4 customer values that changed in 2020

4 customer values that changed in 2020

4 customer values that changed in 2020

How can retailers adapt to a new normal?

How can retailers adapt to a new normal?

eCommerce growth has surged across Asia. In this climate of changing customer values and behaviors, what can retailers do to keep up and meet eCommerce demands?

With most people going out far less often – and many working from home as well – Central Business Districts and shopping centers are seeing dramatic falls in customers. But that doesn’t mean people aren’t buying.

eCommerce has taken center stage in South-East Asia’s economy and is projected to grow from $38.2 billion to $153 billion over the next five years.1 Indonesia’s eCommerce market alone is predicted to expand from $21 billion to $82 billion. Australia has also seen record online sales during the 2020 Easter long weekend, which was the busiest online shopping period in the country’s eCommerce history.2

Growing your eCommerce business
This eCommerce boom coupled with the unusual circumstances of the pandemic are having an impact on customer expectations and behaviors. Knowing how these values are shifting could help your business adapt to change more easily and grow both new and repeat sales.

1. Different shopping priorities
With so few people working in an office in 2020, U.S. clothing retailer, Brooks Brothers, recently filed for bankruptcy after a collapse in demand for its suits and professional attire.3

At the same time, people are spending more time on DIY projects, increasing demand for hardware, tools and other supplies for home projects. And while the corporate office may be empty, spending on home office supplies has gone up.4

It’s worth reviewing your product lines to see how demands have shifted. Monitor your sales data over the coming months to determine what is short-term demand and what could mark a bigger long-term shift in spending.

2. Changes to average spend and order quantities
The beginning of the pandemic saw plenty of bulk buying of food and household essentials – putting incredible strain on supply chains. After that less-than-ideal experience, customers may start to place bigger but fewer orders to reduce their risks of running out. Watch the average spend per order and the frequency of orders for repeat customers to get a sense how those behaviors might be changing.

3. Less stress, more convenience
Everyone is experiencing more anxiety, depression and frustration as they adapt to the changes. And many customers – particularly the elderly – may be generally less comfortable with eCommerce. Rather than let your online experience add to customers’ stress, invest in simpler ordering, tracking, and returns processes. It’s a great way to delight your customers and win their loyalty.

4. Speed of delivery
As customers spend more on eCommerce, speed of delivery has become a big factor in where they choose to buy from. At the same time, many consumers are still reeling from missed or delayed orders at the start of the pandemic. Now may be a great time to experiment with new delivery methods that give customers more options and greater control over when and where they receive their packages.

Adapt to change
We’re all learning to adjust to the new business landscape, and planning during uncertainty isn’t ever easy. One thing that is certain is further growth of eCommerce. Businesses that can detect and adapt quickly to changes in customer values will find themselves growing too.

1. https://retail.economictimes.indiatimes.com/news/industry/southeast-asias-net-economy-to-top-100-billion-this-year/71497538

2. Australia Post reveals households are shopping online more than ever before, MHD Supply Chain News, 18 June 2020.

3. Brooks Brothers Goes Bust with Business Clothes Losing Favor, Bloomberg, 8 July 2020.

4. Coronavirus shifts consumer behaviour and helps some businesses boom, ABC News, 6 April 2020.

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