By Chris Lee

A new report has highlighted the growing role of the Internet in determining consumers’ buying habits. The report, “The changing face of UK retail in today’s multi-channel world” by consultants Experian, found that almost two-thirds (60 per cent) of food sales are influenced by online activity, while 10 per cent of consumers cross-reference prices via mobile Internet in-store to see if they can get a better deal elsewhere. The company calls these people “handset hagglers”.

Social networks are also becoming increasingly important in the way UK consumers shop in 2011. The report found that five per cent of the 2,000 consumers interviewed have actively sought feedback on a purchase from Twitter or Facebook, while four per cent will make a purchase based on an offer sent to them based on their location, such as via Facebook Places.

Offline still matters

Despite 60 per cent of the UK population enjoying regular access to the Web, consumers still love to shop offline, finding it practical, informative and fun, the report found. But online is having a big impact in shopping habits.

For example, Experian found that 40 per cent of respondents used price comparison sites before purchasing electrical or white goods. A fifth (20 per cent) of commodity-type purchases are influenced by online reviews, while voucher code sites are growing in popularity with 12 per cent of consumers admitting to being influenced by offers and collaborative buying sites, such as Groupon.

This migration towards online has caused retailers to focus on a multi-channel approach. In 2008 the majority of online purchases were from purely online retailers (51 per cent), but now this only accounts for 41 per cent, while the proportion of online sales to multi-channel retailers has increased from 49 per cent to 59 per cent, Experian said.

“Multi-channel retailing could save the high street,” according to Mark Zablan, Experian’s managing director of marketing services. “Experian’s own research shows that people still want to shop in stores, but that the way they want to shop is changing. They still like the experience of visiting the store, but will tend to walk through its doors better educated about what they might find there, having already used websites to research the products and services on offer.”

Top tips for retailers

Experian believes it is easier for retailers to sell to consumers who are already in their store, so retailers need to do all they can to get customers into the store and then use technology to enhance the experience once they arrive and to contact them with relevant offers.

“Online, there’s a need to make sure websites are user-friendly, well-managed and given adequate resources to provide a good online service and fulfilment experience. But it is also vital that retailers try to actively monitor and influence the reputation of their brand within social networking communities,” Zablan advised.

This underlines the need for retailers to do all they can to gain a deeper understanding of the customer through planning and marketing activities and interrogation of in-house and third party data sources, Zablan added.

“You need to know who your customers are, who they live with and what motivates them, as well as where, how and how often they shop,” he concluded. “Then you need to engage with those customers the way they would like you to engage with them, whether in the store, online, or via email, social media or their mobile devices.”