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Consumer Behavior Report
Consumer Behavior Report
Consumer Behavior Report
Behavior Report
Real customer data on how to
seize your brand’s moment
When I was in middle school in the early 90s, a teacher As we all know, there is no going back to the way things
told me that it was okay if I wasn’t good at math once were. Our world is a whole new place
because “girls don’t really need to use math later on in post-pandemic and the ways in which consumers have
life anyway.” Hindsight says “yikes” on so many levels. changed are no different. What worked in 2019 just
Joke’s on him: turns out I happen to adore math.
consumer
Individual brands don’t ask consumers what experiences matter to
them when shopping online. Oftentimes, they assume they know
who their customers are and what they expect—without using real
data to make their decisions.
Nine Shopify Plus certified partners who work with with 500,000+
ecommerce brands day-in and day-out notice trends and
behaviors across the industry before individual brands.
This report is for all the ecommerce marketing nerds of the world who
How consumers Why consumers What increases What the preferred What consumers
discover new brands switch purchasing consumers’ trust and method of believe makes a
consumer.
There’s a fight for consumers’ online attention, and first impressions will
Your goal?
VE, AD, SG
57% Female
42% Male
0,4% Other/prefer
not to say
17 or younger
18-24
25-34
35-44
45-54
55-64
65+
Will consumer behavior
change post-covid?
In March 2020, when COVID-19 took hold of consumer purchasing
behavior, the ecommerce industry saw accelerated growth within one year Do you think your shopping habits will change
that was originally estimated to take five years (IBM). With more people once COVID-19 is no longer a factor?
shopping online, the things customers started looking for and expecting
from brands changed.
Online retail spending as a share of total card spending (% 5-day moving average)
30%
25%
20%
15%
10%
01-Mar 11-Mar 21-Mar 31-Mar 10-Mar 20-Mar
Source: BAC internal data. Total card spending includes total BAC card activity which captures retail
sales ex-autos + services which are paid with cards. Does not include ACH payments.
52% 48%
Hot take: 52% consumers believe their shopping habits will change once
COVID-19 is no longer a factor. What does this mean? There’s a fight for
consumers’ attention in a post-covid world. By optimizing your brand’s CX
now, you’ll be better equipped to engage with and nurture a solid customer Yes No
base when consumers shop more often at retail locations.
What are people shopping
for the most online?
When was the last time you purchased one of these items ONLINE?
Answers (%)
Answers (%)
The majority of consumers in every industry have
Yes No Not yet, but purchased, or are open to purchasing, new products online
I'm open to it
from brands they’ve never used before
Beauty, cosmetics or
78% of beauty consumer
65%
21%
13%
What does this tell us? Even with brick-and-mortar locations becoming more
available, there’s still an opportunity to win the sale through online channels.
What should you do? In every industry, optimizing for a positive customer
experience to keep customers long-term. While customers are open to
Electronics 48% 36% 16% purchasing from new brands online, you want to capture them beyond just a
single, first-time purchase. Provide an experience so exceptional that consumers
think of your brand as top-of-mind when they make similar purchases in the
future. The rest of this report will show you what kind of experiences matter most
to consumers.
Where are consumers
discovering brands the most? Food and beverage delivery—especially in the
wine space—has seen increased adoption
considerably since the pandemic. I expect that
trend to stay now that consumers are more
aware of the possibilities and have generally
been pleased by the exceptional service &
quality of product that DTC brands can provide.
Across all categories, 50% or more of consumers
have shopped for brands or products that they Jai Dolwani,
Matt Schlicht,
Answers (%)
I'm feeling lucky mic
Searching/browsing online 88%
Recommended by a friend The majority of brands get discovered through online search. This
84%
tells us that brands should prioritize building their online
or family
discoverability. A few tactics that can be used to drive
discoverability include SEO, influencer marketing, reviews, paid ads
Social media 80%
(social and search), consistent organic social media posting, and
sponsored posting with popular forums or digital media. Shoppers
Ads 51%
are also heavily influenced by the recommendations they
receive from peers: affiliate, influencer, and loyalty programs are
beneficial to drive more authentic recommendations from
Browsing in a store 42%
consumer-to-consumer.
