Importance of Convenience in Consumer Behavior

Retailers have been putting money into plans for the last ten years to provide customers with a more seamless shopping experience. Retailers have been establishing new standards for making it simple for customers to locate and get goods, whether it's buying online, picking up in-store, smartphone applications that allow shoppers to browse their local shop or two-day shipping. It is also changing the expectations of customers.

 

Consumers have busier schedules than ever. Over one-third have less free time now than they had five years ago due to commuting, family responsibilities, or schooling. This may be the reason why 83 percent of respondents believe convenience is now more crucial while purchasing. Who among customers values convenience? those who mostly purchase online. Compared to the average shopper's 33 percent, more than half of this group think convenience is now substantially more essential.

 

Consumers might not always be aware of the importance of convenience in consumer behavior until it is absent. In fact, the majority said that quality and price are the two things that matter most when making a purchase, yet almost all of them have returned items because they were inconvenient.

 

Why is Convenience important in consumer behavior?

 

Customers are eager to pay for a convenient experience since time is money. Consumers are willing to pay for new technologies if they can save time and effort, which is why retailers always promote them. Currently, two-thirds of customers pay for a delivery service like Amazon Prime or Shipt; when looking at some of the busiest users: parents, that percentage rises to an astonishing 82 percent. Additionally, more than half of parents spend money on several services.

 

For regular purchases, convenience is often the most important factor. When it comes to food, personal care products, and pet supplies, consumers are prepared to pay extra. And once more, parents are far more inclined to spend more money in these places on convenience.

 

Additionally, customers are more inclined to select a brand that guarantees a convenient experience. More than 90% of people are more inclined to do so, and 35% are noticeably more likely. Since 52 percent of consumers believe convenience influences at least half of their decisions, offering it can provide merchants a competitive edge when it might be challenging to compete on merely price and quality.

 

And even while 86 percent of customers believe that merchants' innovations over the previous five years have made shopping easier, more must be done. Customers are still looking to shop for new strategies to save time and effort by designing as efficient shopping experiences as possible.

 

Convenience is the foundation of e-commerce and a major factor in the recent surge in online purchasing. The ease of internet shopping allows you to buy goods whenever and wherever you like, pay however you like, and have them delivered any way you like.

 

Therefore, it seems sensible that ease is altering how consumers purchase and perceive specific buying alternatives, as the most recent study from the National Retail Federation demonstrates. For this reason, when it comes to exhibiting their offering, e-commerce firms need to think about more than just the value and pricing of the things they are selling.

 

What do retailers need to do to offer convenience?

 

The retailers must keep some points in mind to offer convenience to the customers:

 

1. Recognize the needs of the customer journey and allow cross-device capabilities.

 

Since distinct steps of the customer's buying process may be completed on different devices, a friction-free experience must be offered regardless of the channel the customer is using. According to our study, 81% of customers want a seamless, cross-device shopping experience, and more than half have given up on a transaction because they had to start it over when they switched devices.

 

2. Make payment choices straightforward and versatile.

 

Nine out of 10 consumers think that having simple and flexible payment alternatives speeds up their decision-making process and encourages them to spend more money. The most common request from customers is for a guest checkout option, which enables an even quicker path to buy.

 

However, customers are also accepting more modern, practical payment methods like "purchase now, pay later." In particular, on commonplace things like apparel, nearly four out of five customers expect businesses to provide this as normal, and over a quarter of consumers have previously used it or plan to. 

 

3. Provide the consumer with the delivery choices they want.

 

It is impossible to overestimate the effect that delivery has on client loyalty. 95% of customers agree that choosing an online merchant based on easy delivery choices is important. The convenience of those that provide click-and-collect and next-day delivery choices is also quite high. When it comes to returns, customers expect the same level of ease; almost 90% of them say they don't want customer service engaged, and nearly 50% say they are more inclined to patronize companies that allow self-service returns.

 

4. Recognize the function of social trade and markets.

 

Retailers must take into account the fourth factor as they work to provide convenience, and that is the role of third-party solutions like social commerce and marketplaces. Although cross-device functionality, guest checkouts, and easy shipping topped consumers' desires for convenience, there is still a fourth factor that retailers must take into account.

 

A growing percentage of consumers—more than one-third—have previously made purchases through social media. More than 75% of consumers acknowledge that the simplicity of usage has influenced them to make unintentional purchases, making it perfect for impulse buying. Customers need the convenience of payment here as well, and they resent businesses that force customers to pay on their websites.

