Boost Sales Archives | Bazaarvoice Tue, 07 May 2024 10:43:31 +0000 en-US hourly 1 https://wordpress.org/?v=6.4.1 Subscription commerce: Models, benefits, and strategies https://www.bazaarvoice.com/blog/subscription-commerce-definition-models-benefits/ https://www.bazaarvoice.com/blog/subscription-commerce-definition-models-benefits/#respond Fri, 09 Feb 2024 13:16:50 +0000 https://www.bazaarvoice.com/?p=13380 If you aren’t already thinking about starting a subscription business for your brand, you really should be. The subscription business model, or subscription commerce, has been booming for a few years now. With busy schedules and mindful budgets, more consumers are looking for convenient ways to save money. The subscription commerce market is growing so quickly, it’s expected to reach a market size of $2227.63 billion by 2026. That’s more than the GDP of Turkey.

Another shopping trend that really boomed is the uptake in subscription businesses. In 2022, the subscription commerce market is valued at $26.9 billion and is predicted to reach $74.2 billion by 2028, according to global research. So if you hadn’t been considering a subscription business for your brand, it might be time to start.

Chapters:

  1. What is subscription commerce?
  2. Benefits of subscription commerce
  3. Subscription commerce best practices
  4. Subscription commerce FAQs
  5. Personalize your subscription commerce experience


What is subscription commerce?

Subscription commerce is a business model where your customers pay a set recurring price to receive your products or services on a regular cadence. The three most common types of subscription commerce model:

  1. The curation model: This popular model provides subscribers with pre-selected items based on their personal needs and preferences. This option offers an element of surprise with each subscription box and is particularly good for helping your customers discover new products!
  2. The replenishment model: Commonly known as the “subscribe and save” model, this type of subscription allows customers to automate the purchase and delivery of everyday consumer products, such as vitamins, cosmetics, or hair products, for a discounted price
  3. The access model: With this model, customers pay a regular fee to attain desirable member-only perks, such as select discounts and early access to new products. Subscribers to this model are often attracted to the exclusivity that membership offers

For consumers, subscription commerce offers convenience, high-quality products, reliability, and great value, while brands and retailers benefit from locking in higher recurring revenue — more on that to follow.

Benefits of subscription commerce

Subscription commerce is riding a high right now. When done well, this service provides brands and retailers with some wonderful advantages.

  1. Recurring revenue: Subscriptions bring in consistent income that makes it easier to forecast sales and plan for the future — handy in a time when 77% of consumers have changed spending habits. And since you get paid upfront monthly, quarterly, or annually, you’ll be able to map out your fulfilment operations way easier
  2. Higher customer lifetime value: One of the best things about subscription services is that retention is built into the business model. By offering personalized discounts and membership perks, you have a better chance of attaining long-term customer loyalty, which increases the lifetime value of your customer base
  3. Lower customer acquisition costs: As we just mentioned, a higher CLV from subscription services means lower customer acquisition costs. All you have to do is keep your subscribers happy, and you’ll be able to significantly decrease your customer churn, lower your new customer acquisition costs, and watch your profit margins grow
  4. Easier Inventory Management: Unlike the pay-once model, a subscription commerce model removes the uncertainty about how often you’ll need to replenish your stock. This tells you how many customers are going to buy specific products in any given period of time, making it way easier to assess your stock levels properly
  5. Enhanced customer service: Shoppers love having control over their purchasing decisions. A subscription service offers this, plus the added benefit of discounted pricing. Toss in some personalization and incredible customer service, and you’ve got a recipe for an awesome subscriber experience.

Subscription commerce best practices

You can have the best products in the world as part of your subscription service but if it doesn’t come with the right criteria to wow your customers, it really won’t matter. To make a positive and lasting impression, you need a customer-first mindset.

1. Choose the right subscription model

An obvious starting point, but don’t trip up at the first hurdle. Depending on what you offer, select the subscription model that fits your e-commerce business best. It’s also worth testing two or more models with a select few of your shoppers so you can get a feel of what works and what doesn’t.

2. Figure out your USP

Any good subscription revolves around a very specific niche. Without a clear unique selling point, your brand won’t be well-positioned to spark curiosity around your subscription or deliver the tailored experiences consumers expect.

Ask yourself what makes your subscription different from your competitors. Next, ask what your customers stand to gain from your subscription instead of taking the more conventional course. Shoppers value specialized products and services. Being selective about what you choose for your subscription service will help you carve out your niche.

3. Make signing up easy

Once a customer decides to subscribe, signing up should be as simple as possible. Consider offering a streamlined registration process that asks for essential information only, like name, email address, and password.

Customers should also be able to sign up on your e-commerce website, app, or even through social media channels like Instagram, Facebook, or TikTok.

You’ll also want to make sure subscribers can choose the frequency of their subscription deliveries, as well as the ability to pause or skip any they may not want. Studies show that subscribers who can skip an order last 135% longer than those who can’t.

4. Optimize the subscriber journey

When a subscriber visits your website, they should be welcomed with a seamless experience that provides valuable information, effortless navigation, and easy checkout. Focus your efforts on:

  • Tailored subscription options. Provide different types of subscriptions for your different audiences so they can choose the service that fits them best. You could even include a quiz to help them uncover which option perfectly meets their needs! 
  • Intuitive navigation. Ensure subscribers can find what they’re looking for easily by including distinct menus, logical categories, and a search functionality. Have people in your organization test user journeys, too
  • Swift website speed. Maximize your website’s performance by minimizing page load times — nearly 70% of consumers say that page speed impacts their willingness to buy from an online retailer
  • Clear and compelling product information. Include detailed product descriptions and high-quality images. You’ll also want to feature any customer ratings and reviews — 88% of shoppers use them to evaluate products before making a purchase
  • Streamlined checkout process. Simplify the checkout process by removing unnecessary steps, offering guest checkout, and providing a clear snapshot of the purchase summary. Include secure payment gateways and flexible payment options as well

5. AI-Driven contextualization

Subscribers are more likely to engage with content when it’s personalized to their specific preferences and needs. Artificial Intelligence (AI) platforms help you deliver contextualized shopping experiences by leveraging customer data like browsing and purchase history to provide tailored product recommendations.

In turn, subscribers feel more valued and better connected with your brand.

6. Valuable incentives

Consumers love deals, discounts, or any other offer that saves them money. Who doesn’t? By offering this to your subscribers, you’ll strengthen their desire to save on their purchases.

Typically, subscription commerce incentives revolve around a monetary reduction, but don’t feel like you have to limit yourself to just that! Providing free products (or samples) or access to exclusive services or events are other great ways to increase subscriber loyalty.

7. Social proof

Social proof like customer reviews and other forms of user-generated content, can significantly impact purchasing decisions. To help build trust with your customers, encourage subscribers to leave reviews and share their positive experiences so you can highlight on your website, social channels and everywhere your shoppers are.

Influencers are another effective way to build loyalty with your subscribers — 71% of consumers are likely to buy products from an influencer they trust. Just make sure to find the right ones that fit your subscription niche.

8. Effective communication

Customer communication is a key element of a fantastic subscription commerce experience. Start by establishing a cohesive communication plan that helps you keep subscribers informed and excited about new products, special offers, and other related news. Just don’t overdo it!

Then make sure to correspond regularly and segment your subscriber audiences so you can tailor your messages according to specific preferences and interests.

9. Exceptional customer support

Subscription commerce goes far beyond selling products or services. It requires excellent customer service that addresses issues quickly and efficiently. 

91% of shoppers say they won’t willingly do business again with a company that left them unhappy. Avoid dissatisfied subscribers by prioritizing your customer support with these tactics:

  • Offer multiple channels such as live chat, email, or phone to ensure customers can reach out through their preferred method
  • Utilize chatbots for support during off-business hours or for commonly asked questions and pain points
  • Include self-service resources such as a thorough FAQ section that encourages customers to find answers on their own
  • Make every effort to reply quickly to customer queries by addressing their questions or concerns promptly
  • Respond to negative reviews and turn negative experiences into a positive that creates advocates for life

10. Retain subscribers through customer feedback

Listening to customer feedback is key to enhancing the subscription commerce experience and ensuring customer retention. Analyzing data, reviewing ratings and reviews, and sending out regular customer satisfaction surveys to subscribers are all useful ways to understand their needs and expectations better.

Another way to retain customers is to ensure you’re surprising and delighting them with every package you send. Don’t let your subscriptions go stale. Continue to find new ways to impress people, like providing new brands and products you know they’ll love. 

Subscription commerce FAQs

Thinking of starting a subscription business for your products? Ask yourself these questions to determine if the subscription commerce model is a good fit for your brand. 

1. Would my product lend itself to a subscription business?

Popular categories for subscription boxes include food, beverages, electronics, health and fitness, fashion, and beauty.

If your business falls into one of these categories or if you notice certain products you offer get repurchased over and over again, you’re probably a good candidate for a subscription model.

2. Would my shoppers want to subscribe?

You need to ensure consumers continue to find value for the long term. Insights from customer purchase data can help tailor and personalize your services from delivery to discounts.

Which products do customers frequently repurchase? How often do they repurchase them? The answers to these questions could help you set the right cadences.

3. What would costs look like for my subscription service?

Calculate how much it will cost to send the customer the most value possible. Include shipping costs, marketing costs, labor, and any other costs in this.

4. How should I price my subscription?

First, check out your competition. What do they charge? While you might not be able to match their prices, it’s important to know what your customers are comparing you against. Another way to figure out what customers would pay for a particular service is simply to ask them.

Subscription commerce models often use tiered pricing depending on what the customer signs up for. If the customer chooses an option with more value, they’ll pay more money per month. 

5. How do I build interest for my subscription business?

Tell your customers! Beta test your new model(s) to your most loyal shoppers and re-purchasers. Gather their feedback in the form of UGC — like reviews and social posts — for display on your product pages, subscription pages, social content, and other marketing collateral. 

Also, consider influencer marketing to drum up excitement. Tapping into an existing social community like the Influenster App will create authentic buzz amongst shoppers and provide opportunities to create positive word-of-mouth about your subscription.

Personalize your subscription commerce experience

The subscription commerce opportunity is ripe for brands and retailers to truly understand shopping habits, adapt to consumers’ new ways of buying, and instill trust to create long-lasting relationships. Not to mention, the recurring revenue stream it will provide.

As shopping behaviors continue to change, you might have to alter how you get your products in shoppers’ hands, and a subscription commerce offers a great way to do that. If you aren’t already thinking about starting a subscription service for your brand, you certainly should be.

But the difference between an okay service and one that delivers a wow factor is personalization. You need to know your audience better than you know yourself. Bazaarvoice AI tools can help you deliver personalized experiences that drive repeat business and higher customer satisfaction. Get in touch below to learn more.

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How to sell to the six types of shopper  https://www.bazaarvoice.com/blog/how-to-appeal-to-the-six-types-of-shopper/ Thu, 04 Jan 2024 13:39:08 +0000 https://www.bazaarvoice.com/?p=48901 No two customers are alike. Each type of shopper is as diverse as the brands they like and products they buy. But that doesn’t mean your strategy to sell to each of those groups has to feel scattered. 

Understanding the six core types of shopper — and the best strategies to reach them — will help you better connect to your customers, meet their needs, and drive more ROI for your business. 

What are the six types of shopper?

Most buyers will fall into one (or two or three) of the following buckets:

  1. Impulse buyer: makes quick, spontaneous purchases
  2. Researcher: looks around for the best deal before buying
  3. Casual shopper: browses without a specific purpose or need
  4. Needs-based shopper: shops only when they need a specific item or service
  5. Brand loyalist: prioritizes familiarity and usually buys from the same trusted brands
  6. Social shopper: relies on input and recommendations from friends, family, or social media

It’s important to understand each of these types of shoppers — and target them with customized content and strategies.

