Do You Understand Your Customers?
| Category: Marketing | Date: 2001-03-05 |
As marketers, we have to understand why and how individuals make their buying decisions so that we can better serve their needs. Without doubt, marketers who understand consumer behavior will have a greater competitive advantage in the marketplace.
While the Internet has literally connected the world together, it does not necessarily create a homogeneous consumer market. Consumers still display unique social behaviors and purchasing patterns similar to that observed in the real world.
What this means is that Internet marketers must differentiate their products and services in such a way that they appeal to a specific target market segment. According to a report by Activemedia, sites specializing in items like gourmet food, personal care and branded goods are flourishing online, with the majority of these sites already operating at a profit.
We are also seeing more online communities being developed to appeal to specific market segments in a move to create a ready market for their online retailing business. A good example is iVillage.com - an online community for women and its related e-commerce units, iBaby.com and iMaternity.com.
There is no doubt that market segmentation is important online. But how can we identify these market segments online? There are many ways. We can differentiate consumers based on their ages, genders, lifestyles, interests and buying behavior.
A recent study on "E-commerce - An Attitudinal Evolution" conducted by London-based consulting firm, BMRB International did just that. It breaks British online shoppers into six distinct groups based on their nuances in behavior and attitudes to branding, delivery and quality of service, product sources and general convenience.
The study also found that as the consumer stays online longer, he is more likely to be in the top 2 categories as listed below. In other words, the top 2 categories will grow larger and larger in times to come.
Realistic Enthusiasts: (15 %)
They are prepared to spend more than STG 500 online. They do not mind buying from an unknown company and believe that convenience when shopping online is more important than price.
Confident Brand Shoppers: (16 %)
This group spends an average of STG 275 online per month, 20 percent more than averages. The groups confidence in online shopping is fuelled by an implicit trust of established brands.
Carefree Spenders: (15 %)
They do not rely on brand equity. Rather, they will buy from unknown companies without seeing the product beforehand. The group spent 55 percent more than average and accounted for 33 percent of all online shoppers in the last six months.
Cautious Shoppers: (20%)
This group would prefer to view an item before purchase and is extremely unlikely to purchase at an online auction.
Bargain Hunters: (16 %)
This group is motivated primarily by price. Those belonging to the group are not discerning about what Website they will buy from and are not prepared to spend more than STG 50 per
purchase.
Unfulfilled: (17 %)
They find the entire process of purchasing online unsatisfying citing reasons such as difficulties in finding what they are looking for; delivery process too slow and their unwillingness to buy anything without seeing the product as well as from an unknown company.
The above information gives us valuable insights as to how we should design our e-commerce site. It should incorporate the following features:
+ An on-site search engine to direct shoppers to what he is looking for quickly to appeal to realistic enthusiasts.
+ Provide editors choices and gift ideas to make shopping
easier.
+ Fast check out for repeat customers.
+ Offer quality branded goods to appeal to confident brand shoppers.
+ Provide real-time payment and order processing as well as fast delivery.
The above illustration shows you how to use your understanding of the consumer behaviors to formulate an Internet marketing strategy.
In practice, you may have to conduct your own research to identify the peculiarities of your customers. You can get valuable insights into your customers likes and dislikes by asking them to fill up a simple survey form after making a purchase online. You can also refer to consumer surveys published regularly by the NUA Internet Surveys.
About the author:
Patrick Tan, an entrepreneur and former journalist, offers a complete range of e-commerce solutions and services (editing, writing, translation, content development, web design, etc) to help you build a successful career online. Visit his site at http://www.aloha-city.com for more information. He publishes a free newsletter to share his experience and business know-how. Subscribe Now! basics@aloha-city.com
patrick@aloha-city.com
http://www.aloha-city.com
While the Internet has literally connected the world together, it does not necessarily create a homogeneous consumer market. Consumers still display unique social behaviors and purchasing patterns similar to that observed in the real world.
What this means is that Internet marketers must differentiate their products and services in such a way that they appeal to a specific target market segment. According to a report by Activemedia, sites specializing in items like gourmet food, personal care and branded goods are flourishing online, with the majority of these sites already operating at a profit.
We are also seeing more online communities being developed to appeal to specific market segments in a move to create a ready market for their online retailing business. A good example is iVillage.com - an online community for women and its related e-commerce units, iBaby.com and iMaternity.com.
There is no doubt that market segmentation is important online. But how can we identify these market segments online? There are many ways. We can differentiate consumers based on their ages, genders, lifestyles, interests and buying behavior.
A recent study on "E-commerce - An Attitudinal Evolution" conducted by London-based consulting firm, BMRB International did just that. It breaks British online shoppers into six distinct groups based on their nuances in behavior and attitudes to branding, delivery and quality of service, product sources and general convenience.
The study also found that as the consumer stays online longer, he is more likely to be in the top 2 categories as listed below. In other words, the top 2 categories will grow larger and larger in times to come.
Realistic Enthusiasts: (15 %)
They are prepared to spend more than STG 500 online. They do not mind buying from an unknown company and believe that convenience when shopping online is more important than price.
Confident Brand Shoppers: (16 %)
This group spends an average of STG 275 online per month, 20 percent more than averages. The groups confidence in online shopping is fuelled by an implicit trust of established brands.
Carefree Spenders: (15 %)
They do not rely on brand equity. Rather, they will buy from unknown companies without seeing the product beforehand. The group spent 55 percent more than average and accounted for 33 percent of all online shoppers in the last six months.
Cautious Shoppers: (20%)
This group would prefer to view an item before purchase and is extremely unlikely to purchase at an online auction.
Bargain Hunters: (16 %)
This group is motivated primarily by price. Those belonging to the group are not discerning about what Website they will buy from and are not prepared to spend more than STG 50 per
purchase.
Unfulfilled: (17 %)
They find the entire process of purchasing online unsatisfying citing reasons such as difficulties in finding what they are looking for; delivery process too slow and their unwillingness to buy anything without seeing the product as well as from an unknown company.
The above information gives us valuable insights as to how we should design our e-commerce site. It should incorporate the following features:
+ An on-site search engine to direct shoppers to what he is looking for quickly to appeal to realistic enthusiasts.
+ Provide editors choices and gift ideas to make shopping
easier.
+ Fast check out for repeat customers.
+ Offer quality branded goods to appeal to confident brand shoppers.
+ Provide real-time payment and order processing as well as fast delivery.
The above illustration shows you how to use your understanding of the consumer behaviors to formulate an Internet marketing strategy.
In practice, you may have to conduct your own research to identify the peculiarities of your customers. You can get valuable insights into your customers likes and dislikes by asking them to fill up a simple survey form after making a purchase online. You can also refer to consumer surveys published regularly by the NUA Internet Surveys.
About the author:
Patrick Tan, an entrepreneur and former journalist, offers a complete range of e-commerce solutions and services (editing, writing, translation, content development, web design, etc) to help you build a successful career online. Visit his site at http://www.aloha-city.com for more information. He publishes a free newsletter to share his experience and business know-how. Subscribe Now! basics@aloha-city.com
patrick@aloha-city.com
http://www.aloha-city.com
Copyright © 2005-2006 Powered by Custom PHP Programming