
On your phone 7% 11% 17% 18% 13% 15% 18% personalisation with privacy.
33.1% 32%

of shopping
In-store %3 9%enthusiasts
22% go31%
shopping22% 1
11% % 48.5%
While many shoppers are keen for technology23% to make shopping easier,
in-store, on their phone and on their quicker and more fun, and coffee shops, tailors and new experiences are a
10.8%
7.6 34%
PC every month for non-grocery
Every day
3-6 times per week
Once a month
Less often
items. welcome addition%for many, fundamentally what they value about the
in-store experience is the human touch. Friendly, knowledgeable staff who
1-2 times per week Never
Once every couple of weeks can provide inspiration
Buy online, goes
get delivered a long way. The more shops, the better!
to home
Buy online, pick-up in-store
If the best shops can create a new, better
Browse in-store, buy online shopping experience, I would go in-store more
Browse in-store, buy in-store
I’m sceptical that it’s a good idea, but I would
definately see what new ideas they can bring

I think they should stick to what they’re good at,

we have enough shops

2
Risky Business (Deloitte)
3
Integrating Digital is the Latest Retail Industry Challenge (Accenture) 4
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

BACKGROUND

A nationally representative sample of 4,000 people were surveyed to
measure some of the established megatrends – environmentalism,
desire for authenticity, connected worlds creating disconnected
societies – and explore how they connect to sector-specific trends.
This was within 6 key sectors:
1 Automotive
The overarching objective was to understand what direction society is
moving and how businesses in these industries should prepare for this,
both in terms of risk mitigation and innovation.
This was followed up by surveying a sub-section of the population in each
industry that were particularly close to the trends, to dig deeper into
what is driving them and understand what the early adopters or enthusiasts
believe are most worthy of attention. The sub-section included:

2 Consumer electronics
Car enthusiasts
3 Financial services
Fintech users
4 Telecoms

Shopping enthusiasts
5 Retail

6 Travel
Cord-cutters

Authentic travellers

Digital detoxers

5
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

BACKGROUND
In this case, the focus is on shopping enthusiasts. You can find a profile of
them below. They will be the key feature of analysis, as we asked them the
most probing questions, and their interest in the subject allowed them
to give more thoughtful answers than your average person. SHOPPING
ENTHUSIAST
A secondary feature of the analysis will be the nationally representative
audience, with a particular focus on how attitudes and behaviours differ
across generations. This will be supported by secondary research from a
variety of sources, to provide an international and historical context with
hard numbers where possible. They will be cited throughout the report. They spend
on average 78 days
shopping on their
More female, slightly PC / tablet, 77 days on
younger but present their phone and 68 days
across all generations in-store, and the
majority go shopping
monthly on all three
channels

Profile of each generation from the nationally representative survey

Gen Z Millennials Gen X Baby Boomers The Silent

Generation

Years born 1999-2004 1981-1996 1965-1980 1946-1964 1928-45

Age 18-22 3-38 39-54 55-73 74-91
Relationship status Mostly single Mostly married Mostly married Mostly married Mostly married
Working status Mostly students Mostly employed full time Mostly employed full time Mostly retired Mostly retired
Independence vs.
Obedience Independence Independence Independence Mixed Obedience
Security vs.
Convenience Mixed Mixed Mixed Security Security

6
 Gen Z (16-22) 64.3 37.5

Millennials (23-38) 63.2 36.8

ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?
Gen X (39-54) 52.4 47.6
Once