Impulse buyers 

There’s no shopping lists for this crew. Impulse purchasers are spontaneous. They don’t obsess over researching the best products or brands. They don’t spend hours comparing prices. Instead, they’re all about instant gratification. They have a problem. You have a solution. Let’s make this happen!

Perhaps the most important thing to know about this type of shopper is that they’re driven by emotions. These emotions can be positive: They’re excited to try a new hot sauce or they can’t wait to buy a new couch. 

Impulse buyers might also be motivated to address negative emotions. Maybe they feel embarrassed by a skin condition and want to find a product that will ease their symptoms and make them feel more confident. Or they might feel like their current phone or tablet isn’t as cool as their best friend’s. An impulse shopper will want to address this feeling of inadequacy by buying a new device — quickly. 

Finally, impulse buyers may be driven by emotions that have nothing to do with the product they‘re buying. Instead, they’re simply trying to address feelings of boredom, job stress, anxiety, etc. Shopping makes them feel better.

How to sell to impulse shoppers

The best way to appeal to this type of shopper? Make it easy for them to see your products as the solution to their emotional needs. 

If they’re shopping in-store, use stand-out imagery and signage to highlight your product. Place the items you’re trying to promote in areas that get a lot of traffic, like the entrance. The checkout counter is also a prime place to reach these spontaneous shoppers. 

You can also embrace the power of user-generated content (UGC) — social imagery, product reviews, and videos created by customers, not your brand — to reach impulse buyers because 76% of impulse shoppers say reviews and other forms of UGC affect their purchasing decisions.

In-store, that can mean signage that promotes user ratings. Online, you can have a field day with your UGC — especially customer photos:

When Hobbycraft, the UK’s largest arts and crafts retailer, featured visual UGC on their site, they saw a 219% increase in conversions and a 24% boost in average order value.

Finally, make it easy for impulse buyers to see related items or add-ons throughout the e-commerce experience. If you have additional solutions that can address their needs — or related products that make the item they’re purchasing more powerful — by all means, let them know!

Researchers

Researchers are the “Type A” of shoppers. Before making a purchase, they launch a thorough investigation. Which companies sell what they need and at what the price point? Are customers generally happy with their purchases? How do the products look in the real world?

A researcher will have all the answers. They might even have a spreadsheet full of answers. But what they don’t have is a desire to make a willy-nilly purchase. They take their time, weigh their options, analyze all the available information, and (eventually) make an informed decision. 

How to sell to researchers 

One way to quickly turn away this type of shopper is to have an outdated website or social channels. When buyers are neck-deep in research, there’s nothing worse than finding a lack of usable info on a brand’s website. 

Maybe you’re running online ads for a new couch — but there’s no photos of the piece on your website or social. Or maybe all the reviews on your site are from 2017. This could be a big problem for researchers. Make sure to regularly update content so researchers get a full, current view of your brand and products. This includes up-to-date UGC.

  • 32% of this type of shopper need to see three to five photos and videos on a product page to confidently make a purchase 
  • 51% of researchers likely won’t buy a product unless they see shopper content like reviews, photos, videos, Q&A, or social posts 

When cycling gear company Le Col promoted authentic customer reviews and images on its website and product pages, visitors were 5x more likely to convert.

Remember: Researchers are on the hunt for the best deal. So offer one that will catch their eye! 89% of shoppers will spend five minutes or more reading reviews, images, and social content before making a purchase. You need to make research shoppers find your deals regardless of the channel they use. And it can be really simple to achieve.

For example, to win over researcher shoppers on social, Kelly Reis, Product Development and Merchandising Manager at Linon Home Decor, makes sure that, “we provide our Instagram followers with opportunities to shop our products on sale at select retailers and guide them towards the best deals for them.” They also include sale-specific information in captions to drive shoppers directly to their Like2Buy.

Casual buyers

These are the shoppers who don’t necessarily need a specific item. They’re just browsing! Maybe they already have a solid winter coat. But they saw your puffer jackets are on sale and are clicking through out of curiosity.

This casual behavior can be good news and bad news. 

On one hand, browsers probably spend a lot of time shopping — which means there’s an opportunity to turn them into dedicated customers. Since they’re already on your website, a great user experience could inspire them to keep coming back.

On the other hand, casual buyers like to keep their options open. They’re less likely to make a quick purchase and are even okay with not buying anything at all. They abandon their cart more frequently than other types of shoppers. With no compelling purpose behind their shopping and no pressing problem to solve, these customers need a little extra motivation to click “buy now.” 

How to sell to casual shoppers

Human beings — especially casual shoppers — are drawn to stories. So lean on the story behind your products. When a casual customer can connect to the “why” behind an item, that product becomes more than a thing to buy. It sparks an emotion or helps the customer relate to a brand. 

To appeal to this type of shopper, you’ll also want your overall shopping experience to feel welcoming and comforting. 

  • DO: Have clear, upfront offers to get their attention
  • DON’T:  Rely on aggressive tactics, like multiple pop-up windows or frantic “last chance” messaging. In-store, these shoppers will also be turned off by high-pressure salespeople

Casual customers don’t want to be pushed into buying something. They want a stress-free, low-stakes shopping experience.

Needs-based buyers

When it comes to the different types of shoppers, needs-based buyers are the ones moving with purpose down the aisle (or through your product pages). They know what they’re looking for. And they want to find it quickly and conveniently — with no distractions. 

They don’t want to wade through “similar products” or recommended add-ons. They just want to click or swipe and get on with their day.

How to sell to needs-based shoppers 

Make sure you have the products this buyer needs: That’s priority #1. Beyond that, think about how to provide more value and education throughout the buying journey. 64% of needs-based buyers use shopper content to evaluate whether the product is worth the investment

This is your chance to provide webinars, articles, and more that showcase the benefits of your products. What content can you offer to reassure this type of buyer that your product is exactly what they’re looking for?

Gift guides are another way to reach needs-based shoppers. Let’s say they’re shopping for an espresso machine on your site. Why not offer a handy buyers’ guide that outlines the features and benefits of different models? This gives needs-based customers all of the info they need to confidently make a decision. 

If these purpose-driven shoppers have questions, the last thing they want is to dig through your website to find the answer. Having FAQs on your website is a good way to close that gap. Chatbots can also help answer basic questions. For more involved customer service, make sure the contact info for your human-led team is easy to find on your website. 

Brand loyalists 

For brand loyalists, it’s all about trust. They repeatedly buy from brands they know, can identify with, and can rely on. 

This type of shopper values consistency and is less likely to swap allegiance to a new brand based on a random sale. And that’s good news for brands and retailers: Once brand loyalists trust you, they’ll often pay a premium for your products. 

Apple enthusiasts may pay a little extra to have a Mac computer, an iPad, an Apple watch, and the latest iPhone. But you’ll have a tough time persuading them to switch to a Samsung phone or PC. Nike fans could probably buy a different brand of sneakers — but instead they’ll wait in line for hours to pick up the latest Jordans. There’ are’s plenty of polo shirts out there in the world. But Lacoste brand enthusiasts want the ones with the iconic alligator sewn onto the chest. 

In these instances, brand loyalty beats the cheapest price, most convenient buying experience, or other consumer preferences. 

How to sell to brand loyalists 

Even among these types of shoppers, nothing is set in stone. 54% of loyalists are still open to trying a different company. The secret to keep them coming back is to elevate their experiences with your brand:

Loyalty programs. For example, try a reward system where customers earn points with each purchase. Then they can redeem those toward discounts, bonus services, or even free products. 

Ambassador or referral program. Reward happy customers for sending new shoppers your way. For instance, if a customer refers three buyers to your brand, they get a free tote bag or a discount on a future purchase. 

Customized user experience. Wherever you can, show customers they’re not just a number. Maybe give them access to a unique login portal where they can see their points balance or special offers that month. Or give specific product recommendations based on their previous purchases.

Shoppertainment opportunities. Shoppertainment is an emerging method for boosting shopper engagement and creating loyalty. If there’s a way to promote your products through a fun experience, take advantage. For example, customers can use virtual reality to visualize new furniture in their living room or to try on clothes before purchasing. You can also incorporate gaming elements into the shopping experience.

However you can show this type of shopper that they’re special — and that your brand values them — will help you remain top of mind the next time they want to make a purchase.

Social buyers

These social butterflies make purchasing decisions largely based on recommendations. What do their friends like? What do online reviews say? Is there social media buzz around a product? 

This type of shopper wants social approval and likes to stay trendy. They value feedback from others, both in person and online. Shopping is a social activity to them, and their friends’ input in real time can help boost a product in their eyes. 

UGC also makes a big mark for this segment of shoppers. If a particular kitchen appliance or dog-grooming tool keeps getting recommended by their social media algorithm or influencers they follow, they’ll pay attention. 

How to sell to social shoppers

You’ll want to keep your brand’s social media pages up to date. Better yet, make sure these are engaging. Don’t just post and click away from the page. Interact with your online community! 

Don’t forget to feature all of the awesome UGC you’ve collected, including stories, testimonials, and photos or videos, on your social media profiles. Because for many shoppers, social media is the new search

Considering how important social media has become to most customers’ shopping experiences, your social media profiles are gold mines of opportunity. Take advantage of this space by beefing them up with shoppable UGC. Incorporating shoppable UGC onto your social channels — and everywhere social reaches — inspires purchases which leads to tangible results, as these three social commerce case studies demonstrate: 

  1. UK bed specialist Dreams saw a 200% lift in conversions and a 62% increase in average order value
  2. MAM, a brand selling premium baby products, doubled traffic and conversion rates — and even saw a 258% increase in time on site
  3. Bemz, which creates made-to-order furniture covers, increased its new revenue by $1.65 million

And don’t forget to include UGC on your homepage, landing pages, and product detail pages. Even if someone doesn’t go to your social media profiles, they should still be able to easily find your customers’ reviews, photos, or testimonials wherever they shop.

Reach every type of shopper by optimizing your customer experience

With so many distinct groups of shoppers — each with their own desires and behaviors — it can be overwhelming to try to reach them all. But given that world consumer spending in 2021 was $53,100 billion, it’s well worth optimizing your shopping experience to appeal to all six types of shopper: 

  • Prioritize UGC. For most consumers, the top two factors influencing a purchase decision are customer ratings and reviews and UGC (especially photos and videos) from real customers
  • Update your website and social profiles. At least 39% of every buyer type discovers new products or services on social media. When your profiles contain accurate, relevant, and authentic information, you’ll turn visitors to your social media pages into customers
  • Customize where possible: For example, you could target casual buyers with an abandoned cart email sequence. Enlist influencers or content creators to meet social shoppers where they already are. Or start up a rewards program for brand loyalists

To connect with more prospective buyers, retain current customers, and ensure higher ROI, it’s important to understand the distinct types of shoppers. With better insights into each segment, you can craft more focused marketing strategies — and drive more consistent sales.

Learn more about current shopper behaviors and preferences in the Shopper Experience Index — a global survey of 7,000 consumers and 465 brands and retailers.

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10 ways to improve e-commerce conversion rates https://www.bazaarvoice.com/blog/10-ways-to-boost-e-commerce-conversion-rates/ https://www.bazaarvoice.com/blog/10-ways-to-boost-e-commerce-conversion-rates/#respond Mon, 04 Dec 2023 09:37:12 +0000 https://www.bazaarvoice.com/?p=23609 So you want to improve your e-commerce conversion rates. But where do you start? Online shoppers are bombarded with choices these days. There’s hundreds of products to buy and websites to shop from. So, it’s no wonder consumers often visit an e-commerce site a handful of times before ever buying anything. 

In such a competitive landscape, driving shoppers to your e-commerce site is no small feat. So retailers and brands need to step up their game if they want to improve their e-commerce conversion rates. 

The average conversion rate for e-commerce sites across all sectors ranges from about 2% to 4%, even though these websites usually get millions of visitors a day. Improving e-commerce conversion rates is crucial in terms of profitability, of course, but also for building a loyal shopper base. 

Here’s a closer look at what e-commerce conversion rates are, how to calculate your conversion rates, and 10 strategies for boosting them. 

