The Rise of Omnichannel Home Improvement Shoppers

Do shoppers of "smart home" electronics still go to brick-and-mortar stores, or do they take the omnichannel path to get the gadgets they want?In a study titled “Home Improvement Retail in the Digital Age: Issues in Selling to Today’s Home Improvement Shoppers,” Field Agent surveyed more than 1,000 homeowners and found that relatively few end their path to purchase before entering the store. But the study showed that a significantly larger share of an (unscientific) sample of 42 home improvement professionals availed themselves of e-commerce options.In the last of a multi-part series, Pathfinders spoke with Chris Medenwald, marketing manager for Field Agent, about the online and mobile application-based purchases of smart-home electronics, who expressed optimism about the growth of these channels for home improvement.“I’m pretty impressed by the numbers shopping online and using smartphone apps,” he says. “The shoppers really have to think through these kinds of purchases. You would think more shoppers would want to be in-store making these kinds of purchases. Yet digital is certainly making inroads.”"Although the sample is very small ... it’s noteworthy that so many professionals are shopping online." – Chris Medenwald, Field Agent marketing managerOnline Home Improvement ShoppingSlightly more than half of the total sample of 1,010 homeowners said they "rarely" (42%) or "never" (11%) bought home improvement supplies online, while 36% did so "sometimes." The numbers were similar for the subset of 280 Millennial homeowners, of whom slightly less than half chose either "rarely" (38%) or "never" (11%) and 28% said "sometimes." But among professionals, nearly half (48%) said they often shop online and most of the rest (45%) said "sometimes."The results were mostly similar when shoppers were asked how often they purchase home improvement supplies online and then pick them up in the store. As you can see from the results, home improvement shopping is still an in-store affair for homeowners, Medenwald says. “Although the sample is very small—it’s a rough indication and invitation for further research—but it’s noteworthy that so many professionals are shopping online. Considering the tactile nature of these demands, and the greater demands [professionals face], I’m pretty impressed by the numbers I’m seeing here.”Smartphones for Smart Homes "Lowe’s and Home Depot should take note of this—at this point they’re not even the top home improvement apps." – Chris Medenwald, Field Agent marketing managerMore than two-thirds of homeowners and all professionals who responded have at least one store-branded smartphone app for home improvement purchases. The results for homeowners overall and Millennials were virtually identical, at 14% "often," 31% "rarely," 24% "never," and slightly divergent figures for sometimes (29% and 27%). Professionals were more likely to use apps, with 7% answering "always," 21% "often," 29% "sometimes," 29% "rarely" and 14% said "never."Broken down by store, Walmart’s app does well across the board, reaching nearly half of each category (44% of total homeowners, 43% of Millennials, 43% of professionals). Target is stronger with homeowners (33% overall, 31% of Millennials) than professionals (only 10%). It’s the opposite for the home center chains, with Lowe’s and The Home Depot garnering at least half of professionals (52% and 50%, respectively) but only about one-quarter of total homeowners (27% and 24%) and Millennials (28% and 24%).“It’s noteworthy to point out that Walmart and Target are the top home improvement apps on shoppers’ smartphones,” Medenwald says. “Lowe’s and Home Depot, with the exception of professionals, came in third and fourth. Lowe’s and Home Depot should take note of this—at this point they’re not even the top home improvement apps.”“App-titude Testing”Field Agent took the app inquiry a step further with a survey titled “App-titude Testing,” asking 115 Lowe’s and 104 Home Depot app users what they like about each, how often they use the app, when and how, and which other apps they use. “Many smartphones carry more than one of these four apps,” Medenwald says, referencing Walmart and Target in addition to the home center chains. “They probably co-exist on many smartphones in many cases.”Half of Lowe’s app users said they use the app "always" or "often," and the Lowe’s app received an average 4.2 out of 5 rating overall, while slightly less than half of Home Depot users (44%) use the app "always" or "often," and they gave it a 4.4 overall rating. Slightly more than half of each app’s users said they most often used the in-store product locator (53 percent for Home Depot and 56 percent for Lowe’s).“Respondents appear to access the apps for similar reasons: in-stock verification, browsing for products, weekly in-store ads, and then the product locator is a popular feature,” Medenwald says. “Shoppers have often struggled to find what they need in these gargantuan home improvement centers. … These apps offer a convenient solution.”Among those with more than one app on their phone, Home Depot and Lowe’s app users named the same top three other apps: Amazon (73% and 81%, respectively), Walmart (71% and 77%), and Target (67% and 60%).“Amazon, Walmart and Target often co-exist,” Medenwald says. “And almost four in 10 have the competitor app between Home Depot vs. Lowe’s. I can picture these two apps side-by-side on many shoppers’ smartphones. That’s a real incentive to improve on your app.”For access to the full Field Agent report, click here. To read each series installment starting with the October 2016 newsletter, visit the Pathfinders home page.

The Rise of Omnichannel Home Improvement Shoppers

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