Section 3.06 Online Consumers

Module 3

Section 3.06

Online Consumers

There is no black magic to successfully attracting customers via the web – Rand Fishkin

Everyones’ Online

Covid-19 has already wreaked havoc on individuals all around the world. Lives have been lost, businesses have been closed, and communities have faced financial hardship.

If there is a silver lining to this disaster, it may be that the virus has and is compelling us to utilise the internet as it was intended – to communicate with one another, exchange information and resources, and come up with collective solutions to pressing issues. It’s the kind of healthy, compassionate digital culture we usually only see in cheesy TV advertisements when everyone is constantly using their smartphone to visit distant grandparents and read bedtime stories to children.

The New Demand for Consumerism

The new normal has influenced practically every part of our life, including consumer expenditures.

Consumers are also less likely to spend more as a result of the coronavirus pandemic’s economic implications, with many expecting their household income to continue to shrink in the coming months.

However, spending more time indoors has increased spending on home entertainment and consumables.

Consumer attitudes, intentions, and purchasing behaviours changed substantially as a result of the COVID-19 outbreak. Globalisation—the connectivity of markets and countries and its unparalleled coverage by traditional and digital media made this global disaster stand out.

How Small Businesses Are Staying Afloat

Covid-19 has necessitated that many businesses conduct investor meetings over Zoom, run marketing campaigns online and accept digital contactless payments. The time is now to move to fundraise online as well. All the infrastructure is already there — it’s just a matter of taking the next step to make the transition.

Keeping afloat during and after the world changes with new lockdowns over a health issue necessitates fresh strategies. According to data released by the Society for Human Resource Management (SHRM), nearly half of 416 small businesses with 500 or fewer employees said they were finding methods to stay in business. They are prospering in certain circumstances. Small firms have claimed that they are adapting by making the following changes:

To make their services available, they use contactless deliveries.
Employees are being asked to learn new online skills in order to support changes in company models.
Adopting new revenue streams such as changing production lines to produce high-demand hand sanitiser.
Putting in place new safety precautions, such as putting up Plexiglas barriers between employees and customers.
Processes for implementing new technologies.

Many companies are holding investor meetings virtually, which is safer and more cost-effective. Even after the pandemic’s effects have faded, these virtual, more cost-effective business models are likely to persist.

Before and after the Pandemic

The pandemic event drove everyone to alter their shopping habits. Whether you preferred internet shopping or browsing in-store, the epidemic disrupted routines in many obvious and less obvious ways. As everyone hurried to stock up during the global lockdown, grocery store shelves were swiftly depleted of toilet paper and cleaning products. Supply chains tightened as the lockdown wore on, cleaning supplies were increasingly scarce, and everyone was scrambling to locate basic food staples and essentials. The speed with which brand loyalty faded was an interesting secondary effect. According to McKinsey & Company research, 40% of consumers switched brands during the epidemic.

According to the Wall Street Journal, while there has been pent-up demand from those who could save money, a rush to spend by vaccinated persons has yet to materialise. Consumer spending habits are changing, according to an Experian poll done in March 2021, with 11 per cent stating they are spending more on clothing now than before the epidemic, while expenditure on groceries and in-home entertainment were both down 7% from March 2020. 3 Hand sanitiser and other cleaning goods are still in strong demand, thanks to a growing focus on health. In fact, from 2020 to 2027, the global hand sanitiser market is predicted to increase at a compound annual growth rate (CAGR) of 22.6 per cent.

As some customers return to stores, it’s uncertain if delivery alternatives will even out or evolve. One thing is sure, however: the rise of online shopping and contactless payments has provided grocers with a great opportunity, and those numbers are anticipated to continue to climb. By 2025, online grocery sales are expected to reach $250 billion. This is an increase of 8% over pre-pandemic levels and accounts for 21% of total grocery sales. 9 That isn’t to say that shoppers are abandoning their neighbourhood markets. According to a survey conducted in 2021, three months after the initial wave of the epidemic, 95 per cent of shoppers engaged in some type of hybrid grocery shopping.

Shopping Safely Online

Online shopping has exploded in recent years, mainly due to the COVID-19 pandemic, from the simplicity of one-click ordering to the allure of next-day delivery. However, online shopping is not only handy for us and beneficial to businesses; it is also profitable for fraudsters and hackers.

Scammers attempt to deceive us into paying for items we will not receive or obtaining our personal information for monetary benefit. So, what are your options? When purchasing online, it’s critical to take precautions to protect yourself.

Online Shopping Tips

Fraud

Fraudsters enjoy creating bogus e-commerce sites. Read reviews before making a purchase to learn what others have to say about the vendor. Check with reputable organisations such as the Better Business Bureau. Look for a physical address as well as any customer service details. It’s also a good idea to call the merchant to make sure they’re genuine.

Before you click

Be wary of emails, messages, or other promotions that appear “wrong” or urge you to click on links right away. Do not click on the link if you receive an appealing offer. Instead, go straight to the company’s website to double-check that the deal is genuine. If you can’t find it on their website, report the scam as a phishing attempt to your email provider. Remember, if something appears too good to be true, it most likely is.

Watch what you give

Be aware of the types of data being collected in order to complete your purchase. Cancel the transaction if the retailer is seeking more information than you are comfortable supplying. You just need to fill out mandatory sections during checkout, and your payment information should not be saved in your profile. If your account keeps your payment information automatically, go in after you’ve made your purchase and erase the data.

Consider your payment options

Using a credit card is preferable to using a debit card because credit cards provide more robust consumer safeguards if something goes wrong. Alternatively, instead of using your credit card, you can utilise a third-party payment provider. Many services, such as Google Pay, Paypal, Apple Pay and similar services allow you to pay for items without giving the retailer your credit card information directly.

The evolution of food delivery

The way people eat is changing tremendously all over the world. Restaurant-quality meal delivery was still mainly limited to dishes like pizza and Chinese more than two decades ago. Food delivery has tripled in value since 2017, reaching a global business worth more than $150 billion. During the COVID-19 pandemic, the market has more than doubled, continuing a solid trend of 8% growth.

Ready-to-eat food delivery has emerged as a critical industry thanks to the introduction of appealing, user-friendly apps and tech-enabled driver networks, as well as changing consumer expectations. Early in the epidemic, lockdowns and physical separation rules provided the sector with a huge boost, with delivery being a lifeline for the struggling restaurant industry. It is expected to become a permanent presence in the food delivery sector.

Post Pandemic

The 2020 event disrupted the labour markets globally. The consequences were sudden and severe, millions of people faced lost jobs, and others rapidly adjusted to working from home as offices closed. Being at home they have more time to shop online.

It’s time we wake up and recognises the opportunities in business trends. Choose to study and research business ideas.

Choose good and positive friends, and avoid negative people. Choose your crowds correctly. It will take courage and strength to press forward without friends and families who may not want to support you. Most people do not have the vision nor the understanding of your ideas, so will find yourself battling through this process alone. This is the truth and the reality.

This is why most people who succeed in business rightly do not want to don’t back people who were not there for them nor contributed to supporting them.

Consumers want the convenience and choice online shopping provides. Many don’t have time to trudge the streets hoping goods are in stock – Jo Tucker

Summary

After the 2020 World event, everyone was forced to come online.
The world before the so-called pandemic is no longer in existence, the new ways or new normal is from now on.
Shop safely online.
The food delivery sector is on the rise.

3.06 Online Shopping Guide (1)

3.06 Online shopping security.docx (1)

3.06 Online shopping advantage.docx (1)

3.06 Online shopping 2.docx (1)

3.06 Online Customer Engagement (1)