Chapters:

  1. What is e-commerce conversion rate?
  2. How to calculate e-commerce conversion rate
  3. How to increase your e-commerce conversion rates
  4. Improve e-commerce conversion rates with Bazaarvoice

What is e-commerce conversion rate? 

E-commerce conversion rate refers to the percentage of users who take an action when visiting a website. In other words, it’s the ratio of transactions compared to website sessions. 

Making a purchase is one of the most desirable types of conversions for e-commerce sites. Conversion rates include other types of actions, too. 

Completing a lead-generation form, contacting customer service, subscribing to an email newsletter, downloading an asset, or engaging in another way are all types of conversion. Essentially, conversation rates tell you a lot about how shoppers behave once they visit your website. 

How to calculate e-commerce conversion rate

To calculate your e-commerce conversion rate, divide the number of visitors who make a purchase (or took another desired action) by the total number of visitors to the site. Then, multiply that number by 100. So the formula for calculating e-commerce conversion rates is as follows: 

(Total visitors who purchase / total website visitors) x 100 = e-commerce conversion rate 

For example, say a website has 500,000 unique visitors a month and 10,000 of those visitors make a purchase.

(10,000 / 500,000) x 100 = 2% conversion rate

E-commerce conversion rates vary by industry, and many brands keep this information top secret. According to an Unbounce report, e-commerce conversion rates averaged 5.2% in 2021, across all online shopping sectors.

Lower-cost items, like food and apparel, tend to have higher conversion rates, while more expensive products and services, such as travel, have lower rates. 

How to increase your e-commerce conversion rates 

Now to the good part. Now that you’ve calculated your e-commerce rate, you may realize it needs a little boost. Improving e-commerce conversion rates relies on creating high-quality shopping experiences that provide consumers with all the information they need to make an informed decision and easily complete a purchase. 

Here’s 10 strategies proven to improve your e-commerce conversion rates.  

1. Make your e-commerce site easy to navigate

A poor shopping experience, with a slow-loading product page or overly complicated checkout process, turns shoppers off. 52% of consumers admit to getting frustrated when e-commerce sites are too slow, according to a Retail Systems Research survey. More than 90% of these shoppers leave the website altogether and start shopping at a competitor’s website or Amazon. And, many never return. 

If your e-commerce site isn’t loading within about 3 seconds, work on speeding things up. A one-second delay in a website’s response can cause conversion rates to drop by 7%. Also, make web pages easy to navigate so consumers can find what they’re looking for quickly and with ease.  

Then, make it simple for a shopper to actually buy what they want. Reduce the number of fields a consumer needs to complete to check out and accept a variety of payment types. 87% of shoppers say they’ll abandon a shopping cart if a checkout process is too complicated, according to Meta for Business

2. Remove anything that could distract online shoppers

Making it easy to purchase from your e-commerce site also involves removing any distracting information, like extra links, pop-up boxes, or confusing navigation features. You only have a few seconds to grab consumers’ attention, so cluttered pages drive down conversion rates. 

Websites should be designed to guide consumers by including calls-to-action, such as “add to cart” or “checkout now.” Include lots of filters to help shoppers find exactly what they’re looking for. Too many options can be overwhelming. 

3. Conduct A/B testing to uncover weak spots

The only way to truly know how a consumer perceives your e-commerce site and what it’s like to use it is to test it out. Conducting an A/B test lets you compare different versions or elements of your website to see which performs best. 

Test out product headlines, colors, descriptions, page layouts, navigation, and calls-to-action to see what resonates most with your audience. A/B testing will identify what visitors are most likely to click on and which products they’re most likely to buy.

This process will help you uncover strong points and weak spots that are affecting your conversion rates. So, you’ll know what changes to make to your website to improve conversions. 

4. Optimize your site for mobile

People spend several hours a day on their smartphones, browsing their social media feeds and shopping online. About 80% of smartphone users say they’ve purchased something on their devices in the past six months. That number is only going to rise with the rapid rise of social commerce. Mobile commerce continues to rise and is expected to account for about 40% of all e-commerce sales, according to eMarketer

Optimizing your e-commerce site for mobile is more crucial than ever to reach these shoppers and make it easy for them to browse, add items to their carts, and complete the checkout. Not having a mobile-friendly website could also affect your search engine rankings, making it tough for consumers to find you in the first place. 

To increase mobile conversions, you should try to increase the page’s font size, compress images, and improve page speed. Failing to provide a top-notch shopping experience will not only decrease conversions but also drive consumers over to your competitors.

5. Increase user-generated content to help consumers purchase with confidence  

User-generated content (UGC) builds trust with consumers and inspires them to shop with confidence. Most shoppers consult with reviews before making a purchase, and 40% say they won’t buy something if the product page doesn’t feature UGC. That’s because shoppers want to hear about your products from their fellow shoppers, not from you. Winning over today’s shoppers means tapping into the voice of the customer through UGC.

UGC offers authenticity that shoppers appreciate. They can learn from real consumers about how a product performs in real-world situations, good and bad. Featuring this content on product pages drives sales. Shoppers that engage with UGC are more likely to convert. 

We’ve seen that the retailers and brands that use Ratings & Reviews tools can increase conversion rates by 3.6% and boost engagement by nearly 12%. The more reviews the better, too — for every 10 new reviews, sales increase by up to 5%. 

For example, Appliances Online, Australia’s largest online appliance retailer, has increased its review volume, gathering over 300,000 reviews. This has helped the brand improve e-commerce conversion rates 3x when shoppers engage with UGC. As Sven Lindell, CMO at Appliances Online, puts it, “Without a doubt, there’s a strong correlation between customers interacting with reviews and conversion rate.”

6. Feature visual UGC to boost authenticity 

Along their product discovery journey, shoppers seek out photos and videos from other consumers. Many view these images as more authentic and trustworthy since they show products in use by real people versus professionally shot photos. 

47% of shoppers look for visual UGC on product pages, and more than 30% check search engines and other websites that sell your products for the UGC, according to Bazaarvoice research. Asking shoppers to include photos and videos with their reviews or to tag your brand on social media are some ways to collect visual UGC. Displaying this content on your e-commerce site and your social media accounts not only creates an emotional connection but also drives sales. 

For example, premium cycling products brand Le Col experienced a 5x jump in conversions and a 12% average order value increase when shoppers engaged with its shoppable galleries.

7. Respond to consumer feedback 

Shoppers feel valued when they see you listening and responding to their needs. Answering their questions and responding to their reviews, both negative and positive, builds confidence and loyalty. Brands and retailers that respond to feedback can see improve e-commerce conversion rates by 98%

When consumers see a brand’s response to reviews, 47% say it increases the chances that they’ll purchase. Even negative reviews don’t deter shoppers from coming back, as long as a brand has responded. Many shoppers actually find negative reviews to be more informative, and reading them lends an air of authenticity to the shopping experience. Negative reviews help drive conversion rates more so than having no reviews at all. 

Bazaarvoice customer Webroot, an internet security software, has responded to 70% of its low-rated reviews. This has improved the shopping experiences for its customers but also humanized the brand for future customers. It has also helped the brand position itself as consumer-centric. 

8. Provide discounts and offers 

Who doesn’t love free shipping or 10% off a purchase? Offering these types of promotions attracts shoppers to your brand and entices them to purchase. Nearly 75% of consumers rank offers as a top factor in deciding where to shop and what to buy, according to RetailMeNot

Discounts and offers also improve the shopping experience. High shipping costs are one of the top reasons consumers abandon their online shopping carts. Shoppers also tend to spend more when they receive free shipping or a coupon. 

Creating personalized offers that make sense for your brand can drive up conversion rates and turn new shoppers into loyalists. To encourage purchases, send an offer when someone joins your email list or create tailored messages for your regular shoppers. 

9. Send follow-up emails 

Whether it’s connecting with a shopper after they’ve made a purchase, just saying hello, or reminding them that they have a cart full of goodies, sending follow-up emails creates connections and can ultimately boost e-commerce conversion rates. 

Many shoppers load up their carts and then decide not to follow through with the purchase for whatever reason. Ignoring this means you’re missing out on these sales. Send an abandoned cart email to these consumers reminding them to complete their purchase and even offering a discount if they do so. 

Personalized email messages can drive conversions even higher. Do this by grouping customer segments based on different criteria, such as past purchases, location, or products that they’ve clicked on but not purchased. Shoppers will appreciate this high level of customer service and will be inspired to consider a purchase. 

Sending a review request email where you invite shoppers to review something they’ve recently purchased is a great way to encourage UGC, and can increase review volume by 8x. The more reviews you attract, the more confident consumers will feel shopping with you. A PIE also helps you solicit feedback about products or customer service so that you can deliver an even better experience next time. 

10. Focus on customer service 

Happy shoppers are more likely to buy things from their favorite brands, repeat those purchases, and recommend those retailers and brands to their friends and family. Focusing on offering top-quality customer service will boost e-commerce conversion rates. 

A poor customer service experience has led 52% of consumers to switch brands, according to Meta for Business. And, many shoppers would pay more to shop with brands that offer convenience and amazing customer experiences. 

Take time to ask for feedback via ratings and reviews and customer satisfaction surveys. Review the responses and look for patterns or ways that you can improve your offerings. Respond to customer needs, too, whether it’s a social media post, email, question, or review. This shows that you care what they have to say and that you value their business.

Improve e-commerce conversion rates with Bazaarvoice

As online shopping continues to be the go-to for most consumers, driving shoppers to your e-commerce sites and enticing them to purchase is crucial for retailers and brands. By encouraging feedback and ensuring quality customer service and a seamless shopping experience, you’ll build trust and stand out each time a shopper is looking to buy something new. 

If you want to learn more about boosting your e-commerce conversion rates, the Bazaarvoice platform is built specifically with increasing conversion rates in mind — everywhere your shoppers are. Learn more about it here.

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How to increase your add-to-cart rate https://www.bazaarvoice.com/blog/how-to-boost-your-add-to-cart-rate-with-ugc/ https://www.bazaarvoice.com/blog/how-to-boost-your-add-to-cart-rate-with-ugc/#respond Fri, 06 Oct 2023 08:37:11 +0000 https://www.bazaarvoice.com/?p=16163 We get it. You want more purchases coming from your e-commerce store. But that’s a daunting task, so take it one step at a time to reach that destination — starting with increasing your add-to-cart rate.

Chapters:

  1. What is add-to-cart rate?
  2. 5 ways to increase your add-to-cart rate
  3. Product page optimization to increase add-to-cart rate

What is add-to-cart rate?

Add-to-cart rate measures the percentage of website visitors who add at least one item to their cart per session. A higher add-to-cart rate leads to more purchases, and more purchases mean more revenue.

There’s a number of factors that might convince shoppers to add a product to their cart. But, in our experience, one tactic is especially impactful: user-generated content (UGC). UGC includes ratings and reviews, and any visual content like photos and videos posted online or submitted to your company website by customers, fans, and visitors.

Don’t just take it from us though. In our study of five major e-commerce industries, conversion rates increased by an average of 161% when shoppers saw or interacted with UGC on their path to purchase.

5 ways to increase your add-to-cart rate

Here’s how to harness UGC’s powerful influence on product pages and social media to get shoppers to smash that ‘add-to-cart’ button and increase your conversion rate.

