What consumers’ want-it-now mentality means for retailers
With all the technology available that is meant to make our lives easier, it’s hard to argue that we haven’t become more demanding and more impatient than ever before.
We can’t go to bed without our phones beside us and we get upset when our internet is slow, we are expected to respond to work emails round the clock and work-life balance is just a myth.
Multiple studies have shown that 50 per cent of mobile users abandon a page if it doesn’t open in less than 10 seconds, three out of five users experiencing this don’t end up returning to the site.
In a survey done by USA Today, Americans nowadays cannot wait in a queue for longer than 15 minutes. Isn’t that a little crazy?
What does this mean for retailers?
According to Google there has been a 150 per cent increase in the search term “same day” over the past 12 months, and an 80 per cent increase in “open now” searches.
This is clear evidence of the expectation of consumers and needs to be considered when executing your e-commerce strategy.
Currently in Australia, 94 per cent of retail transactions happen in-store, which may surprise you given the hype around online shopping.
This represents a massive opportunity to grow the online experience and capture a larger share of the retail transactions.
Things to consider:
Fact: 49 per cent of shoppers said that same-day delivery would motivate them to buy more online. Currently, only 15 per cent of global online stores offer same-day delivery.
Takeaway: Consider running even a locally-targeted campaign for same-day delivery. For example, you can be very specific on who sees your promotion using Google proximity targeting, ensuring you are able to provide the service offered.
Fact: The number one reason users abandon online shopping carts is unexpected shipping costs, which are often revealed at the end of the check-out process (very annoying). Maintaining a steady cost from the product page to the final check-out increases conversions. Ebay recently launched their subscription product, which offers “free shipping” on all purchases in Australia.
Takeaway: This doesn’t mean wearing the shipping costs completely, as you need to factor it into your sale price, however you can use free shipping to upsell with “buy two, get free shipping” deals, or, as Amazon does, by requiring a minimum spend.
Fact: Social media platforms like Instagram are getting in on the e-commerce action, offering “shoppable” posts, where users can buy directly from the post – perhaps purchasing a pair of shoes that their favourite influencer is wearing. Social commerce spending is predicted to hit US$17 billion in the US in 2019.
Takeaway: Social commerce needs to be considered, with Facebook Marketplace and Pinterest also offering shopping services.
We live is exciting times and the future is bright for those with the courage to experiment and explore the massive potential for online retail in Australia and internationally. Keep testing and measuring and don’t fear failure, it’s a good teacher!
Paul Carroll is chief executive of Pure SEO.