The "Behavior That Stays" study provides insights into the shopping habits of more than 8,000 consumers from the US, UK, Canada, France, Australia and Germany and looks at trends that will continue after the lockdown.
Curious consumers come across new brands
During the coronavirus-related restrictions, 53% of consumers in Germany shopped online several times a month, with 33% doing so at least once a week. Young consumers in particular made use of online offers, with a fifth of all 18 to 24-year-olds shopping online several times a week. Young consumers were also particularly keen to experiment: half of them bought products from new brands, while only twelve percent of over 65-year-olds took this step.
86% of Germans state that they want to remain loyal to brands that they bought for the first time during the lockdown. So if a new brand has been purchased, it has very likely gained a new customer. Reasons cited for not buying new brands are sustainability aspects that could be improved (25%), the renewed availability of familiar brands (25%) or quality deficits (19%).
Product subscriptions on the rise
Due to closed stores and empty supermarket shelves, demand for certain products rose to unprecedented heights at the start of the coronavirus pandemic. During this time, 17% of Germans took advantage of offers that offered food or hygiene products on a subscription basis, for example. As is the case with new brands, the offers have a lasting appeal, with 87% of consumers in Germany stating that they intend to continue using their subscriptions. The reasons for this are the convenience factor (40 percent), regular deliveries (34 percent) and the savings compared to individual purchases (32 percent). For 15% of buyers between the ages of 18 and 54, the availability of customer reviews was also a decisive factor in continuing to subscribe.
New technologies are gaining ground in customer contact
Germans look at the price. 35% stated that price was the key factor in their purchasing decision. However, the ability to buy the product online (16%) and the availability of the product (15%) are also important. All of this underlines how essential an omnichannel strategy is for all providers.
Interestingly, TV advertising almost no longer plays a role. Although a lot of time was spent at home, only four percent of those surveyed said that they were convinced by it. Reviews and ratings from other customers are now much more important, with 13% of consumers saying they will make a purchase in the next three months.
The ability to effectively communicate how a product works, looks and feels in times of full digitalization is crucial for brands and retailers. During lockdown, 34% of 18-44 year old consumers used company apps for more information and 28% engaged with brands via chatbots.
Tobias Stelzer, Head of Sales Central Europe at Bazaarvoice, comments: "Amazon has been the big winner in recent months. However, changing buying habits are an opportunity for all brands to win new customers who will then remain loyal to the company. The success of subscriptions demonstrates the rapid digital transformation we are currently undergoing. Young consumers are powerful influencers and their activity on social media plays a huge role in giving customers a voice to share experiences with brands. The influence of ratings and reviews emphasizes the huge opportunity that brands have here: They can use customer feedback to provide a better buying experience, which translates into better sales and higher customer loyalty."
A look ahead
There is no question that there has been an unprecedented shift in consumer behavior that will have a lasting impact on the retail industry. By the end of October, 50 percent of German consumers are likely to shop online, with 62 percent of all Germans feeling comfortable shopping online.
For many consumers, visiting brick-and-mortar stores is associated with anxiety; only 24% would feel comfortable or very comfortable visiting a store before October. Retailers need to consider the following factors for a visit: 47% want well-implemented hygiene and distancing concepts, for 32% offers and vouchers are a reason for a visit and 29% want information on the availability of products.
"Retailers and brands need to adapt to consumer priorities and provide comprehensive information about their business concepts and products," says Stelzer. "As consumers return to stores, it will be important to reach shoppers online and offline and provide them with product information prior to their visit. An omnichannel approach not only enables a stronger connection with consumers, but also creates a seamless experience."
Methodology
8062 consumers were surveyed as part of the Savanta study in July 2020 in Germany, Great Britain, Australia, Canada, France and the United States of America about their motivations and obstacles to purchasing. You can download the e-book "Behavior that stays" here.