White Paper
October 10, 2017, 12:52 PM EDT
Sixth Annual Path to Major Purchases
Author
Synchrony
Abstract:
Table of Contents
The consumer's path to big-ticket purchases
Overall, consumers are taking longer to make big-ticket purchases. Their purchase journey has gone from 63 days to 81 days in one year. But, on the plus side, the average spend for big-ticket purchases has gone up to $2,055, a 9% increase from 2016 to 2017. This could be driven by an increase in consumer confidence and an upbeat assessment of the job market2. This boost in confidence could be translating into higher spend at the retailer, be it for jewelry or major appliances.
Another significant insight: The path to big-ticket purchases for people purchasing online is different from those buying in-store. The most significant difference? The purchase amount. In-store buyers spend an average of $2,037, while the average online big-ticket purchase is $1,433. That's a whopping boost of 42% for those purchasing in-store.
Both online and in-store buyers start with online research
Online vs. in-store buyers – different paths to purchase
Alternatively, the majority of in-store buyers (65 percent) do their research in the physical store. On average, they visit two stores before ultimately buying an item. Once in the store, shoppers are less likely to do comparison shopping, signaling the importance of the sales associate and the ability to have the product immediately. And, in-store shoppers are more likely to consult with friends and family. About a quarter of them say they talk with friends and family members, but only 19% of them check online reviews (remember, about 50% of online buyers said they checked online reviews). For these in-store buyers, word of mouth and the in-store sales experience are much more important for big-ticket purchases. Excellent customer service, knowledgeable sales staff and immediate delivery are key to this consumer group.