Online Consumer Behaviors for a Better Customer Journey Understanding

Introduction

Consumer behavior and expectations are ever-changing. What remains trendy today may very well be forgotten tomorrow. Therefore understanding customer behavior and evolving with their expectations is a must-to-do for any business to survive and thrive today.

This article takes a critical look at online customer behavior and eCommerce expectations. This is especially useful for D2C online businesses. 

Understanding the Online Customer Behavior Post-Pandemic 

The COVID-19 pandemic has been a marked point in this century, redefining how customers interact with businesses both online and offline. The post-pandemic era advanced the digital revolution, with more and more consumers taking to digital shopping.

One starting point that has reinvented online shopping is a drop in brand loyalty. Instead of being invested in one brand, consumers are preferring to explore competitors. At same time, they are trying out new shopping methods and inculcating new behaviors.

Consumers have a more positive attitude towards online shopping and are paying more attention to the ease and convenience of eCommerce. Below we list some of the customer behavior and expectations that have developed with online retail.

A Look at Customer Behavior Patterns in Online Shopping

1) Controlled Spending

One of the major changes in online purchase patterns is controlled spending by customers brought about by rising living costs and inflation. A study by Paysafe found that 44% of consumers in 10 countries have changed their online payment habits. 

Since 2022, they have shifted away from cash to debit cards and digital payment options. Another 40% of the respondents claim to prefer payment methods that allow them to track their spending. 

There is a marked break from using credit cards, and people are resorting to using debit cards and embedded digital payments. Already, 59% of the surveyed European consumers rely on debit cards, and 33% prefer digital wallets. The trend also shows that shoppers are oscillating between wanting BNPL (buy now, pay later payment) or avoiding it. 

The new consumer behavior is showing a marked shift towards digital cash or eCash. Embedded payments are an untapped market, but it is demonstrating signs of progress in the coming years. 

Security is trumping convenience in online payments. 44% of consumers believe that merchants should strike a balance between security and convenience in their payment offerings.

2) Attraction to social commerce

The growth of social commerce is showing no signs of slowing down. The consumer segments driving this growth are GenZ and millennials. According to a study by Forbes, at least 77% of GenZ and millennials actively scour social media to make online purchases.

However, there are noticeable differences in their choices of social media. 37% of millennials prefer Facebook compared to 20% of GenZ. 46% of GenZ consumers are more likely to use TikTok for their shopping. Both consumer groups equally prioritize YouTube since its content aids their product research before making their final decision. 

A Forbes study on shopper influence found that the surge in social commerce has to do with influencers promoting and validating products. This makes platforms like Instagram, TikTok, and Snapchat so popular amongst GenZ shoppers. Another platform basking in influencer marketing, especially for SMBs, is Pinterest. 

The use of social media isn’t restricted to finalizing transactions only. It goes beyond doubt that consumers use these platforms for post-transaction behaviors. These include user-generated content like leaving comments and reviews, uploading unboxing videos, and following the brand.  

3) Subscription Fever

Subscription commerce that runs on auto-renewal or membership programs has seen exponential growth in the post-pandemic era. Despite ongoing economic uncertainty, a good portion of consumers maintain transactional relationships with subscription providers. 

The expansion of subscription models, especially subscription boxes, is an outcome of consumers’ demand for convenience during the pandemic. According to a consumer survey by Jabil, 68% of consumers prefer replenishment services and boxes for household staples.

The demand for subscription services is greater amongst men, millennials, and urban households with high-income margins. In the same study, 79% of consumers showed interest in getting a subscription service. Beauty and personal care products, coupled with food and beverages, make up 54% of online subscriptions.

Consumers with subscription fever pay extra attention to brands that personalize their customer experience. This allows brands to retain them for longer. The reasons propelling subscription boxes to grow have much to do with how consumers plan their spending. 

Instead of an impulsive buying spree, a subscription allows them to have fixed monthly spending. Consumers can get their favorite products within their allocated budget. This also means that they demand easy cancellation of their subscriptions. Online buyers also acquiesce to pay for a subscription membership to get exclusive content. 

4) Preference to Mobile Interfaces

If there’s one thing online shoppers can’t let go of, it's their mobile devices. In the early 2020s, the percentage of mobile commerce sales began to rise markedly, hitting $359.32 billion in 2021. It is predicted to surpass $728.28 billion in 2025, accounting for 44.2% of eCommerce sales in the United States alone. 

The popular forms of mobile commerce that customers use include mobile payments, in-app and browser shopping, and social media purchases. The primary reason for shoppers to rely on their mobile devices for online shopping is to compare the prices of products. This is followed by their wish to redeem coupons and get more information about their interested items.

Mobile-based social media apps also aid customers in sharing their reviews, posting their likes and dislikes, and following brands conveniently. The more feasible it is for customers to be in touch with their preferred brand, the easier it becomes to gain a loyal following. For example, TikTok has 1 billion monthly active users, while Instagram has 4.18 billion.

Another trait of mobile commerce shaping customer behavior is the ease of accessing QR codes. Be it a Shop Code for in-store shopping or a QR code for digital payments, mobile phones surely make it super handy to process them. This adds another layer to customer experience heightening customer satisfaction scores. 

