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Tuesday, November 19, 2024

Most global shoppers now omnichannel-focused, social also on the list

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November 19, 2024

A huge majority of consumers no longer see shopping as about physical stores or online. Instead they’re fully focused on omnichannel shopping. And that doesn’t just mean traditional omnichannel, because social media shopping is also a big part of their journey.

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That’s according to the new Shopper Experience Index from Bazaarvoice (the provider of full-funnel authentic user-generated content and social commerce solutions). It commissioned research among 8,000+ consumers in the US and UK, Germany, France, India, Australia, and Canada and also found that customer reviews and UGC remain hugely important in shaping purchasing behaviour and building trust with brands.

Among the main findings, it discovered that 81% of shoppers say seeing real customer reviews “significantly increases” their confidence in a purchase. And 77% of consumers trust UGC more than brand-provided information, making it the most trusted source of product information. That’s a crucial piece of information from brands that haven’t yet embraced the concept of UGC.

It’s perhaps unsurprising following a period of high shop price inflation coinciding with a desire for greater sustainability that people want certainty that they’ll like/use what they’re buying. Over half (56%) of shoppers admit they’re unlikely to buy a product if there are no reviews or other customer content and 79% of respondents report that UGC, including photos and reviews, directly influences their buying decisions.

Overall, the study showed a shift in consumer behaviour, and as mentioned earlier omnichannel shopping is now not simply a decision of whether to pop into a store or go onto a website to buy. It includes webrooming, showrooming, and social media as core elements. Shoppers are increasingly relying on UGC for product discovery and purchase decisions, and personalised offers are becoming key drivers of sales across multiple product categories.

Predictably in this situation, 88% of shoppers want a seamless shopping experience across all the different channels they’re using, with four out of five preferring a blend of in-store and online shopping — and that blend has to be slick. 

Three-quarters of consumers engage in online-to-offline shopping behaviour where they research products online before buying them in physical stores (webrooming), while 59% do the opposite (showrooming). 

Over a third (39%) of consumers use social media for product discovery and research, while a hefty 31% are purchasing directly through these platforms. 

The change in recent years can be seen from the fact that in 2021, over half (55%) of respondents said they never shopped on social media. This year, that number dropped to just 24%. That’s a big evolution in attitudes in just a few years. Instagram (69%), YouTube (62%), and TikTok (50%) are used most by Gen Z for product discovery, while Facebook (66%) is most popular for Millennials

Importantly too, ‘consumers’ aren’t just there to consume. The study showed that more shoppers are stepping up as creators. More than half of consumers are self-identified creators and they’re eager to share opinions when rating products. Last year, 46% of respondents identified as “passive consumers”, who tend to consume opinions rather than sharing their own. This year, that number dropped to just 28%. And that really matters because 86% of shoppers say they engage with creator content before making a buying decision.

Unsurprisingly, consumer trust in fellow consumers is on the rise. Some 65% globally rely on UGC, such as ratings, reviews, photos, and videos in their buying decisions. Nearly half of shoppers find user reviews on retailer websites the most influential content when researching the products online. 

The is a big interest for Gen Z with 80% considering it crucial in their decision-making process. However, generation impacts what type of content they prefer. Baby Boomers rely more on traditional UGC-like ratings and reviews, while Gen Z prefers visual content like photos and videos from social media influencers. 

We hear a lot about the importance of personalisation these days too and the study shows that personalised offers drive 45% of shoppers to complete purchases online. The figure is 61% for Gen Z. And while electronics is the top category for which personalised offers are most influential (47%), clothing isn’t too far behind (42%) while health & beauty is on 39%.

“This year’s study reinforces that to succeed today, brands and retailers must meet their customers wherever they shop — especially on social platforms, where consumer engagement and comfort with purchasing are on the rise,” said Zarina Lam Stanford, CMO at Bazaarvoice. “The demand for user-generated content is higher than ever, and it’s a powerful tool for creating genuine connections that influence purchase decisions. As consumers shift from passive observers to active content creators, brands have a unique opportunity to harness authentic voices and build trust across all touchpoints.”

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