The FINANCIAL — The vast majority of people (62%) are now digital consumers, rational and adept at using technology to filter information and make purchasing decisions. Companies must target “digital hypertaskers,” the shoppers of the future and the most sophisticated and challenging of digital shoppers, to create competitive advantage in the long term, according to Ernst & Young Global Limited.
EY’s second international survey of the “new consumer” reveals how behavior is evolving and the size and nature of the task that lies ahead if businesses are to prosper. Compared to the previous survey in 2012:
Buying online is becoming more commonplace. The only categories to remain stable in-store are purchases relating to cars, telephone and mobile contracts, and consumer loans.
While price remains the top criterion in the buying decision, it has lost ground to factors such as quality, and product warranty
Younger consumers, age 15 to 29, lead the way in product and service development. They are three times more likely to engage in co-creation activities, tapping into the insights of the consumers at the right points in the innovation process, than the 50+ age group. But some marketers risk ignoring this older, baby-boomer demographic, which is often labeled the richest generation.
Price and quality are the factors that most influence the buying decision; however, rising brand loyalty across all markets underlines the appeal of brands that have invested in building trust and delivering an engaging customer experience
“Our previous report two years ago painted a picture of consumers who wanted products and services to be designed, sold, delivered, serviced and purchased in a way that suits them. Today, they are even more knowledgeable and self-confident, doing more research before buying than ever before,” said Woody Driggs, EY’s Global Advisory Customer Leader.
“Change on this scale demands attention. In the age of the smart consumer, it’s vital to realize that consumers consider themselves as ‘copilots’ when setting off with the intention of buying. We see evidence of active cooperation being offered in the development phase for new products in every category we looked at,” Driggs added.
Indian and Chinese internet users are leading the way in buying online, with a 75% and 70% digital share respectively. This figure falls to 63% and 50% in the UK and the US respectively, with purchasing in-store generally more prevalent in mature markets, according to Ernst & Young Global Limited.
Compared with the findings from 2012, this latest research additionally shows that although consumers consider social media to be a good source of information, there is a rise in the number of people that see social media as a new way of communicating dissatisfaction (moved from 5.7 to 6.0 on a scale from 1 to 10 where 1 = disagree and 10 = completely agree) and also a rise in those considering social media to be a waste of time (increased from 4.9 to 5.4 on the same scale).
“Social media has provided consumers with a platform for their views and their creativity. It has changed attitudes and opened doors. Companies must address consumer concerns about the security of their personal data by prioritizing cybersecurity and ensuring they monitor consumer sentiment on social media to prevent damaging comments from gaining traction,” Driggs said.
“Regional differences in both consumer behavior online and internet penetration also mean that best practices may vary from one market to another. Capturing and accurately interpreting data on local consumer preferences and behavior using advanced analytics is therefore essential,” Driggs added.
“Whatever the sector or region, businesses face stiff competition. Today, engineering an outstanding customer experience is as important as engineering great products. And in order to succeed, companies must build trust by meeting, or preferably surpassing, customer expectations,” Driggs said.
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