Consumerism is Evolving – Is Your Business?
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We are a nation of people who want what we want when we want it. American consumerism accounts for two-thirds of the nation’s GPD (Gross Profit Dollars) and nearly one-fifth of that worldwide. Our shopping habits carry quite the impact. That being said, when these buying habits begin to shift (as they currently are), businesses who want to remain relevant will happily shift with them.
Thanks to technological advances we are now able to connect with those around us anytime, anywhere. Smart phones and Wi-Fi are enabling consumers from every geographic location to unite online. They are now able to receive sales offers and make purchases at any given time of day or night, and they do! This instant access has shifted the consumer/retailer paradigm, giving consumers (who are normally strangers to each other) the ability to unite online and receive incredible group deals. Retailers and merchants on the other hand can now realize quantity volumes that were previously unattainable, which in turn enables them to offer those amazing deals.
Embrace e-Commerce
By 2015, online sales are expected to account for half of all spending here in the U.S. Established online retailers like amazon.com are certainly benefiting from this shift and those who also want to share in the wealth would be wise to create an online presence too. The “experience” of shopping is changing. Today’s consumer is conditioned to wanting access to pricing and product availability information. Thanks to the Internet, they can compare prices with ease and even search out offers or discounts at will. With this information so readily available, there is little choice but to embrace the emerging e-commerce trends or become overlooked in the market place.
Most companies have come to understand that a Web site is the business card of the 21st century, but having a URL is simply not enough. A company’s Web presence is now where “experience” is achieved and therefore a company’s Web site design should be engaging, informative, intuitive but most importantly be useful to the visitor. E-commerce Web design is akin to merchandising of days past. Product should be carefully displayed, navigation around the site/store needs to be thoughtful and the purchase process hassle free. E-tailers who have mastered this are building brands and customer loyalty.
Another consideration with respect to creating an e-commerce identity is not to neglect the ever-growing presence of smart phones. By December 2011, it is projected that 1 in 2 Americans will have a smart phone. Smart phones are essentially personal pocket computers with mobile phone functionality. Given the growing prevalence of these mobile devices, mobile web design is a necessary consideration for businesses wanting to remain relevant in the market place. These sister sites to the main Web page optimize information and navigation for mobile devices. Furthermore, sales transactions are taking place on these smart phones; therefore, it behooves any business to have an interface within this medium.
21st Century Promotions
Who remembers the blue light specials at K-Mart®? Those flashing lights indicating to shoppers that for a limited time there was some amazing deal to be had. What started for K-Mart back in the early 60’s has now evolved into a booming industry within the digital realm. The notion of a limited time only sale is not new, but has evolved to take advantage of all the latest technological gadgets.
Leading the charge is a site called Groupon®. They offer incredible deals with 50% or greater savings on random products and services for one day only. There’s no thinking on whether or not to take advantage of the sale. If you do, you chance missing your opportunity because by end of day the deal is gone if not sold out. Groupon’s digital version of the blue light special has caught on so well that they are now the fastest growing company in Web history. Technology has now enabled retailers to move beyond a blue light only visible to those physically in the store at the time. Retailers need only take advantage of all the modes of online communication to not only share their offer but do so several times daily across many different electronic venues.
Using Social Media to Sell Product
With 500 million users and expected to double sometime next year, Facebook® is one avenue that’s guaranteed to help get the word out. The value of Facebook and other social media sites is not lost on manufacturers and retailers. JC Penney, for instance, recently launched a fully integrated shop on their Facebook page, eliminating the need for interested consumers to take the time to visit the company site to make a purchase. More and more advertisements and other communication efforts are driving consumers to a company’s local page on Facebook, knowing that this is where the market place is congregating. These companies realize that in the 21st century you must go to the consumer and not expect them to come to you.
Choose to Evolve
Our shopping habits are changing. We no longer need to rely on circulars or ads to communicate sales. We no longer need to get in the car to go to a store to shop. Technology has enabled us to have the power to see the market place in its entirety if we like and to be more discriminating with our purchase choices. Retailers and manufacturers desiring to thrive in the upcoming decade and beyond would be wise to heed these changes and change as well. Understand your competition as well as your consumer does and design your site (as you would a store) to cater to their needs. Go to your consumers. Don’t expect them to come to you. Finally, take advantage of the opportunities technology affords us now.
About Insights Discovered
Penny Redlin is a regular contributor to the “Business Sense” feature on The Giggle Guide, sharing insights about business planning, effective communications and marketing strategies. To read more articles by Penny Redlin, see http://thegiggleguide.com/biz/features/business-sense
Based in Las Vegas, Nevada, Insights Discovered was founded by Penny Redlin in an effort to share her professional expertise within the children’s product category. The company’s mission is to give every mompreneur an opportunity for success. Insights Discovered exclusively services children’s products brands. The specific industry focus demonstrates a strong dedication to the unique needs of children’s products companies. Insights Discovered offers strategic planning, market research and traditional marketing services.
For more information, visit www.insightsdiscovered.com or call 702.218.5707