1. Drive traffic to product pages with UGC

The beauty of UGC is its versatility. Brands can share glowing reviews and flattering photos across a variety of platforms and meet customers where they are. But the ultimate goal is to lure more customers to your product pages, because more site visitors mens higher add-to-cart rate. Some ways include:

  • Company blogs (much like this one you’re reading) are prime real estate for images and videos from social media, showing how followers use your products. Highlighting relevant customer ratings and reviews is a great way to complement any products mentioned in the content with pull quotes or screenshot images
  • Email campaigns are largely a visual medium supported by carefully crafted messaging that serves a specific business goal. Visual UGC and reviews presented in an aesthetically striking way have a strong click-through influence. Enhance emails with UGC to elevate abandoned cart reminders, product launches, email-exclusive sales, event announcements, blog distribution, and more

Whichever outlet you choose, make sure product page calls to action (CTAs) are prominent. These examples from Glossier and Brooklinen show how it’s done with cleverly and intentionally leveraged UGC, coupled with clear CTAs:

add-to-cart rate

2. Showcase visual UGC on product pages

Visual UGC on product pages shows that other shoppers are so happy with your product that they like to show it off. Also known as social proof. It may just be what gets hesitant shoppers off the fence when they’re hovering over that ‘buy now’ button, and bump up your add-to-cart rate. After all, displaying visual UGC on product pages increases conversion rates by up to 150%.

There’s plenty of resources to procure and generate UGC for your product pages. Asking fans to tag their photos and videos with a branded hashtag is an easy way to collect UGC on social channels. Hosting contests will take this method to the next level by incentivizing UGC posts with prizes like free products, a trip, or a website feature.

Another low-maintenance, direct way to collect UGC is by asking customers to upload pictures or videos of their purchases. You can then vet these images and add them to a gallery right on the product page. This also incentivizes them to share their UGC for a chance to be featured on your website.

add-to-cart rate
Image from River Island

River Island places UGC with a branded hashtag from social media right below the main product image so shoppers can easily visualize themselves wearing their items. This strategy led to a 184% lift in conversion for the brand.

3. Spotlight customer reviews on product pages

Another highly influential type of UGC is customer ratings and reviews. Reviews are a major deciding factor for shoppers when considering a purchase. Product pages with at least one review garnered a 354% conversion rate increase and a 446% increase in revenue per visitor compared to product pages without reviews, according to Bazaarvoice’s Shopper Experience Index. There’s few better ways to increase your add-to-cart rate.

And don’t let your reviews go unnoticed either. Collecting reviews is only half the battle. It’s equally important to feature them prominently so site visitors don’t miss them. One method is to include the star rating directly next to the product image, which users can click to see the full reviews of that product.

Five-star ratings and glowing reviews are great, but promptly addressing negative reviews and inquiries is crucial. And that’s not only because of quality customer service expectations. Responding to reviews and customer feedback can result in a 98% average conversion lift for brands and retailers.

Brands can take their customer feedback a step further by compiling common issues or questions to create a comprehensive FAQ page on their website. Companies who receive a large number of reviews and questions can manage them with a dedicated customer service team or tools like a Questions & Answers platform. These portals allow brands of all sizes to effectively and efficiently respond to customer questions.

Image source: Rimmel London

Rimmel London shows all product reviews right below the product description and ‘add to cart’ button on their product pages. The above example shows a customer review with visual UGC and Rimmel’s helpful response to the review, a strategy that led to a 44% sales lift.

4. Create shoppable social content

UGC on social media promotes brands in a genuine and authentic way that users trust, making it highly effective for e-commerce. Using your social media followers’ UGC to create shoppable images does double duty: It entices fans with realistic, relatable content that’s linked directly to product pages.

Shoppable social media posts — also known as social commerce — include clickable products that link out to product pages where users can instantly make purchases, instantly increasing add-to-cart rate. There’s different ways to make social media posts shoppable:

  • On Pinterest, business accounts can set up the catalog feature that adds everything from their online store as Product Pins. Product Pins include the name of the product and a link to the product page where shoppers can add items to their cart and purchase
  • Brands can make Instagram posts shoppable in the Shop section of the app, as well as in Stories, Reels, Live, and IGTV. Any Instagram content with a shopping bag icon is shoppable. Some products can be purchased directly on Instagram without leaving the app, and some link to the brand website’s product page
  • Using Like2Buy or other social commerce tools can create a multichannel dashboard for creating, scheduling, publishing, and analyzing shoppable posts on social platforms like Instagram and TikTok

This example above from apparel brand Rachel Antonoff shows a shoppable Instagram post featuring UGC.

5. Reciprocate the UGC love

The unofficial brand ambassadors who create UGC make your job a lot easier, so don’t take them for granted.

Show your appreciation by complimenting, thanking, and tagging them on social media — in Instagram posts and Stories, on Pinterest boards, in TikTok trends, in emails, and on your website. This strengthens the connection between you and your audience. By rewarding engagement, you’ll encourage more users to join the conversation so you don’t just have customers — you have a community.

And once you have a brand community, you’ll have a pool of authentic UGC about your brand to tap into and display on your customer acquisition channels, ensure an increase in your add-to-cart rate wherever your shoppers are.

Product page optimization to increase add-to-cart rate

And there you have it. Simple, effective methods for increasing your add-to-cart rate and driving revenue. All thanks to that UGC. But as part of your strategy, you mustn’t forget the product page itself. Featuring written and visual user-generated content is great, but you need to know how to display it.

Your product page(s) need to be tailored and personalized to meet consumer needs. Learn how it’s done in our on-demand masterclass: 3 powerful tactics to increase product page conversion rates.

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Recession marketing: 7 strategies to win and keep customers https://www.bazaarvoice.com/blog/recession-marketing-how-to-win-and-keep-customers/ Fri, 07 Jul 2023 09:28:31 +0000 https://www.bazaarvoice.com/?p=43515 Marketing is rarely a walk in the park as it is, but marketing in a recession is basically a slow crawl. When times become economically challenging, customers start to tighten their budgets. Whether it’s a true recession or just a downturn, the same shoppers who typically indulged in their favorites or took a chance on new offerings get a lot more discerning about their purchases.

And when customers spend less, businesses feel it.

So, what’s a brand to do when it’s fighting for market share in an increasingly competitive landscape and trying to do more with an ever-shrinking marketing budget? Every customer counts and every interaction matters when it comes to winning and keeping customers.

According to the Qualtrics 2023 Global Consumer Trends report, 80% of customers say they would switch brands after a bad customer experience. That means the pressure’s on.

Marketing strategies in a recession

Recession marketing — or marketing in an economic downturn — requires some strategic thinking. During recessions businesses must defend market share for core inventory, introduce and grow new products, produce content efficiently, maximize the cost of ad impressions (CPM), and generally deliver more with less.

Defend market share for core products

Anticipation of a possible recession combined with rising costs has slowed consumer spending across demographics. Even spending among high-income consumers, who traditionally buck this trend, is down. With customers everywhere looking to get more bang for their buck, brands need to find ways to maintain their share of the market for their bestsellers and core inventory. 

Create a frictionless shopping experience

For retailers, one of the strongest offensive plays is providing customers with a frictionless shopping experience. What does that entail? Make doing business with you as easy as possible. Essentially, customers should know exactly what to expect and shouldn’t encounter any obstacles or issues that require extra effort on their part.

96% of customers who had high-effort experiences were ready to switch brands, according to Gartner research, while just 9% of customers who had low-effort experiences considered swapping loyalties. Frictionless shopping experiences often mean meeting customers where they are. This could look like:

These types of user-generated content (UGC) — that is, product information and reviews, social imagery, or videos created by consumers rather than the brand — do a lot of heavy lifting for brands looking to minimize friction for shoppers.

Gigaset, the European market leader for cordless phones, adopted a UGC strategy, including questions and answers on its product pages, to great effect. The brand experienced a 70% lift in conversions within 15 months.

Since Gigaset’s products are complex, and customers typically do plenty of research prior to purchasing, making questions and answers available right on the product page cuts down on friction in the customer journey and increases customer confidence.

Reward loyal customers with extra value

When customers are pinching their pennies, a well-timed promotion or sale can sway shoppers to your brand. In a recent survey of Influenster members, 85% of respondents said that receiving buying incentives would help keep them loyal during times of inflation.

Giving customers a monetary reason, like a well-planned brand loyalty program, to stick with what they already know and love — your brand’s core products — can tip the scales in your direction.

Build and maintain growth for new products

Perhaps you’re less worried about the products that already sell well and more concerned with marketing new products in a recession, when customers are hesitant to spend money on an unknown quantity.

Launching something new can be nerve-racking, even in the best economy. Throw in the looming threat of a recession and you’ve got a potential disaster. Then again, with a couple of strategic plays, you could have a real winner on your hands.

Solicit reviews with targeted sampling

Without reviews on your product page, you’ve already lost a third of your customers. That’s how many consumers say they wouldn’t purchase a product that didn’t have any reviews. How do you get reviews for a product that hasn’t yet launched? Targeted product sampling.

A sampling program gets your new product in the hands of potential customers to try and use and — yes, that’s right — review. Sampling is an effective way to seek out UGC in order to help other customers discover a new product and feel confident purchasing it.

When Kraft Heinz was getting ready to introduce eight new flavors of salad dressing, the brand first launched three targeted sampling campaigns to seek out authentic feedback and drive awareness through UGC.

The campaigns garnered 2x the expected reviews and over 5x the program’s investment via earned media. 

Listen to (and act on) customer feedback 

When building an audience for a new product, it’s not enough to simply seek out customer feedback. All of those reviews, good and bad, are valuable insights into the viability of the product and your customers’ needs. Understanding the customer and acting on feedback can make the difference between an army of loyal customers and a collection of fair-weather spenders.

Unilever are no strangers to marketing in a recession. When the brand noticed a trend of customer complaints about a reformulated product, it discovered a link to a bad batch. The company reached out to affected customers, replaced the product, and educated the customers on the benefits of the new formula — a real lemons-to-lemonade situation. 

But acting on feedback isn’t just about addressing complaints. Analyzing customer sentiment can also highlight opportunities for cross-promotion or marketing gaps. Unilever brand TRESemmé observed reviewers of its Keratin Smooth haircare line suggesting dry shampoo the next day to maintain results. Since TRESemmé didn’t have a dry shampoo in the Keratin Smooth line, the brand promoted and recommended dry shampoos from its other lines.

That results in a smoother (pun intended) shopping experience all around.

Embrace the power of positive (and negative) reviews

You believe in your products. You want everyone to love them. But in reality, negative reviews come with the territory. Critical reviews can be vital for improving products, discovering marketing gaps, and researching customer needs, but they also lend authenticity to your products. 

Many shoppers think negative reviews are just as, if not more, important as positive reviews because, well, a product with nothing but 5-star ratings seems a bit suspicious. Critical reviews help customers get a more complete picture of whether a product will work for their needs. If you’re looking to build authentic trust and loyalty, embrace all reviews — the good and the not-so-good.

Deliver more with a smaller marketing budget

Customer budgets aren’t the only ones that shrink during a recession — marketing budgets are taking a hit, too. But that doesn’t mean stakeholders are satisfied with diminished results. So how do you deliver more with less? Leverage UGC, which more brands are starting to do.

When you’re working with limited resources, UGC is an efficient way to produce content — and it’s also preferred by customers. The majority of shoppers rely on UGC over branded content when deciding what or whether to buy. And UGC is especially effective for marketing in a recession.

One of the smartest ways to lend credibility to your brand, answer customer questions, and raise awareness of products, new and old, is to lean into the people using your products.

Petco experienced this firsthand. The pet care retailer saw a huge increase in organic search traffic, conversions, and revenue per visit from a sampling campaign aimed at generating brand awareness. The brand benefitted particularly well from buzzy reviews and social media posts at the start of holiday seasons — potential customers were able to see authentic, user-generated images from those who’d received the samples and get answers about seasonal products that they might have otherwise passed on.

Boost customer trust to better weather a recession

Marketing can be tricky to nail at the best of times. But marketing in a recession is a whole other level. As many brands implement new technology — everything from marketing automation to generative AI — into everyday operations, customers value authentic shopping experiences now more than ever. 

The Qualtrics Global Consumer Trends report lists human connection as the top trend in 2023 to win customer loyalty, and building trust through UGC is an excellent method of connecting in that authentic way customers crave. As your community of brand loyalists grows, you’ll be prepared to weather any economic storms.

Want to learn more about maintaining customer loyalty? Watch our masterclass on how to maintain brand loyalty during tough economic times.

