Retailers looking to increase revenue needn’t cast a large net, just a strategic one. A global survey conducted by Worldpay, a leading global payment company, revealed that a concentrated group of consumers account for 87 percent of all monthly online spending on physical goods. To find these results, Worldpay polled 20,000 people segmented by 2,000 people in 10 countries.
Though devised of only 13 percent of the general population, this Millennial-dominated core group of shoppers is purchasing at elevated levels, and at a rapid rate, according to Worldpay. Approximately 34 percent of those polled fell into the Millennial age group.
This demographic is distinguishing itself by its savvy ability to find the best deals at an expedited rate, resulting in higher purchases. In the last 12 months, this demographic spent approximately $342.1 billion on consumer goods such as clothing and electronics compared to $212.5 billion by the remaining 87 percent of the general population.
They’ll make time to do their spending. The study reports of these consumers, 85 percent shop weekly and 15 percent purchase daily. According to the polls, nearly 25 percent of these supershoppers spent approximately $130 to $200 during their last online shopping excursion, 13 percent checking out more than $260.
Superspenders call for innovative marketing approaches. Maria Prados, vice president of global retail at Worldpay, said, “The supershopper phenomenon gives retailers much food for thought in terms of how they merchandise to these consumers to maximize basket size, or market to an audience who thinks of online shopping as a daily task, not just as an occasional treat.”
Superconnected and heavily informed, supershoppers aren’t afraid of a little research. Tim Denison, director of retail intelligence at IPSOS, a market analysis company, notes that it’s important to not confuse being reverent with being rich. “‘Supershoppers’ are not synonymous with the superrich, however. They are passionate about what they buy and are sophisticated in how they shop, taking the time and trouble to research the best products and find the most competitive prices available, relishing the process as well as the output,” said Denison.
Don’t rely on these pro-shoppers for brand loyalty, either. To this group, allegiance is found with e-commerce stores that provide the most seamless checkout process — particularly those that accept their preferred source of payment: credit cards.
The research discovered that 38 percent of the shoppers discontinued the purchase after learning they could not move forward with their favored spending method. In this scenario, 52 percent of these shoppers turned to an alternative web site to buy the same item and 17 percent visited a brick-and-morter store.
Consider developing markets in addition to established locations when appealing to this group. The survey found that Brazil hosted the largest cluster of supershoppers: 25 percent of the population fell into this category. The United States and Mexico followed with 18 and 15 percent. Regardless of just 5 percent of its population, China’s supershoppers were responsible for spending nearly 87 percent of the country’s estimated online shopping revenues.
Given preferred checkout options are available, retailers might find reliable opportunities within this group of heightened spenders across locations. “The remarkably consistent buying behavior of these supershoppers across markets is a very interesting phenomenon for online retailers. It suggests that retailers should be looking at these consumers as a distinct group that often behaves very differently from the rest of their customers,” Prados said.
Accessibility is paramount as well. Denison said, “They are equipped to shop from whichever device is most convenient to them at the time — whether it be PC, laptop, tablet, or smartphone. By default they are superconnected. And by shopping online they are, of course, unconstrained by time.”
Answering their demands has huge payoff potential, just be sure to remain their good graces. Prados said, “With so much buying power concentrated in this group globally, it’s essential that retailers innovate in such a way that they deliver what supershoppers want, when they want it, and let them pay for it in the way that suits them best.”