Raydiant Releases 5th Annual State of Consumer Behavior Report, Highlighting Lasting Appeal of Physical Retail

SAN FRANCISCO, February 6, 2024 (Newswire.com) - Raydiant, the leading in-location Experience OS for retail and restaurants, today published its 5th annual State of Consumer Behavior Report. This latest edition is based on a survey of 1,000 consumers, continuing a research initiative that began in 2020 to track the evolving preferences and behaviors of U.S. shoppers across both digital and physical retail environments.

This year’s findings continue to track the evolution of U.S. consumer shopping preferences, emphasizing the sustained importance of physical retail experiences alongside the convenience of online shopping.

Bobby Marhamat, CEO of Raydiant, said, "Five years of consumer behavior research have significantly deepened our understanding of the retail landscape. A consistent insight from our studies is the undiminished importance of in-store experiences. Despite the growth of e-commerce, consumers continue to value the unique aspects of physical retail."

Key Findings from the 2024 Report:

• Shopping Preferences: 49% of respondents prefer shopping in physical stores, citing the enjoyment of in-person experiences and the ability to see and touch products. Conversely, 51% prefer online shopping for its anytime, anywhere convenience and speed.
• Value of In-Store Experiences: 85% of consumers find in-store experiences to be "very important" or "important." Moreover, 92% would return to a store after a positive experience, and 60% are inclined to spend more following such experiences.
• Impact of Negative Experiences: Half of the respondents have discontinued purchases from a brand after one negative experience. Additionally, 86% are likely to share their negative in-store experiences with others.
• Influences on In-Store Experience: The largest factors affecting the in-store experience include product selection and variety, customer service quality, and store layout.
• Encouraging Physical Store Visits: Exclusive in-store discounts and engaging shopping experiences are key motivators for consumers to shop offline.

Trends 2020-2024:

• Preference Dynamics: The preference between online and in-store shopping has fluctuated, with physical stores seeing renewed preference in 2023 after online shopping peaked during the pandemic years.
• Growing Importance of In-Store Experience: The value placed on in-store experiences has grown from 69% in 2020 to 85% in 2024.
• Consumer Forgiveness: While a bad experience can deter customers, there is an increasing trend towards forgiveness, with fewer respondents in 2024 saying they would stop shopping with a brand after one bad experience compared to 2021.
• Online Impact of Positive In-Store Experiences: The likelihood of online shopping after a positive in-store experience has slightly decreased, indicating potential challenges for omnichannel strategies.
• Key Shopping Factors: Price remains the primary factor influencing shopping decisions, followed by convenience and product availability.
• Driving In-Store Traffic: Exclusive discounts and enjoyable in-store experiences have been consistently highlighted as top methods to attract customers to physical stores.

Marhamat concludes, "Our continuous research illustrates that despite evolving consumer preferences, the essence of retail remains constant: the value of experiences. As we move forward, the focus for retailers should be on enhancing these experiences to meet and exceed consumer expectations."

Access the full report: https://insights.raydiant.com/consumer-behavior-report-2024 

Source: Raydiant