This month’s Consumer Snapshot video is a brief look at consumer confidence and practical purchase intentions. For June, we are also evaluating the importance of several online shopping features, including same day delivery.
Highlights from the June 2017 Consumer Snapshot:
This month, 54% of consumers are confident or very confident in the economy, rising two points from May and nearly 8 points year-over-year. The current June reading is also tracking ahead of the 13 month average of 49%. From a historical perspective, this month’s figure is the most optimistic sentiment recorded for June within the last decade.
While consumers’ outlook for the macro-economy picked up this month, their spending sentiment holds relatively steady. This month, 37% indicate that they’ve become more practical with their purchases, lowering less than a percentage point from May and on par with June 2016. The good news for retailers is that pragmatic purchase sentiment is tracking just under the 13 month average.
We see similar trends when evaluating consumers’ focus on needs when at the store. This month, just over two in five indicate that the are zeroing in on just the necessities when shopping, flat from May and less than half a point below June 2016. Again, looking on the bright side for retailers, the current reading lands just under the 13 month average of 42%.
For more than a decade, Prosper has been tracking several common services that consumers have come to expect when shopping online, including low prices, free shipping, buy online / pick up or return at store, flexible return policies, access to live customer service as well as easy to use websites. In the past year, we’ve also begun tracking same day delivery.
When examining these 7 attributes at once, it’s clear that low prices are essential for shoppers, with 88% indicating that they are somewhat or very important. However, free shipping is nearly as important to digital consumers, with 86% declaring that this service is an online essential. This month the gap between low prices and free shipping has narrowed to the smallest we’ve recorded in the history of this question.
While low prices and free shipping are important across all cohorts, Gen X and Boomers seem to be more price sensitive with the latter generation honing in on free shipping as well. Millennials index below average for each of these attributes; however, there is a service that they’re more excited about than average: same day delivery. Forty-six percent of Millennials call this online perk very important or important compared to 39% of shoppers in general.