Today’s technology is not only changing the way people live. It’s changing the way they shop! Consumers no longer spend hours looking for a product. They do research, read reviews, shop on their phones, and buy online.
As technology changes how people shop, businesses need to analyze consumer behavior so they can keep up with shopping trends. By doing so, they can learn the how and why behind online shopping, develop better brand strategies, and drive business growth.
Analyzing consumer behavior is crucial for your business growth. We’ve created this post to help you analyze online consumer behavior
How can a business go about analyzing online consumer behavior? Read on to find out!
So, What Exactly is “Consumer Behavior”?
To put it simply, consumer behavior is the motivations behind how people shop and why they buy the things they buy. In general, people shop for three simple reasons for buying a product:
Necessity: Products they need for basic survival, such as food, clothing, and healthcare
Social Status/Public Image: Products that make them feel good or look better in front of other people, such as cars, houses, and technology
Gifts: Products they buy to give to others
How Do You Analyze Online Consumer Behavior?
Step 1: Learn Why People Shop Online
While there many reasons why people shop online, these are the most common reasons:
Lower Cost
Online, shoppers can compare product prices between sites and navigate sales more easily than they can in-store. 38% of consumers shop online because of the lower prices. Online shopping is great for the price-sensitive shopper who gets stressed out trying to search through the sales rack in stores.
Convenience
Buying online requires low effort, so customers are more likely to shop from home and the places that are most convenient for them. Businesses should make shopping their website easy so customers can quickly buy from these places.
Product Selection
While physical stores may only be able to store certain numbers of products, online stores can have as many as they want. Shoppers love having options.
It’s important to know though that consumers are more likely to buy products from brands they know because they can confirm the quality will be good without having to see the product beforehand.
Step 2: Know How Shoppers Behave Online
Knowing how shoppers behave online is just as important as knowing why they do it. Here’s a list of online consumer behaviors:
Researching
Consumers use online shopping to see what products are available and to find out which ones would work best for them. For example, a customer looking for a new refrigerator may visit a few sites to compare products to see what features they should be looking for.
Price Comparing
As mentioned above, consumers shop online to find the best item at the lowest price. Knowing how much competitors are charging for similar products and services is a good way of making sure business are offering competitive prices.
Searching for Savings and Discounts
Online shoppers spend a lot of time looking for ways to pay less. They’ll search for promo codes, discounts, and look through the sales’ sections of sites to make sure they’re getting the best price.
Reading Reviews
Customers are afraid to buy a product without knowing its quality.That’s why they read reviews to figure out what other customers think of them, and whether or not the quality is as good as the site suggests.
Step 3: Know What Keeps People from Shopping Online
An important factor for understanding online consumer behavior is knowing the reasons why people don’t shop online. Here’s a list of factors that keep people from purchasing:
Lack of Trust
If a business has a poor website or is relatively unknown, a customer will be hesitant to purchase from them.
Inability to Touch a Product
Some customers need to see and feel a product before they can purchase it. Customers are unlikely to buy products like sofas online because they don’t want to spend a lot of money on something they’re not sure they like.
Step 4: Do Research
By using the following research methods, businesses can better understand online consumer behavior:
Observations
Watching shoppers use your site, or interact with your product online is a great way to get honest feedback.
Samples
Letting customers try out new products for free is a great way to get insight on what works or doesn’t work about your product. They’ll also be more likely to give you meaningful feedback.
Focus Groups
Focus groups are a great way to get a bunch of people to try out or new product or determine if a current product needs any changes. The conversations that come out of focus group can be very valuable.
And here are some research methods that are great for studying online consumer behavior:
Surveys
Surveys are a great way to get feedback from a large pool of people on a variety of things like product preferences and shopping behaviors. They can be done in-person, via email, or appear even as a pop-up on your site.
Keyword Research
Keyword research helps businesses learn what words customers are using, and how they talk about certain products. Improving keywords can also help a business optimize their SEO.
Google Analytics
Google Analytics is a great way of figuring out who your customer is, and what sites they’re visiting. It’s also a great way to find out more about customer demographics.
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Eye on Consumers
As consumers embrace new technologies, their shopping behaviors are changing. Most people are shopping online and with their mobile devices, so it’s important to know how online consumer behavior is different, and how businesses can better meet the needs of these shoppers.
If you’re not doing business online yet, it’s time to get started! Team up with a company that can help you blend the design and functionality needed for a great website! The first step to getting customers to buy from you is to create a site they love shopping on.
Was this guide to online consumer behavior helpful? Let us know your thoughts in the comments below!