Ever wonder how today’s shoppers are making decisions? What drives them to choose online shopping? What are their expectations and key values? Or how can you adapt to all these changes?
Well, let’s dive into some fascinating insights from the ConsumerX and imagino report, called Getting Inside the Mind of Your Next Customer.
This comprehensive study, based on the responses of over 7,700 people across 14 countries, sheds light on what motivates modern consumers to shop online and more, so let’s take a look!
Today’s consumer behavior
First off, it’s clear that online shopping is the new normal for the majority of people. In fact, only a tiny fraction, just 3.1%, say they never buy anything online. On the flip side, 37.8% of shoppers make online purchases at least once a month, and a surprising 34.1% shop online more than once a week!
So, what’s keeping some people away from their shopping carts?
The main reasons are pretty simple:
- 29.5% of consumers still prefer the traditional in-store experience,
- and 23.6% feel safer shopping in person.
For those who do embrace the online shopping world, convenience and price are key. Home delivery (42.8%), saving time (38.4%), and scoring cheaper prices (38.6%) are top of mind. What’s more, good offers attract about a third of online shoppers. But beyond the basics, many look for a broader product range, in-depth reviews, and detailed product info, all of which make the online experience even more appealing.
Source: Getting Inside the Mind of Your Next Customer 2024, the ConsumerX and imagino report.
But let’s go deeper. Fashion leads the pack as the most purchased category, with over half of respondents buying clothing and accessories online. Beauty products and groceries also make the list, while categories like groceries and sports & leisure products lag behind.
What other categories are customers shopping in?
Source: Getting Inside the Mind of Your Next Customer 2024, the ConsumerX and imagino report.
It’s also interesting to note that online spending varies wildly by region – while many spend between $13 and $130 a month, in countries like Taiwan, nearly half of consumers spend over $1,300 monthly!
When it comes to online shopping habits, ConsumerX found that:
- a majority of shoppers (59.3%) see online reviews as a crucial part of their decision-making process,
- 58.7% of respondents take the time to research high-cost items before purchasing,
- speed also matters, with 34.2% of respondents preferring express shipping,
- smartphones have become a dominant tool in this space – 44.4% of consumers use them for research, and 31.4% complete their purchases through them.
Regarding channels for product discovery, discounts, and coupons remain strong discovery tools, as they appeal to 38.4% of shoppers. Social media are also here – they help 35.6% of people find new products. But interestingly, only 19.5% follow the recommendations of social media influencers. Traditional media still holds some sway, with 30.2% of shoppers influenced by TV advertising and 19.2% by print ads.
Source: Getting Inside the Mind of Your Next Customer 2024, the ConsumerX and imagino report.
Customer’s expectations and reality
There’s often a noticeable gap between how consumers want to shop and how they actually do it.
Shoppers may express a desire for certain conveniences, but when it’s time to make a purchase, various factors – such as availability, cost, or practicality – lead them down different paths. This is where retailers and brands can step in and close the gap by offering solutions that better align with customer expectations. They can, for example:
- offer free shipping,
- provide early discounts, low prices, big savings,
- ensure flexible return policies,
- and even guarantee helpful customer service.
Here are top customer expectations during seasonal shopping:
Source: Getting Inside the Mind of Your Next Customer 2024, the ConsumerX and imagino report.
That’s one side of the coin. However, when push comes to shove, customers are often willing to pay for faster delivery. For instance, as many as 56% of respondents admit to paying extra for same-day service.
Source: Getting Inside the Mind of Your Next Customer 2024, the ConsumerX and imagino report.
Sustainability is another area where expectations meet reality in interesting ways.
Many consumers say they care about sustainable practices – 32.5% find environmentally friendly packaging “very important,” and almost 70% value carbon-neutral home delivery. Yet, despite these preferences, 76.5% admit they’ve purchased non-sustainable products because there were no “reasonable alternatives” available. This shows the real disconnect between intent and action – consumers want to make eco-friendly choices but are often constrained by what’s offered.
Source: Getting Inside the Mind of Your Next Customer 2024, the ConsumerX and imagino report.
Still, 72.7% of respondents have gone the extra mile to purchase sustainable items, even when it’s inconvenient or more expensive, which showcases their commitment to making greener choices when possible.
