How do People Spend Their Money Online?
When you are developing an online shopping company you need to understand why people buy and the motivators that help them choose between companies. It really is important to start to understand the complexities of the consumer and your target demographic in order to convert at a higher rate and develop a successful brand where people will keep coming back again and again.
In this article, we’ll look at some of the main factors related to the online consumer.
Why people spend money with certain companies
When it comes to buying online, there are certain influences that will be clear in the consumer’s mind. Let’s take a look at the top ten according to a massive bank of market research that has been done by online trends and consulting firms.
1. Product quality
Many people would assume that prices are more important than quality, however the majority of consumers will rate product quality as the most important factor in their purchasing decision.
2. Shipping costs
Many of us now are clued into the fact that some companies will add shipping costs and make money there in order to bump up their margin. When we see free shipping, we are often attracted to a product.
3. Return policies
Online, we are still somewhat weary of new companies. Having quick and easy return procedures for products that are damaged or not what we expected really does help people to buy.
4. Customer testimonials
We will of course read the customer testimonials on websites and ensure that we trust the entity from which we are buying. We’ll also look at testimonials on different sites, for instance if we’re looking at hotels or holidays, we may go onto Trip Advisor and read the reviews there.
We may, for example, try and find out about the people in charge of a company or a place such as a public house and read the reviews to ensure that we want to spend our hard earned money with them.
Of course, we will want to be able to get around the site easily and consumers are often put off by having complex or dodgy navigation around the website. Navigation should be consistent throughout a website, and we should be easily able to funnel through to the payment systems.
This leads into checkout which should be painless. The more timesaving features the better, but it should also be secure and give us confidence in the process.
7. Having choices
In all areas we like to have choice. Not too many choices but enough that we can select what is right for us. When it comes to payment methods, we want to be able to choose when it comes to product sizes, colours, options…again, we crave diversity.
8. Special requirements
Often, we’re shopping online looking for something with a special requirement. For example, we may need a certain sized garment or shoe, or we may be looking for special features with online software. It really does depend on the products and so if you’re selling something that does have something special about it or has certain characteristics, then make sure you mention them in the product description so that you can be found online and then can attract the customer.
9. New innovations
New product innovations are often well received. Of course, you need to convince your customers that the innovation is actually worthwhile, but the newest and best is always well received by consumers and critics and really can help to propel your brand into the next level.
10. What people look for on their online store
When it comes to what people look for in online stores when they are shopping on eCommerce websites, there is greatly. Here’s a list of some of the top things people crave:
- 80% of people look for competitive pricing in order to get the best value for money. The internet is a fantastic source for getting the best priced product as well as the best quality. When it comes to value for money, online is often best.
- 62% of people wanted online purchase options rather than having to go and pick up or just make an enquiry.
- The speed of delivery: 54% of people look for speed of delivery in order to get a product fast. We are an impatient race as online consumers and more and more people are looking for speed. Of course, approaching Christmas, Amazon sales sky rocket because people are confident in the delivery speeds.
- Around 46% of people look for the ability to pick up in store after searching for products they want to hold or eyeball physically, and therefore this can be important.
- Just shy of 40% of people look for loyalty rewards, club cards and options to make savings down the line.
- Demos and how to’s: around 35% of people look for demonstrations so that they can actually see what the products do and how they work. This is an important feature to add to certain websites.
Ensure your website is fast
It’s a common trend these days that we want faster and more efficient websites. With the best mobile broadband deals around at the moment, more of us are getting online on our phones, tablets and requiring really speedy browsing. It’s not all about fibre optic broadband; with Everything Everywhere offering 8 – 12MB per second, your website should be quick. This will also help with rankings as Google uses it as a metric for their rankings.
Top Tip- Use Google Analytics
Make sure you are using Google Analytics on your site. GA is simply the most powerful tool to understand your customer. You can find out about what they look at, how long they spend, what they searched to enter your site, where they are falling out in the sales process and a lot more. There is a wealth of information at your disposal when you add the tracking code to your site and the power the data provides could be the difference between success and failure.
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