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The challenge of understanding consumer e-commerce behaviour

July 28, 2015 by in category News with 0 and 0

E-commerce is growing in popularity every year and the industry is expected to be worth 27% of the $25 trillion retail sector by 2020. Online shopping continues to grow because of the speed, convenience and privacy it offers. It also coincides with the increase in smartphone usage and mobile browsing. Customers are starting to rely more and more on e-commerce to satisfy their needs because of the benefits online stores offer.

The trend creates countless opportunities for businesses but also presents challenges. The biggest of these is understanding buyer behaviour and being able to appeal to them. Businesses need to be proactive about this and must work to build a relationship with their target audience so they can discover their needs. Luckily, social media can help to facilitate this.

One thing to keep in mind is how the content on the website appeals to the visitor. Everything should be designed to deliver value and enrich their experience, from the images to the text. In fact you need to take special care with the wording you choose on your site, whether you are describing your company or providing details about a product. Everything should be optimised to ensure it is easy to read and satisfies the needs of the visitor.

It is also useful to understand the three types of buyers you will encounter. Over 60% of people are classified as un-conflicted buyers (or average spenders). These people are typically happy to buy as and when they find the items they are looking for.

Conflicted buyers are different and tend to look long and hard for the best bargains. They make up 24% of the market and are less likely to spend so you need to ensure you focus on the value you offer. This could include re-framing, i.e. offering the option of monthly payments rather than one lump sum.

The last type of buyer is the heavy spender and they account for 15% of the market. Typically the top customers will spend regularly and have no qualm about paying a large amount for a product. These are the type of buyers that businesses want to attract because they bring the most revenue.

Perhaps the biggest obstacle e-commerce businesses need to account for is customer loyalty, because there are so many different options available to clients. Customers may tend to stick with a company that provides them with a good experience but you can guarantee they will quickly move elsewhere if they find a better deal.

To build loyalty companies need to show customers what they stand for. A customer will always be more likely to purchase from someone who shares their beliefs. Again, you can use social media to achieve this and show your target audience what matters to your business.

Understanding consumer behaviour is an ongoing process and you’ll constantly need to stay on your toes if you want to keep up. We can help you to boost your chances of success with our professional and creative e-commerce web design – just get in touch to discuss your ideas with us.

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