Offline consumer buying behaviour refers to the buying behaviour of consumers who prefer to visit traditional forms of marketing tools.
This includes marketing tools such as:
- Radio ads
- Video walls in Singapore
- TV ads
- Promotional items (Flashlights, USB drives etc)
- Print ads (magazines, newspapers)
- Billboards
- Newspaper
- Flyers
- Sponsorship
- Direct mail
Offline consumers are heavily influenced by in-person activities which differ significantly to online consumer buying behaviour.
They often visit brick-and-mortar locations or prefer contacting a customer service representative instead.
Both online and offline shopping have distinct features that attract loyal customers as they target different customer behaviour.
Online shopping involves no travel, product carrying or restrictions on shopping hours, offering easy accessibility, convenience and time-saving.
Focusing on the right requirements of consumers could lead to improving the performance of the company and encourage high levels of customer retention.
Engaging customers through both online and offline marketing has always been a challenge for businesses, and it is because of the dynamic nature of consumer behavior and evolving technology that has caused opened endless opportunities for businesses.
From a business perspective, online and offline are two different channels, handled by people with differing skill sets.
Because of this, two customers who connect with the same business may have different experiences.
Although e-commerce seems to be the future, it does not mean the end of brick-and-mortar stores.
Let’s look at a few stats.
According to Total Retail Survey- 2017 conducted by PwC, retailers are investing in in-store experiences and social media campaigns while improving their ability to get a single view of the customer.
According to Statista, by 2021, e-retail sales are expected to account for 15.5% of total retail sales worldwide.
Big companies such as Amazon, and other traditionally digital brands, have invested in physical stores, which emphasizes the reality of a changing retail landscape.
Why is consumer behaviour important?
Studying consumer behavior in online and offline shopping is important because it helps marketers understand what influences consumers’ buying decisions.
By understanding customer behaviour and determining how they choose products, marketers can fill in the gap in the market and identify the products that are needed and the products that are obsolete.
It is important for marketers to perform consumer behavior analysis as they can often reveal what customers expect when they shop online and offline.
A consumer behaviour analysis should reveal:
- What consumers think and how they feel about various alternatives (brands, products, etc.);
- What influences consumers to choose between various options;
- Consumers’ behaviour while researching and shopping;
- How consumers’ environment (friends, family, media, etc.) influences their behaviour.
Consumer behaviour is often influenced by different factors and it is essential that we distinguish which categories play a role.
Here are three main categories that influence consumer psychology:
1) Personal factors
This includes an individual’s interests and opinions that are influenced by demographics
2) Psychological factors
This is an individual’s response to a marketing message and will depend on their perceptions and attitudes.
3) Social factors
This includes family, friends, education level, social media, and income, which all influence consumers’ behaviour.
Understanding the types of consumer behaviour
There are four main types of consumer behaviour:
1) Complex buying behaviour
This type of behaviour is encountered when consumers are buying an expensive, infrequently bought product. These products are highly involved in the purchase process and consumers’ research before committing to a high-value investment. An example of this includes buying a house or a car.
2) Dissonance-reducing buying behaviour
The consumer is highly involved in the purchase process but has difficulties determining the differences between brands.
‘Dissonance’ can occur when the consumer worries that they will regret their choice.
Customers will often choose one based on price and convenience, but after the purchase, they will seek confirmation that they made the right choice.
3) Habitual buying behaviour
Habitual purchases are characterized by the fact that the consumer has very little involvement in the product or brand category.
This can be seen in grocery shopping as customers go to the store to buy their preferred type of bread.
4) Variety-seeking behaviour
In this situation, a consumer purchases a different product not because they weren’t satisfied with the previous one, but because they seek variety.
For example, customers may buy a new shower gel scent or shampoo just to try it.
What are the factors that affect customer engagement across channels?
1) Average response time
While customers can expect an immediate response when they interact with brands in-store, a Harvard study captured data from 2,241 U.S. companies and found that when a customer made a query online:
- 37% responded within an hour
- 16% responded within 1-24 hours
- 24% took more than 24 hours
- 23% never responded at all
The average response time, among companies that responded within 30 days, was 42 hours.
In-store visits decrease the interaction with customers significantly as it is often immediate.
2) Tangibility
Customer engagement is a grey box, and when the medium of interaction is online it adds to the complexity.
Engaging with customers on platforms where products and services cannot be tried, tested or sampled is a challenge for businesses.
Tangibility is a major factor that can speed up the sales cycle for a business.
3) Human interaction
When customers don’t have to interact with a salesperson or a cashier, as they would in a physical store, most people need assistance when choosing from a vast pool of products and services available on a platform.
4) Customer experience with a brand
It is essential that customers have a consistent experience while interacting with a brand over different platforms and devices.
It helps the company to establish trust, build its brand, and provide value to its customers.
5) Personalization
Personalization refers to customizing customer experiences throughout the sales cycle in order to reduce friction in the buying process.
It is a key element if you’re looking for higher customer engagement.
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