Dive Brief:
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Retailers don’t have a good handle on the effectiveness of their digital strategies because they’re looking at “channel-specific sales” rather than gauging how digital connections are also influencing in-store sales, according to a new report from Deloitte Digital.
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In 2014 for example, in-store sales driven in part by mobile and web were $1.7 trillion, five times that of web sales, according to the report, “Navigating the New Digital Divide.”
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Deloitte says its research indicates that digital-influenced sales — sales in which consumers have used a device to shop at some point in the process — will account for well more than half (64 cents) of each dollar spent, a total of $2.2 trillion by the end of 2015.
Dive Insight:
While 6.5% of retail sales ($305 billion) took place online and 93.5% took place in stores ($4 trillion), many retailers and retail studies continue to focus on that divide. But this study shows that seeing those sales in terms of silos is interfering with the big picture and the role that the web and mobile play in driving sales in all channels.
That could have dire consequences for retailers as they shape their sales and growth strategies, according to Deloitte, a point made by "lean retail" software purveyors like FieldStack as well.
While smartphone use is up, for example, consumers are using them for inspiration and ideas, researching product information, accessing reviews, and making a purchase to pick up in store, and no longer just price comparisons, which are actually down. In fact, 76% of shoppers surveyed for the report say they interact with brands or products before going to the store.
When shoppers hit “buy” is not the most important moment, according to the report’s authors, and yet that is what retailers are focused on.
“Instead of measuring moments that matter during the shopping journey, retailers continue to focus on measuring the buy button – the point at which they actually have the least influence,” said Deloitte Consulting LLP director and study co-author Jeff Simpson in a statement. “Retailers that simply track channel sales and fail to measure the influence of digital along the entire path to purchase can miss key indicators of performance and customer behavior. Retailers should focus on designing and building customer experiences that play to how their customers are shopping for their products – rather than direct consumers to the point of purchase if what they really seek is inspiration or information.”