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E-commerce shopping: A quick guide for brands https://www.bazaarvoice.com/blog/how-to-create-a-more-convenient-e-commerce-shopping-experience/ https://www.bazaarvoice.com/blog/how-to-create-a-more-convenient-e-commerce-shopping-experience/#respond Mon, 12 Jun 2023 19:52:51 +0000 https://www.bazaarvoice.com/?p=13371 E-commerce shopping is always changing. The way consumers purchase products online today looks completely different from 10, five, or even two years ago. According to eMarketer, e-commerce sales grew to $845 billion in 2022, and mobile commerce accounts for almost 50% of that.

Finding ways to stand-out and make the e-commerce shopping experience faster and more convenient for customers should be a key priority for brands and retailers in years to come. Because if you aren’t focusing on this, your competitors are. 

4 ways to make your e-commerce shopping more convenient

It can be tricky to get your e-commerce shopping strategy right with so many factors at play. Price, experience, convenience — there’s multiple factors shoppers need. Here’s the best ways to meet those consumer demands.

1. Make e-commerce shopping convenient

With an abundance of e-commerce options available today, shoppers have distinct preferences that impact what makes it into their shopping cart.

According to our Shopper Experience Index, price and convenience continue to be the two most significant factors when deciding between products or trying out new shopping habits. There’s a variety of convenient order fulfilment options for brands and retailers today.

a) Buy online, pick up in store (BOPIS)

E-commerce meets brick-and-mortar. Our Shopper Experience Index found that shoppers’ biggest pain points when online and offline shopping are long checkout lines in-store and slow online order fulfilment. BOPIS is the solution to those issues. 50% of consumers base their shopping decisions on whether they can buy online and pick up in store or not.

During the pandemic, BOPIS became essential to businesses. It helped keep shoppers and retail employees safe by reducing in-person interactions, it allows businesses to continue selling despite store closures, and it enables people to conveniently secure groceries, toiletries, and essential must-haves.

And since the pandemic subsided, consumers realized all of the above should be the benchmark for shopping going forward.

That’s why BOPIS has now been embraced by major retailers like Target, Walmart, Home Depot, and Tesco. 90% of retailers are expected to offer BOPIS, according to Digital Commerce 360

b) Delivery

Delivery is another fulfillment option that has seen a sharp rise in popularity, when customers sought safe, low-contact ways to get their purchases. OptimoRoute, a route planner for delivery and field service, found that their monthly retail delivery orders grewg by as much as 65% during April 2020 and haven’t slowed down. 

According to a Good Eggs Inc. survey, 68% of consumers ordered groceries online for home delivery between March and late August 2020. Of those shopping online for groceries, 81% plan to continue doing it once the pandemic is over.

E-commerce shopping and product deliveries offer consumers the convenient way to purchase goods that they want. 

c) Carside delivery

Carside delivery or curbside pickup has also seen a recent surge in popularity. This option feeds consumers’ need to research and purchase products online but still pick them up without paying shipping fees, which they’re slowly cracking down on.

About 59% of customers say they’re more likely to continue curbside pickup and that number is only expected to rise. Case in point: the rise of Deliveroo and GrubHub users selecting “pickup” orders only to avoid extortionate delivery fees.

2. Shopping on social media

Social media is no longer a place for pretty pictures. Shopping on social media is now the raison d’etre. Our Shopper Experience Index found that 52% of shoppers have made a purchase on social media, and 69% have been inspired by social media to make a purchase on another channel. The reason being the ease for the consumer, so the fewer steps the customer has to take from discovery to purchase, the better.

By making social media channels shoppable, brands can provide consumers with another faster, more convenient way to buy products. In the same study, 1 in 5 consumers said it’s important or very important to be able to discover and purchase products directly from social media platforms like Instagram, Facebook, and Pinterest.  

Even TikTok is jumping on the in-app shopping trend. Recently, TikTok began testing a feature that allowed select users to put links to e-commerce sites in their profile bios and also let some users send followers directly to shopping sites.

If you aren’t already, make sure your brand uses “item tagging” when posting content. You’ll be able to tag the products in your posts, and customers can easily click tags for the items they like and get linked straight to your website to purchase them in mere seconds. 

The other benefit of social media shopping is that it provides brands and retailers with copious amounts of customer data, to better target shoppers in the future and personalize the overall shopping experience. (Which is something Bazaarvoice would be happy to help you with.)

Social media will continue to grow as a channel for online shopping and the popular apps will keep testing more and more new social commerce features. If your brand can offer a seamless, immediate shopping experience on the platforms your customers are using, you’ll continue to see more conversions and repeat customers.

3. Offer easy product comparisons

One Bazaarvoice study found that almost half (48%) of brick-and-mortar sales start with online research. This particular consumer behavior is often called Research Online, Buy Offline (ROBO). 

According to more research by Deloitte and Touche LLP, commissioned by Bazaarvoice , 88% of shoppers use reviews to discover and evaluate products.. 

By filling your product pages with user-generated content (UGC), you’ll help consumers make more confident purchase decisions in-store and online. But it’s not enough to have some reviews here and there. Consumers want to see authentic reviews (they know when a review is fake) and they want to see more visual and social content to help them understand how products will fit into their lives. 

Nearly 25% of shoppers say they won’t purchase products without looking at customer videos or photos, according to our research. Visual content, paired with reviews influences purchases, increases product discoverability and offers a more engaging shopping experience.

4. E-commerce shopping as entertainment

One of the newer trends that’s permeating through e-commerce is gamification marketing. Gamification takes traditional loyalty and reward programs one step further and helps brands and retailers get more customer attention and engagement. 

According to Reflectdigital, 91% of UK consumers aged 16-24 said they would be open to playing games with brands, 84% said they would buy from a brand they enjoyed playing a game with, and 61% said they would keep buying from that brand.

One of the most popular forms of gamification today is “prize wheels.” This is when a brand or retailer sends a consumer an email or shows them a pop-up with a wheel on it. The customer then spins the on-screen wheel to reveal their discount code or a free item with purchase. 

Another popular type of gamification is “points programs.” Points programs, are similar to traditional loyalty programs but offer customers various activities that allow them to get more points for certain behaviors, like purchasing a specific product, leaving a review, or buying something on a particular day. 

One of the most famous examples of this type of program is Starbucks Rewards. They encourage coffee drinkers to return to the store over and over again by offering extra stars for a certain number of purchases in a week. (How many times have you been tempted to buy three lattes in one week for 45 extra stars?)

Give consumers convenient e-commerce shopping they crave

Brands and retailers today must evolve their shopping experience or risk getting left behind. Pay attention to how your consumers want to shop with you and offer them more ways to make the e-commerce buyers’ journey convenient and easy. 

Finding the technologies and platforms they’re using and understanding their social and shopping behaviors is the key to producing convenient customer experiences that revolve around them.

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Shopping cart abandonment: Why and how to prevent it https://www.bazaarvoice.com/blog/shopping-cart-abandonment-why-it-happens-and-how-to-prevent-it/ https://www.bazaarvoice.com/blog/shopping-cart-abandonment-why-it-happens-and-how-to-prevent-it/#respond Fri, 17 Mar 2023 20:04:00 +0000 https://www.bazaarvoice.com/?p=18177 Shopping carts have abandonment issues. Every day, they remain parked in cyberspace all alone and filled with unpurchased merchandise. The abandonment rate of shopping carts is just under 70% — that’s a lot of missed opportunities for your e-commerce business.

Whether it’s due to poor user experience or a lack of trust in the product, shopping cart abandonment is an all-too-common complaint in the world of e-commerce.

The good news: Data on digital shopping cart abandonment is vast and can help you determine ways to reduce abandonment and increase your sales. Here’s how.

Chapters:

  1. What is shopping cart abandonment and why is it a problem?
  2. How to prevent shopping cart abandonment
  3. Reduce shopping cart abandonment with social commerce

What is shopping cart abandonment and why is it a problem?

Shopping cart abandonment is when an online shopper adds one (or more) of your products to their online basket, but then quits the process before completing the purchase. The products that entered the basket but were never purchased are considered “abandoned” by the shopper.

If you were online shopping on Amazon and you click “add to basket” on a new blender you’ve been eyeing up, but then for whatever reason you close the window without buying it, that blender is abandoned. Obviously this is a problem for many reasons (more on this to come).

Biggest of all, that’s missed revenue. Losing out on the sale of one blender might not particularly worrisome, but that same scenario can happen hundreds of times a day. And that adds up — yearly losses from shopping cart abandonment are $4.6 trillion globally.

It’s estimated that of this, around $260 billion is recoverable. Even if you’re only able to recover a small percentage of this figure, that can still add significant sums to your total revenue. Here’s how to do it.

How to prevent shopping cart abandonment

Below you’ll find reasons why your customers may be abandoning ship on your shopping carts and what you should be doing to bring them back on board.

Problem: People don’t trust your product or brand

If you aren’t sharing information about your brand and your products transparently and authentically, you won’t be able to gain consumer trust. Accenture Strategy’s Global Consumer Pulse Research revealed that in the last few years, regardless of age, customers care a lot more about the ethics behind a company.

For example, they found that those aged 55-74 years old were attracted to companies that reduced the use of plastic. And Gen Z-ers especially care more about social mobility, immigration, and poverty. 

Use this consumer insight to find opportunities where your company values or your product offerings align with these beliefs.

Once you’ve figured out your message, focus on a target market so you can create a shopping experience that builds and increases trust in your customer/business relationship. Create brand messaging that resonates, product descriptions that address pain points, and a customer service team that is easily accessible.

Improve confidence in your brand by making information readily available

Before making an online purchase, 81% of customers conduct online research. If your customers are searching for product solutions, your online presence and the team behind it should be easy to find and understand.

This means your product pages should have ample convincing (and transparent) information. From the descriptions to the product images and specs, customers shouldn’t be left with any lingering questions. However, if they are, your customer service team should be ready to answer them.

One online retailer known for its excellent customer service and customer-centric attributes is Zappos. Zappos makes it very easy to find its contact information. Once you get in touch with someone, you speak with a real human who doesn’t follow a script. Zappos is also very active on social media, where it answers customer questions and engages with its audience in a conversational and relatable tone.

Lastly, Zappos displays product videos in which its products are reviewed and modeled by real people. Videos can dramatically help businesses increase their sales. Over 60% of consumers are more likely to purchase an item after having watched a video. Zappos’ videos give the customer a clearer idea of the product they’re considering purchasing, and clarity is key for conversions.

shopping cart abandonment
Source: Zappos

All these factors contribute to the higher levels of trust customers feel toward Zappos. Plus, the incredible net revenues of the company. In 2020 alone, Zappos global net sales reached $629 million. Woof. But that’s what you get with less shopping cart abandonment.

Embrace user-generated content to fuel faith in your brand

User-generated content (UGC) — customer reviews, images, questions, etc. — will help you harness the power of social proof, a key ingredient to increasing confidence in your brand. According to our research, 81% of shoppers say written reviews are an important part of the decision making process

Moreover, social media and influencer marketing also play a big role in consumer behavior. When it comes to getting advice, 81% of consumers trust their friends and family over businesses.

UGC should be incorporated into your marketing strategy in order to build trust with your customers. UGC can appear in the form of social media content, reviews, and testimonials.

For example, when the fashion brand GANT was experiencing a critical return rate, they turned to UGC. The brand worked to increase their product and customer reviews and allow future customers to ask questions. 

As a result, GANT’s return rate was reduced by 5%, which led to an increase in revenue. Customers trust the reviews and opinions of other customers, especially when they have the option to ask each other questions.

Test and analyze conversion stats to meet your customers’ needs

Your customer’s behavior gives you insight into where in the buying process your customer loses faith in your products or brand. By following and tracking customer data, you can spot patterns in what makes them convert and then implement a strategy to increase trust and maintain loyal customers.