THE PROFILE OF MODERN Baby Boomers (55-73) 41.0 59.0

SHOPPING
The Silent Generation (74+) 33.4 66.6

Online Solo In-Store

The growth of eCommerce has been a definitive story in modern Clot

retail. It accounted for 19% of sales in 2019 and is predicted to omnich
Non-grocery item shopping frequency
reach 28% in 20234, and possibly as much as 35% of sales in 20255.
One driver of that is the growth of internet access, from 61% of the On your PC / laptop / tablet 5% 11% 23% 21% 16% 17% 7%
population in 2007 to 93% in 20196. The smartphone supercharged
On your phone 7% 11% 17% 18% 13% 15% 18%
that, growing from 17% penetration in 2008 to 78% in 20187. It
started off as a luxury and soon become a luxurious necessity, 3 9%
In-store % 22% 31% 22% 1
11% % 48.5
much like shopping a century ago.
Every day Once a month
It is thought that most eCommerce still takes place on a desktop, but 3-6 times per week Less often
the industry has struggled to put an exact figure on that, with estimates 1-2 times per week Never
Buy on
Once every couple of weeks
varying from 72% of sales8 to 49%9 in 2018. Our research suggests that Buy on
shopping enthusiasts still use their PC / laptop / tablet more often than Brows
their smartphone, but the gap is small. 39% of shopping enthusiasts Brows
Overall
shop weekly channel
on their shopping
PC / laptop proportions
/ tablet while 35%by dogenerations
so on their phone. Social shopping
76% of them use their PC monthly compared to 67% on mobile. The
broad trend thatGen everyone
Z (16-22)
agrees on is that
64.3 mobile shopping 37.5
is the fastest Every day 5%
growing area, and mobile will eventually overtake desktop as the primary
3-6 times per week 5%
online shopping channel.
Millennials (23-38) 63.2 36.8
1-2 times per week 7%
Gen X (39-54) 52.4 47.6
Social shopping remains relatively niche, as more than half of shopping Once every couple of weeks 12%
enthusiastsBabyhave never
Boomers tried it while
(55-73) just a quarter of them59.0
41.0 have shopped Once a month 12%
monthly. However, the seamless experience and integration with daily life Less often 26%
The Silent Generation (74+) 33.4 66.6
lends itself to potentially the greatest intensity of shopping – 11% go social
Never 34%
shopping weekly, compared to 12% in-store. In other words, for a large
Online Solo In-Store
proportion of those that have tried it, they’ve been hooked. It is a potentially
huge growth area.
Clothes shopping Perceptions of fast
omnichannel purchasing fashion moving into
Non-grocery item shopping frequency bricks-and-mortar
4
Global eCommerce
On your PC2019 (eMarketer)
/ laptop / tablet 5% 11% 23% 21% 16% 17% 7%
5
Retail 2025 (Retail Think Tank)
6
Internet Access – Households and Individuals, Great Britain: 2019 (ONS) 22%
7
(Ofcom) 7% 11%
On your phone
A Decade of Digital Dependency 17% 18% 13% 15% 18%
33.1% 32%
8
Global Payments Report 2018 (WorldPay)
9
Global Commerce Review, United In-store 3 9%
Kingdom, Q1 2018 (Criteo)
22% 31% 22% 11% 1 48.5% 7
% % 23%
10.8%
 Overall channel shopping proportions by generations Social shopping

Gen Z (16-22) 64.3 37.5 Every day 5%

ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?
3-6 times per week 5%
Millennials (23-38) 63.2 36.8

The profile of modern shopping

1-2 times per week 7%
Gen X (39-54) 52.4 47.6
Once every couple of weeks 12%

Baby Boomers (55-73) 41.0 59.0 Once a month 12%

Less often 26%

The Silent Generation (74+) 33.4 66.6
Never 34%
Online Solo In-Store
However, we should not conflate the rapid growth of eCommerce with
the demise of in-store shopping. More shopping enthusiasts shop Perceptions of fast
Clothes shopping
in-store for non-grocery items every couple of weeks than on their fashion moving into
omnichannel purchasing
phone or PC. Let’sNon-grocery item
consider some of shopping
the facts: frequency bricks-and-mortar

