Maria Jose Guerrero
Getting to know the behavior of online consumers is key to improving decision making of an e-commerce and increasing sales growth. Furthermore in the current reality marked by the notable increase in online purchases due to the Covid19 pandemic. So, the combination of quality information about user behavior patterns with an adequate pricing strategy will contribute to the increase in benefits of the business. Because of this, from Minderest we explain to you what are the principal risks that characterize the online consumer in 2021.
Current users are proactive, they move to look for information. At the same time, they have access to a large quantity of data that they employ in their decision-making process, like the opinions of other clients. You will also be able to observe that they are a more demanding client, that wants the business to respond to their necessities quickly and effectively, and more independently, with a lower level of compromise with the brands.
To this, the impact that Covid19 has generated on their behavior is summarized. Concretely, the uncertainty and labor problems have provoked users to be more reluctant to spend large amounts of money and show a greater price sensitivity. Furthermore, their safety and health preoccupation has increased.
Online consumer decision making
Together with these risks, it will be beneficial for the e-commerce to get to know where the decision-making process takes place in the mind of usrs. Following the Decoding Decisions study performed by Google, consumers are guided by a new decision-making model. In the center of the model one can find what is called the decision-making tangle, a complex space between motives that drive clients to online stores and the final process of purchasing. Within the tangle two processes take place:
- Exploration: online consumers explore the different options of their scope. They are expanding the mental e-commerce catalog to those that may return or products that can be needed.
- Evaluation: the moment that these options are evaluated and reduced, discarding the least important ones.
With the exception of impulse purchases, potential clients repeat and link these processes until they have a winning brand and solidify their shopping decision.
Cognitive biases that interfere with shopping decisions
Cognitive biases are interpretations of reality and of information. These are about prejudices, that in the case of e-commerce, influence consumer behavior and in their selection of different products and brands. Within the multiple different cognitive biases that users can experience, there are three that you can control if you have an ample knowledge of the sector:
- Now effect: for buyers, obtaining a product at first offers a greater satisfaction. Making them wait can weaken their final buying decision.
- Shortage bias: exclusive products or those that are more difficult to obtain are a greater claim for users. Its opposite is the carry-over effect, the tendency to buy the same as other people.
- Free effect: the sales announcement always calls the buyer’s attention. Even though the gift doesn’t have to do anything with the purchase, the obtaining of other items generates a sensation of triumph that accelerates the final shopping decision. Because of this motive, many e-commerces include free products in the shopping cart, to motivate users to continue at the checkout.
Conscious of this, you can encourage your purchases with messages and promotions oriented to generate these interpretations in consumers. To obtain this, you should know perfectly both the stock level, and the products and price strategies of the competition. This will permit you to anticipate and make consumers an offers that completely covers their needs. You can help yourself with automized tools to track your competitors.
Find out how Minderest can take your business to the next level.
Contact our pricing experts to see the platform in action.
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