Consumers opt for more online subs, bargains and new brands – and they are set to stay that way - The Entrepreneurial Way with A.I.


Thursday, September 3, 2020

Consumers opt for more online subs, bargains and new brands – and they are set to stay that way

Online shopper habits set to stick

Online shopper habits set to stick

One in five UK shoppers are using online subscriptions, while 31% are drawn by online bargains as lockdown shopping habits persist.


According to a consumer habits study by Bazaarvoice, 39% of shoppers have also sought out new brands and products during the pandemic, while almost half have done at least one online shop a week.


And these habits are going to stick. According to the study, as many as 88% will continue in this new vein in the months ahead.


The ‘Behaviour that Sticks’ report includes insights about shopping habits from more than 8,000 consumers across the UK, US, Canada, France, Germany and Australia and explores the trends likely to continue post lockdown.


Adventurous shoppers find new brands

In the UK, 46% of consumers shopped online at least once a week during lockdown, with 1 in 5 making multiple purchases a week. Younger generations were more adventurous when it came to purchasing from different brands in this period, with almost two thirds (62%) of Gen Z (18-24 year olds) testing out new product options, compared to just 25% of over 65s.


Despite retail stores reopening and consumers having more choice now, just 12% of Brits plan to revert to their pre-lockdown product choices, even though almost half (44%) only elected to try a new brand because their preferred brand was unavailable. Reasons shoppers won’t continue to buy from the new brand they discovered are that it is too expensive (18%) or that they usually prefer more sustainable options (15%).


Subscriptions rise

Demand for specific products skyrocketed during the early stages of the pandemic, and with non-essential stores shuttered and grocery store shelves empty, 1 in 5 UK consumers turned to subscription services to make it through lockdown.


Much like the purchasing of new brands, once tried and tested, 80% will continue with their subscription post lockdown, citing confidence in the product quality (52%), ease (45%) and regular and reliable delivery (32%). The availability of ratings and reviews was also a key factor for younger consumers, with 15% of 18-34-year olds citing it as a reason to remain loyal to their subscription services.


Savvy shoppers go digital

Price continues to be important for UK shoppers, with 31% citing it as the most influential factor in any purchases they will make in the next three months. The ability to buy products online will also be a big deciding factor (23%), making it clear that all retailers must deliver an omni-channel strategy.


Interestingly, despite the amount of time spent at home, television advertising remains one of the least influential platforms when it comes to purchasing a product, with just 4% of consumers being swayed by content they have seen there. Consumers are much more likely to be persuaded by positive reviews and product ratings (15%) from other shoppers as they look to purchase products in the next three months.


Being able to effectively communicate how a product works, looks and feels is crucial for brands and retailers facing this rapid shift to digital. During lockdown, over a third of Gen Z (35%) and Millennials (34%) connected with a brand app during lockdown, with 34% utilising chat-bots to connect with sales associates prior to purchasing.


Suzin Wold, SVP marketing at Bazaarvoice, comments: “Amazon has been one of the big winners of the last few months, but the opportunity for other brands to win loyalty from new customers as people’s habits change is huge. The success of subscription services reflects the rapid digital evolution we have experienced this year. Younger consumers are some of the most powerful influencers and their use of social plays a large part in enabling customers to share experiences that credit these brands. In addition, their reliance on ratings and reviews content only highlights the enormous opportunity brands have to use the voice of the customer to create more meaningful shopper experiences, which ultimately results in more sales and customer loyalty.”


The way forward

There is no question that there has been an unprecedented shift in consumer behaviour, and one that will have a lasting impact on the retail industry. Before the end of October, 80% of UK consumers admit they are likely to purchase online, with three quarters (74%) of Brits now feeling comfortable shopping online.


When it comes to shopping in-store, two-thirds of consumers are likely to do so before the end of October, however just 41% feel comfortable in doing so. There are key considerations for brick and mortar retailers in order to increase footfall; over half of consumers (52%) will be wary of returning to shop in-store if they don’t trust retailers to maintain cleanliness, whilst 39% feel transparency of safety and hygiene protocol is also critical.


Wold concludes: “Retailers and brands must stay in tune with consumers’ priorities over the coming months and ensure they provide store and product information that instils confidence in shoppers. As consumers return in-store, the use of technology to connect online and offline and provide shoppers with product information before they visit will be important. An omni-channel approach not only enables a stronger connection with consumers but also creates a seamless experience.”


via September 3, 2020 at 04:04AM by Paul Skeldon, Khareem Sudlow,