20 Dec Consumer Behavior in eCommerce: How It Is Evolving & How to Keep up With It
In this article, we’ll look at how online shoppers have progressed and how you can keep up to get those conversions in this post. But first, let’s look at the unique advantages of monitoring consumer behavior. When we talk about consumer behavior, we mean how people choose and use products and services. It comprises how customers think and feel about brands, what they do while researching items and buying, and why they make their own decisions (more on later).
Understanding how consumers behave allows you to accomplish the following things, which will enhance conversions:
Build loyalty tactics: Once you understand how your consumers respond, you can devise strategies to retain them. For example, a 5% increase in client retention can boost a company’s profits by 75%.
Drive efficient marketing: Understanding how your website visitors act can help you design more targeted marketing campaigns. Your campaigns will undoubtedly generate revenues when combined with effective eCommerce marketing strategies.
Reduce operating costs: Because you know how consumers act, you can direct your resources toward strategies that will yield the best return and reject those that will not.
Improve customer experience: With data on how customers behave, you can create seamless experiences on your eCommerce website. According to Revuze, 91% of consumers are more willing to shop with brands that give a personalized experience.
Monitoring consumer behavior takes time and money. However, in the long run, it will provide several benefits. If you need to track consumer behavior, you’re passing up opportunities to optimize your resources and get the best results for your eCommerce store’s growth.
Factors influencing Consumer Behaviour
Understanding consumer behavior necessitates an understanding of the elements that drive it. Firstly, Personal characteristics include age, gender, socioeconomic status, lifestyle, and personality. All these factors can impact purchasing power, which is essential in deciding whether to buy a product. In addition, psychological factors include attitudes, perceptions, beliefs, learnings, and motives. These characteristics are difficult to quantify but can significantly impact consumer behavior.
Social variables are the external causes that influence consumer behavior. Humans are sociable creatures by nature. – i.e., the people around them can influence how they think and act. Both peer pressure and social proof are prevalent social factors. For example, people may buy a new cell phone because their family and friends believe it’s the best on the market. Owners of all types of eCommerce companies should build plans that take these elements into account to be effective. Positive customer reviews, for example, might be included on product pages to give social proof and encourage website users to buy. You might also use paid advertisements to affect perception and persuade people that a product is the most outstanding solution to their problems.
How do online consumers behave?
E-commerce has expanded rapidly, with 2020 expected to be its most successful year yet. Covid-19’s major transition from offline to online resulted in a more than 22% increase in online sales, with Forbes reporting a 149% year-over-year increase in US and Canadian purchases as of April 21. Even those populations that previously preferred brick-and-mortar stores have modified their purchasing patterns. According to a LaserShip survey published in Supply and Demand Chain Executive, over half of baby boomers (47%) intend to expand their online buying even after the epidemic. Nonetheless, according to Intelligence Node, Gen Z and millennials continue to account for most of the consumer purchasing pool, with a combined spending power of $350 billion.
As consumers go online, they no longer rely solely on one channel to make purchases. The rise of social media and eCommerce platforms provided online shoppers with many buying options, which they are now utilizing. The internet consumer is an omnichannel consumer with no preference for one medium over another. Quality, convenience, and price affect online shoppers’ purchasing decisions.
According to Smart Insights, 13% of respondents indicated convenience is the most critical factor; it placed third among essential considerations to online shoppers. In addition, 97% said they have backed out of a purchase because the shopping experience was inconvenient.
What can business owners do?
Let’s talk about what you can do to keep up now that you know how online consumers generally act. In this section, we’ll look at four methods that will assist you in staying ahead of the competition and continuing to provide your clients with the excellent service they expect.
1. Use multiple channels to sell
Online shoppers stay on multiple platforms, so you should create strategies to offer your products through numerous online channels. So, if you’re primarily selling on Facebook, you should consider selling on your website or Instagram. However, if you already have an eCommerce store, you will fare better if you sell through social media.
Your target market should determine your brand’s platforms. If you want to reach out to young people, Facebook and Instagram are great places to start. LinkedIn is the ideal place to find professionals further along in their careers. Although expanding is essential, there is a proper way to do it. According to eCommerce experts, you should only migrate to other channels when your original platform has been saturated. To put it another way, master one channel before moving on to the next. Two or three platforms that serve you well are far superior to ten that you rarely utilize!
2. Put the customers first.
You must prioritize your customers in all you do. That implies you must prioritize the customer experience in every engagement with your brand.
Therefore make it simple for potential clients to purchase from you. Check that your site loads quickly and is optimized for different platforms so that it seems excellent whether the user is using a desktop or a mobile device. Did you realize that mobile devices now account for over half of all web traffic worldwide?
Assess how potential clients will use your website. Do they have to pass through several steps to access a product page? How quickly can they checkout? If you send them to a landing page, are there too many fields to fill out? People expect everything they require to be available with the least effort on their behalf. If consumers can’t find it on your site, they’ll leave and go to your competitors. A/B testing your sites is the most effective approach to ensure you provide your clients with a better experience. Invest in quality CRM software to better understand your audience and develop stronger relationships, allowing you to respond to their queries and needs.
3. Provide social proof
Remember to incorporate customer feedback on your product pages. Online shoppers are more inclined to buy a product if someone else recommends a product. According to BigCommerce, 70% of internet buyers trust a referral from someone they don’t know. Have you ever searched for a product on a platform like Amazon and filtered the results such that only products with four stars or higher appear? That is the influence of social proof.
Understanding online consumer behavior allows you to develop tactics for improving customer experience and addressing their key issues. It will set you apart from your competition and boost your chances of conversion.
This article examined how online consumers have changed and what you can do to keep up. It’s now up to you. Make the appropriate changes in response to what online customers demand. Use marketing tools to promote your products, and remember to track how things are doing. With time, you’ll see an increase in conversions, and your brand will be well ahead of the competition.
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