Customer Behavior in 2014
In business, success is often defined by numerous benchmarks and pegged to achievements. Arguably, an important and crucial defining factor in any business success is patronage; the customer dollar is king. It is imperative for businesses to understand customers need and this indispensable knowledge goes a long way in contributing to business growth and success.
The advancement in mobile technology and advent of social media platforms has influenced the way consumers make their purchases. These days with just one touch of a button, a consumer can shop right in the comfort of their homes. The impact and success of online shopping has reaped benefits for retailers and businesses globally.
When Macy’s, a major US department-store chain, introduced its new e-commerce platform in 2010, the website generated a US$1 billion rise in online sales alone.
However, this does not discount the importance of a having a physical store and in-store sales. Macy’s, known to be a vocal advocate of an "omnichannel" strategy, has managed to align its in-store and online product assortments in order to complement one another and successfully increased in-store sales to more than US$5 billion in the very same year it launched its previously mentioned e-commerce platform.
Customer behaviour can be hard to fathom at times.
At the recently concluded Asia Fashion Summit 2014 (AFS 2014) conference held in Singapore, Mr Rick Yeo (Managing Director Lotte Global Fashion Division) shared an interesting perspective on the Korean shopper. According to his findings, the customers would head into a mall, be attracted to or find something they like and make their purchase via the store’s online shop instead of in-store.
He admits that it is a perplexing problem that needs to further studied and understood. Perhaps, it’s the ease of online shopping over the hassle of queuing up to make purchases that have influenced customers to opt for the former. But what’s apparent is that they are getting smarter and they also expecting more.
Customers are increasingly expecting things to do more.
These include factors that involve interacting with all their senses and rendering new experiences. Customers are craving for active participation. Hyper-efficiency also ranks high when it comes to customers’ satisfaction. They are constantly seeking and discovering smarter and more efficient ways to fulfil their needs. Digital and technological advances have made this possible and their continuous evolution means businesses must keep up with the changes and advancement on offer. JWTIntelligence, a center for provocative thinking that focuses on identifying shifts in the global zeitgeist, shares ten key trends that will drive consumer mind-set and behavior for 2014 and beyond.
Convincing consumers to change their behaviour is a significant component of any business’ sustainability agenda. This is where tailored rewards can lead to brand loyalty. By fully utilizing smart technology and social media technologies, businesses can cement stronger relationship with current customers and also attract new ones.
It’s reported that digital interactions constitutes 36% of every dollar spent in the physical retail stores or $1.1 trillion. The numbers are expected to go higher with the increase in smart phones penetration. Businesses at the forefront of technology and more importantly, are in-tuned with customers’ needs will undoubtedly reap rewards. Understanding customer behavior can help your business stay ahead of the curve and rise above the competition.
After all, it’s important to remember that business is not only about products, it’s also about people – your customers.
If you are an SME owner who would like to reach out to your customers who are on the go, 8 Connect has recently launched Instant App Cafe. You can create and publish you own app for just S$50 a month. With more than 10 features in the app such as Stamp cards, Coupons, Menu, Product Catalog, Click to Call, Map Locator and Events, you can now notify your customers of deals and promotions easier. Instant App Cafe can be downloaded via Apple App Store and Google Play Store. Contact Ming @ 8connect.com for more info.