Recommended by a store
associate
12%
Where are consumers discovering brands the most?
Ecommerce is fueled by social Instagram and other social media Word of mouth works because it’s Having a delightful experience with Shoppers rely on social media and
influencers and word-of-mouth platforms have incredible candid, it’s authentic, and most the brand, with high-quality friend or family recommendations
marketing. It's where people find revenue-driving potential because times, it comes from people we products that customers love to discover new brands and
brands, get recommendations, and of these findings—and it’s why trust. Brands should focus on (quality products being the #1 products. Incorporating referrals
make buying decisions. The more influencer marketing is THRIVING creating products and driver of buying behavior) so that and social media incentives into
brands invest in getting their right now. I think we’re still fairly experiences that are so you want to tell your friends, your loyalty program is a powerful
products in front of people in early into the full potential of this remarkable that consumers can’t combined with a strong SEO way to ensure that your existing
natural, authentic ways, the more new marketing medium. Brands help but share them with everyone strategy and site speed is key for customers are talking about you,
purchases they drive. Ads may still need to be leveraging UGC and they know. 2021 and beyond. The iOS14 and helping you to acquire new
dominate in spend and reach, but letting trusted creators and update on privacy settings went customers more cost-effectively.
the lower costs and longer-term influencers help them sell. Karla Fernández,
live this month and will have an
relationships associated with Brand Journalist inevitable impact on ad targeting, Fiona Stevens,
Alex Markov,
Partner Manager
Kelsey Clutter,
according to consumers
want every interaction
with them to be
approachable,
informative and delightful
so they are excited and
eager to dive into our
natural skincare
products.
Lillie Sun,
I already had a good experience purchasing from the brand before 79%
19%
1%
0%
I've heard good things about the brand from someone close to me 49%
43%
7%
0%
They send me personalized offers before I purchase 12% 37% 36% 16%
What drives consumers to one brand over another?
84% of shoppers surveyed say As we see trends continue in favor Mission-driven brands are winning. was surprised by how low down Stories help us make sense of the
they want to shop with brands of personalization, we can't forget The products we buy and use say price was in terms of what drives world. The brands making the
I
who have a story or mission they that product still reigns supreme. something about who we are; purchasing decisions. This means biggest impact have crafted
believe in, and a further 54% are People want good products and therefore, consumers, especially that brands have a lot more unique and emotionally engaging
drawn to brands that offer a good proof that other people like them. Gen Z, are always looking for pricing power than we think as stories that connect with
customer community. Your loyalty You don't want a crappy, brands that align with their long as they have a high-quality consumers and make them feel
program acts as a vehicle for your personalized product (just ask personal values. product, which can be really like they’re part of something
brand values, giving you multiple anyone who gets targeted with interesting margins and the growth bigger; stories that share a sense
opportunities to communicate those weird hometown t-shirts on Rachel Cantor,
of the high-end market. of purpose beyond the product
them by incorporating them into
your points and rewards
Facebook). Brew Recommendations illian Willia s,
rinci al at Cow oy
m
Head of Marketing
at Loyalty Lion.
The importance of personalization
How likely are you to share personal information about your
likes, preferences, needs, etc with a brand if it meant getting
personalized recommendations that matched your needs?
45%
The big number is zero
The world of online shopping consists of multiple channels
26%
that influence buying behaviors. From emails, to Instagram ads
and text messages, brands have the power to reach their
Likely target audience in more ways and at any moment. But rather
than guessing what products or messages customers enjoy,
learn who your customers are by collecting zero-party data
Very likely 29% Not inclined on their demographics, behaviors, likes, dislikes, pain points
and preferences.
71% Inclined to
23% 6%
Not likely
I won't share
personal infermation
Using this data, segment your campaigns on email, SMS and
paid ads to ensure every message, recommendation, and
event is extremely targeted and relevant to every
individual—no matter what stage of the buyer’s journey they’re
at. There are a variety of tools available to help you learn these
key customer insights: quizzes, purchase history, opt-in
forms, account registration, and surveys are a few examples.
