How consumer behavior in online shopping has changed
Despite the challenges many businesses faced during the COVID-19 pandemic, e-commerce was able to ensure that many of them could continue to operate their businesses. While consumers couldn’t physically shop, online shopping turned out to be the second best option for them.
The beauty of e-commerce is that it is not only used to sell physical products, but also services. In addition to listing on a service marketplace, businesses can also sell promotional electronic coupons or include a shopping cart system on their own websites. Understandably, the next big step for them was to understand consumer behavior.
Realize the potential of e-Commerce, banks, large companies, small and medium enterprises (SMEs) and even government agencies are starting to embrace e-commerce. FinTech has become an e-commerce catalyst with more startups developing digital payment solutions, and companies have turned to artificial intelligence to help them improve their operations and the customer experience.
Consumer demand for real-time payments, is also on the rise in Malaysia as the pandemic has accelerated demand for fast and contactless payments, according to research by ACI Worldwide and YouGov.
With increased internet penetration and smartphone use, especially in emerging Asia-Pacific economies (APACs), consumers now expect the convenience and speed of mobile apps and payments. snapshots, an area in which the traditional financial sector struggles to keep up.
The evolution of consumer behavior towards advertisements
With innovative technologies complementing the e-commerce experience, companies are now looking to better understand consumer behavior. Leverage the knowledge of Data analysis, businesses understand not only how their customer demographics impact their purchasing decisions, but also how customer engagement can be improved.
According to Twilio’s annual report Customer engagement status report, 98% of businesses reported that video communication with customers accelerated more than other channels during the pandemic. From virtual conferences to training courses to online learning, the increased consumption of video and audio content has had an impact on consumer preferences and behaviors, particularly in response to advertisements.
With the rise of short video formats and platforms like Instastories and TikTok, fast and eye-catching videos are becoming the most remarkable medium for influencing buyer confidence and behavior. A Nielsen Global Authenticity Study commissioned by TikTok showed that 83% of users prefer to see branded video ads on gifs or text messages. As such, short videos are becoming the format of choice for brands to generate more traction with customers.
According to Hakim Mehmood, general manager of voice and video at cloud communications provider Twilio, âthe rise of virtual experiences and the popularity of platforms like Club house and TIC Tac reported that the next big channel for customer engagement is live audio and video streaming.
The rise of “Shoppertainment”
Shoppertainment, a term used to describe the convergence of video and entertainment shopping ads, has increased. Countries with movement restrictions and deferred plans caused by Covid-19 have pushed consumers to buy with entertainment for this feel-good factor. In the TikTok survey, one in three users said they want to shop and feel good about themselves.
âBuyers expect not only to be sold, but also to be entertained. Instead of people looking for products, products are now looking for people, âsaid Ng Chew Wee, Business Marketing Manager, TikTok Southeast Asia.
Consumer behavior in online shopping has evolved into âshoppertainment,â and businesses looking to stay competitive need to catch up.
At the same time, the convenience of a variety of payment options has affected consumer behavior. Innovations in digital payments, especially with more and more companies looking to offer buy now, pay later options, are also gaining popularity.
A recent study by independent identity provider Okta showed changing perceptions of trust in a rapidly digitalizing world in 2020. When it comes to boosting a brand’s digital trust, consumers care most the reliability of a company’s service, its enhanced security, its rapid response times and its best practices in data processing. .
Asian consumers are the most likely to lose faith in brands that abuse or sell personal data, followed by brands victims of a data breach. Digital trust has a big impact on brand awareness and reputation, and ultimately where Asians spend their money online – 50% of Asian respondents have lost trust in a business due to a data breach or data breach. ‘a security event.
For brands, consumer loyalty is hard to gain and easy to lose. As organizations seek not only to provide the best service and experience to customers, but also to ensure that customers remain loyal to their brand and come back, companies must be able to capture this market with techniques such as than shoppertainment, but also to maintain and build strong digital trust. .