• Even 5 years
On your ahead
PC / laptop the5%in-store
/ tablet 11% market
23% is expected
21% to account
16% 17% for
7%
22%
two-thirds On ofyour
retail, if not
phone 7% 11%
more10
.
17% 18% 13% 15% 18% 32%
33.1%
3 1
• Just under half of all clothes
In-store % 9% are
22%bought in-store
31% after 22%
browsing
11% % 48.5%
23%
in-store, and only 6% of the population buy their clothes 10.8%
7.6 34%
exclusively online. Every day Once a month %
3-6 times per week Less often
1-2 times per week Never
• More than three-quarters of shopping enthusiasts
are keen for
Once every couple of weeks Buy online, get delivered to home The more shops, the better!
online-only fashion stores to open physical stores, and more than Buy online, pick-up in-store
If the best shops can create a new, better
half would shop more if the best shops can create a new, better Browse in-store, buy online shopping experience, I would go in-store more
shopping experience. Browse in-store, buy in-store
I’m sceptical that it’s a good idea, but I would
definately see what new ideas they can bring
• Among shopping enthusiasts who shop online more frequently than I think they should stick to what they’re good at,
in-store, half of them consider the online and in-store experience we have enough shops

equally as good.

Just one-tenth of the population think that “the death of the high street”
is a sign of progress. A third of the population think the high street was
a local hub for the economy, and it needs saving. Most of the population
fall somewhere in the middle, in that they think the high street is an
important part of the economy, but online shopping is more convenient.
There are generational differences, where the vast majority of Gen Z and
Millennials are somewhere in the middle, while a relative majority of Baby
Boomers and the Silent Generation believe more needs to be done to
protect the high street.

10
Retail 2025 (Retail Think Tank) 8
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

The profile of modern shopping

In other words, support for the high street is still strong, but it will not
survive on sentiment
Online alone. The value,
vs. In-store scale andexperience
shopping convenience of online Importance of retail stores by generations
shopping is a strong pull for (online most people, and that is only going to grow
shoppers)
over time. Stores need to work with online shopping rather than against
it to thrive in the modern era
I prefer the of retail. Most shopping
online
34% enthusiasts now
Gen Z (16-22) 16% 67% 17%
shopping experience
use their PC, phone and stores to shop every month, and nearly half of 18% 63% 19%
Millennials (23-38)
Millennials and Gen I thinkZthey’re
shopequally
on all three channels every couple48% of weeks.
as good
The future is omnichannel, and the good news is, shopping enthusiasts Gen X (39-54) 10% 60% 30%
I prefer the in-store
are generally positive about the omnichannel
shopping experience 15% shopping experience on
Baby Boomers (55-73) 6% 48% 46%
offer in the UK.
I don’t care about the
3% The Silent Generation (74+) 4%
shopping ‘experience’ 44% 52%

It’s a sign of progress - online shopping is better, and retail can’t keep up

Importance of It’s a bit of both - online shopping is better, but retail is an important part of
the economy/society
retail stores
It’s a major problem - not long ago the high street was a local hub for the
economy, socialising. etc, and we need to save it

11%
32%
Shops with the best omnichannel experience

57%
M&S 11%
Next 11%
It’s a sign of progress - online shopping is Amazon 10%
better, and retail can’t keep up
John Lewis 7%
It’s a bit of both - online shopping is better, New Look 6%
but retail is an important part of the
economy/society Asda 5%

It’s a major problem - not long ago the high Debenhams 4%

street was a local hub for the economy, Tesco 4%
socialising, etc. and we need to save it
H&M 3%
Primark 3%

9
 48%
as good
Gen X (39-54) 10% 60% 30%
I prefer the in-store
shopping experience 15%
Baby Boomers (55-73) 6% 48% 46%
ACXIOM I don’t care about the
3% WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?
shopping ‘experience’ The Silent Generation (74+) 4% 44% 52%

CURRENT PERCEPTIONS OF THE It’s a sign of progress - online shopping is better, and retail can’t keep up

OMNICHANNEL EXPERIENCE
Importance of It’s a bit of both - online shopping is better, but retail is an important part of
the economy/society
retail stores
It’s a major problem - not long ago the high street was a local hub for the
economy, socialising. etc, and we need to save it

