Consumer electronics: customer involvement levels are key

In fact, this is the reality of the retailing environment for consumer electronics.

The staggering pace of innovation in the category coupled with the long purchase cycle for the majority of its products means that this has become a purchase environment that consumers can find both confusing and frustrating.

Innovative, rapidly changing categories

Using the example of mobile phones, TNS data from last year shows 193 models achieved greater than a 0.1% penetration in the UK market (a substantial increase from 88 in 2003) and more than half of these were completely new models to the market.

With purchase cycles being on average 2.5 years, this means that every time a shopper returns to the mobile phone category, up to three-quarters of it has changed.

The purchase cycle length is even longer for white goods consumer electronics categories such as fridges. That means that though innovation may be slower, a similar proportion of the category is likely to have changed during the period of time in which the consumer has been away.

Before feeling too sorry for our confused consumers we should remind ourselves that there are those who find this type of category involving and actively enjoy staying on top of latest trends and developments.

Although not entering a store unprepared, these individuals present their own challenge to in-store staff, who have to keep right up to date with their knowledge.

Differences in category involvement

We believe that one of the key ways retailers can maximise sales in this environment is by understanding the level of involvement a consumer has in the category and using it to your advantage through the selling process.

In a recent TNS Technology survey focussed on the mobile phone category, we interviewed 17,000 consumers and uncovered major differences in involvement across 30 different countries.

In developing markets where consumers are less experienced and the mobile phone is more likely to be the primary device for imaging and music as well as communication, the number of ‘involved’ consumers can be as high as 74% (Middle East).

In the UK however, the number of consumers involved in the category is just 25%.

When these involvement groups are mapped over behavioural patterns it is clear that these consumers shop the category very differently.

‘Involved’ consumers are more likely to have a ‘want’ trigger for purchase, eg a desire for new technology or new features. They also do far more research online and in store and crucially are more likely to have made their decision before they reach the point of sale.

Conversely, ‘uninvolved’ consumers (who represent around three-quarters of the UK mobile phone market) are more likely to have a need or distress trigger – such as theft or damage.

These do not do a great deal of prior research and are more likely to make their decision at the point of sale. We believe that these differences represent real opportunities for consumer electronics retailers and manufacturers alike.

Capitalising on the ‘involvement’ opportunity

The key is to provide guidance to in-store staff on how to identify the differing levels of involvement in a consumer. Sales behaviour cannot be effectively targeted without the necessary identifiers in place.

This need not be complicated and can usually be incorporated within existing frameworks retailers often use to guide staff from initial contact to sale. Professionally conducted in a friendly manner, these involvement identification questions should not seem more than initial small talk and should facilitate subsequent product matching.

Once identified, we know that the ‘involved’ will be more assured in their decision making, and must be dealt with by more experienced and knowledgeable sales staff. They need to be provided with the level of information they expect or else they will go somewhere else.

The same applies for websites, where more detailed information can be appended to pages for those it interests; crucial as the internet is a popular medium for researching mobile phones for ‘involved’ consumers.

Stocking the right products is also essential, with these shoppers favouring higher-end niche products with the latest features. The rewards for capturing these purchases are obvious; ‘involved’ shoppers spend 30% more on a phone than the ‘uninvolved’.

The key with ‘uninvolved’ consumers is to facilitate and provide support for their decision. As they are more likely to make their decision at the point of sale, their choice criteria must be cut down quickly.

Key here is listening to their needs, consulting and recommending the best choice for them. The same can also be done on websites; simplify the choices for these consumers and they are more likely to purchase.

Whilst there are obviously other variables which can influence the shopper in the consumer electronics category, the key dimension of involvement gives a simple hook with which in-store staff can make a quick assessment about the degree of support and knowledge required to close the sale.

Keeping it simple where possible in this fast-changing environment can only be a benefit to both consumers and retailers.