A/B testing is a great way to determine what works best for your target consumer. According to Business Insider, 45% of U.S. e-commerce sales are done on mobile devices. If these mobile users have a negative experience, they’re 62% less likely to be a repeat customer. Other examples of A/B testing include multi-page testing, photo and text swapping, search bar size and location, and using a chatbot. 

you can also regularly run a customer sentiment analysis to learn your customers feelings towards your brand. By regularly testing and adjusting your store’s online presence and features, you ensure your customer will view you as a reliable place to purchase from.

Netflix and Amazon are excellent examples of companies that use A/B testing to ensure their audience never gets bored. Amazon uses creative and updated product descriptions to entice shoppers. They also include related items their customers may be interested in purchasing. And Netflix will frequently A/B test the images used for each title to determine which images generate more views.

Problem: Consumers’ online shopping experience is less convenient than in stores

People shop online for various reasons, the top one being convenience. If your customer’s online shopping experience is less convenient than shopping in a store, consider making changes to the user’s experience to ensure excellence.

Emphasize free, quick delivery and an easy return policy

If you’re an e-commerce store, free and quick delivery is key to reducing your shopping cart abandonment rate. According to research from Oberlo, the number one reason people choose to do their shopping online is free delivery. So unsurprisingly, the number one reason people choose to abandon their shopping carts is due to high extra fees.

Almost half of online shoppers abandon their carts due to high shipping rates, taxes, or other fees. Long delivery times and return policies can also affect customer decisions. And 33% of consumers turn to online shopping for a convenient return policy, according to the same research.

The right quick commerce strategy can ensure you meet these customer wants, improving the e-commerce experience along the way.

Promote online-only discount codes

The second most popular reason to shop online is the opportunity to use a coupon or discount code. 41% of online shoppers look for deals online. Incorporating special promotions into your marketing can capture the customers who are “just browsing.”

Ensure customers have a smooth checkout process

Nobody likes waiting in line for anything, let alone to check out. That’s why 30% of people who shop online do so because of the convenient checkout process. However, 18% of people abandon the checkout process when it’s too complicated.

To optimize your conversions, it’s important to offer common and popular payment methods and options. This includes the option to check out as a guest rather than being forced to create an account with your e-commerce store.

Problem: Customers aren’t being reminded of shopping cart abandonment

Treat shopping cart abandonment as you would a flaky friend. Everyone has that friend who needs consistent reminders (and sometimes incentives) to join the party. When it comes to shopping cart abandonment, customers are just like your flaky friend. Through frequent reminders and an automated omnichannel sequence, you’ll be able to reel your customers back in.

Send automated emails and push notifications

It may seem like you’re a nuisance to your customers, but reminders about abandoned carts with creative calls to action actually work. The average open rate for abandoned shopping cart follow-up emails is at 42%. This is much higher than the average email open rate of standard marketing emails, which stands at just 18%.

It’s pretty likely your customer is regularly inundated with marketing emails, so it’s important to get inventive with your abandoned cart emails. Whether you use humor, urgency, a discount incentive, or offer more information, try to pique your customer’s interest creatively.

Source: Rudy’s

Use text messaging

Another channel you can use to reel those customers back to their shopping carts is SMS marketing. This is another marketing tactic that may seem intrusive. However, according to Omnisend research, SMS campaigns are 48% more likely to result in conversions.

For example, the wig retailer Divatress decided to start using SMS in their marketing campaigns, which contributed to $123,000 in sales and a higher click-through rate (8%) to their website than email subscribers (3%).

Reduce shopping cart abandonment with social commerce

Can’t have shopping cart abandonment if there’s no shopping cart. Consumers are turning to social media more and more to do their shopping. According to Hootsuite, each month over 130 million Instagram users tap on a shopping post.

Instagram has made it incredibly easy to purchase a product straight from the accounts users trust the most. According to our research, 69% of consumers have been inspired by social media to make a purchase and 54% would be more likely to buy a product on social media if they could purchase directly.

To make social shopping even more convenient for your customers, your brand can set up your Instagram account so users can shop directly in-app. Shoppers want to find what they’re looking for in three clicks or less. Rather than using Instagram as a way to get leads to your site, why not reduce the number of clicks it takes for a purchase to occur?

That’s just one more opportunity to prevent another shopping cart from total abandonment. Read more about it here.

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Marketing to Gen Z: What the new consumers want https://www.bazaarvoice.com/blog/marketing-to-gen-z/ https://www.bazaarvoice.com/blog/marketing-to-gen-z/#respond Fri, 03 Mar 2023 16:46:07 +0000 https://www.bazaarvoice.com/?p=22391 Gen Z — this socially-conscious, extremely diverse generation wields $360 billion in disposable income and is prepared to use their buying power, but marketing to them can be tricky.

We’ve broken this guide into the different marketing tactics required to win Gen Z’s repeat business — arguably the trickiest segment to successfully market to — and how marketing to this generation of consumers differs from other age groups.

Chapters

  1. How is marketing to Gen Z different from other generations?
  2. 8 ways to attract Gen Z customers
  3. Marketing to Gen Z demands careful experimentation


How is marketing to Gen Z different from other generations?

The difference in marketing trends across Gen Z and other age groups boils down to this: Generation Z is the first generation to be complete strangers to life without the internet. This digital upbringing has turned them into tech-savvy consumers who take their sweet time researching products and brands.

Considering they’re such discerning consumers, marketing to Gen Z requires you to be authentic and trustworthy — young shoppers won’t settle for anything less. 

Gen Zers are also the most culturally diverse generation, and like the millennial generation before them, they expect you to show social responsibility by being inclusive and supporting important causes. Baby boomers? Not necessarily. 

As Andrew Roth, Gen Z founder of Dcdx, puts it:

“The biggest [difference] is the onset of technology and when that came up in the lives of Gen Z, and the role that’s had on shaping how we behave and who we are. Convenience is not a want or a fun [thing] to have; it’s who we are — we were born with Google. We had everything at our fingertips. Brands that are slow are nonnegotiable for our generation.”

To navigate all of these gaps and tap into Gen Z’s spending power, Roth advises simply talking to them. These conversations will help marketers understand this generation’s perspectives and sell to them effectively.

8 ways to attract Gen Z customers

No brand wants to be meme’d, but embodying the values that Gen Zers hold dear without coming off as phony is easier said than done.

marketing to gen z

These young consumers grew up online, so they have short attention spans and the uncanny ability to sniff out a marketing gimmick — posing a big challenge for every marketer.

To adapt your traditional marketing strategy to Zoomer consumers, pay attention to their perspectives and involve them from top to bottom.

  1. Promote user-generated content
  2. Partner with influencers
  3. Take a stance on social issues
  4. Show authenticity and integrity
  5. Use short and snappy video content
  6. Add up-and-coming platforms to your strategy
  7. Leverage the power of email marketing
  8. Build a community around your brand

1. Seek out and promote user-generated content

Gen Z prefers seeing actual customers in promotional materials. As many as 82% trust a brand more if they use real customers in advertising, while only 26% of respondents trust a company more if they feature paid spokespeople.

Considering 70% of Gen Z say product videos and photos are particularly helpful when making purchasing decisions, marketing to Gen Z should include a user-generated content (UGC) strategy that goes beyond written reviews. And thanks to social media, it’s easy to encourage your customers to share their experiences with your product.

“We reached out to influencers and customers and began asking them to create hauls and unboxing videos that included our iconic pink packages. After a few weeks, it became a viral trend that was all over TikTok,” says the CMO of clothing company Edikted, Dana Israeli, in an interview with Glossy. “The customer wanted to be part of the movement and the community, and without even having to ask them, they all joined in.”

You can boost UGC on social networks by creating challenges or contests or even coming up with your own micro-holidays. Ahead of the 2021 holiday season, Target launched the #TargetHoliday hashtag with a cheerful Reel to celebrate festive Target runs.

These micro-holidays don’t need to be super unique — keeping them simple is more important, so your Gen Z audience can easily participate. But you shouldn’t stop at highlighting UGC only on social media platforms.

For example, through Retail Syndication, rug company Nourison shared visual UGC from social media to different retailer sites like Target. Coupled with ratings and reviews, its UGC strategy resulted in a 4x increase in conversions and a 3x increase in revenue.

Fitness brand Takeya has also had impressive results with displaying UGC on its website, leading to a 58% conversion boost and a 40% increase in revenue per visitor. 

The lesson to marketers: Gen Zers love to hear from real people who’ve used your product, not just paid voices.

2. Partner with nano and micro-influencers

Although Gen Z favors real customers in advertising, this doesn’t mean you should give up on influencer marketing. Influencers still have influence (pun intended) — especially where smaller influencers are concerned.

Nano (~1K-10K followers) and micro-influencers (~10K-100K followers) usually interact more with their audience, which leads to an engaged following. This engagement creates trust and a personal relationship more prominent influencers often lack with their followers.

In fact, nano and micro-influencers have the highest engagement rates on Instagram, between 10% and 12%. And it doesn’t hurt that they charge brands less than their more famous counterparts.

As for influencers’ relationship with Zoomers, they wield considerable power. Gen Z is more likely than previous generations to purchase based on an influencer’s recommendation: 14% in the 18-24 age group and 13% in the 13-17 age group have bought a product due to influencer marketing. And one out of four Gen Zs says micro-influencers with “loyal and highly engaged audiences” are key for developing new trends.

Companies that have teamed up with smaller influencers include major brands like Dunkin’ and Ford.

Ford Canada contacted travel blogger Cailin O’Neil (8.7K Instagram followers) to promote the 2020 Ford Escape Titanium. The promotional post has a 2.6% engagement rate.

marketing to gen z

Dunkin’ (formerly known as Dunkin’ Donuts) specifically sought out nano and micro-influencers on Instagram for its espresso campaign. All influencers featured had audiences under 50,000, with nano-influencers showing more engagement on their posts.

Influencer Vanessa Lace, for instance, who at the time of the campaign had 3,000 followers, had a 26.1% engagement rate on her Dunkin’ post.

Since the marketing trend of using smaller influencers is expected to continue, you shouldn’t underestimate the importance of finding the right influencer for your brand.

And you shouldn’t be afraid to turn your own employees into influencers either. Once you finally discover the influencer who ticks all the boxes, don’t take full creative control over the promotional posts. Zoomers dislike being sold to, and creators should retain their unique voice in sponsored content to avoid sounding salesy.

“[Micro-influencers] have an intimate community where they’re likely connected personally to many of their followers. When designing a campaign with them, don’t be generic. Add depth, personality, and individualization, and offer some creative control to them to be certain that their voice is protected in the process and message,” says Megan Rokosh, global CMO at Havas Health & You, in an interview with Forbes.

3. Take a stance on social issues

Gone are the days when brands could avoid addressing pressing social issues, such as systemic racism or climate change.

To the new generation, no stance is also a stance — and it can severely damage your reputation. 31% of Gen Z reports that they stopped buying from a brand that’s part of a social cause they don’t align with. Similarly, another 76% of Gen Z find it important for brands to celebrate diversity.

A 2022 YPulse survey also showed that the top issues for Gen Z are mental health, abortion/birth control, gun violence, and climate change — and they’d like to see brands involved in tackling these issues.

But there’s a fine line between showing social responsibility and empty “wokevertising.” Young people are experts at sniffing out the latter and don’t respond well to brands using social justice for pure self-promotion.

Brands that learned this the hard way include Listerine, who came under fire for launching a rainbow-colored mouthwash bottle to celebrate Pride month. Critics claimed the marketing campaign made light of an important celebration just to sell a product, using the LGBTQ community to put on an inclusive image.

Pepsi’s now-infamous Kendall Jenner ad is another textbook example of brands being too eager to latch onto social justice for promotional purposes without actually walking the talk. So how can you take a stance on social issues without veering off into “wokevertising” territory?

For one, you can share how your brand embraces social responsibility and sustainability in every aspect of your business. Take plant-based food company Impossible Foods’ yearly Impact Reports. Its 2020 report provides a detailed overview of how the company supports employees and community members, from promoting diversity and inclusion to supporting food banks during the pandemic.

