There are factors that retail businesses need to take into consideration to help drive up sales, and one of the most important is the shopping habits of your consumers. Knowing a great deal about the buying public’s behavior could spell the difference between a failed business venture and your brand being a household name.
Just like having the ability to read minds, getting a firm grasp on your target consumers’ shopping habits can help you realign your strategies to be in tune with what they need. This makes it easier to draw them in and boost the chances of having them buy whatever you have to offer. In essence, this is like being one step ahead of everybody, so you can make the right marketing decisions and make the necessary improvements to your products and services.
Consumers use smartphones to shop
You would think that with the e-commerce boom more people would do all their shopping online, but surprisingly this isn’t the case—at least not yet.
Back in 2016, there were around 1.66 billion people from around the world who purchased products online. This resulted in e-commerce sales that reached about $1.9 trillion, with projections going up to $4.06 trillion by 2020. But while the numbers are expected to grow, people still prefer shopping in physical stores, with 92 percent of sales in the U.S. still being done here. And if they do shop online, they use their mobile devices, particularly smartphones, to buy items online.
These numbers are quite impressive to say the least, but it still doesn’t paint a clear picture if consumers are leaning towards e-commerce or traditional shopping. To help you take advantage of both worlds, the answer lies in an omni-channel marketing strategy.
To remain competitive in your industry and still be relevant to your target consumers, an omni-channel retail marketing strategy should be applied. This will cover both bases, since the majority of consumers prefer to do their shopping at retail stores, but like to research about products online.
Consumers use social networks as a source of inspiration of purchases
A a PwC survey says that 37% of consumers turn to social media as the most influential channel when finding inspiration for their shopping. This means they want to know what their peers think before making a purchase.
To benefit from this behavior, you could showcase your products and services on your social media accounts through engaging promotions that offer prizes.
Consumers are more comfortable answering questions online
Just a decade ago, consumers exercised a considerable degree of caution whenever they share information online. This behavior has prompted retailers to stop asking questions with the hopes of driving personalisation in their marketing efforts. But now, the tables have turned. Consumers gamely answer questions that has helped businesses deliver a more personalised customer experience.
In return, it’s your responsibility to protect your customer data to keep their trust and retain your credibility as a business.
Consumers are willing to pay for same day delivery or faster
With e-commerce making it easier to shop, consumers likewise prefer a faster way to have their purchased goods delivered. In fact, 88% of consumers are willing to pay for faster or same day delivery according to a PwC survey.
With the way courier services have improved, the logistics process is now a game changer, particularly when consumers value a fast and reliable delivery service with a good returns policy next to the price. It has become an essential part of e-commerce that they are willing to pay extra just to have them delivered on the same day or even faster.
Consumers appreciate loyalty programs
Consumers aren’t likely to stick to a single brand, but they do appreciate loyalty programs that offer huge discounts and attractive rewards. Proof of this is the 69% of millennials who are subscribed to a retail loyalty program.
As a business, strengthening your loyalty program is something you should focus on as customer retention is cheaper than new customer acquisition, yet it can deliver a higher ROI.
A smart business owner not only identifies the marketing trends and make the necessary adjustments, but also recognise how consumers behave in the industry. This combination allows you to formulate the right marketing strategies across all channels to thrive amidst tough competition.