The importance of personalization
Shoppers today crave personalized Consumers want to feel seen and heard. More and more consumers are trusting “Recommending products via automated
experiences from the stores they buy They want to be recognized and treated as people over brands. When they get quizzes is akin to having a personal
from. They want to be served products humans, not numbers. They expect personalized recommendations that fit shopper in-store hearing a consumer's
they’re interested in without much effort personalized and timely recommendations their needs, the brand to consumer needs and recommending the right
on their behalf. Personalization not only from brands they love, and they are willing relationship feels less transactional and products to meet those needs. On-site
improves the customer experience, but it to provide their data for a shopping more personal. They feel valued and heard. quizzes are a must for brands and can help
helps increase sales by suggesting the experience that is unique and personally lift conversion rates. Identifying the right
right products to the right fit person. Using relevant to them. DTC brands have an Rachel Cantor,
product based on a consumer's needs is
key customer and product attributes, you opportunity to leverage data and Brew Recommendations imperative and if a consumer isn't
can segment your audience and deliver technology to offer consumers a confident in which product is right for
Writer at Morning Brew
hyper-personalized messaging. This can one-of-a-kind offer that is tailored to their him/her, they will simply not purchase.
be done in the form of product wants and needs and create an experience
recommendations or email campaigns to that’s is so exceptional that it is hard to
engage with customers and encourage replicate. Jonathan Snow,
Matt Schlicht,
Add to cart
behavior. When you offer a
24% 23% 14% 13% 13% 10% 3% again or tell their friends
about you. Providing a
Want to try or Need it Too Can't find Don't Don't Other best-in-class customer
test the immediatly expensive the right trust the trust the reason experience creates a
product product brand reviews flywheel that will accelerate
for them selling it your growth exponentially.
Jon MacDonald,
Sustainable
Price Different
Best
Money
Offer Delivery
Time
Know
Usual
In-stock
New
ProductDeal Values
Website
Brand
Variety
Brand
Time
Payment options
Ethics Shipping Variety Recommended
Reviews
Sale Best Eco
PriceNew
Friendly Try something new
Speed Customs
Need
Return policy
Polite Return policy
Online
Service Sale
Free shipping
Feel
Cheaper Size
Envinronmental Cost Style
Competitive Reviews Well
Discount
Friendly
Eco Deal
Explore Discount
Family
Social Local
Sustainable Alternative
Trust
Shipping Skincare Love Easy
Fit
Quality
Available Package
Come
Experience
Available Offer
Cheaper
Clothes
Quality Online
Need Recommended
Try something new Social Easy Service
Different
Product Brand Cost
Support
The future of consumer
lies in a DTC-first model behavior
In this Direct-to-Consumer Guide, some of As brands continue to iterate in the online
our top app developers ran a study space, consumers will follow.
6.6% of all CPG sales in 2021, and the In order to be the best, listen to what your Shopify VP Global
direct-to-consumer movement accounts customers are telling you, create Partnerships & Sales
for 40% of the sales growth in the CPG experiences that delight them, innovate
sector.
Behaviors will change Experience matters Always personalize The choice to go offline
Consumers indicate their shopping According to the data, customers care Customers are willing to share zero-party Most of the time, customers won’t
behaviors will change post-covid. There’s about a brand’s mission, and they prefer data if it means gettings personalized purchase a product online because they
a fight for the attention of consumers products that are high-quality and offers and recommendations. need it immediately, they want to try it,
right now, and a good CX will help you sustainable. They also enjoy personalized or they don’t trust the online brand.
win.
offers, brand communities, and easier
website experiences.
Brought to
Collect zero-party data via Shop Build stunning, data-driven, Capture customer reviews and
Quiz and deploy personalized multi-channel marketing creates photo and video galleries
campaigns.
campaigns—and measure their
performance.
you can display on your
ecommerce site.
Shopify Plus
Manage your customer Manage and track your Ma ximize profit by driving revenue
re-engagement efforts with gift ambassador, influencer and through sophisticated
who want to