Gen Z also wants the brands they support to stand up and show solidarity in times of crisis. In 2020, Fenty Beauty announced they would shut down their business for a day to support the Black Lives Matter movement and mark Blackout Tuesday.

The company went one step further by donating to organizations fighting racism and encouraging their followers to take a stand against racism and discrimination.

American Eagle’s Aerie brand is also one big retail name that promotes body positivity and diversity and supports young activists. Through their #AerieREAL changemakers project, the company gave a group of 20 activists a $20,000 grant each to power change in their communities.

marketing to gen z

Dick’s Sporting Goods is another good example. The brand put Gen Z girls at the forefront of their Girls’ Power Panel — a team of 13-17 year-olds assembled to help them understand issues faced by women in sports. The young panelists also shared their thoughts on the brand’s products.

The key to avoiding performative activism is carefully considering the causes you support and ensuring your brand’s values align with Gen Zers. You don’t have to support all the causes but make sure to go all in on the ones you do.

4. Display integrity and authenticity

A 2021 Ernst & Young survey about Gen Z found young people value “trust, transparency and authenticity” and will turn away from anything or anyone that appears inauthentic. Another reason why UGC works so well.

“‘Authenticity’ has been shown in Gen-Z research as a critical element in how they evaluate products and services. Gen-Z consumers want to be able to trust the brand, understand what it stands for and be confident that they aren’t being sold a bag of goods,” says OptiMine CEO Matt Voda about marketing to Gen Z in a recent Forbes interview.

Admittedly, “integrity” and “authenticity” can quickly turn into buzzwords without meaning. In a practical sense, embodying these values means treating your customers as more than just a source of profit and not sacrificing long-term trust for a short-term gimmick.

Skincare brand Paula’s Choice is a textbook example of doing authenticity right on their digital marketing channels. One of the brand’s TikTok videos captioned with “Pores are normal & real skin has texture!” promotes body positivity and rejects the idea that flawless skin is a realistic beauty standard.

@busezeyneppp Rolex | Afrika 🫓🥚 #eggroll #rolex #africanfoodie #breakfa #eggrecipe #recipeideas #africa #kahvaltılık #paza #cooking #chef #asmr ♬ sure thing – luana

In recent years, numerous brands have also ditched using Photoshop in their marketing campaigns to appear more genuine. Plus, organizations are considering better ways to leverage Black American culture and language without exploiting it.

To make sure its back-to-school campaign was authentic enough, Dick’s Sporting Goods once again went above and beyond in engaging Gen Z. Not only did they feature Zoomer influencers in the ad campaign, but they also had young creators advise the company on the campaign

From the music to the outfits, the influencers offered expert opinions on how the brand can best adapt its messaging to appeal to a young audience without appearing inauthentic.

While brand integrity is important to people from all generations, Gen Zers are digital natives who don’t hesitate to share their thoughts on the internet when a brand disappoints them. With recent research indicating 57% of Gen Z have less brand loyalty now compared to the pre-pandemic era, there’s little room for error.

5. Create short and snappy video content

Gen Z is known for having a penchant for videos on their favorite social media apps, which they can easily access on their smartphones. According to eMarketer, the most popular social networks among Gen Z are Snapchat, TikTok, and Instagram — all apps that rely heavily (if not exclusively) on short-form video content.

Snapchat has a 60-second video limit, and so do Instagram Reels. TikTok only recently expanded the limit from 60 seconds to three minutes, but the platform is still renowned for its bite-sized videos.

The short video format of Reels, Snapchat, and TikTok means their user base has grown accustomed to content that caters to their short attention spans and doesn’t beat around the bush with lengthy introductions. It also needs to be engaging and feature music, special effects, or fun challenges users can copy.

Industry giant Procter & Gamble did just that as they expanded their social media marketing on TikTok with a music challenge.

“On TikTok, we’ve actually recently launched an exciting campaign partnering with Jason Derulo, the very famous rapper. He wrote a rap that featured Bounty in it. So we invited consumers and other rappers and influencers to play back this rap which was featuring Bounty and got us lots of great Bounty mentions.” says Janette Yauch, brand vice president of Bounty and Puffs at Procter & Gamble.

In addition to creating challenges, you can take an educational or funny angle when building your video content calendar.

In a promotional video on Sephora’s Instagram account, skincare brand Glow Recipe offered a quick tutorial that clocks in at just 25 seconds.

When Domino’s launched their “New Bigger Better” pizzas in Norway, they ran a tongue-in-cheek Snapchat campaign about the size of their new pizzas. One of the videos, for example, shows a man struggling to drive with the pizza boxes in his car.

LinkedIn is also not left out of this video party. Though the business networking channel is not a short-form video platform, it has a video feature that lets users post three-second to 15-minute videos. LinkedIn is popular with Gen Z audiences who use it to “fuel their careers” and pursue professional success.

As you explore different apps for marketing to Gen Z, remember it’s best to create videos from scratch for each platform rather than recycling them. For example, in 2021, Instagram announced it would suppress Reels featuring watermarks from other apps such as TikTok.

6. Add up-and-coming platforms to your Gen Z marketing strategy

Outside of social media, Gen Z is gathering on digital communication platforms like Discord and Twitch, whose popularity exploded with the outbreak of the pandemic. Unable to see their friends in person, Gen Z turned to online spaces where they could connect with others over shared interests. In response, companies are developing innovative ways to reach their young audiences on these platforms.

Often referred to as “Slack for Gen Z,” Discord is a chat platform where users hang out on servers related to different topics — like Minecraft or movies. While Discord has a reputation for being a gaming platform, 80% of current users use it for non-gaming purposes in addition to gaming. Part of Discord’s appeal is an ad-free experience, but brands have nevertheless found ways of connecting with their customers on the platform.

Clothing retailer Hot Topic entered the Discord space by creating a server focused on anime, relying on a shared interest that users are already likely to talk about. Fast food company Jack in the Box took the digital event route, creating a virtual concert and chat rooms targeting the visitors of the San Diego Comic-Con.

Brands that market to Gen Z are also flocking to the live streaming platform Twitch. Almost half of their user base are people in the 18 to 34 demographic, who tune in to virtual events an average of three times a day. According to Twitch, 64% of their users also buy products based on influencer recommendations.

Like Discord, Twitch’s platform was once most popular among gamers but now also hosts DJ sets, cooking shows, and more. Twitch does allow advertising, and businesses can partner with creators through affiliate programs or run display and video ads.

Beauty brand E.l.f. has been advertising heavily on Twitch, first through an influencer partnership and then by launching their own streaming channel. E.l.f.’s collaboration with Loserfruit, a gaming streamer, featured beauty tutorials with one of the brand’s makeup artists, Anna Bynum. When the company finally launched its own profile in 2021, it announced that Bynum (a gamer herself) would feature prominently in their channel.

E.l.f.‘s focus on involving genuine gamers on their channel shows they understand the platform’s young audience wants authenticity. Branded content needs to fit seamlessly into what the rest of the streamers are doing; otherwise, it could cause more harm than good. 

Although the same rings true for mainstream social media, it’s much easier to get the knack of TikTok or Instagram than a live-streaming platform where creators are the main draw.

Compared to E.l.f., some brands’ marketing efforts were considerably less successful. Fast food chain Burger King left many Twitch users fuming when they used a donation system to run ads. The donation feature allows viewers to donate a small amount of money to creators during a stream, and in return, a bot reads out their questions live. 

But instead of submitting questions, Burger King promoted their deals for donations as low as $5. Since influencer partnerships cost a lot more, the company was accused of abusing a feature meant for fan interactions while refusing to pay creators fair wages.

The entire Burger King fiasco illustrated one important point — Gen Z does not take kindly to marketing trickery, especially at the expense of beloved content creators.

7. Leverage the power of email marketing

It’s easy to underrate email marketing as a vehicle to reach Gen Z because it is one of the oldest communication channels. But 58% of Zoomers check their email several times daily, and over 50% of Gen Z like to get emails from brands multiple times a week. The takeaway? Email marketing is an effective way for brands to connect with their younger target audience.

Emails allow for easy personalization and last longer than other digital marketing messages since they’re stored in individual inboxes. An email list also helps you maintain customer communications whenever social media platforms are down en-masse — like what happened with Facebook, Instagram, and WhatsApp on October 4, 2021.

As Roth recommends, asking Gen Z about their preferences is a surefire way to get in their good books. For email marketing, this approach involves getting explicit permission before sending emails to customers. It also entails using a preference center to collect feedback on how often they want to hear from you.

Take the footwear brand Crocs, for example. Their email marketing efforts include an opt-in form on their website that collects user contact details and dates of birth (to wish them a happy birthday when the time comes).To encourage signups, the brand also offers their new mailing list — Crocs Club — subscribers a 15% discount on their next purchase and access to special offers and updates.

Beyond hearing from customers, successful Gen Z email marketing hinges on many factors, including:

  • How catchy your subject lines are
  • Whether your brand’s values coincide with social issues
  • Your ability to use visuals and memes effectively
  • How conversational or humorous your tone of voice is
  • The mobile-friendliness of your email designs
  • How personalized and specific your email copy is
  • The creativity of your email sign-offs 

This promotional email from M.A.DKollection embodies many of these criteria: it is mobile-friendly, uses visuals effectively, celebrates Black History Month, and has a catchy headline that resonates with younger audiences.

Graphic design platform Canva also nails its email marketing with compelling subject lines, exciting challenges, and attractive visuals. It definitely helps that the brand prioritizes sustainability, enables climate change activism, and promotes diversity as well!

marketing to gen z

8. Build a community around your brand

Research shows that Gen Z is the loneliest generation, and experts say that community is the missing puzzle piece — one study shows that 82% of Gen Z want to join a community. Also, Gen Zers love upholding ethical standards and engaging in social advocacy, so connecting over shared values is a no-brainer for them. 

These youngsters value community and networking for personal and work purposes — especially when their new connections share similar principles or interests. 

It’s no wonder brands like Copy.ai and Jasper have created Facebook groups where customers — including Gen Zers — network, ask questions, and discuss how they’re using the tools. Communities like these thrive when they’re people-led, with moderators only there to coordinate and ensure mutual respect and communication. 

For Gen Z, having community managers within the same generation is also a good call — they speak the same language, after all. 

Along with organized online communities, creating a sense of community for Gen Zers also means:

  • Planning virtual, in-person, or hybrid events around trending (but relevant) topic
  • Opening up your office space for walk-ins, picture-taking, and content creation
  • Creating a coworking space where your younger audience can hang out and collaborate
  • Conducting social media challenges with branded hashtags that drive engagement and conversations
  • Giving away branded merch to build brand affinity
  • Building a unique and memorable social media presence

Two companies nailing customer communities and engagement are Gymshark and Glow Recipe.

Targeted at people who are passionate about athletics and working out, Gymshark has built a solid online community. The sports apparel company built its brand around a mission designed to foster a sense of belonging among the members. Gymshark goes beyond selling workout clothes — they want their customers to be members of a community that celebrates failure as much as it celebrates victories in the journey toward self-improvement. 

To attract a younger audience, Gymshark regularly hosts virtual and offline events. The fitness brand also partners with many Gen Z gymnasts and influencers like Guusje van Geel (@guusje) and Joyce-Anne Deji (@madamejoyce1) — and has amassed over 6 million Instagram followers.

Glow Recipe’s strategy is equally worth modeling for community building. Cosmetics is a $100 billion industry where competition is fierce, and cutting through the noise to build a legion of loyal customers is as hard as it is essential.

Glow Recipe understands the importance of fostering connection to win the race. They reach younger audiences where they are and through the type of content they prefer to consume. Their Instagram Reels and TikTok videos often feature skincare tips and product reviews that leverage trending audio. Glow Recipe’s website is also a true skincare bible, sharing articles, quizzes, and guides that help their customers select the best products for their specific skin concerns.

