Can you guess what consumers said was the most important factor when deciding on a big purchase?
What’s your price?
You have one. At some point, you’ll ask: “do I really need this?” And, as it turns out, the answer to that question will change—quite a bit—if you’re shopping online.
Think about it.
It’s a risk aversion. You tend to spend more in-store because you can touch stuff…feel the fabric. Need to know how a chair feels? No problem. Sit down. But, if you can’t reach out to touch the texture of that plush chaise lounge—the one you found online—how do you know if you’ll love it?
You don’t.
And, you’re not alone.
Not at all. In fact, the nation’s largest consumer panel—Surveys On The Go® proves that you’re in great company. We sent a real-time survey to online and in-store consumers. The goal was to find out how their shopping behaviors changed based on where, and what, they were buying.
Here’s what we found:
You walk inside.
And head to the fridge. It’s dinner time. Which means, it’s time to eat. But, as you pull open the door, you can see that the light’s out. Everything in your fridge is warm.
It’s broken.
You mutter a few, choice words. This sucks. You need a new fridge. So, you grab a bagel, and do what 96% of people would in this situation. You start to look online for a new fridge. After all, this is a big purchase. And, you want to make the right decision.
True, you don’t typically come home to a broken fridge…
So…how long do people typically think about big purchases—before they buy?
The sweet spot is a couple of weeks, with 75% saying between 1 and 4 weeks. Which boils down to this. If you sell big-ticket items, your online game should be as strong as your in-store one is.
Why?
Because you’re basically guaranteed an omnichannel audience.
Does this trend hold true in other categories?
Spoiler alert: yes.
But, the categories may still surprise you. And the channels too.
See, people who shop online tend to have a different focus than people in-store. We touched on this earlier, but it really plays out in the categories they research.
Online shoppers are more likely to research computers and tablets online. In-store shoppers, on the other hand, care more about looking at TV and home theatre systems. And, for those of you interested in the fridge above, 13% rank appliances as their #1 product category to research.
Meanwhile, beauty & grooming is the least likely category to be researched…by both groups.
Maybe it’s not Maybelline? 🤔
Okay, so, what is a big purchase?
The magic number for our consumer panel seems to be $100+. In both groups.
At that price, 50% of online and 37% of in-store shoppers consider a product to be a big purchase. And, if we go up to $500, we capture 86% of online and 76% in-store shoppers.
Now, things get interesting.
There’s a big difference between in-store and online at $1,000+. The in-store panelists appear to be more comfortable with higher price points. At $1,000+, 19% of shoppers say it’s a big purchase—compared to only 8% online. That’s a 2x difference. And, it’s corroborated.
By Best Buy.
At Best Buy, 52% who shopped in-store, bought a product. Online, the purchase conversion was about half as effective. Only 36% who shopped on an app or website, bought a product.
It comes down to comfort.
People who shop in-store are less worried. There’s less risk. Their ability to use more senses impacts their shopping behavior. And we see it again when it comes to their thoughts on research.
In-store shoppers are less concerned with researching online than their app + web counterparts. Again, this makes sense, but it’s interesting to see it play out. A full 71% of online shoppers will research online at a $100+ price point vs. 55% of people who are in-store.
At $500, 93% of app + web buyers will look online before they make a purchase.
So, what are they looking for?
Quality.
Like the fridge from our example, your shoppers want to be sure that they’re getting the best deal. And to them, a deal includes both quality and price. Quality ranks at 59% for omnishoppers.
We looked at 12 product categories. Surprisingly, quality won out in most, but not all categories. When it comes to video games & media and sports & outdoors—price is more important than quality. So, if you play in these categories, focus on the value you offer for the price.
This makes sense in the overall scheme of things. Price was ranked 53% for omnishoppers. Right behind quality. To influence shopping behavior, it’s therefore essential to show consumers how you provide value in both price and quality.
Photo by mentatdgt from Pexels
Joel Goldstein is the President of Mr. Checkout Distributors.
