Why we buy.
By Ellen Fruchtman, President
How do you attract new customers to your store? A new research study conducted by Criteo, an advertising platform for the open internet, called Why We Buy – Consumer Behavior & Loyalty in the Age of Infinite Options included some interesting content. Some of the findings are common sense. Others might surprise you. What do I mean by common sense? Start with yourself. If you’re reading this article, not only are you in the luxury business, but you are also a consumer first and foremost. And secondly, most likely, a luxury consumer. So often, it just stands to reason how your customers behave will be somewhat of a mirror to how you behave. And, if you follow that basic line of thinking, well it stands to reason, they will follow the very same path. If you happen to be a different demographic than who you are trying to attract to your business, then simply ask several people who you know within that demographic what digital methods they utilize most, and what will motivate them to try a new brand or retail venue. Sometimes, it’s simply that easy.
That being said, this research provided some interesting facts. It appears 80% of consumers will try a new grocery store; 72% will try a new apparel provider; however only 46% are willing to try a new jewelry or luxury goods brand. Those statistics are not mind-blowing considering many more consumers are more loyal to their existing luxury brands. If I had a dime for every time a client asked me how they can get a new super-affluent customer in their door, I’d be a super-affluent individual. Extremely wealthy buyers are the single most difficult group to convert. Most have a personal jeweler they’ve built a relationship with. And, most have the financial wherewithal to shop when they travel and wherever the hell they want. It’s that middle range you have the most opportunity with. And although 46% is certainly not as high as 80%, it still provides you some decent opportunity.
How do these consumers find new brands? Facebook is first. 49% of new shoppers say they discovered new retailers on Facebook; 46% found their new brands by visiting a website (likely leading them was some form of Paid Search); a staggering 40% found a new company by using YouTube, and 34% say that email marketing influenced them to try a new brand. Considering email marketing is used less for acquisition, that’s not a huge surprise. What was a surprise was that it actually beat Instagram (27%), Pinterest (22%), and online influencers (15%), which is getting a lot of buzz. Twitter and Snapchat came in respectively at the bottom with 14% and 12%.
In the world of digital, there’s a lot to consider as you allocate your dollars to attract new customers. It’s interesting to note (not to toot our horn), these same statistics match the strategy we use in our own digital methods for our clients.
What keeps a customer returning to your store? Again, nothing earth shattering here. Very often, it comes down to money and value. But I bet if you stopped and thought about what influences you and your own shopping behavior, the percentages will be the same.
- Best value for money — 66%
- Lowest prices — 51%
- Your brand’s values— 51%
- Best product selection — 49%
- Good customer service — 40%
- Convenient physical location — 38%
Why will a customer leave your brand to try another?
- Decline in quality/value/prices too high — 52.5%
- Found a better alternative to that brand — 50.3%
- Poor customer service — 42.9%
- Brand is out of business/no longer available — 34.6%
- Poor return/refund policy — 25.8%
- No longer reflects their values — 16%
- Lack of personalization — 6.5%
In the world of what motivates to buy and why, it’s important to pay attention to the stats. But, sometimes, you just have to apply a little common sense.
Looking to drive new customers through your door? Contact email@example.com and we’ll show you how.