Granify Blog How to Respond to Shifting Consumer Behavior

Consumer expectations are forever in flux-particularly since the pandemic set in motion a monumental shift in buying behavior. E-commerce sales increased by 43% in the first year alone, jumping from $571.2 billion in 2019 to over $815 billion in 2020. Retailers that once relied on traditional brick-and-mortar locations suddenly had to adapt their service strategies to stay aligned with an evolving customer experience.Since then, it's become clear this isn't some fleeting fad, but rather, an enduring alteration. As a result, e-commerce businesses today must continually stay ahead of increasing shopper demands in order to remain competitive and top-of-mind. The challenge that remains for many e-tailers is how. A study done by Medallia found that the likelihood for a shopper to recommend an e-commerce store plummets when issues arise during a website visit. What's more, 25% of visitors will click over to a competitor if their needs aren't fulfilled while on a brand's site. So what's the secret to keeping up with fluctuating customer needs and preferences? Here are six key insights and solutions to help you manage these shifts effectively to help you deliver an exceptional customer experience.Understanding Changing Consumer BehaviorShopper behavior is influenced by a myriad of factors, and understanding them is crucial for responding efficiently. Some key contributors include:Technological advances are changing the way consumers discover, research, and purchase products.Economic conditions like inflation and employment rates are leading to more budget-conscious spending.Social media plays a significant role in shaping shopper preferences and purchasing decisions.Social trends, such as sustainability and ethical practices, are gaining significance amongst consumers.Personalized experiences attract more shoppers, with 80% of customers more likely to buy from companies that offer them.Global events like changes in work patterns and health and safety concerns can shift priorities and sway buying decisions.Consumers are increasingly conscious about the safety of their personal information when shopping online.Over time, each of these factors will inevitably change, and new variables will emerge as the e-commerce landscape continues to evolve. As a result, online retailers must remain proactive in monitoring their target market and tailoring strategies to meet their customers' increasing demands.Adapting to Evolving Consumer DemandsThe following are the most common expectations online shoppers currently have-and ways you can effectively keep up with them.Preference: Simplicity and ConvenienceNowhere in life has anyone ever said, "I'd like this to be as complicated and drawn out as possible." E-commerce is no different. In fact, 82% of customers say convenience is extremely or very important to them. With more consumers turning to their laptops and mobile devices for their next purchase, it's safe to say providing a convenient and frictionless shopping experience is non-negotiable. Smart Solutions:Search Engine VisibilityLess than 1% of searchers click on the second page of Google results, so getting your brand in a top position is pivotal to attracting more shoppers to your site. Optimize your website to rank higher in search engine result pages by including relevant keywords in content and meta descriptions and creating high-quality backlinks.Enhanced Product Content and NavigationAccording to McKinsey & Company, three-quarters of consumers want retailers to make their online navigation easier. With just a few simple adjustments, you'll not only be able to appease these shoppers, but increase the chances of getting them past the checkout page.Ensure your menu structure is organized with clear and concise category names.Integrate a prominent search bar across the entire site.Provide advanced filtering options to streamline product searchesFeature sales, promotions, and other special offers on your homepage, above the fold. Include high-quality images, videos, and concise yet detailed product descriptions on your product pages.Implement a responsive website design for popular devices, including the last few generations of mobile phones (we'll have more on that later).Allow users to add items to their cart without leaving the current page.Improve your website speed to reduce your bounce rate-which also helps improve your search engine visibility.Simplified Checkout You can have the best e-commerce site ever, but if your checkout process is a mess, it can leave a bad enough impression that visitors will never return. Your best bet? Offer a guest checkout option that allows shoppers to complete their purchases without being forced to create an account or fill out endless fields of information.Follow this up with a wide range of payment methods to accommodate different customer preferences, including credit, debit, digital wallets, and buy-now-pay-later options. Not only will this go a long way toward meeting customer expectations, but optimizing your checkout can boost your conversions by nearly 36%. Fast Shipping and Easy ReturnsMany shoppers are attracted to e-commerce because of the ability to access endless products with a few clicks of the mouse (or taps of the finger). But if the shipping times take longer than anticipated, it could mean the end of that buyer relationship. The same can be said about returns. A study by Invesp found that 92% of consumers will buy again if the product return process is easy. In this instance, your wisest move is listening to the majority by providing speedy and reliable shipping options, and investing in a hassle-free return process that offers quick refunds. All of this information should be highlighted on your website-including PDPs and the checkout page-in simple, easy-to-understand terms. Loyalty Programs and Subscription ServicesWhile you might not relate these two solutions to meeting consumer demands, the truth is that both offer convenience while also helping foster long-term relationships. To start, loyalty programs reward customers for their continued support through exclusive rewards, discounts, and other incentives.If you want your e-tail store to stand out, you might want to consider implementing a loyalty program that appeals to the masses. This makes it more compelling for shoppers to choose your brand over others. Don't believe us? A study from Newswire found that 3 out of every 4 shoppers would switch brands for a better loyalty program. Another great option is subscription services. This specific type of commerce is already projected to grow to $1.5 trillion by 2025, and a large portion of that is due to its ease of use. To make your subscription service successful, start by choosing popular products or services your customers continually want, and then reducing the cost for those items by a select percentage as an incentive for their ongoing renewal. You can offer weekly, monthly, bi-monthly, quarterly, or even annual options that are pre-paid to ensure consistent incoming revenue, along with flexible scheduling and order options, such as the ability to pause services while on vacation. Related: How to Create the Best E-Commerce Subscriber ExperienceAI-Powered Customer SupportConsumers want to feel like you're always there to help them, no matter what stage of the shopping journey they're at. Sometimes, however, their urge to buy comes at times when your customer support staff isn't available (anyone else guilty of a 2am spending spree?). This is where responsive support like AI-driven chatbots can make all the difference.These machine-learning programs aren't strangers to shoppers-over 80% of people have interacted with them already-so you can take comfort in knowing they're already providing the necessary assistance so many consumers demand. Of course, you'll want to balance these virtual robots with human agents who can get to the bottom of more in-depth concerns, and a thorough FAQ section for more generic questions.Preference: Personalized ExperiencesDid you know personalization can drive 60% of consumers to become repeat buyers? It's no wonder why. Tailored shopping experiences can simplify the purchasing journey by empowering customers to make well-informed buying choices, resulting in heightened satisfaction and loyalty. The secret to delivering an exceptional personalized experience? Utilizing real-time digital body language to align the products, content, and interactions you provide with each shopper's unique preferences and expectations.Smart Solutions:First-Party DataFirst-party data is instrumental in enabling e-commerce brands to deliver personalized shopping experiences by providing valuable insights into individual customer preferences, behaviors, and purchase histories. By leveraging information directly gathered from your customers, such as website visits, product searches, and transaction history, you'll be able to optimize their overall shopping journey through tailored messaging, recommendations, and other personalized content.Personalized Product RecommendationsAt this point in the retail game, online shoppers expect retailers to remember their preferences and offer recommendations that are tailored to them. And 56% of these consumers are likely to come back if you provide them. Use the data you've collected on browsing and purchase history to help you determine which products and services are most likely to appeal to each shopper.Even better, machine-learning backed technology like Granify can do the work for you, leaving you time to tailor other strategies to fulfill consumer demands. These technologies can even help you generate curated recommendations for anonymous shoppers, increasing your chances for higher sales. Custom Email CampaignsEmail marketing campaigns are a great way to keep in touch with your customers and encourage repeat purchases-especially when infused with a dash of personalization. For optimal results, divide your campa