August 3, 2017
1. 81% of consumers conduct online research before buying.
Today’s shoppers are resourceful creatures. At the mall, they’re scanning barcodes into their smart phones. They’re trawling through online reviews. They’re also comparing prices and delivery options to find the best deal. According to an infographic compiled by MineWhat.com, 81 percent of shoppers won’t make a purchase until they’ve researched online. Gone are those days when customers would blindly buy from retailers they trust. Today, shoppers will search for the best price, or the best customer experience, or the fastest delivery, and they don’t care who offers it.
2. 77% of consumers say they retract their loyalty faster.
Despite the estimated $90 billion a year that US marketers spend on non-cash-reward loyalty programs, old loyalty results are waning. According to new research by Accenture, 77 percent of consumers said they retract their loyalty faster today than they did three years ago. In the same survey, US Millennials aged 18-to-34 said that their purchasing decisions were based on factors including: product experience, data security, customer-service experience, and even corporate social responsibility.
3. 68% of consumers never come back for a second purchase.
Have we entered the age of one-hit-wonder shopping? Magento Business Intelligence conducted research that revealed 68 percent of consumers never return for that second purchase. What’s more, there’s a mass abandoning of loyalty schemes being felt across all markets. A reported “millions” of customer loyalty points are left dormant in hotel and airline accounts right now, as customers search for better deals elsewhere.
These statistics might seem scary, but at Magento we see an opportunity. Consumers have tons of information at their fingertips, but so do businesses. It’s time for the modern merchant to think like a customer, and use data to gain a competitive advantage.
Effective, data-driven organizations can use technology to learn more about what their customers want. You need to learn who they are, where they came from, when to best re-engage them, and the products they tend to buy at each transaction. And that’s just the tip of the iceberg.
This isn’t easy. It requires regular analysis of transactional data, and augmenting it with third party data sources including advertising channels and Google Analytics. There is one easy and affordable solution that does all this (and plenty more).
Join Bob Moore, head of Magento Business Intelligence, for a Magento Business Intelligence Essentials deep dive webinar on August 22, 2017. Register now!