11%
Most shopping 32% enthusiasts are generally happy with the current
omnichannel experience. Only 14% of shopping enthusiasts Shops with the best omnichannel experience
“did not pay much attention to” whether shops offer a “seamless
experience” in-store 57% and online. Among those that do pay attention
M&S 11%
to it, almost half of shopping lovers said “most” or “all” of the shops
Next 11%
they use regularly provide a seamless omnichannel experience,
It’s a sign of progress - online shopping is Amazon 10%
while 82% of shopping enthusiasts more broadly think at least
better, and retail can’t keep up
some of them do so – few think not many of them do. John Lewis 7%
It’s a bit of both - online shopping is better, New Look 6%
but retail is an important part of the
While most marketers’ discussions rightly
economy/society focus on the challenges in Asda 5%
the market’s omnichannel
It’s a major offerings,
problem - not long ago the high there is some evidence to back up Debenhams 4%
the suggestion
street was a that UKforretailers
local hub are doing relatively well in providing an
the economy, Tesco 4%
socialising, etc. and we need to save it
omnichannel experience. Order Dynamics’ Omni-1000 study found that H&M 3%
UK retailers offer the most mature omnichannel experience of those Primark 3%
studied, based on the in-depth review of 200 British websites, including
policies and capabilities of retailers to deliver on services like in-store pickup
orders, return in-store capabilities, and the level of inventory visibility
provide11. In the search for perfection, we should celebrate the successes

14%
along the way.

Who do shoppers look to as having the best omnichannel experience?

M&S, Next, John Lewis, New Look...and Amazon. At this point it should
be recognised that the distinctions made in the omnichannel experience of shopping enthusiasts “did not pay much
are not that clearly drawn for customers, in the way they are for marketers. attention to” whether shops offer a “seamless
Amazon allow people to buy things online and pick up from an “Amazon
experience” in-store and online
Locker”, and they allow you to return things seamlessly at the post office.
These physical spaces are what signal to some customers that Amazon

11
Omni-1000 Global (Order Dynamics) 10
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

CURRENT PERCEPTIONS OF THE

OMNICHANNEL EXPERIENCE

RETAILERS
provide an online and offline experience, and any further distinction is
superfluous to them. When designing the ideal omnichannel experience,
we shouldn’t lose sight of that.

What is it that shoppers think is good about the omnichannel experience

in other brands? Delivery speed, ease of click-and-collect and in-store
returns, well designed websites designed to aid the online and offline
+ SHOPPERS
shopping experience, and a website that feels like the in-store brand priorities are for the most part well aligned
does. In other words, for the most part retailers and shoppers’ priorities
are well aligned.

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ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

Q: What is it that you particularly like about what

they do (in the omnichannel experience)?
“
Style ideas on website and social media helps me manage my
expectations and search in store. Guides me to choices may
not have made otherwise.

“
Seems like website and store complements each other.

John Lewis
Good range, return to store, click & collect etc and some
consistency of products.

Easy to view online web page. Good delivery to store for click
and collect. Good range of products in store, both clothing
and food items.
They are very good at getting clothes etc in store for you if you
don’t buy online [and] if they don’t have your size, they do the
utmost to get them for you.
M&S
“
Shops generally have quite a lot of stock in and the website is
really well laid out.
How they personalise things, lets you try before you buy and
offers a return period for online items you buy if you decided you
no longer want the item of clothing.

New Look

“
“
The feel of the store environment feels the same online with
good imagery of the clothes they offer and detailed information
about products.
Asda have an amazing range both in store and online and all their
Fast delivery so if you can’t find your size in store you can definitely deals are available using both shopping ways.
order online and be wearing it the next day.
There is so much choice online and you can click and collect
Fast delivery, option to pay on account, friendly staff in store. within a few days.

Next Asda

12
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

READINESS FOR NEXT STAGE OF

THE OMNICHANNEL EXPERIENCE
What is the next stage of the omnichannel experience?
Accenture has placed the development of digital retail
into four distinct eras: scientific retail, customer centric Accenture has placed the development of digital retail
retail, seamless retail, and adaptive retail12. First there were into four distinct eras
optimisation of the product and price offering, then targeting
those offerings at customer segments, and now we’re at the
stage where customers use technology to shop when they
want across various channels. 1. Adaptive retail
Era of retail everywhere
Retailers will need to be agile, fast, nimble and adaptive.

