Influences on e-buying
Online Reviews
According to Marketing Land, nearly 90% of people say that both positive and negative online reviews affect their decisions about what to buy. Most people, and as many as six out of ten global consumers, say that their friends’ social media posts are one of the most important factors in what they buy. Aside from Facebook and other social media, the most common way to find out what other people think about a company is through online review sites. Planning to get some good reviews? Include a call to action that tells your happy customers to leave a good review on the site of their choice.
Positive User Experience on a Site
So what exactly influences a purchase decision online? Putting aside product specific factors (e.g., quality, multiple product options, special sizes, new products) an analysis by Big Commerce found the top influencers in order of importance are:
- free shipping
- easy returns
- customer reviews
- visual search
- excellent navigation
- easy checkout
Since free shipping and easy returns have a big impact, if you offer them make sure to prominently display such on the site. Half of all shoppers use smart phones to look up companies, product reviews and price comparisons while they’re actually in the store shopping. That means your site had better be responsively designed for all mobile devices so customers can get to the information they need quickly. Anything that can make the purchasing process easier or more affordable for consumers is a step in the right direction.
Analyzing Your Customers’ Buying Decisions
There are steps you can take learn about your particular customers buying decisions and in turn positively influence them. First off, there are many online tools and resources available to assist you in tracking who visits your site, where they came from and what they bought or didn’t buy. Google’s Universal Analytics offers a new and enhanced in-depth ecommerce reporting tool that allows you to delve deeper into learning about Ecommerce shopping behavior and merchandising. You can access charts that detail revenues and conversion rates, key financials, products per transaction, sales by affiliate, top revenue-producing sources and much more.
Stay Active on social media
There are other things you can do on your end to positively influence buying decisions. Because many people listen to what their friends say about products and companies on social media, it’s important to not only get on social media, but to be active on social media.
See what people are saying about your business and make a habit of responding to them. Research keywords being used to talk about your product, then get in on the conversation to find out more and give consumers what they want. Get knowledgeable about your business and write thoughtful, engaging blogs that show consumers you not only sell stuff, but you know all about the industry, too. Become an information powerhouse and educate potential buyers to help them form early purchase decisions, advises the Small Business Administration.
Previous research showed that purchasing behavior is also affected by demographics, channel knowledge, and shopping orientation. However, there are many factors that are observable which can lend to having higher transaction rates and having a glimpse into shopping behaviors.
Financial Risk
When people purchase online, their top fear is almost always financial danger. Financial risk is the belief that a certain sum of money might be lost when completing an online purchase or ensuring that a product operates as intended. Age-related differences in the level of care for bank account security and privacy exist. Compared to prior generations, millennials are more prone to be unconcerned while making internet purchases. Furthermore, there is a very real worry that an online transaction might result in the disclosure of your personal financial information. Consumers perceive dangers related to the possible loss they may incur when purchasing online.
Product Risk
The bonus of shopping in a traditional brick and mortar store is being able to have the product in front of the customer. This gives the opportunity to manage the expectations that a customer has when they are purchasing a product. When an ecommerce business gives accurate descriptions of products and the ability to zoom in on the product pictures to give the client an accurate expectation of the product. Due to the limited information that is sometimes presented to consumers they lose the inability to evaluate the quality of the product.
Convenience Risk
Convenience is the best aspect of online shopping. This is the major reason why individuals feel that online shopping is a major benefit in their lives because it saves them time throughout the day. Instead of having to go out and take extra time shopping for product individuals are able to save their time and spend it doing things they actually want to be doing. With such a high variety of different types of stores there is just about every type of product available online.
Non-delivery
Although it doesn’t happen often when purchasing online One typical concern among internet customers is not getting their purchases. When deliveries go missing or are damaged, buyers may get concerned that they won’t get their purchases within the time limit the company promised. There are a variety of issues, such as poor shipping and handling during transit, that might determine whether the consumer gets their package or not. Given the wide range of potential issues, a customer may decide not to finish a transaction based on delivery claims. By providing reliable updates on when customers might anticipate receiving the requested goods, you can ease their concerns about delivery and non-delivery.
Return Policy
Lastly, the ultimate “get out of the purchase card” is the infamous return policy. The return policy is the most important thing that gives customers the ability to return an unwanted item or purchase that doesn’t measure up to their expectations or needs. Without a proper return policy, a customer’s shopping behavior is severely stunted because they are forced to put too much faith into the ecommerce business, which is hard to achieve due to deception and falsely described products. There is nothing worse for the consumer than receiving a product and feeling like their money was wasted because the product doesn’t measure up to expectations.
Cultural Differences
There are many cultural differences and stereotypes about online shopping, even though there are online stores in many countries around the world. Each society has its own set of values, but it is up to the ecommerce company to create an environment that makes the buyer feel safe. Since 43% of buyers come from places where people don’t speak English, there are many cultural differences that need to be taken into account. Understanding how the consumer feels about online shopping and the Internet in general can change how the consumer acts.
Individual shopping habits are hard to predict, but if you meet a customer’s basic needs and tell them everything they need to know about a product, they are less likely to not buy it. By getting rid of the obvious risks and worries that the average consumer has about a social-technical platform, it gets rid of unnecessary barriers that don’t have anything to do with the person.