UK retailers which have struggled over the past year will be pleased to hear that consumers are expecting to up their spending compared to pre-pandemic levels as COVID-19 restrictions inch towards being lifted and all adults being vaccinated.
The latest figures, based on new research from HubSpot have revealed that over 1 in 5 UK consumers are planning to spend more money this summer than before the pandemic, estimating that UK consumers are set to spend £10.2bn per month, or more than £20bn this summer, on ‘human touch’ experiences.
The study revealed that a third of UK consumers will be spending the most on dining out (33 per cent) while 28 per cent will be spending the most on indulging in retail therapy; proving to be a more popular option than shelling out on a UK seaside break (20 per cent) or sporting and music events (15 per cent).
Revealing the widespread impact of self-isolation on consumer attitudes after a year in which they have been denied in-person interactions due to lockdown restrictions, 52 per cent of consumers want to shop in person again compared to 22 per cent who would rather keep interactions while shopping virtual.
The risks of ignoring human touch
The findings also show that 16 per cent of UK consumers have abandoned a purchase in the past year when they weren’t able to speak to someone from the brand to ask about their purchase. On top of this, over 1 in 10 (11 per cent) have complained on social media or review sites about not being able to speak to someone when they had a question or a problem.
More positively, offering consumers the opportunity to speak to someone during the buying process can have a positive impact. Over half of UK consumers (51 per cent) get that human touch feeling from a brand when they deal with friendly staff and 58 per cent of consumers are more likely to shop with a given brand again if they can speak to someone during a purchase. Meanwhile, 51 per cent are more likely to tell their friends about the experience if they receive the ‘human touch’.
Striking the right balance
To ensure success and realise the spending potential this summer, retailers will need to be mindful about reading the room when it comes to the type of experience consumers want. While 52 per cent of them want to shop in-person again, worries about physical contact and large groups remain. 59 per cent of consumers say they’ll be more cautious about physical touch of any form than pre-pandemic, while 49 per cent say they feel uncomfortable engaging in activities that involve groups of more than 7 people and 29 per cent are uncomfortable in groups of up to 6.
While 82 per cent of UK consumers are comfortable with one to one interaction, large events are still off the table for a majority – with 72 per cent uncomfortable engaging in activities that involve groups of 51-200 people and 74 per cent unwilling to go to events with over a thousand attendees.
These results show that retailers will need to pay close attention to what their customers feel comfortable with and focus on smaller, personal interaction, keeping large events on ice.
Christian Kinnear SVP and MD EMEA, HubSpot: “It is clear that UK consumers are ready and raring to not only get back to normal life, but to make up for lost time with friends and family, getting away on holiday or engaging in some well earned retail therapy.
“Key to this rebound will be ensuring consumers have the ability to engage with a retailer in a human way. While the pandemic forced everyone online, the re-opening will be about balancing digital services with the human touch we’ve all been craving. Retailers should not underestimate the value of their customer service teams and sales assistants in helping them make the most of the summer spending boom. Now is not the time to cut back on a businesses’ finest asset – its people.”
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