5) Inclination toward Sustainability 

Over the last decade, customers around the world have embraced sustainability in their shopping. From bamboo toothbrushes to eco-friendly fitness gear, it has become an all-pervasive consumer concern. The demand for sustainability is often rooted in ingredients like organic and recycled materials, non-toxic chemicals, and durable natural fibers.

However, not all businesses can offer eco-friendly items. But most can work with eco-friendly packaging and offer green shipping. Another study by Sifted found that 91% of those surveyed wanted an eco-friendly shipping method at checkout. Another 57% were willing to pay extra for sustainable packaging or shipping options. 

Sustainability is vital to D2C growth since their prime customer segments, the millennials and GenZ, are ardent sustainability practitioners. Gen Z Insights, an organization studying Gen Z behavior, suggests that more and more are inclined towards sustainable products. 

6) Free and Fast shipping demand

One aspect of customer behavior that has remained constant over the years is rewarding a brand for fast shipping. According to a Linnworks study, a staggering 95% of customers want fast deliveries from online retailers. Though there is not a singular benchmark for fast deliveries, the acceptable standard is set at three business days max. 

Fast shipping is important, but an equal emphasis is placed on on-time and in-full deliveries. Even when your delivery span is beyond three days, customers expect it to arrive well within the estimated delivery date (EDD). At the same time, they expect to receive all the products with the correct quantity and quality placed safely inside the parcel. 

Another change in customer behavior forged by eCommerce companies like Amazon, Fenty Beauty, and Nordstrom is the expectation of free shipping. Such is its popularity that customers have started to regard free shipping as a deciding factor for going through a purchase. 

For example, a Bigcommerce study demonstrated that 84% of online shoppers shopped from a band because they offered free shipping.

6 Expectations Consumers Have from eCommerce Companies

Now that we have an inkling of online customer behavior, let’s see what consumers are specifically expecting from online businesses:

1) Multiple payment options

Effortless payments with multiple options are a top priority for online customers. According to Linnworks, 76% of online shoppers consider convenience a key in their purchase decision. This principle extends to 90% of consumers seeking flexible payment options at checkout. 

In 2021, shoppers expected buy-now-pay-later options, and this trend seems to have continued even now. To offset this, businesses can plan to incorporate digital wallets, debit cards, credit cards, and even cash. Having their desired payment option also influences impulse purchases amongst consumers, alongside lowering cart abandonment.

2) Omnichannel experience and immersive UX 

Omnichannel is the most sought-after factor for customers after multiple payment options. It can include a seamless experience of buying online but picking up their order in-store. Or the convenience of purchasing your products from any eCommerce marketplace or social media. Ensuring your physical and online stores are synced up can provide a highly rewarding customer experience.  

Similarly, consumers seek an immersive but easy UX across all devices. According to Linnworks research,  81% of consumers prefer a flawless transfer between mobile devices and desktops in their purchase journeys. The UX is expected to be extra-smooth for checkouts where their personal details are already synchronized across multiple devices. 

3) Personalization and Convenience 

The key to withholding customer attention is personalization which enables businesses to treat their customers as VIPs. It is, therefore, no wonder that they expect personalized buying experiences from brands. 

Businesses can embody personalization in product recommendations after studying consumer behavior and their purchase history. Similarly, they can build personalization in order notifications, ad targeting, dynamic pricing, loyalty programs, and even customized shipping options. 

4) Flexible delivery methods

The popularity of fast and expedited delivery has accelerated since the pandemic. A Retail Touch Point article found that 88% of online shoppers expect faster delivery services like same-day deliveries. Accordingly, a lot of retailers are now presenting flexible delivery methods, including same-day deliveries to increase customer satisfaction and generate more revenue. 

According to Business Wire, 59% of U.S. consumers opted for one-day and two-day shipping at least once a month in 2021. Shipping and delivery transparency is another expectation that has steadily risen over the past few years. Real-time shipment tracking and notifications are becoming an indispensable need for online buyers. 

5) Easy social media shopping plus subscriptions 

Online shopping has evolved as a social activity wherein social media has become a fundamental part of a customer’s buying experience. From sharing reviews on social media to uploading unboxing viral videos, social media is a cornerstone of online shopping. 

Customers now more than ever are expecting social media shopping, where they buy products as they browse. Alongside this, a new trend of subscription boxes has arisen (read: Subscription Fever). Be it digital subscriptions for movies or music, or box subscriptions for groceries; customers are inclined towards this subscription commerce. 

Final Words

There is much to learn about consumer behavior and expectations for a successful eCommerce venture. Business owners can get to know what their shoppers prefer and fulfill those wishes to retain them for longer. We hope this article will furnish you with the necessary information needed to unlock your customer-impressing strategy. 

FAQs

1) What are the common categories of online shoppers?

There are multiple classifications of online shoppers. The most common categories include casual shoppers, impulsive shoppers with high purchase intent, research-oriented consumers, discount or bargain seekers, regular shoppers with a need, and brand loyalists.

2) Can the return process influence customer behavior online?

Yes. An easy and convenient return experience begets brand loyalty. This is why brands should focus on understanding customer expectations for self-service return portals, on-time notifications, no pick-up exceptions, and on timely refunds.