What comes next is yet to be defined, but it involves a couple of

key themes: where and when people are able to buy will become
even less important, retail will be everywhere, and so to thrive in 2. Seamless retail
that environment retailers must not only be reactive but adaptive to Era of omnichannel
changing customer needs. Customers began to take control of their experience, shopping
when it is most convenient for them across various channels.

The drivers of this are the evolution of customer expectations and

3. Customer centric retail
preferences, and the emergence of new technologies (AI, IoT)
and techniques (personalisation, “segment of one” marketing). It Era of segmentation
Understanding the attributes of the customer – how, when,
is debatable how mature these technologies and techniques are, what they buy – and using analytics to optimise price,
and how far along the use cases are for applying them in a way assortment, promotions and space.

that improves the customer experience, but we know they will be 4. Scientific retail
required to get to that next stage.
Era of optimisation
Optimisation across assortment, price, promotion
and space. Analytics drive more accurate, faster
So, we asked shopping enthusiasts about their attitudes towards and more reliable decision making.
some of these developments, to assess their readiness for this next
stage and provide guidance on what the customer expectations are.
How comfortable are they with some of the general principles, and
what specific outcomes would they be most interested in?

12
Integrating Digital is the Latest Retail Industry Challenge (Accenture) 13
ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

Readiness for next stage of the

omnichannel experience
Very few people are negative about the prospect of IoT becoming a part
of everyday life. People can see the convenience it will bring, the stress it Other new tech that would improve retail
will remove, and they’re excited about the fact it can create more free time. experience by shopping enjoyment
However, a minority are worried because they have concerns about privacy,
security and becoming more dependent on technology and we should be
Smart mirrors (e.g. the ability to select an 34% I’m ver
conscious of their concerns as the technology is developed and employed. item and see how it looks on you using AR) 35% me, bec

Personalised recommendations (e.g. as you

Most people think IoT would improve the retail experience in some way. walk into a store, you will be sent a message 33% I’m ha
23% becau
The most popular application of IoT was the use of smart devices that saying this item is just in stock, this item is...

you can ask questions to (e.g. “do you have any more of this in size x”?), In-store reviews (e.g. you could use some
30% I tole
using IoT to recognise where the device was situated in relation to the Augmented Reality (AR) device provided
in-store, or an app on your phone, to get...
24%
other products, while allowing the customer to be in control by starting
Customer-designed 3D printing (e.g. you
the conversation. A much smaller proportion of people positive about IoT could custom-design something in-store that 26%
19%
recognising them as an individual in-store, even if it is to help guide people day and pick it up later) I actively

to what they’re looking for. The concerns about invasiveness and control AI consultants (e.g. you could tell a device that
24%
are present even in their retail applications. In between them, many people you’re going to cook a particular meal, and
18%
they would suggest the best wine for...
think using IoT to move stock more efficiently or more intelligently would be
4%
Other suggestions
beneficial. 2%

19%
None of these
It should be noted that shopping lovers are more open to IoT recognising 29%
them than those interested – people are more willing to compromise for
things they really like. This is true for personalisation techniques too. People I love it, it’s my favourite thing to do I like it a lot, but prefer other things
who are interested in shopping are slightly more interested than shopping
lovers in smart mirrors – devices that allow you to try something on in
the mirror using AR. Besides that, shopping lovers are more interested
in everything: using AR to review the things you’re looking at in-store,
customer-designed 3D printing, AI consultants. They’re particularly
interested in personalised recommendations (e.g. as you walk into a store,
you will be sent a message saying this item is just in stock, this item is on
offer, or this item can be found here).

