“This year’s results show us how important the in-store experience can be in influencing shopper behavior. Even though we can’t take our eyes off the enormous digital opportunities ahead, we must also focus on the role that associates, in-store signage and experiential factors play in driving major purchases.”
Toni White, Synchrony Financial, Chief Marketing Officer
This white paper will share the results of Synchrony Financial’s Fourth Annual Major Purchase Consumer Study. This annual study looks at the consumers’ shopping journey for major purchases of $500 or more.
Collecting four years of data has allowed Synchrony to measure behavioral and attitudinal trends across 14 differentproduct categories, which include…
Consumers surveyed in this May 2015 online survey spent at least $500 on a single transaction in one of the 14 major purchase categories in the preceding six months.
Study conducted by Rothstein Tauber, Inc. on behalf of Synchrony Financial.
Synchrony Bank Major Purchase Cardholders: used a Synchrony Bank credit card to make their most recent major purchase over $500
Random Major Purchase Shoppers: Did not use a Synchrony credit card to make their recent major purchase over $500
Major Purchase Shoppers: all respondents combined
Evolution of the Path to a Major Purchase
The following graphic illustrates how consumers behave and engage with various tools throughout the major purchase journey.
The major purchase journey is getting shorter, digital behavior has stabilized
and the in-store experience matters more than ever.
Major purchase shoppers becoming more decisive
In-store vs. Online
Role of Digital
*Category specific reports and insights available upon request
Top Reasons for Purchasing In-store
Importance of In-store Experience
Value of Financing
75% of Synchrony Bank Cardholders always seek promotional financing options when making a major purchase
89% of Synchrony Bank Cardholders feel promotional financing makes their large purchases more affordable
53% of random major purchase shoppers say they would consider financing if it meant they could bring the product home the same day
Synchrony Bank Cardholders reported spending $547 more (35% higher) on average than random shoppers.
Financing Drives Incremental Sales
Without the availability of financing retailers could lose sales and market share. Survey results show that 45% of Synchrony Bank Cardholders said they wouldn’t have made the purchase or would have gone to another retailer if financing was not available.
Key Trends and Recommendations
Shoppers are taking less time to shop for major purchases.
Recommendation: Consider grabbing the opportunity to drive more traffic to your store by implementing targeted online advertising and real-time responsive marketing efforts. Consider messaging around “the time is now” or communicate price matching opportunities to help close the sale.
Digital behavior has stabilized in many big ticket categories.
Recommendation: Develop an omni-channel strategy that would allow shoppers to experience the product in-store but then make it easy for them to order and buy online. Advertise financing options on your website and use in-store mobile behavior to your advantage by offering quick item look-up options on tablets throughout the store.
The in-store experience matters more than ever.
Recommendation: Ensure you are hiring the best talent and that employees are trained on the latest product offerings and promotions. Having experts who are knowledgeable is critical to a good experience. Also consider adding ane xperiential element in-store that will help you differentiate your business from the competition down the street.
At Synchrony Financial, we engage with our customers through advanced analytics and insights, bringing a deeper evel of understanding and relevance to retailers.
For additional insights from Synchrony Financial, click here.
Author: Ronda Slaven—Market Research & Competitive Intelligence Leader
Contributors: Toni White—Chief Marketing Officer
©2015 Synchrony Financial. All rights reserved. No reuse without express written consent from Synchrony Financial.