understanding the digital consumer -...
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Understanding the Digital Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Understanding the Digital ConsumerE-commerce in Europe is booming. Sales are expected to grow from £132.05 billion in 2014 to £185.44 billion in 2016, with overall sales in 2015 predicted to increase by 18.4%.1 This means that online retailers are expanding over 14 times faster than traditional brick-and-mortar stores.2
As e-commerce adoption rises, it’s getting harder to find ways to reach and interact with consumers at every stage of their increasingly convoluted digital shopping journey. Consumers can now shop anytime, anyplace – and they demand zero-friction service, abandoning sites that aren’t meeting their expectations.
To drive relevant traffic your way, convert shoppers and generate customer loyalty, you need to get inside the mindset of today’s digital shopper.
This eBook sets out to find out how, where and when consumers search and research online, evaluating what will eventually drive them to do business with you.
1 http://www.retailresearch.org/onlineretailing.php
2 http://www.retailresearch.org/onlineretailing.php
Understanding the Digital Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Online Shoppers Search Using Phrases and Questions, Not Just Keywords Online shoppers are using more detailed search queries when looking for a specific item. In fact, half of all search queries are now four words or longer.3 Single-word searches, on the other hand, are becoming redundant due to the massive amount of data available.
Google has recognised this tendency towards semantically entered searches, and so should you. Aim to use the language your customers are using by identifying the sort of questions they’re asking — and then answering them on your site.
Online Shoppers Want a Seamless Omnichannel Experience Consumers are changing where and when they’re searching, too. They’re more informed than ever and are researching in stores, reading product reviews and checking social media before making a purchase. Your customers are also likely “webrooming” and “showrooming”.
Webrooming is researching online before going into a store, while showrooming is the practice of first trying out or examining a product in a store, then using a smartphone or computer to search for the same product (potentially for a lesser price) to buy online.4
According to a recent report by Accenture, 71% of consumers questioned plan to view in-store inventory online, up 63% from 2013.5
3 http://www.wordstream.com/blog/ws/2015/10/06/smx-east4 http://www.smartinsights.com/online-brand-strategy/multichannel-strategies/omnichannel-retail-displays-2015/5 https://newsroom.accenture.com/news/retailers-face-big-hurdles-in-bridging-the-omni-channel-commerce-gap-according-to-new-research-from-accenture-and-hybris.htm
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Understanding the Digital Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Keep an eye on these behaviours and ensure shoppers can find you while on the go. Give them the opportunity to read your reviews, as a way to stop them from purchasing from a competitor.
Consider using Google to tailor search ads to consumers while they’re out and about. You can increase conversions by adding ad extensions in the form of phone numbers or local physical locations to help consumers find you.
Online Shoppers Are Image-Conscious When it comes to selling on the internet, an image is most certainly worth a thousand words. Great product images can increase your e-commerce conversion rates. In fact, according to a recent study, consumers rate images as more important in their purchase decision than product descriptions or even reviews.6
A recent study on eBay.com showed on average that listings with better picture quality are 5% more likely to sell, so ensure your listings include high-quality images, and use up your maximum picture limit when selling online.7 Different marketplaces have requirements for the images you use, so make sure you’re supplying the best images for each. For example, Amazon requires you to submit up to 6 images on a totally white background with no watermarks. EBay requires a picture size of 1600 pixels on the longest side to make sure the zoom and enlarge features can be used to give buyers a good look at the item.
You optimise your descriptions for different channels, so why not spend time auditing and optimising your images for each different marketplace too?
6 http://ecommerceinsiders.com/5-elements-improve-product-page-conversions-3435/7 http://sellercentre.ebay.co.uk/new-picture-standards
Understanding the Digital Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Online Shoppers Can Be Your Brand AdvocatesSocial media provides an inexpensive way to engage with potential customers and promote your brand identity.
As eMarketer points out, while consumers don’t always buy via social media directly, it’s an important place to influence future buying behaviour – as consumers seek further information about products and act on recommendations from their network.8
This trend is supported by recent research, which reveals that 71% of consumers are more likely to buy a product after a social media referral.9 A further 60% of consumers interact on social media with brands they buy from.10 Facebook is the top social commerce platform, driving more than two-thirds of mobile traffic and accounting for 50% of all social referrals.11
Make it your aim to engage and build trust with potential customers on social sites. Attempt to make them advocates rather than giving them the hard sell.
Online Shoppers Want to Engage
It may be surprising, but 95% of millennials want brands to court them, and they especially like being sent relevant vouchers and incentives.12 Make the most of search engine tools to help customise your ads with special promotions to specific targeted groups. For example, geo-target your mobile ads by postcodes.
And make use of any information that customers share with you. A recent IBM study found that 90% of people were happy to give up 20 minutes of their time to input data that would help retailers give them a more personalised shopping experience – yet only a third of these retailers acted on this valuable information.13
8 http://www.sailthru.com/marketing-blog/incredible-purchasing-influence-social-media/9 http://blog.hubspot.com/blog/tabid/6307/bid/30239/71-More-Likely-to-Purchase-Based-on-Social-Media-Referrals-Infographic.aspx10 http://digitalmarketingmagazine.co.uk/social-media-marketing/3-out-of-4-consumers-consult-social-media-before-buying/1659#11 http://www.techinsider.io/social-commerce-2015-report-2015-712 https://www.accenture.com/us-en/insight-outlook-who-are-millennial-shoppers-what-do-they-really-want-retail.aspx13 http://www.wired.co.uk/news/archive/2013-11/05/paul-papas-ibm
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Understanding the Digital Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Online Shoppers Are MobileThere are now many touchpoints where you can interact with online shoppers. Collect and analyse data from all of them, and measure the various ways shoppers interact with your brand. Adapt your marketing to what you find.
Put your focus on mobile going forward. Many retailers report that up to half of website browsing occurs through mobile devices (both smartphone and tablet), with a smaller percentage making actual purchases this way. However, the number of purchases on mobile devices is set to change rising from £8.41 billion in 2014 to £14.95 billion in 2015.14
Be aware that shoppers are constantly comparing products, reading reviews and finding deals whilst moving seamlessly from smartphone to tablet to PC. Google found that 90% of consumers used multiple screens sequentially to complete a task, with 98% moving between devices the same day. And at 67%, online shopping is one of the top activities done when moving between devices.15
Make sure you use consistent branding and pricing across all channels to rubber-stamp your message and avoid confusing customers.
14 http://www.retailresearch.org/onlineretailing.php15 https://think.withgoogle.com/databoard/media/pdfs/the-new-multi-screen-world-study_research-studies.pdf
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Understanding the Digital Consumer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Summing It UpTo build customer loyalty and deliver an outstanding customer experience online, you need to get inside the mindset of today’s digital shopper. As competition online builds, we believe it is the retailers who understand and adapt to the changing digital consumer that are positioning themselves well for the future. And those retailers who ignore them risk being left behind.
Want to talk more about changing the digital consumer and e-commerce trends? Or wish to discuss the ways ChannelAdvisor can help you boost your visibility online? Call us 0203 014 2700 or email us at [email protected].
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