14
 ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

THE GROWING NEED FOR

ADAPTIVE PRIVACY
When asked how they would feel about retailers using a device
like their phones to recognise them as they walk through the store,
almost a quarter would reject it outright. This is a firm reminder that
we need a flexible approach to privacy to cater to everyone. Of the
three-quarters that are open to it, many would want each retailer
to ask them before using it, and others would want to set controls
on what information can be used – they are more prominent in
shoppers’ minds than improving the customer experience.
Of course, privacy is not a fixed, static concept. As shoppers grow more
familiar with these newer techniques and technology, the more they will
begin to look at the benefits it brings to their lives – as long as it’s used
responsibly. More than half of shopping enthusiasts are happy for shops to
use first-party behavioural data to provide better products and services for
them, while just under half of them would consent to sharing 2nd party data
among e.g. M&S, Google and Argos to provide a more complete portrait
of the purchase journey. A general acceptance of these practices builds
over time.

Attitudes towards using first-party

behavioural data
More than
half of shopping enthusiasts are happy for
34% I’m very happy for them to know more about shops to use first-party behavioural data to
35% me, because it means I can buy more things I 24%
like and spend less effort doing provide better products and services for them
3% I’m happy for them to know more about me,
because it makes things better for me, but it 31%
does make me uncomfortable

% I tolerate them doing this, but would prefer

they didn’t
I’m not bothered either way
I actively try and prevent them from doing this,
7%
and find it a bit creepy
Other (please specify) 1%
26% Very few shoppers would actively try and prevent these techniques being
used, but we should be conscious that a significant portion of people are
11%
uncomfortable with the idea of personalisation more generally and would
prefer they weren’t used currently. As these techniques become more
personal and begin to enter the physical space, retailers need to do more
to communicate the value of these techniques and put the real shopper at
the centre of all personalisation strategies.

gs
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ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

THE GROWING NEED FOR

ADAPTIVE PRIVACY
There is reason to believe that there is now an increased consumer
consciousness about personal data and privacy as a result of high-profile
data breaches, misuse of data, and the introduction of GDPR. In a study

Increase≥
conducted by Deloitte in 2015 and 2018, they noted a sharp increase in
the number of people saying they were concerned about online retailers,
supermarkets and almost every other kind of company having access to
their personal information. More significantly, more people said misuse of
their personal data would make them consider not using that company
again than if they were exploiting overseas workers, damaging the
environment or even charging higher prices13.
in the number of people saying they were
concerned about online retailers, supermarkets
So, on top of a flexible approach to privacy, understanding your customer and almost every other kind of company having
is critical too. These varying attitudes to privacy and personalisation need access to their personal information.
different communication styles to both persuade customers that it is in their
best interests, and more importantly to avoid putting off customers from
your brand for seeming overly invasive or more interested in your needs
than theirs.

