The Story Wave 63

Retail & Ecommerce: An Industry Snapshot

Our recent report on the retail industry explores Americans’ online shopping habits and thoughts about customer service interactions. A few key takeaways:

• Do you have your customer’s attention?: 38% of online shoppers say that they are often multi-tasking when they shop online.
• Shopping as entertainment: 49% of Gen Z online shoppers say that they tend to shop online when they’re bored.
• Planning ahead: A Harris Poll conducted by our Thought Leadership and Futures Practice on behalf of Rokt finds that 57% of consumers say that they are always making a mental list of what to shop for next online.
• Service with a smile: 60% of US adults who interact with customer service departments agree that they remember their good customer service experiences just as much as their bad customer service experiences.
• Customer service can impact sales: 35% of US adults who interact with customer service departments have stopped shopping at a business due to a poor customer service experience.

Over-Index Report: This month’s over-index report uses data from QuestBrand by The Harris Poll to capture retail brands that over-index with U.S. households with children. See a few of the retailers that made the list below:

Shopper Loyalty Hangs In The Balance: Rakuten-Harris Poll

Inflation has squeezed Americans’ wallets, but do retailers fully appreciate how these price pressures could impact shopping habits? A Harris Poll conducted by our custom research team on behalf of Rakuten explores the growing tension between retailer confidence and consumers’ financial stress:

• Economic pessimism reigns: 77% of shoppers think prices will continue to increase throughout 2025.
• Consumers reprioritize their spending: 41% of consumers plan to shop less in 2025 than in previous years.
• Most Americans can’t afford to splurge: only 36% of consumers say that they can afford their daily expenses in addition to non-essential items.
• Retailers are optimistic that brand loyalty will stick: 33% of retailers expect that shoppers will look for ways to save and stack incentives so that they can continue purchasing their preferred brands.
• Economic headwinds won’t shake their target: 73% of retailers are optimistic that they will meet their company’s sales objectives in the first half of 2025.
• Company and consumer spending diverge: 67% of retailers said that their marketing budgets increased from last year.

Takeaway: “Consumers are looking for value, but the cost of doing business is increasing for retailers. Retailers are in a very difficult position. They cannot assume that shopper loyalty will remain intact if they choose to pass the added costs onto the consumer by raising prices, but they also cannot afford to offer discounts. Instead, retailers will need to leverage other incentives like Cash Back that allow retailers to attract value-seeking shoppers without adjusting prices at all.” – Julie Van Ullen, Chief Revenue Officer at Rakuten Rewards

Gen Z Demands Accountability Amid Corporate DEI Rollbacks – Ad Age-Harris Poll

If you’ve been watching the news, you’ve probably heard that many major US companies are rolling back their DEI initiatives. A Harris Poll conducted by our central insights team on behalf of Ad Age examines how Americans feel about the businesses that are pulling back on their stated social values.

Let’s take a look at how the youngest (and often most socially-conscious) generation of adults, Gen Z, feel about this:

• You better walk the walk: 68% of Gen Z adults expect brands to follow through on the social stances they take.
• Customers are defecting: 40% of Gen Z adults said that they stopped using or purchasing from a brand because its approach to DEI contradicted or reversed previous efforts.
• Put your wallet where your mouth is: Gen Zers are more likely to purchase from a brand that prioritizes social issues (56%), green initiatives (55%), and/or DEI (50%).
• Tell us what you stand for: 76% of Gen Z adults agree that it’s more important for companies to take a stance on social issues today than it has been in the past.

Takeaway: Gen Z uses the power of the purse to make their voices heard. If companies don’t want to alienate this key consumer group, they must carefully think through how they present (and live out) their stated social values. 

Snapchat Scores Big With NCAA Fans During March Madness – Brand Story

From brackets to buzzer-beaters, the annual NCAA college basketball tournament, March Madness, has become one of the most anticipated sports events of the year. According to a recent Harris Poll from our central insights team, more than two-thirds of adults aged 18-34 (68%) planned to follow at least one (men’s or women’s) NCAA tournament this year.

• Ahead of March Madness, popular messaging app, Snapchat, set a new strategy to bring the tournament magic alive with interactive content. 
• Snapchat set a goal to engage more “casual fans” and younger generations throughout March Madness.
• In addition to live highlights, Snapchat created a 360 March Madness experience by covering pregame, postgame, fan, and locker room content. Users could also use fun Snapchat filters and lenses to react to tournament updates.
• Following this content push, QuestBrand data reveals that Snapchat’s brand familiarity (+12.9) and momentum (+10.4) significantly lifted among NCAA basketball fans from pre-to-post tournament.

Takeaway: With its March Madness initiatives, Snapchat showed how digital platforms can provide new ways for fans to experience live events, get up close in the action, and engage with sports coverage on a deeper, more dynamic level. Read the full brand story for more insights on Snapchat’s March Madness marketing push.