Nielsen, a global leader in online statistics and reporting, conducted a thorough investigation into exactly how consumers shop online, from making purchases from e-commerce sites, to simply finding reviews on brands or products.
The final report, published in June 2010, can be found on their website. http://en-us.nielsen.com/content/nielsen/en_us/insights/reports.html. We'd like to go over three of the most interesting facts we found from that report.
1) Reviews Are Important
People want to know if they can trust a product before they make a purchase. The Nielsen report found that many people won't buy a product AT ALL without being able to read a review online of that product. The industry where this was the most true was consumer electronics - 40% of people responded they would not buy without reading a review first. Other technology related industries had the same response - Software, Gaming Devices, and Telecommunications services all being near the top of the list.
What should this tell you as a business owner? Reviews mean a lot to your customers. Having a few reviews or testimonials for your product somewhere on your site can really improve confidence and conversions. Even better - include the ability for your customers to leave their own reviews!
2) Keep Your Customers Happy - Or Else!
If you've upset a customer, don't expect them to be mum about it online. The report shows that 41% of people globally are more likely to share online a negative product experience than a positive one. In North America, this number is a bit lower, at 32%. But it's an excellent reminder to keep those customers happy!
If you are using Social Media, stay on top of listening to your clients. Make sure you provide a venue whether public or private for them to voice their concerns online. Address these concerns, treat your clients with respect, and hopefully they'll be tweeting about how fantastic your brand is, instead of about spreading the negative word.
3) Canada is Behind for Online Purchasing
As far as making purchases online goes, we Canadians are either a mistrustful lot or just a little 'behind the times.' Compared to the US, we are 13% more likely to have NEVER made a purchase online, and a full third of Canadians do not intend to make an online purchase in the next six months, compared to only 1/5th of Americans who said the same.
The chart also shows that while we are more likely to purchase from online-only stores rather than 'brick and mortar' stores that offer online e-commerce, that percentage (31%) is still a lot lower than America's 50%.
Don't get too discouraged by these numbers however - research still shows that while people might not be making purchases online, a company's web presence still has a very large influence over an individuals eventual decision to buy - whether that purchase is made online or in store.
Afterword: Who is Nielsen?
In their own words, they're "focused and skilled ... at providing the complete view of what consumers watch and buy through powerful insights that clarify the relationship between content and commerce. Whether our clients are in media, consumer packaged goods, telecom or advertising, our expansive data and measurement capabilities provide market context and confidence through our long history of innovation and integrity"
Basically, they are pros at measuring what your clients are doing online. The statistics and reports they build are the most thorough and trustworthy available. Visit their website yourself to take a look at the reports and statistics they offer for free online: http://en-us.nielsen.com/content/nielsen/en_us/insights/reports.html.