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Online shopping provides a user experience that many people find more convenient and satisfying compared to shopping in the retail store. Many consumers also love to shop online because it’s easier to compare prices with a few clicks using their mobile devices. Physical retail stores still hold a large share when it comes to consumer purchases but sometimes they find it difficult to compete with online stores. I believe this competition is going to be a part of the future of retail.
Here are some of the ways you can compete with e-commerce stores to promote your retail business effectively.
Price Matching
This is one of the best ways to attract more buyers to your store. Matching prices with your competitors will enable customers to purchase the product they want, when they want it. The customer is happy because they have what they need, and you just made money. With this, it is important to take into account your own profit margins. For a smaller store, it may not be the most feasible to price match with Wal-Mart or Amazon, as these retailers most certainly have a much higher profit margin per product because they have a cheaper wholesale price. Do your research and find ways to price match that will also benefit you.
Better Customer Service
When it comes to online shopping, customer service can take a bit longer as there is no one immediately available to help them. Even if they have 24-hour customer service, at times shipping out new products and the refund process can take much longer than an in-person visit. As a store owner, you can take advantage of this by ensuring that every customer that visits your store receives the best shopping experience and better support than anywhere else. If you want to have more loyal and returning customers you must provide the best experience in your store by eliminating the time constraint and building a relationship with the customer.
Train Your Staffs And Sales Reps
Online stores don’t have any in-person sales rep to persuade customers to buy their products or offer more up-sells. Consider learning how to recruit millennials. You have the advantage of physical people in your store — take hold of this — and train them. Teach them your product line and how to communicate effectively with people.
Order Online And Pick Up In-Store
If you hate the idea of shipping products to customers you should still set up an online store where customers can place an order and then pick it up at your store. This is a great way to boost your sales and you’re making it convenient for customers to shop from the comfort of their home. Retailers like Wal-Mart already employ this strategy. It allows customers to place an order and have products brought to their car — without needing to spend time in a store.
Deliver Products Fast
One downside of online shopping is that it takes time before products are delivered. If retail stores want to compete they should deliver products faster and in many cases, they can achieve that. Retailers offer two-day shipping for orders above a certain amount and there are event services with 24-hour delivery time — at a cost. Whatever the case might be from your side, you should aim to deliver products fast. If it’s within the same city, you can even aim to deliver within hours to expand the types of consumers who use your services and thus grow your business.
Optimize Your Business In Search Engines
Just because you don’t sell online doesn’t mean you should not promote your business online. Search engines are powerful tools for delivering customers to your store. The higher rank you have, the more visitors you will have. To increase your rank, you can consider hiring an SEO expert or research the field yourself to make the necessary optimizations. If you haven't already, you should also claim your Google Business listing, because they’re the first results that show up when a user makes a query.
Make The Order Process Easier
Make your website user-friendly, with as few steps to completing a purchase as possible. You do not want your customers filling out pages and pages of information when websites like Amazon allow you to checkout with just one click. Work on the UX and UI of your site as this is critical to improving your conversion rate.
Build A Better Relationship With Customers
This is something online stores can’t provide and retail store owners can take advantage of it. Sales reps consistently report that building good relationships with customers will play a great role in growing your business. Many customers prefer human interaction when making purchases, and while online chats and speedy email services are beneficial if you operate online, they do not wholly replace physical store associates. Have ample staff in your store that is educated in your products and your company — and make sure each staff member is also committed to your customers. This will help strengthen the consumer's image of your company.
Build An Audience On Social Media
Branding is key. Most online stores have a social media presence and if you want to compete with them you have to establish your business presence on social media as well. Build a broader audience and engage with them by providing high-quality content on a consistent basis. The future of marketing is on social media, so make time to do what it takes to ensure you’re connecting with more people in your city.
Use Testimonials To Promote Your Store
Testimonials are powerful as they shed light on what real customers have experienced after using a product or company. Online stores use reviews to prove the quality of their store or products. You should ask for feedback and testimonials from your customers and play them in the store, or post them on social media and definitely have them on your website. Testimonials have to be 100% real and authentic as you do not want to mislead customers under false pretenses.
Use these tips to compete with online stores and promote your retail business effectively.
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