Understanding today’s online shoppers
Yesterday we released a survey that we carried out with analyst house Penn Schoen & Berland Associates in April, which aims to shed some light into the new online behaviour of British shoppers, and how retailers should respond.
With the recession and economic changes, consumers are being forced to adopt new purchasing behaviours. Not only are they becoming savvier in what they purchase, but also how they purchase, spurred on by the aim of getting the best deal.
Online shopping is now more popular than ever before, with economic uncertainty acting as a catalyst driving consumers online as they look to gain the best deals and save money. But even online the cost-conscious shopper is displaying unique habits and behaviours not present before the recession. One such trend is increased reliance on the internet as a research tool.
Rising confidence in information available online is becoming a critical factor in deciding whether to shop online or on the high street.
- 92% of respondents said that they now have more confidence in online information than sales people in shops.
- This was reinforced with 81% of people conducting online research ‘most of the time’ before buying a product, and 78% of shoppers citing lack of information in TV advertising as the reason for this.
As consumers increasingly become more accustomed to the internet, the range of research and advice tools available online allow consumers to have piece of mind in their purchases with the ability to gauge other people’s experiences beforehand.
- It is little wonder that price comparison engines have dramatically increased in popularity, with over 75% of respondents using them, closely followed by user reviews (69%) and professional review sites (66%).
Giving consumers a positive experience online takes on added importance, as any bad experience is likely to appear on the web where it will dissuade others from purchasing on your site.
Value is also a strong factor in purchasing. Loyalty and reward sites are one of the most popular services searched for on the internet, a fact illustrated by Hitwise who recently stated searches for “vouchers” had increased by 133% over the last 12 months.
- Vouchers should now be a firm part of any promotional campaign, reinforced by our research which showed 43% of people had purchased goods they otherwise wouldn’t have due to voucher discounts.
The growth of online shopping brings with it new opportunities for retailers.
- Overall, 31% of respondents said that they were planning to make more online purchases this year, with 58% expecting to spend at least as much as they did in 2008 online.
It is clear that the trend to move online for shopping is only set to increase. Retailers must recognise the need for value and provide a clear value message in all of their online communications, using promotions such as vouchers and loyalty schemes to stimulate sales. Online customer experience will be a key element to purchasing decisions, with customers using peer reviews before making a decision. Stores must offer clear, easy to understand product descriptions and check-out processes which encourage customers to come back and purchase again, as well as become advocates by writing positive reviews of the service. Retailers which can offer convenience and relevant information coupled with a good deal will be the ones most likely to thrive in the challenging economic environment, and come out of it stronger.
Click here to see the full press release
Penny Mather, Marketing Manager
