Insights from the report highlight the key role of a full funnel strategy to capture consumer loyalty amidst the ebbs and flows of economic realities
Bazaarvoice, Inc., the leading provider of full-funnel authentic user-generated content (UGC) solutions, released its Shopper Preference Report based on a survey of more than 8,000 global consumers. The global survey, which included 2,000 respondents from the United States, captured insights on online and offline experiences, sustainability concerns, social commerce influence, and more.
As more workplaces adopt hybrid work models, 64% of U.S. consumers have returned to a physical office for a part of their work week. Research shows that consumers are recalibrating their spending habits accordingly – 53% of those returning to work are spending more money in physical stores compared to online platforms. As brands and retailers navigate market turmoil, Bazaarvoice’s research highlights a vital requirement for them – focus on optimizing both their physical and digital shelves. The research findings indicate that consumer spending patterns and behavior are spread out, with 30% of consumers preferring to spend online, 41% favoring in-store spending, and 29% finding their online and in-store spending to be very similar.
The report delves into consumer behavior, highlighting their interactions with retailers and the channels through which they make purchases. In a landscape where retailers are fiercely competing for consumer spending, grasping the underlying rationale of their audience is paramount, especially as Americans navigate the ongoing cost-of-living crisis. The findings reveal a diverse spectrum of spending and shopping behaviors among Americans.
Despite the growing importance of sustainability, with 76% of Americans considering a company’s commitment to sustainability and ethical practices important, the appeal of fast fashion is strong for money-strapped consumers. 64% of Americans said they purchase at least 25% or more of their wardrobes from fast fashion retailers. Notably, Americans constitute the largest region (79%) admitting to purchasing clothing items that end up rarely or never being worn.
Almost a quarter (24%) of Americans make monthly purchases based on items they encountered on social media. Research shows that 60% of consumers have made purchases influenced by social media. Additionally, 66% prefer discovering new products through videos on social channels.
Other key U.S. findings from the Shopper Preference Report include:
- Brand Loyalty: Quality is the main factor that influences brand loyalty for 53% of consumers, followed by price (37%). 40% of consumers are influenced by personalized recommendations, while 48% prefer loyalty programs that enhance their loyalty experience.
- Sustainability and Second-Hand Shopping: 44% of consumers have increased their purchases of second-hand items as compared to the previous year. The U.S. and the UK lead other countries with 64% of consumers saying they purchase second-hand items from online platforms such as Vinted, Depop, etc., and thrift stores.
- Retail Therapy: 68% of consumers take pleasure in retail therapy. At the same time, 17% of Americans cannot afford essential purchases right now, highlighting the strain faced by the current economic conditions.
- Private Labels: In the last six months, 64% of consumers have purchased a private label product, with preferences varying across categories like food and beverage (71%), health and beauty (48%), and fashion (41%). Meanwhile, 44% have permanently switched some of their staple products to private label products, showcasing a potential shift in long-term consumer preferences toward private label offerings.
Read More: SalesTechStar Interview with Yifat Baror, Co-founder and Chief Growth Officer at Osa Commerce
“Our research delves into the intricate tapestry of American consumerism and examines how macroeconomic factors influence consumption trends. We found that from the lure of fast fashion to the joy of retail therapy and an increasing interest in sustainable practices, financially constrained consumers exhibit a complex set of behaviors. These findings highlight the need for brands and retailers to not only understand but actively engage with these diverse consumer preferences, adapt their commerce strategies to align with industry-changing trends, and foster lasting connections by meeting the dynamic expectations of today’s consumers,” said Zarina Stanford, Chief Marketing Officer, Bazaarvoice.
Bazaarvoice’s Shopper Preference Report uncovered more insights on hot topics such as video UGC, fast-fashion, sustainability, private labels, and more, which will be shared in upcoming releases.
To hear from industry leaders about how they’re navigating the ever-evolving customer journey, you can register here to attend the Bazaarvoice Summit 2024 (March 5-6).
Methodology
8,089 consumers were surveyed through Savanta research in January 2024 about their shopping preferences, across six different countries: United States, United Kingdom, Germany, France, Australia, and Canada.