Speaking to their focus on authenticity, a Gen Z “love language,” Glow Recipe also shows real skin in their advertising campaigns — their models don’t wear makeup on set.

marketing to gen z

The skincare brand further encourages community building by rallying its customers around important causes (a key value proposition to attract a Gen Z audience). Glow for Good reflects the company’s focus on diversity and inclusion, environmental protection, and female empowerment and education. With the community’s support, Glow Recipe has donated over $1 million “to support communities all around the globe.”

Marketing to Gen Z demands careful experimentation

As you’re adapting your business to the younger generation, consider which aspects of your marketing strategy are fit for a Gen Z revamp. Could you be more open about how your brand gives back and supports important causes? Do you need to rethink your approach to video content? Are there any micro-influencers with solid ties to Gen Z you could team up with?

More importantly, experimenting with new strategies and channels like Discord will benefit you the most if you’re driven to build a genuine long-term connection with Gen Zers and not just increase conversions ASAP.

It’s no surprise that companies like E.l.f. and Fenty Beauty have so much clout with Gen Z — they visibly share their customers’ passions. That goes a long way in a world oversaturated with new products and brands all wanting the Gen Z seal of approval.

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The 6 stages of the consumer buying process https://www.bazaarvoice.com/blog/what-is-the-consumer-buying-process/ https://www.bazaarvoice.com/blog/what-is-the-consumer-buying-process/#respond Fri, 13 Jan 2023 17:04:59 +0000 https://www.bazaarvoice.com/?p=16118 Imagine waking up and impulsively buying a car, vacuum, or even shoes before you’ve had your morning coffee. If you’re like most people, that’s probably not your style. That’s not your usual path to purchase. You don’t purchase things on a whim. You need more time to think, research, and weigh your options. Yet, when it comes to the consumer buying process, we tend to put a lot of emphasis on the final sale.

But that’s only one decision on the buyer’s path to purchase. 

What is the consumer buying process?

The consumer buying process, or the consumer purchase decision process if you’re fancy, is the series of decisions a consumer makes on the path to purchase before becoming a customer.

Understanding how a consumer makes each decision in the buying process is essential for brands and retailers who want to convince shoppers to hit that add to cart button.

The stages of the consumer buying process

consumer buying process

Let’s take a look at each of the six stages of the consumer buying process. We’ll discuss ways to optimize the buyer journey and ultimately boost conversion in today’s commerce landscape. 

1. Need recognition

A sale officially begins when a customer realizes they have a need or a want.

This recognition can happen because of internal or external stimuli (grocery shopping because you need food for dinner vs. ordering takeout because you just saw an Instagram ad for pizza). 

And the causes of these stimuli can be functional (purchasing a new computer because the old one doesn’t have enough processing power for Zoom calls) or social (buying new Zoom shirts to look good on your call). 

Regardless, the results are the same. A want now exists.  

At this stage, building brand awareness is key. You want your target market to already know and trust your business. Especially in today’s world where consumers don’t just want to shop, they want to support businesses that reflect their own values and beliefs

So much so, that 82% of shoppers say they’d avoid using a brand again if they lost trust.

Once consumers are aware they have a want, they’re now ready to find out how to fulfill it. And so their search begins, predominantly on search engines or social media. This is where casual browsers are inspired to become buyers.

In this stage in the consumer buying process, it’s imperative to optimize your brand or retail site for search engine optimization (SEO), so you show up in search results. And given that 70% of shoppers use Instagram for product discovery, you’ll want to focus on your Instagram SEO too.

How consumers search and what information they’ll need is based on how much they already know, and what details they find from fellow shoppers. Commerce today is always-on and consumer-to-consumer orientated, where consumers are your best salespeople.

That’s why most brands and retailers turn to user-generated content (UGC), which is any content (reviews, images, Q&As) created by unpaid individuals rather than a brand.

Customer ratings and reviews get your brand seen and help usher people to your site through keyword-rich and relevant content. Search engines reward sites that talk in the same language as customers. So when your shoppers are actually the ones creating the content, your brand is more likely to pop up first in the search. 

UGC is also a way to authentically build trust (there’s that T word again) with shoppers, as 79% of consumers say online reviews have as much of an impact as recommendations from friends or family. 

3. Alternative evaluation 

At this point, shoppers are making a list and checking it twice. They’re aware of your brand, have been brought to your site, and are now evaluating whether to purchase from you or a competitor. It’s crunch time, and they want to make the best choice. No regrets. 

So what can you do to build confidence that you have what they want? The answer again is UGC.

Ratings, reviews, Q&As, and customer photos are what consumers are turning to first to make buying decisions, and it inspires them at every step of the path to purchase. 53% of consumers say UGC makes them more confident in purchase decisions, according to our survey of over 7,000 global shoppers.

The need for authenticity is only getting stronger. And this trend is expected to flip the future of product display pages with content and opinions from real consumers already replacing professional product information. 

4. Purchase decision 

The shopper has read your product reviews, scrolled through the Q&A, and decided you’re the chosen one — the vendor they’ll trust with their purchase. They’ve arrived at your digital shelf. You’re in the homestretch now, right? Not so fast. You can still lose a customer at this crucial stage of the consumer buying process.

Here you should refer back to the need recognition and remind consumers why they’re buying the product in the first place. Use visual UGC on checkout pages and social channels showing products in action and pain points being solved. And make this content shoppable too. In the modern e-commerce funnel, shortening the buying process is the easiest way to drive a sale.

But should a customer leave at this stage, send out email reminders or offer slight discounts to lure them back

5. Completing the purchase

According to a study by Baynard Institute, nearly 70% of shopping carts in the e-commerce industry were abandoned before checkout. This comes alongside an increase in analysis paralysis brought on by COVID-19. Simple decisions feel heavy now. Deciding what to order for dinner can feel as stressful as switching careers. 

It’s up to you to alleviate this stress by making the purchase decision as simple as possible for consumers. Areas of opportunity for brands and retailers here include:

  • Make your social content shoppable
  • List total prices upfront so there aren’t any surprises
  • Create an option for guest checkout to give shoppers an alternative to creating a personal account
  • Optimize your e-commerce site for speed and reliability
  • Showcase positive testimonials from reviews on the checkout page to build reassurance 
  • Offer quick commerce services to save shoppers the hassle of in-store pickups

6. Post-purchase evaluation

Congratulations! You’ve optimized each stage up to this point, and the product has been purchased. The consumer buying process is complete. But there’s still one more step. You now have the unique opportunity to turn the buyer into a repeat customer by keeping them engaged with your brand or store. After all, customer retention is easier and cheaper than new custom.

Asking your customers for feedback on their purchases or using consumer insights found in product reviews is one of the best ways to build brand loyalty. It shows you care about their opinions and the overall experience they had with your business.

Retail giant Électro Dépôt, for example, collects UGC to encourage future buyers in their purchase decisions. The brand consistently analyzes customer feedback for areas of improvement and has since seen a 2x increase in conversion rate

Customers are sharper than ever. And they look to their peers for unbiased opinions when making purchasing decisions — an impressive 78% of shoppers globally trust online reviews. 

Understanding the consumer buying process at every stage

By considering each stage of the consumer buying process (the consumer purchase decision process), you can implement smart strategies for your business at each point along the way — building trust and keeping shoppers engaged at every step. 

User-generated content is the powerful tool that ties the path to purchase together. When paired with a healthy mix of branded and owned media, they combine to accelerate conversion by dominating search, inspire shopper confidence, and upgrade product sentiment. Learn how you can create a 5-Star, personalized customer journey in our new on-demand masterclass.

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How to increase conversion on your product detail page https://www.bazaarvoice.com/blog/increase-conversion-on-product-detail-pages/ https://www.bazaarvoice.com/blog/increase-conversion-on-product-detail-pages/#respond Fri, 11 Nov 2022 06:41:23 +0000 https://www.bazaarvoice.com/?p=11885 Your product detail page is the point on your e-commerce site your potential customer sees when they want specific details about one of your products on your website. A good product detail page can be the difference between someone clicking add-to-cart or not, which is why product page optimization is so important.

As economic times get increasingly tough, beef up your product detail page with user-generated content (UGC), like customer ratings and reviews and social imagery, and functionality that converts. Make it easy for shoppers to find the information they need to make an informed and confident purchase fast. Whether they discover your product through search or on Instagram, customers should have a wealth of written and visual content available to them. 

5 ways to boost product detail page conversion rate

From enabling review translation to turning your Instagram into a storefront, here’s five product page optimization tactics retailers can use to drive greater conversion on product detail pages. 

1. Display shoppable visual UGC on your site

What’s better than lots of visual content across your e-commerce site or your product detail pages? Lots of shoppable visual content. Placing galleries on your product detail pages can result in:

  • 250% increase in time spent on site
  • 150% increase in conversion rates
  • 15% increase in average order value

So compile beautiful visual content on every inch of your website — homepage, product page, you name it. Build beautiful galleries chock-full of visual user-generated content that helps people discover new products. 

product detail page

The best place to find impactful visual UGC is on social media. Shoppers will often tag your brand when they post one of your products. You can easily syndicate these powerful visuals (and other forms of UGC) from your brands to build gorgeous product detail pages. The visual content will help both you and your brands convert more sales. 

2. Turn Instagram into a storefront

According to the 2022 Shopper Experience index, 54% of shoppers would buy a product if they could click a post and get product info directly there. Win over these shoppers by shortening the path to your product detail page for consumers who discover your products on Instagram. For example, Like2Buy turns Instagram into a storefront, where shoppers can click the link in your bio and get redirected to a site where the content they just saw on your feed is highlighted and easy to buy. 

Source: Target

Like2Buy also extends beyond Instagram — you can make any visual content shoppable. For example, now when you post a photo on Facebook, you can easily include a Like2Buy link that directs consumers to buy the product. Product page optimization made simple.

3. Leverage customer sentiment

Leverage customer sentiment analysis with Review Highlights. Allow customers to easily filter through the most important sentiments in reviews and allow them to easily navigate reviews in a much quicker way by highlighting pros and cons of each product from the sources they trust most — other customers. 

Review Highlights uses sentiment analysis to show consumers specific pros and cons of a product based on reviews. It also highlights certain features of the product, based on what past shoppers have said they enjoy the most. It gives consumers a quick overview of the most important sentiments in a review, allowing them to navigate reviews quicker. 

product detail page

Review Highlights works best with products that have a lot of UGC — at least 10 reviews or more. It’s a powerful tool to leverage, increasing conversion on product detail pages by 3.5%.

4. Enable review responses and Q&A

Don’t ghost potential customers. When they ask you a question, give them answers. Last year, over 4.4 million consumers submitted questions to brands. We know responding works — according to our research, there’s a 98% conversion lift and a 120% RPV lift when shoppers engage with Q&A. 

And responding to reviews — especially negative reviews — matters, too. A third of shoppers don’t just want to hear from brands, they expect it. In fact, 87% of shoppers agree that a brand has to do something in response to negative reviews, and 72% of shoppers say the same for positive reviews. Responding to all UGC builds brand trust and encourages shoppers to give your brand a chance, even after reading a negative review. 

5. Translate reviews

72% of shoppers are more likely to buy a product with information in their own language. Expand into new countries with confidence and without starting from scratch with UGC. The right translations provider enables you to translate reviews effortlessly to display UGC in multiple languages.

Review translations allows your consumers to easily translate reviews from one language to another on the fly, syndicating content across the globe. 

Optimize your product detail page

We’ve offered five best practices based on works best for our clients, but even implementing one of these will do wonders for your product detail page conversion rate. Once your shoppers have all the information they need about your products at their fingertips, buying your products will be a no brainer.

And by using all five of these product page optimization tips, you’ll see your conversions rate soar as you build trust with customers and make it easier than ever for them to feel confident in your products. Learn more about how to optimize your product pages. Or request a demo below to get started with Bazaarvoice.

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