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Risky Business (Deloitte) 16
ACXIOM
THE STORE OF THE FUTURE
Retail stores remain the primary shopping channel for most
products and most generations. Few people see “the death of the
high street” as a sign of progress. Most shoppers are keen for pure
play retailers to build physical stores and provide new experiences.
In other words, the evidence is clear: shoppers do not long for a
future where all shopping takes place online.
However, that does not mean that retail stores will be able to thrive on
shopper sentiment alone. There needs to be a renewed focus on their
distinctive strengths to survive in an increasingly competitive environment.
When asked what they would like stores to do more of, these shoppers’
views encapsulated two sides of one of the key themes – the need for a
distinctive experience:
“
They’ve been beaten on convenience... trying to compete
in a convenience market is a silly idea. They should focus
on experience, tailored experiences.
“
Anything that is more original, different, customer oriented
and not the endless chains that are the same wherever
you go, where the company and the staff couldn’t care
less about the customer.
WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?
However, shoppers are a diverse group of people and they had a range
of ideas on what retail stores should do more of:
• Many people revert to functional needs – shorter queues, friendly
customer service, click and collect offerings, good stock levels, less terrible
music, no gender-neutral changing rooms or bathrooms.
• Some people want more of what is being added currently – coffee
is always good, refreshments are appreciated, personal shoppers are
welcome, WiFi is always handy.
• Some believe there is an opportunity for an environmental angle –
visible efforts to reduce packaging, more transparency on the supply chain.
• Some believe that there is an opportunity to go local – online is
for global products, so why shouldn’t your local high street store emphasise
local products?
• A few people mention the high rents and taxes squeezing out
independents in the 80s, and this needs to be reversed to allow for
more authentic styles to pop up and create a new vibe.
Underpinning many of these ideas is the investment in an experience – a local
experience, an authentic experience, a friendly experience. This is not a new
idea, of course. Mr Selfridge’s proclamation over a century ago that “A store
should be a social centre, not merely a place for shopping” is as relevant now
as it ever was. However, it is becoming an increasingly differentiating factor,
between online shopping and in-store shopping, and between the winners
and losers on the high street. Value, convenience and experience have been
the driving force of most major retail trends of the last century, and retail stores
have the best tools to provide the greatest experience.
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Emerging technologies and techniques can add to that experience:
• Customer-designed 3D printing, in which customers can use a 3D
printer in-store to design their own unique products and come back later
that day to pick it up.
• In-store reviews, in which customers can use some kind of AR device-
provided in-store or an app on their phone, to get reviews for products
they’re looking at.
• AI consultants which customers can e.g. tell a device that they’re
going to cook a meal, and it will suggest the best wine to go along
with it.
• Personalised recommendations as customers walk into a store, e.g.
receiving a message saying this item is just in stock, this item is on offer,
or this item can be found here.
• Smart mirrors that allow customers to see how an item looks on you,
scrolling through a greater range of clothes than would be otherwise
possible and even having AI provide personalised recommendations.
• IoT-connected voice assistants around the store to give contextually
relevant advice.
WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?
We asked shopping enthusiasts about all of these things, and the appetite
for more technology to improve the shopping experience is there. One
important element that needs to be built into the technology-aided
shopping experience is the idea of serendipity, or the practice of discovery.
Whether it is personal shoppers or AI-consultants, shoppers want them to
provide guidance and inspiration, they don’t want the decision to be taken
out of their hands by algorithms or anyone else. When moving forward
with new technology, we shouldn’t lose sight of what makes the shopping
experience so engaging in the first place.
To thrive in the next stage of the omnichannel experience, retailers will
need access to more timely, accurate data, in-store and out. The growth
of 5G and IoT over the next decade will provide the infrastructure to do
so, and shoppers are willing to share their data if it improves the shopping
experience, but brands will need to invest in their own data infrastructure
to capitalise on that. In an industry that runs on notoriously low margins,
it is likely that there will be a need to reduce to grow. Downsizing stores
and closing underperforming stores may be necessary to decrease the
overheads and fixed costs and provide the necessary flexibility to invest
elsewhere. If that investment is directed towards a truly differentiated
experience, an exceptional level of service fuelled by a deep understanding
of your customers’ needs, the future is bright.
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ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

HOW ACXIOM CAN HELP

Acxiom solutions can help you better connect with the

retail consumer by helping your organisation:

Deliver personalised, Improve long-term customer Model and Reach Ideal Recognise customers across
relevant experiences to your value and retention Audiences digital and offline channels
customers across all channels

Acxiom solutions will provide
a scalable customer data
environment that integrates your
omnichannel data sources in
a privacy-compliant manner to
provide a complete view of
your customer.
Using predictive “next best
product” analytics leveraging
transaction data with third-party
enhancement to target existing
customers with the right
cross-sell/up-sell offer.
Analytics services that combine
third-party data, multiple audience
lists, and your customer data
to identify predictor variables of
response and develop automated
digital look-alike models.
Increase conversion and deliver
a better brand experience by
onboarding offline customer and
prospect data for people-based
targeting and measurement
across digital touchpoints.

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ACXIOM WHAT COMES NEXT IN THE OMNICHANNEL EXPERIENCE?

ABOUT ACXIOM
Acxiom enables people-based marketing everywhere through a simple, open
approach to connecting systems and data to drive better customer experiences
for people and greater ROI for business. A leader in identity, customer data
management and the ethical use of data for more than 50 years, Acxiom now
helps thousands of clients and partners around the globe work together to
create millions of better customer experiences, every day.

For more information

Visit: www.acxiom.co.uk/how-we-can-help/retail
Email: ukenquiries@acxiom.com

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