 

Online marketplaces are convenient because they allow customers to browse a large choice of items from many different vendors on one platform. As a result, 91% of consumers start their purchase journeys on marketplaces.

 

However, although useful, they might sometimes be too much. Over three-quarters of shoppers say they would prefer to buy directly from a company if they could match the ease of online marketplaces, yet nearly half of customers have abandoned marketplaces because there were too many alternatives. Retailers now have a fantastic chance to provide a customer experience that encourages repeat business, resulting in higher profits and better consumer shopping information.

 

Providing an effortless omnichannel experience, a competitive customer experience, and an effortless economy are all goals that retailers today must achieve. They cannot afford any aspect of the company to operate independently and make shopping difficult or inconvenient for the customer.

 

For retailers to deliver the kind of convenience that customers are looking for, a 360-degree picture of the consumer that links all journeys and channels is vital. Simple ordering, payment, and delivery demands are all that they have. If they are done correctly, they will purchase.

 

Benefits of Convenience in consumer behavior:

 

The following benefits of convenience for enhancing consumer experience are listed below:

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Benefits of Convenience in consumer behavior

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1. Causes cart abandonment:

 

Quality (32%) and price (30%) are the main influencing elements when it comes to what customers think is most essential when purchasing online, with convenience coming in at only 13%. Although 97% of shoppers claim to have backed out of purchase due to inconvenience, this isn't reflected in their total buying behaviors.

 

This indicates that even if convenience may not have played a significant role in the initial purchase choice if the process of checking out and receiving the product is inconvenient, it will probably lead to a cart being abandoned.

 

To ensure that customers convert, brands should make sure that their online shopping experience is customer-focused and that they are providing the handy choices that customers desire, such as next-day delivery, guest checkout, or store pickup.

 

2. Growing relevance day by day:

 

Customers are seeking something that will set firms apart because there is so much variety available both online and on the high street. With 83% of consumers indicating that shopping convenience is more essential now than it was five years ago, convenience may hold the answer.

 

This is hardly unexpected given that more than a third of customers claim to be busier now than they were five years ago. Shopping must be done whenever it can be done because of transportation, job, school, and family obligations, which frequently means being on the move. Customers are searching for stores that may save them time as a consequence.

 

3. Influences sales:

 

Although customers stated that price and quality were the most crucial considerations when making a purchase, 52% stated that convenience influences at least half of their decisions. Shoppers can no longer afford to spend all day browsing for clothes or hours picking up their food. Because of our limited time, convenience has taken precedence.

 

The rise in popularity of delivery services like Amazon Prime indicates that customers are more ready than ever to pay for the luxury of convenience. Presently, 66% of customers pay for a delivery service, and 25% pay for several services, demonstrating the potential financial benefit for merchants of promoting convenience.

 

Also Read | A Guide to Sales Metrics

 

4. Vital in retail industries:

 

Offering convenience in e-commerce is critical, but in other businesses, it is even more crucial. For purchases that consumers make on a more frequent basis, including groceries and personal care products, a higher level of convenience is required. Consumers are willing to pay for convenience in other purchases, albeit it is still valued.

 

Regarding grocery shopping, 63% of people think convenience is essential, and 66% say they are ready to spend more if it means their purchase will be more convenient. This might involve selecting a delivery or pick-up time or receiving an update on which goods are out of stock or have been replaced.

 

With 61% of customers willing to pay more for a convenient experience, clothing is the next product category where convenience is viewed as crucial by 47% of consumers. Customers may become brand champions if businesses offer services like online sizing, several shipping alternatives, and free returns since they all contribute to the greatest experience.

 

Electronics (42%), personal care (41%), and pet supplies (41%) are other purchase categories where convenience is valued; when making these purchases, 59%, 58%, and 58% of consumers, respectively, said they will pay extra for more convenient services.

 

Also Read | Retail Management - Everything you need to know

 

Conclusion:

 

The consumer experience revolves around convenience, which is why it should always be at the center of your retail brand's strategy and objectives, whether online or offline. It's essential to consider how you can make using your brand as simple and convenient as possible since in a world with little time and a plethora of alternatives, it takes more than pricing to beat rivals.

 

This does not, however, imply that you should copy what your rivals are doing. To deliver the answers they require, you must have a thorough understanding of both your target market and your consumers. You may determine what changes will enhance your service, the shopping experience, and the overall degree of convenience you provide by doing customer satisfaction surveys.