In recent years, online shopping has evolved dramatically. New online shopping behaviours have emerged after the pandemic. Online shoppers have a sea of options available at their fingertips. Thus, retailers have had a hard time keeping customers.
Fortunately, there is an opportunity: gain business from shoppers who might leave your site without buying anything. You can do this by providing personalised offers to shoppers. Make your online store stick.
In fact, according to McKinsey & Company, 71% of consumers expect personalisation from retailers and 76% of consumers get frustrated when the shopping experience doesn’t match their expectations. The right AI Shopping Assistant can make all the difference in building your online store. Let’s start with some consumer trends from recent years so we know why this tech will be the savior of your store.
Consumer behaviour trend 2022
1.Savings mode among Europeans
The recent price increases and Ukraine invasion have eclipsed COVID-19 as the top concern for many. Allianz trade’s article released in June 2022 says European consumers will keep a cautious savings mode to protect them from inflationary hurricanes. In Germany and Italy 40% of consumers plan to keep saving more. Online sales declined by 13% and order volumes by 17% in Europe. The saving mode has started to show in Q12022 and will likely continue into 2023. As a result, retailers have to do better to persuade consumers to part with their hard-earned cash.
Big guys in the field choose to reduce price and choose the payment flexibility to reduce the fiction. Indeed, Flexible payment options like Buy Now Pay Later (BNPL) are offering consumers a safety net. Consumers can make necessary purchases instantly and pay them off over time.
For example, during June this year, Apple highlighted the top improvements and new features to its upcoming software update, iOS 16 – Apple Pay Later . It is a new feature that was added to Apple Wallet. Users can split the cost of an Apple Pay purchase into four equal payments spread over six weeks. During those six weeks, there will be zero interest charges and no fees.
For most small and medium-size retailers what is your next move ? Get personal! Use data collected from your customer base to segment them into groups and offer targeted deals. This will make them feel valued as a customer and more likely to purchase from you.
AI tech is an effective solution to personalise your shoppers’ experience in online stores. AI tech can automate the process of showing different products and offers depending on what the customer wants.
2. A low level of loyalty among online shopper
These days, retailers are facing a unique challenge when it comes to customer loyalty. As consumers become more aware of the importance of value for money, they are increasingly down-trading to more affordable brands and retailers. This means that they are less likely to remain loyal to any one particular brand or store, and are instead prepared to try new brands in order to get the best deal. This presents a real challenge for retailers, who need to work hard to stand out from the crowd and offer value that is genuinely competitive.
There are a few things that you as a retailer can do to make your store more attractive to shoppers who may be looking for value.
- First, consider highlighting any special deals or offers that you have on your homepage or in other prominently-displayed areas of your website. This will make it easy for potential customers to see the value that your store has to offer, and may encourage them to give you a try.
- Additionally, consider adding a “daily deals” section to your website, where shoppers can easily see what great deals are available each day. This can help build excitement and encourage loyalty among your customer base.
- Finally, make sure that your prices are clearly displayed and easy to find; nothing turns off a potential customer faster than hidden fees.
3. Hybrid shopping has become the new normal
In recently, retailers are under immense pressure to keep up with the ever-changing landscape of consumer behaviour. In order to stay ahead of the curve, retailers need to aware of the shift towards hybrid shopping in 2022.
Hybrid shopping is a combination of online and offline shopping that allows consumers to get the best of both worlds. For instance, consumers can research a product online and then go to a brick-and-mortar store to purchase it. This type of shopping is convenient and efficient, and it is becoming more and more popular.
According to the survey from Unfolded, 70.6% of people said that they are now less likely to shop in-store. Retail Gazette also estimates that 27.3% of UK consumers now expect to shop more online because of the new behaviours they have formed since the pandemic. The digital high street is not going away.
Retailers have to shift their focus on the needs of hybrid shoppers. This means offering seamless omni channel experiences that are tailored for each individual consumer’s preferences and shopping habits, whether they’re buying clothes or electronics online.
Tackle rising challenges with AI-powered Tech
European consumers are in saving mode and customer loyalty is low. This means that businesses need to find creative ways to tackle challenges and make your online store stick. One way to do this is by applying AI recommendation tools. Once visitors land on your online store, you can deliver the best deal that matches their expectations.
These tools can help businesses create individualised shopping experiences for their customers, which will encourage them to keep coming back. By using AI, you can overcome the obstacles posed by consumer behaviour in Europe and boost your business’s bottom line
Make your online store stick with Upsy Shopping Helper
Upsy Shopping Helper provides retailers with AI-powered product recommendations. You can offer personalised suggestions to shoppers based on their previous interactions with your store. Additionally, the AI-powered service can automate upsell and cross-sell to increase the size of the cart.
E-commerce is a sales sport where merchants have to win customers’ hearts at the first sight – landing on your website. The key is making your online store as personalised as possible. This includes upselling, cross-selling, helping the customer find the right product, making your discount deal visible, and using hybrid shopping methods that make it easy for customers to purchase.
Sounds like a lot of work? It doesn’t have to be! Upsy Shopping Helper can take care of all of the nitty gritty details so you can focus on what you do best: running your business. Ready to give Upsy a try? Let’s chat with us.