Newly released data on consumer decision-making and shopping preferences from Yes Marketing indicates that almost half (45 percent) of consumers first hear about new retailers from their friends and family. This information source significantly outranks other sources like product review sites (8 percent), influencer recommendations (4 percent) and news sites (2 percent). The significance of this for retailers, in developing growth strategies, is that word-of-mouth recommendations remain very important for retailers in building initial trust and credibility with new customers.
The report, which surveyed over 1,000 consumers, additionally found that 69 percent of consumers say negative feedback from family or friends has turned them away from a retailer. as to what nudges a consumer to buying a product, the survey probed the key decision points. In terms of the products themselves, almost half (47 percent) of consumers ranked price as the most influential factor in their decision to purchase from a new retailer, followed closely by quality (at 39 percent).
For retailers to win over consumers they need to be in tune with modern lifestyles. The report found that when it comes to convenience, 40 percent of consumers rank shipping as the number one factor in their decision to purchase from a new retailer, which is especially illuminating given the recent shipping wars between Amazon and Walmart.
Another area that retailers need to focus on is providing sufficient detail about what they are selling. The survey found that more than a third of consumers (36 percent) reported that having enough product information is the number one driver of trust in retailers they have never shopped with before. Once trust has been built up, loyalty pays off: More than half of respondents (53 percent) indicated they would pay more to purchase from a retailer they are loyal to.
The data drawn from the report provides a useful baseline for retailers to start from and to assess what they need to do and how they need to market goods, in order to match up with consumer expectations. Another thing the report found was that marketers still miss the mark on frequency: Nearly four in 10 consumers say they do not receive marketing messages from retailers at their preferred frequency
