Understanding what will drive customers to eCommerce
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eCommerce is the fastest growing retail channel in North America as buying on the Internet is becoming more and more appealing to consumers. However, not all customers feel comfortable buying online compared to physically buying in traditional stores.
A study from Allurent, an eCommerce platform provider who released a Merchandising Survey in September 2006 gives us some insight into the buying habits of online customers in the US.
Not surprisingly, 64% of surveyed consumers* preferred shopping in physical stores for most purchases. Here are the key findings regarding the appeal of one way of shopping over the other:
|
In store shoppers |
Online shoppers |
|
| 13% 19% 30% 28% 18% 15% 55% 55% 10% 71% |
84% 74% 70% 63% 59% 55% 55% 41% 37% 33% |
find shopping online more convenient find shopping online easier find it easier to research and compare products online find it easier to purchase a specific product online find better pricing online find more variety online find it easier to find whatever they’re looking for say they have more fun browsing find items are more often available (or in stock) find that they get to better understand the products |
In brief, even though shopping in stores seems by far more impractical than shopping online, understanding the product is what draws most customers to brick and mortar locations.
Understanding a product can be many things but it usually involves the senses such as seeing, touching, weighing, and even smelling the item. It also involves social interactions like asking the staff questions about functionality and service around the product.
Fulfilling the need to understand the product is more important than the convenience of buying it. In some cases this is even more important than the price simply because it is intimately related to perceived value.
eCommerce websites can benefit from this knowledge by:
1. Providing more information on products such as: more photos (different views, different colours, etc.), 360° product views, videos reviewing the product, etc.
2. Providing more qualitative information such as customer feedback through reviews and ratings for online products, comparison tools, other similar items, etc.
3. Providing more practical information such as giving shipping costs and delays up front and not at the end of the shopping cart process
The same study reveals that 67% of consumers who have visited an online store with the intend of making a purchase left the site because the retailer did not provide enough information about the product in order for the consumer to feel comfortable enough to make the purchase online.
* The survey was completed by 803 adult Internet users, US residents, who made an online purchase during the past year spread across 4 age groups (18-24, 25-34, 35-49, 50+) with a gender mix of 59% male / 41% female.
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Posted in Marketing, Statistics, Web Design, eCommerce