Buying into buying online
For those with ‘smarts’ investing in online sellers such as Amazon and those selling electronics, personal grooming, home exercise equipment/attire and food distribution has been profitable seeing shares soar in response to unprecedented demand. NASDAQ: AMZN reflects that Amazon shares have rocketed from $1,676.71 (12th March 2020) to $2,474 (30th April 2020).
A YouGov survey (28th April 2020) reflects that 35% of consumers are buying more online, whilst 36% have maintained similar habits. A Bauer Media study reports that 56% of people report that they buy out of necessity, whilst 34% buy to make life easier, 30% buy to entertain, 27% buy as a reward for themselves and 20% buy out of boredom.
Is it here to stay?
The real question is, are these online behaviours likely to be maintained once restrictions are lifted? The answer is a probable, yes. Lim who runs the consultancy firm Retail Economics, predicts the crisis will hasten changes already under way, resulting in half of all non-food spending moving online – up from around 30% today. “Sections of society are being forced to go on a customer journey they wouldn’t otherwise have embarked on. People who couldn’t be bothered to try online shopping are getting past the initial friction of setting up an online account and inputting their payment details.” Couple this with research that shows it takes 40 days to make or break a habit and the growth in online looks set to stay.
For those selling online, providing quality product, service and information has never been more important with 32% now taking longer to look up and consider a product or service before buying and 19% researching your reputation (time to prioritise reviews!). Other dominant purchasing drivers centre around convenience; ease of purchase (42%), availability (41%) and speed of delivery (19%) so if you’re going to grow your business moving forwards, you need to ensure these bases are covered, and that your platform is optimised and responsive to provide a great User Experience (UX). Another critical factor is investment in digital marketing. We highly recommend spending with expert SEO PPC agencies who can be strategic in getting ‘more click for your coin’! It’s also critical to consider where mobile fits in your strategy as mobile has seen a 70% increase in usage.
Connecting with donors and fundraisers online
What this data also does is paints a clear picture that people are online and are parting with money. For organisations looking to gain support such as charities needing donations, it’s clear that connecting digitally with messages that resonate and calls to action that are easy to engage with has never been more critical.