- Content Marketing
When Your Customers Become Your Contributors: Brand Journalism Meets TraditionalGoogle Is Changing the Close Variant Matching Option in AdWordsBefore You Invest in Online Advertising, Do This!Native Advertising: The New New Thing or a Race to the Bottom? [VIDEO]
Technology & Data
Data and Creativity at the Social Shake Up: Defining Your Data-Driven Social CampaignTalking Strategy and Data with Shannon Lee of Precision StrategiesNew IBM Study Reveals 3 Key Characteristics of the Most Successful CompaniesMinority Report: Confronting Privacy Issues in Big Data Gathering
- Tech & Innovation
- marketing automation
Social Startups: Moment.me Captures a 360-Degree View of The Social Shake-Up 2014Hootsuite Partners With Syracuse University to Bring Social Media Savvy to College StudentsThe Best Hyperlapse VideosThe Best Content Moderation Tools for Busy People Who Don't Have Time for That
Social Change Agent Survey: Passion, Skill Set, and Persistence Lead to Career GrowthThe Social Shake-Up Attracts Wide Breadth of Brands and IndustriesThe Social Shake-Up: How CMOs Drive Innovation and Revenue GrowthThe Social Shake-Up: The Future of Social Business
- Small Business
- Social Organization
Recap from the First-Ever Employee Advocacy SummitFormer IBM Senior Advisors Launch Brands Rising to Build Employee Advocacy ProgramsPerformance and Risk Management Through Social Media TrainingEmployee Advocacy Summit: Advocate Stories from the Field
- Customer Service
Join us September 15th in Atlanta for The Employee Advocacy Summit and learn how to unleash the power of your employees.
Post your event here and we'll share it with our community. If one of our members is featured, we'll promote as well on their profile.
- Marketplace & Webinars
The SMT Marketplace
Your resource for exclusive content and insights from Social Media Today, and opportunities to reach our community of professionals.
The Social Business Book Club brings you books, discussions, and insights from today's to business thought leaders.
Join interactive talks and and panel discussions with leading thinkers and practitioners on social media and networked business, or browse the catalogue of recorded sessions - all completely free.
Reach Social Media Today's community of marketing and communications professionals in an editor-approved context with a native advertising package.
Adapt to Address Shifts in Consumer Purchase Behaviour or Die
Posted on December 6th 2013
It’s no secret that people are making more purchases, and purchase decisions, online. Consumer purchase behaviour is undergoing a dramatic shift that is getting more pronounced every day, and unprepared retailers are seeing declines as a result.
Over the course of the last week or so, there have been several revealing statistics released to support that consumers are not only spending more time shopping online, but that brick and mortar shopping behaviour is being influenced by digital interactions, which of course includes social media.
These changes are even more apparent coming out of Black Friday, which is typically the United States’ biggest shopping day, with consumers flocking to stores hunting, and in some cases fighting, to get a great deal in preparation for the holidays.
Defying the trend toward online shopping in recent years, Black Friday has managed to sustain steady growth, until now.
This year, brick and mortar retail shopping on Black Friday was down for the first time since 2009. Bloomberg reported the decline to be 3.9 percent, which seems marginal, but considering that tens of billions of dollars are spent on this crazy shopping day, is actually quite significant.
Brick and mortar shopping is down, while shopping online is up… way up
It’s no major revelation to learn that while brick and mortar retail shopping has decreased, online shopping has largely filled the void.
But, the dramatic truth of this is how sharply favour has shifted to shopping online. A recent Nielsen study revealed that nearly half of consumers – 46 percent – stated that they intended to shop online on Cyber Monday this year instead of facing the crowds on Black Friday. Now for the dramatic piece of information; that’s a 16-point increase from 2012, just one year ago, when that number was 30 percent.
You don’t need to be a statistician to see how dramatic of a shift that is.
Digital interactions are even affecting consumer behaviour when brick and mortar shopping
Digital interactions aren’t just causing consumers to make more purchases online, they’re actually affecting the way that consumers shop when they visit brick and mortar retailers. It’s worth noting here as well that social media is playing an increasingly important role in shaping even non-social experiences online, which makes it doubly important.
Around the world, shoppers are making fewer shopping trips, and when they do shop, they’re making a smaller number of purchases.
They’re visiting stores prepared, armed with the information they need to make a purchase with a very specific product in mind. The days of impulse buying might not be behind us, but that behaviour is certainly waning.
The auto industry is a prime example of this. Adweek recently reported that where car buyers used to visit 7 dealers to make a purchase decision, today they visit an average of 1.2.
That’s targeted and informed shopping, which is reminiscent of the trends observed this Black Friday. The idea of ‘shopping around’ when it comes to automobiles is virtually nonexistent, and this behaviour likely isn’t isolated to this category.
Where there is change, there is opportunity
This, of course, isn’t all doom and gloom. Not even close. In fact, these trends are hugely positive for those who are openly embracing the power of digital media channels be they owned or paid.
As you’ve undoubtedly observed, and this article has hopefully illustrated, it is no secret that consumers are increasingly making purchase decisions online. They’re researching competitive products on brand websites and comparing prices with apps like Amazon’s Price Check.
They’re also turning to social media to ask questions, discuss products and brands with their social graphs, gain unbiased perspectives, and weigh pros and cons of ownership.
If you haven’t already, now is the time to embrace digital and social media
If you haven’t already embraced the power of digital and social media for your business, now is the time to wake up and come to terms with the fact that consumer behaviour has long since shifted.
These aren’t flash-in-the-pan trends we’re observing. After all, we’re talking about the Internet and social media, which clearly aren’t going anywhere. Also, the explosive and exponential penetration of smartphones is giving consumers constant connection to both, so the influential interactions they’re having online, are also happening at shelves in physical stores.
The proof of shifting consumer purchase behaviour from this Black Friday and Cyber Monday I believe to be precursors to even more dramatic change moving forward.
Where there are rules, there are certainly always exceptions, but I believe the reality for many businesses is that if they don’t have a strong presence online and on social media, it’s not going to be long until they won’t have a presence at all.
Are you braving the crowds to do your shopping for the holidays?
Or, are you doing the bulk of your shopping online?
Are there certain categories of products that you prefer to buy in-store versus online?