Consumer Behavior

Sidestepping survival mode: How to ease shopper anxiety, spending suppression

Richard Piper, business development director at Webloyalty, shares insight on how retailers can shape how a consumer will act at their online storefront by studying the tenants of behavioural science and discusses how brands can alter messaging, web design and the checkout process to improve the conversion journey.

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December 2, 2020 by Richard Piper

During one of the most turbulent years in retail history, there is much nervousness as we enter the winter of 2020 and a second lockdown. COVID-19 and its various retail restrictions have transformed the shopping experience into an anxious one, focused on essentials. So how can retailers ease 'shopper anxiety' and adapt to thrive in a world where retail therapy feels like a thing of the past?

Despite summer efforts to drive people back to the high-street, overall footfall has remained low. According to Springboard data, as of mid-October we were roughly -30% compared to pre-lockdown levels. However, in the days before the implementation of the second lockdown (week commencing Nov. 2) Springboard documented a footfall uptick of 17% compared to the week prior. Customers flocked to supermarkets and non-essential stores, driven by the fear of missing out.

We should now ask retailers: what have they learned from the previous lockdown in terms of prioritizing safety, maintaining stock levels and streamlining click and collect functionalities? Have they smoothed out all the teething issues before we plunge into the gift-giving season? According to a Statista report, 80% of high street shops offered click-and-collect options, increasing by 32% since 2019. Meanwhile, GlobalData stated the click-and-collect UK market is predicted to grow by a half by 2022, while accounting for 14% of online sales.

The perfect integration of online processing and in-store collection, the click and collect function maintained steady footfall whilst easing pressure on warehouses and expensive delivery services. Although stores will still be able to offer this, it is unclear whether this feature will continue to remain popular with customers throughout the unpredictable length of the second lockdown.

Whilst shutters close and retailers re-enter negotiation talks on rent and employee furlough schemes, profitability remains a looming priority. For brands that are reluctant to invest in their e-commerce platform, they are putting themselves at a disadvantage. There is opportunity to be mined by capturing the inevitable Christmas demand through a seamless online experience.

The run up to the holidays is always a crucial time for bricks and mortar stores. Traditionally, this is when we were most likely to see sponsored pop up stores, new product ranges, sales and ultimately larger spikes in footfall.

A Salesforce report showed 68% of worldwide consumers said 'COVID-19 elevated their expectations of companies' digital capabilities." This shift in expectation, indicates that buyer traffic will decrease if needs are not met. In this competitive final quarter, brands must ensure they have considered all aspects of their digital shopping experience to win back shoppers they will inevitably lose once physical stores close.

By studying the tenants of behavioral science, you can shape how a consumer will act once they visit your online store. Our "Digital Choice Report - Applying Behavioural Economics to Ecommerce" outlines how brands can alter messaging, web design and the checkout process to improve the conversion journey. Eventually nudging them toward a stress-free, self-indulgent spend.

When faced with intense uncertainty the human brain tends to rely heavily on the threat center (amygdala) and decision making (pre-frontal cortex) portions of your mind, which causes cortisone (stress) levels to spike.

In other words, lockdown activates a kind of survival mode. Restrictions can trigger primal responses such as stock piling, as consumers direct themselves towards purchasing essential items. This explains why supermarkets' profits have surged — as Tesco reported a 29% profit increase compared to the same period last year.

For non-essential retailers, there is still a need to drive conversion and maintain profits. As we barrel towards the onslaught of Christmas, it is more important than ever to offer consumers a pleasurable, shopping experience. This is imperative, as convenience and comfort release dopamine — the anxiety reducing "feel good" hormone.

ASOS is an example of a retailer who has managed to do this throughout the uncertainty, with profits surging by 329% to £142m for the year to 31 August 2020. This comes as a result of strong demand through the coronavirus pandemic. ASOS achieved this through ensuring its messaging was up to date and continuing to 'nudge' their customers via communication channels.

Our best advice to partners and retailers is to sidestep survival mode and use these insights to encourage spending where people feel the safest and most calm. In most cases in our second lockdown, that is on the sofa with tea and smartphone in hand.

Richard Piper is business development director at Webloyalty.