Experimentation, deep observation and remarkably on-point action – this is how retailers and e-commerce can win by being agile and adapting to changing consumer preferences, fast
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Research has shown a direct relationship between retailers’ dedication to agile approaches to doing business and their ability to win more orders than competitors. And one of the most important keys to being more agile in your business is to develop the processes and systems to spot, respond and optimise for changing customer preferences.
Today’s consumers expect brands to understand their needs, preferences, and motivations deeper and adapt quickly to meet these expectations.
Here’s how to adapt to customer preferences, fast:
Customer preferences include the likes, dislikes, motivations, and expectations that drive purchasing decisions. It’s how customers choose between competing products and services. The better you understand these inclinations, the faster you can tailor your offerings to them – which the customer sees as you deliver more value, creating stronger customer relationships.
Some customers prioritise convenience, preferring mobile-friendly shopping platforms and streamlined payment options. Others focus mainly on quality or price, seeking products that align with their budget or values.
By tracking and responding to these preferences, businesses can create compelling, customer-centric experiences that foster loyalty and boost profitability.
Adapting to customer preferences begins with identifying them accurately. Here are key strategies for uncovering what your customers want:
Surveys are one of agile companies' most effective tools to understand customer preferences. Using short, focused surveys to measure satisfaction, loyalty, and feature preferences, and then combining it with insights from customer reviews and social media feedback can give you a well-rounded view of what customers are looking for right now.
See these customer feedback and experience platforms for tools to use.
Data is a goldmine for understanding customer behaviour. By leveraging tools like Google Analytics, Tableau, or Power BI, businesses can uncover patterns and trends in customer interactions. Just remember to compare your behavioural insights data with actual transactional data – so you can be sure that the preferences are actually impacting how and where people are spending. This helps you identify opportunities and gaps in your product strategy.
See how to conduct customer feedback analysis.
People aren’t always completely honest or forthright in surveys and interviews, So sometimes, actions speak louder than words. Observing customers in real-time – whether through research, user testing, or tools like Hotjar – offers insights into how they interact with your products. These observations can uncover pain points and opportunities for improvement that surveys alone might miss.
Another way to combine both interview-style feedback and real-world observation is to invite some customers for in-person talks. Interviews and focus groups give you a lot of qualitative insights (body language, knee-jerk responses) that go beyond surface-level feedback.
Open conversations with customers can reveal unmet needs and inspire innovative product features.
See the guide on how to do successful customer interviews and these must-ask 10 customer interview questions to include.
A/B testing and prototyping new features, offers and services allow businesses to test different versions of their products and services, to measure customer reactions. Experiments are invaluable for optimising features and driving better outcomes, from higher retention rates to increased conversions.
See the guide to using A-B testing to enhance experiences.
Consumer preferences are constantly shifting, shaped by societal changes, technological advancements, and economic conditions. Here are some of the key recent trends retailers and e-commerce businesses should watch:
Deloitte recently found that 75% of people have changed their buying habits as a result of high inflation over the last few years. For example, basic goods such as grocery purchases remain more or less the same, but people have been putting off practical purchases such as clothing.
Why? Consumers are scrutinising products more than ever, looking for quality, durability, and real-life performance before committing to a purchase. Some retailers have found that to build trust, user-generated content (UGC) like other customers’ reviews and photos plays a vital role in influencing these types of purchasing decisions.
Learn how to segment customer cohorts to discover and focus on your high-value customers.
Brand loyalty is waning, with 7 out of 10 consumers willing to switch brands for something new, if it offers better value or features. Private labels that were once considered inferior, are now seen as viable alternatives to expensive luxury items, due to their competitive pricing. And, if the quality matches that of the luxe brand, it creates opportunities for emerging brands to capture new markets.
Take a page from the grocery delivery sector with these brand differentiation strategies to stand out in a crowded market.
Consumers increasingly demand authenticity from brands. A high number of shoppers today are concerned about fake or inauthentic content online, making transparency a key differentiator. Features like trust badges and verified reviews can reassure customers and build credibility.
See how to build user trust through UX and the benefits of using emotional UX design.
Modern consumers expect seamless experiences across all touchpoints, whether online or in-store. Being consistent in messaging, branding, and customer service is essential for maintaining a strong brand reputation.
See how Amazon executes omnichannel and the ultimate omnichannel technologies you need in retail.
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