New Study Shows Retail Customer Experience is Key to Earning Shoppers’ Discretionary Dollars in an Era of High Inflation

Rhea-AI Summary

Verint (NASDAQ: VRNT) released a study revealing that over two-thirds of consumers are less confident in the economy compared to last year, with 76% reducing their spending. The survey, conducted with 2,000 U.S. consumers, highlighted that 56% prioritize 'value for money' when choosing retailers. Positive customer experiences can drive loyalty, with 88% likely to repurchase after a good experience. However, negative experiences can lead to lost sales, indicating that enhancing customer engagement is crucial for retailers amid economic challenges.

Positive

• 91% of consumers shop at their favorite mass market retailer at least once a month.
• 83% of consumers spend $50 or more on average at their preferred retailers.
• 75% of first-time shoppers return to the same retailer for additional purchases.

Negative

• 76% of consumers are spending less, indicating reduced retail activity.
• 62% of consumers stop purchasing if a customer service issue isn't resolved in one attempt.
• 50% of consumers are deterred by long wait times in customer service.

More Than Two-Thirds Are Less Confident in the Economy Than a Year Ago and 76 Percent Are Spending Less, Trimming Retail Purchases

MELVILLE, N.Y.--(BUSINESS WIRE)-- Verint^® (NASDAQ: VRNT), The Customer Engagement Company^™, today released the findings of a new study that shows nearly two-thirds of consumers polled are less confident in the economy than a year ago and 76 percent of them are spending less money, with entertainment and clothing cited as the top areas for budget cuts in retail purchases.

This summer, Verint conducted an online survey of 2,000 U.S. consumers who had purchased from a mass market retailer from February to July 2022.

Struggling with inflation and economic uncertainty, 56 percent of shoppers indicated “value for the money” as one of the two most important factors that impact their loyalty to mass market retailers.

The survey also shows the fiscal benefits of customer retention and keeping existing customers happy. Ninety-one percent of consumers shop at their favorite mass market retailer at least once a month, with 83 percent spending $50 or more on average.

Retailers that delight first-time shoppers can also benefit greatly. Three-quarters of consumers who tried a new mass market retailer for the first time in the past six months shopped there more than once, with 90 percent of first-time shoppers making purchases at least once a month thereafter.

After having an amazing customer experience, 88 percent are likely to make a repeat purchase, 82 percent are likely to recommend to friends or family, 68 percent are likely to join a loyalty program, and 63 percent said they are likely to write a positive review.

“At a time when global inflation has become one of the biggest issues facing consumers, leaving them with less disposable income, maintaining ‘share of wallet’ is critical for retailers,” says Verint’s Jenni Palocsik, vice president, marketing insights, experience and enablement. “Creating exceptional experiences should be at the heart of every retailer’s engagement strategy. And our study shows ‘to the retail customer experience victors, go the spoils.’”

The study also shows that a negative customer experience can send shoppers packing; reasons that consumers were likely to stop purchasing from a retailer included: if a customer service issue isn’t resolved in a single attempt (62%), if unable to communicate on their channel of choice (57%), if forced to repeat themselves (55%), and if they have to endure long wait times (50%).

Download the full report for more details.

With the Verint Customer Engagement Cloud Platform, brands can unlock the potential of customer engagement across every area of the business to deliver consistently differentiated experiences to their customers and employees and do so at scale. Verint solutions automate workflows across enterprise silos, enabling the entire workforce to engage with customers in the right way at the right time to drive real business results.

For more information on how to create exceptional customer and employee experiences, visit Verint.

About Verint

Verint^® (Nasdaq: VRNT) helps the world’s most iconic brands – including over 85 of the Fortune 100 companies – build enduring customer relationships by connecting work, data and experiences across the enterprise. The Verint Customer Engagement portfolio draws on the latest advancements in AI and analytics, an open cloud architecture, and The Science of Customer Engagement^™ to help customers close The Engagement Capacity Gap^™.

Verint. The Customer Engagement Company^™. Learn more at Verint.com.

This press release contains “forward-looking statements,” including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management's expectations that involve a number of risks, uncertainties and assumptions, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2022, and other filings we make with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and, except as required by law, Verint assumes no obligation to update or revise them or to provide reasons why actual results may differ.

VERINT, VERINT DA VINCI, THE CUSTOMER ENGAGEMENT COMPANY, BOUNDLESS CUSTOMER ENGAGEMENT, THE ENGAGEMENT CAPACITY GAP and THE SCIENCE OF CUSTOMER ENGAGEMENT are trademarks of Verint Systems Inc. or its subsidiaries. Verint and other parties may also have trademark rights in other terms used herein.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220929005105/en/

Media Relations

Amy Curry

amy.curry@verint.com

Investor Relations

Matthew Frankel

matthew.frankel@verint.com

Source: Verint

FAQ

What does the recent Verint study reveal about consumer confidence in the economy?

The study shows that over two-thirds of consumers are less confident in the economy than last year.

How much are consumers reducing their spending according to Verint's survey?

The survey indicates that 76% of consumers are spending less.

What factors influence consumer loyalty to retailers as per the Verint study?

Value for money is cited by 56% of shoppers as a key factor influencing their loyalty.

What percentage of consumers are likely to make a repeat purchase after a positive experience?

88% of consumers are likely to make a repeat purchase after a positive experience.

What are the main reasons consumers stop purchasing from retailers?

Key reasons include unresolved customer service issues (62%) and long wait times (50%).

How does Verint support retailers according to the press release?

Verint offers solutions to enhance customer engagement and automate workflows to improve the customer experience.