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BBB Business Tip: What local businesses should know about modern consumer shopping
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There's no question about it — modern consumer shopping is complicated. Customers are constantly inundated with ads for the latest and greatest products, and they are shopping on various different platforms, making it extremely difficult to capture their attention.
This means it is more important than ever for small business owners to understand customer shopping habits. The wiser you are about modern consumer shopping, the better prepared your local business will be to target and serve your customers.
What local businesses must know about modern shopping behaviors
Modern consumer buying habits have changed drastically since the onset of the pandemic. The U.S. Chamber of Commerce reports that post-pandemic consumer trends focus on hyper-local commerce, meaning more people than ever are choosing smaller brands over big box outlets.
With 56% of consumers now shopping at local businesses and choosing locally sourced products, it’s crucial to understand how to market your business’s products and services to capture this substantial customer base. Most importantly, you need to understand how to address the needs of your consumers.
The first step towards adequately addressing local consumer demand and drawing attention to your local business is becoming educated in modern consumer shopping behaviors, especially the factors that drive their purchasing decisions.
Customer shopping intent focuses on the essentials
The post-pandemic shopping landscape has been challenging for businesses to navigate. Many customers are now only spending money on the essentials, and in many cases, they are turning to small, local brands rather than large chain stores.
This not only applies to local brick-and-mortar stores, but online shops as well. With approximately 40% of U.S. consumers reducing their overall spending habits, your customers are less likely to invest their earnings in items that fall under the non-essential umbrella. Instead, they are going to primarily purchase groceries, household supplies, personal-care products, and other essential items.
Consumers want value for their money
Value-conscious shoppers want to get the most bang for their buck, and they are, therefore, only going to support businesses whose services and products offer the greatest value to them. This is especially true when they are shopping for the essentials; consumers are less likely to buy from high-end, premium brands when they can find similar products for a lower cost elsewhere.
Consumers prioritize simplicity and ease of purchasing
Modern consumers are drawn to brands that are easy to navigate and don’t offer excessive choices. They want to know that the products they are purchasing are easily accessible, that their customer journey will be smooth and efficient, and that the business they are dealing with is straightforward and transparent.
Most importantly, they want to know that they are purchasing a quality product and engaging with a local business that is supporting and strengthening their community.
Customers expect knowledgeable and friendly associates
As a small business owner, you need to be prepared to address your customers' questions and concerns. They are looking for businesses with knowledgeable, friendly, and approachable employees. So, make sure your business is easy to interact with, your associates are knowledgeable, and that your business has a community-focused mentality.
With 48% of consumers stating that knowledgeable store associates increase the likelihood of an in-store purchase, it's crucial to provide your associates with the proper training to answer customers’ questions. This will set you apart from your local competitors and help you win customer loyalty.
How local businesses can meet modern customer demands
Today's consumers are more demanding than ever before. They are seeking products that are high-quality, fairly priced, and easily accessible. If you want to build a lasting brand, understanding these consumer demands, as well as their shopping habits, is critical.
To meet the ever-evolving demands of the modern consumer, your local business should consider the following:
- Simplicity: Simplicity is the main driver of modern consumer purchasing. To win customers’ attention, your product/service should provide a simple solution to a problem they are experiencing.
- Ease of accessibility: Consumers want easy access to the products/services they need, which requires businesses to be accessible on various platforms, such as a local brick-and-mortar store, a website, and other digital channels.
- A seamless customer experience: Your customers want to have positive interactions with your business, which requires your associates to be knowledgeable, friendly and approachable. A positive customer experience (CX) can result in an 89% customer return rate, which means CX needs to be a priority for your business.
- Local community focus: Many consumers want to purchase products/services from businesses that support their local community. Being active in your community is a good way to win customer loyalty.
Get more insight into modern consumer shopping with the BBB
Modern consumer shopping behaviors are changing, and local businesses must adapt. It's time to get up to speed in order to successfully connect with your customers.
Need help connecting with your ideal customers? Get more insightful business tips by visiting the BBB business news feed today! Check out our BizHQ page for more help for your business.
BBB of Southern Piedmont and Western N.C. contributed this article.
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