Prepare your company for the future consumer of 2021

10.11.2020
Forbrugsadfærd

The growing tendency in digital commerce has influenced the behavior among consumers. COVID-19 has changed the consumption habits and created a need for competitive pricing.

Various statistics are showing that during a crisis it is easier to influence consumers. They are more willing to change their old routines and habits. This has also been the case during COVID-19. A research conducted by Deloitte demonstrates that 25-45% of the consumers are shopping more online during COVID-19. Moreover, the results also indicate that consumers are prepared to keep their new habits, even after the pandemic.

At the moment, the world is faced with the second wave of COVID-19. Therefore, it is very important that your company is analyzing the market needs to be prepared for the changing consumer behavior. This will strengthen your competitive situation in the future.

Agenda:

  • Adapt to the changing consumer behavior
  • These parameters can support businesses during a crisis
  •  Historical high growth in digital commerce
  •  Adapt your business to the future consumer behavior of 2021
  • Increase your profit in 2021 through beneficial pricing strategies
  • Adapt your online webshop to the future consumer of 2021

Adapt to the changing consumer behavior

The consumer of 2020 is more willing to try new products or buy from other resellers than they are used to. Thereby, it is possible for your company to increase your profit and market share, by attracting customers from your competitors. This development can cause your loyal customers to change their habits as well. Therefore, your company must be aware of how to restrain this target group.

The COVID-19 crisis has also created an increased need for safety and trust. A survey conducted by Ernst & Young demonstrates that 42% of consumers believe that the purchasing behavior of the future will be affected by changes. Moreover, the results indicate that 34% of the consumers are willing to pay more for local products in the future. Based on this, it is thereby crucial that your company focuses on its local appearance

These parameters can support businesses during a crisis

To stay at the cutting edge, your company has to invest even more in its marketing operations. A study from Deloitte supports this assumption. The study demonstrates that companies have to increase focus on marketing in order to survive within the new reality of COVID-19.

The value of your brand also has an influence on the success of your firm. It is crucial that your company maintains and builds a trustworthy brand. If you are changing your position in the market, due to COVID-19, it will in all likelihood confuse your customers.
It is also relevant that your brand stays on top of your customers mind. If this is not the case, you risk losing market shares.

Historical high growth in digital commerce

The consumer behavior of 2020 is affected by the challenges COVID-19 are causing. This influence, that even more consumers have started to apply digital commerce. Especially, the older generation have gone through a significant increase in buying products online.

A statistic conducted by Mintel has examined the development of e-commerce among different age groups. The statistic is focusing on 2000 consumers in the age group 16+. The highest increase in digital commerce is seen among the age group at 65+. Mintel has found that 43% of the 65+ consumers have shopped more online during COVID-19. This can be compared to the rest of the adult generation, as this age group has in total increased their online shopping by 42%. Based on these facts, it is extremely important that your e-commerce is focusing on reaching all age groups, through its marketing initiatives

It is especially important to consider the price of your product, as it plays an important role for consumers. 90% of consumers are choosing online resellers based on prices and shipping fees. Moreover, consumers have also increased their use of applying mobile phones for online shopping.  

These tendencies in digital commerce will continue growing after COVID-19. Therefore, your company must adapt to the changing consumer behavior in order to increase your revenue.

Online digital commerce vs. omnichannel commerce
During COVID-19 the pure online digital companies have only experienced a decrease at 38%. Omnichannel companies have on the other hand experienced a decrease of 63%. Based on these results it is relevant that your e-commerce is analyzing your business opportunities to survive a crisis, such as COVID-19.

Adapt your business to the future consumer behavior of 2021

Reliable and trustworthy customer relationships have a great influence on the consumer of the future. The need of being present has increased during the pandemic. The reason is that our society has been influenced by a high degree of psychological uncertainty. Based on this it is crucial that your company sustain a positive attitude toward your customers. This will ensure that your firm is seen as an attractive choice for the consumers. A way to capture the attention of the consumers is by applying psychological pricing strategies.  

Moreover, the consumers of the future have become more focused on the need of making room for spare time in their calendars. Families are especially welcoming this new opportunity, as they are able to spend more time together. Moreover, the need for working at home has increased during COVID-19. 35% of the working employees are planning to continue this development after the crisis.

Thereby, it is possible for your company to increase your revenue by focusing on these new trends in online shopping. The future consumer of 2021 will among others apply online shopping to reduce the everyday stress.

This increased tendency in digital commerce also affects the expectations of the consumers. They expect that companies are well prepared in regard to online solutions. Thereby, your profit depends on your ability to create new virtual solutions. Your firm must adapt to a strong innovative mindset.

Increase your profit in 2021 through beneficial pricing strategies

First of all, a long-term oriented perspective makes your webshop more competitive. This approach ensures a more profitable outcome for your firm. By focusing on a long-term perspective, you can adapt your webshop to the future consumer of 2021.

Additionally, it is also beneficial for your firm to apply a flexible pricing strategy. It is difficult to predict the future market, especially after a crisis, such as COVID-19. However, you should avoid making hasty decisions. A flexible approach makes it possible for you to adapt to the changing consumer behavior.

  • As an example, your company can offer a discount. The discount can be present in a certain period of time, when the consumers are in the need of a lower price. This is often the case during a crisis.

The above example indicates that a flexible pricing strategy is a useful approach during a crisis. The reason is that you can take into account the needs of your consumers, by for instant discounting your price. Thereby, flexible pricing makes it possible for you to increase your profit and restrain your loyal customers. Another relevant pricing strategy, which can be beneficial for your firm after COVID-19, is to analyze the pricing position of your competitors. By following this strategy, you can ensure that the prices on your products are matching the need on the market. This is very important for your firm, since price, as mentioned in the above, is seen as the most important criterion for consumers.

Adapt your online webshop to the future consumer of 2021

The future of webshops are challenged by the changing consumer behavior. In order to survive the dynamic changes in consumption patterns, it is crucial to adapt to the new habits of the consumers.

A way to increase your revenue and ensure a successful outcome in 2021, is by applying the most optimal pricing strategy. This process requires an overview of the competitive situation in the market. You can monitor the prices of your competitors by applying different pricing comparison tools.

Digital commerce has experienced a significant increase and is assumed to increase even more in 2021. Based on this, it will be beneficial for your webshop to apply a price comparison program. The reason is that the industry of e-commerce is especially influenced by a high degree of competition. PriceShape offers a simple and useful solution, where your firm can get an overview of the competitors’ price position. Besides this, it is also possible to apply dynamic pricing. This tool makes it possible for your firm to keep up with the competition in the market. Based on this, your webshop will be well prepared to adapt to the future consumer behavior of 2021.