When it comes to product marketing, consumers react differently to brands online than in stores, according to a report from Nielsen’s, which also found that online experiences is shaping their behavior and expectations.
To collate the results, Nielsen reviewed approximately 100,000 purchases across a multitude of categories completed by about 75,000 shoppers. The report belongs to a suite of analysis conducted by the market research agency to better understand shoppers’ path to purchase, the decision-making process behind selecting which online retailers to patron and e-commerce’s role in this.
Focusing predominately on the fast-moving consumer goods segment, the research found that brands stand to gain consumer attention at higher rates on e-commerce sites opposed to traditional department stores. “Consumers are 5 percentage points less likely to have a specific brand in mind when shopping online versus in-store. And while online shoppers are less likely to plan purchases of specific brands, they’re 21 percent more likely to plan by category line versus in-store,” said the report.
Price continues to be a leading factor in consumer decision-making, according to authors of the report. In addition to price, free shipping and general convenience factors are driving up consumer satisfaction. “Three out of four consumers are motivated by the experience of online retail across factors like easy checkout, simple returns and helpful product information,” the report said.
The speedier the delivery, the better. Due to Amazon’s nearly unmatchable shipping and delivery rates, consumers expect all online retailers to offer parallel services as the tech giant. According to the study, the average shopper expects deliveries to arrive just under four days.
The online consumer base can be categorized into three types primed for engagement: The Grab ’n’ Go, Non-Planners and Digital Advocates. “The first two are all about the convenience of online shopping. Digital Advocates, on the other hand, love the experience of shopping online,” the report said.
It’s important to note that the research discerned additional consumer types, however, have yet to prove their influence in growing online spend, yet each require a specific strategy for appealing to their needs and preferences.
As artificial intelligence and platforms evolve to provide automatic replacements of CPGs, the opportunity for subscription services will increase, the report proposed. Wellness and home cleaning products are among the most popular of types of subscription services. This diminishes the opportunity to get in front of shoppers through online perusal, however, doesn’t eliminate opportunity for brands. With the growing spending power of Millennials and the maturation of Generation Z, brands that organically infiltrate social feeds can continue to reach new shoppers and build loyalty with consumers, said the report.
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