Key customer’s values
Now, let’s study some of the key themes that influence modern shoppers and find out how retailers respond to meet these expectations.
Loyalty
Customer loyalty is a critical driver of long-term business success. Research from ConsumerX reveals that when choosing to return to a brand, shoppers specifically prioritize:
- price (65.9%),
- convenient delivery (52.6%),
- and good customer service (51.8%).
Familiarity and already having an account also play a role, as do discounts and promotions.
To build long-term relationships, many retailers are launching subscription services and loyalty clubs that offer perks like free delivery. For instance, Amazon’s Prime membership and H&M’s loyalty program provide exclusive benefits, enhance the customer experience, and increase brand loyalty.
So, thanks to focusing on these elements, retailers strengthen ties with their audience and make it easier for customers to choose them again and again.
Value
Price remains a dominant factor in the purchasing decision, especially as the cost of living continues to rise. Nearly 90% of ConsumerX respondents say finding the lowest price is a top priority when shopping online.
Retail giants like Walmart, Carrefour, and Tesco emphasize affordability through value ranges and promotional deals, often prominently displayed on their websites. Walmart’s tagline, “Save money, live better,” encapsulates this value-driven approach.
The lesson? Retailers who clearly communicate value, from discounts to product bundles, are more likely to resonate with budget-conscious consumers.
Sustainability
And yes, again, sustainability. Most consumers (75.7%) strongly agree that being sustainable is increasingly important for them. Also, shoppers are seeking clearer information on the environmental impact of products. To meet this demand, brands need to charge in sustainable practices, just like Patagonia and IKEA.
Patagonia, for example, has made sustainability its core mission, even transferring company ownership to ensure its dedication to environmental causes. Meanwhile, IKEA is transitioning toward circular design models, with a goal of full implementation by 2030.
These actions show how retailers can align with consumers’ sustainability expectations and boost brand trust with customer satisfaction.
Finding your own way: how retailers use technology to align with consumer expectations
We know that consumers expect seamless, intuitive, and technology-driven shopping experiences, but how are retailers rising to the challenge?
- eBay
This company has successfully tapped into the growing trend of live shopping, a technology that 25.8% of consumers have already used, with more expecting their favorite brands to adopt it soon.
- In May 2024, eBay hosted a live shopping event featuring comedian Katherine Ryan to promote pre-loved fashion. In this way, the company reflected both a trend in sustainable shopping and customer preferences.
- With second-hand clothing topping the list of sustainable purchases, eBay’s removal of fees for selling pre-loved clothing and its use of AI for personalized recommendations underscored the company’s commitment to meeting consumer expectations.
Also, through its AI-powered ‘shop the look’ feature, eBay provides tailored recommendations based on customer behavior and helps shoppers find exactly what they’re looking for while promoting sustainability.
- IKEA
As IKEA’s click-and-collect sales rose by 48% in 2023, it’s clear that customers value flexible fulfillment options.
- IKEA has responded to shifting consumer preferences by expanding click-and-collect options.
- It has set up collection points in collaboration with Tesco and has experimented with city-center stores for easier access.
- Moreover, IKEA’s sustainability efforts, such as using 100% renewable electricity in its operations, resonate with environmentally-conscious shoppers.
Plus, the company’s BuyBack & Re-sell scheme gave a new life to 52,380 pieces of furniture in the year 2023 – it’s 187% more than in 2022!
- NEXT
NEXT is a retail brand for fashion and homeware. By leveraging detailed data insights, the company adapts to evolving consumer behaviors.
- In 2023, NEXT observed a shift towards “investment dressing,” where customers bought fewer but more expensive, high-quality items.
- This change led the brand to experiment with premium fabrics, prints, and embellishments. They also expanded their product range and tapped into new suppliers.
NEXT also prioritizes personalization on its digital platforms. It offers tailored product recommendations to connect shoppers with their most desired items.
Over to you
Today’s consumers are savvy, research-driven, and on the lookout for convenience and value. With a wealth of information at their fingertips, they now expect more than just a product; they want transparency, personalized experiences, and smooth transactions.
By observing your audience and integrating advanced technologies such as live shopping, AI-driven personalization, and sustainability-focused features, you can reshape the way you connect with your customers.
So, what tactics will you choose?
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