Customer-oriented approach rules the world today.
The customer experience is the next competitive battleground.
While you are in e-commerce, retail or SaaS, your best friends are metrics which measure the level of customer satisfaction, loyalty, acquisition, and retention etc.
Although, the first and crucial sight which should be done before running measurements is to understand your consumer behavior.
Misunderstanding of the customer behavior leaves large retailers struggling to be reactive enough, which then leaves the smaller, more agile retailers space in this over-saturated market.
Consumer behavior is the study of the reaction, selection and usage of your products and services by your potential customers.
Consumer behavior affects the use of products and services same as the study of how they are purchased. This behavior influences the best positioning of the product or how the marketer can encourage increased consumption.
Consumer behavior involves services and ideas as well as tangible products.
The understanding of consumer behavior offers you never-ending improvement and development of marketing strategies.
It consists of next factors:
Every year KPMG studies consumer behavior worldwide and releases the results in an annual report. The 2017 Global Online Consumer Report revealed that consumers are increasingly willing to purchase more products across all categories online. What’s more, this appears to be the case in all regions of the globe.
Let’s reveal all trends of consumer behavior of 2017.
1. The biggest spenders of 2017
Today Baby Boomers spend the most per online transaction than Generation Xers and Millenials. They spent an average of $203 online while Gen Xers spent $190 and Millennials spent $173.
Through the products which were bought by Baby Boomers the most popular are health care products, household goods and appliances and wine.
Online shopping in 2017 is not really influenced by gender. Disregarding of generation, men and women shops online with equal frequency. Although men spent $220, while women $152 on average. Men are interested in purchasing purchase electronics and luxury goods online whereas women were more likely to purchase food and cosmetics online.
2. The geographic regions that shop most
Asia became the geographic region with most online purchases per person per year (22.1).
North America – 19
Western Europe – 18.4
Australia and New Zealand – 16.1
Eastern Europe and Russia – 11.9
Africa and the Middle East – 11
The fewest number of online transactions is in Latin America (9.2).
3. The most purchased product categories
The top product categories across already mentioned geographic regions are apparel, media, and electronics. The highest potential growth according to the survey is sporting goods, home decor, furniture and household goods and appliances. Approximately 3-5% of respondents claim that they expect to purchase items in these categories online over the next year. Books and music are seemed to be at risk of declining among online purchase.
4. Device preferences
Over 50% of online shoppers reported they use their laptops to purchase.
Only 17% prefer to make purchases via mobile devices. And 27% had no preferences. Within these figures are some interesting regional data. The global average percentage of online consumers who preferred to use their smartphone for these purchases was 8, but the percentage in Asia is twice that.
That said, over two-thirds of respondents said they used their smartphone while in a physical store to conduct online research on a particular product. Price comparison was the main criterion being researched in these instances.
There are four common stages of purchasing a product or service. Let’s take a brief glimpse of them.
Statistics shows that 52% of customers purchase products online after discovering it through an offline channel, and 59% were first made aware of products purchased through an online channel.
The most used channels for product research are company websites and product reviews. In fact, 29% of consumers prefer visiting a physical store to examine a product before purchasing it and 23% uses word of mouth asking friends or family for feedback.
Price became the greatest factor for 36% of respondents in deciding where to make a product purchase. Other 30% said that company website matters most.
Only 30% of consumers leave product reviews and ratings online. And 92% of the feedback online is positive.
As a result of improved shipping and delivery options, regardless of region and generation, consumers are more likely to shop for products and services online. Be aware of these facts and improve your customer satisfaction rates and your customer service.
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