Encouraging customers to be loyal to a brand is becoming increasingly difficult for marketers, as online and in-store offerings diversify and expand to meet consumer needs. The retail industry is also evolving, which was recently demonstrated by Andrew Griffiths, retail minister, who announced a new collaborative Retail Sector Council. Tasked with bringing the government and industry together, the council’s main aim is to help retailers adapt to meet the changing demands of consumers.
With change afoot, as retailers face challenges from rising operating costs, it’s more important than ever for marketers to understand what really drives consumers to repeatedly purchase from a brand.
Shedding light on the factors that influence shopper behaviour, we conducted research with over 5,000 consumers in 13 countries to create the 5Ps of Shopper Motivation report. The report identified five key shopper profiles – Peer, Price, Practicality, Personalisation and Perk Motivated Shoppers. It also found that the smallest group, the Peer Motivated Shopper is the most likely to shop daily (16 per cent) when compared to Price Motivated Shoppers (6 per cent) and importantly, is the most loyal. And as the most loyal consumer group, Peer Motivated Shoppers are the most likely to act as brand ambassadors by promoting their favourite retailer to others; 65 per cent compared to just 38 per cent of Price Motivated Shoppers.
Following the lead of their peers, unsurprisingly, those aged 25-34 years old are most likely to fall into this category of shopper (11% globally). It’s also been found that 68 per cent of this age group won’t make a major decision until they’ve discussed it with people they trust – compared to just 52 per cent of those aged 35-74.
Interestingly, a report by Deloitte discovered that 47 per cent of the younger generation say their purchase decisions are influenced by social media, more than double that (19%) of other age groups. With this age group set to have more spending power than Baby Boomers for the first time this year, it’s essential that retailers gain their loyalty and crucially, their regular purchases.
So how are marketing professionals evolving their campaigns and use of technology to reach, engage and build a relationship with Peer Motivated Shoppers?
As active users of social media that are influenced by recommendations, online influencer campaigns have proven effective in reaching the younger generation. For example, in 2017, clothing retailer Boohoo nearly doubled its profits following an Instagram influencer campaign where it used celebrities and bloggers to promote its products.
Social media platforms are also evolving to provide brands new engaging ways of reaching their audience. For example, Pinterest is using its Lens feature to partner with retailers, so customers can simply take a photograph of a product and find a similar item available from the brand. Instagram has also taken its Stories “swipe up” function one step further with the launch of its “Shopping” function. Allowing shoppers to tap on a tagged post within their feed to buy a specific product directly from the brand’s website, enhances both the Instagram and shopping experience.
Tying in with the Peer Motivated Shoppers’ use of social media for recommendations and sharing their latest purchases, new social shopping apps have been created, such as Qwibe. These combine a shopping platform with a social media channel, allowing users to share images whilst shopping, gain followers and purchase products directly through it.
Other more practical aspects of purchasing can also help keep Peer Motivated Shoppers happy – potentially resulting in word of mouth recommendations – so making the purchasing process as smooth as possible is essential. For example, Mindmeister provides a number of different payment methods, including several different credit cards, Paypal or coupons. This means shoppers can use their preferred method of payment to quickly and easily confirm their purchase.
From 2018, those aged 25-34 years old will apparently have the most purchasing power of any generation and with retailers facing increasing operating pressures, marketers should look to retain their most loyal customers – Peer Motivated Shoppers. The most likely to promote a retailer to another, this group will repeatedly purchase from a brand and share their latest shopping haul with the world via social media, helping marketers reach both new audiences and existing customers.