E-commerce has become an increasingly crowded market space with competition a click away.
What worked five years ago simply doesn’t work anymore because consumer expectations evolved during the Pandemic. Thousands of great opportunities to improve the customer experience surfaced during the lockdowns and while opportunities are plentiful, it has never been more important to know your target customers to validate new opportunities for engagement.
Missing the signals of customer trends has taken down many retail giants…
- Fotomat booths were almost as plentiful as Blockbuster stores “back in the day.”
- How many newspaper and magazine companies kept raising rates on printed products rather than inviting robust digital interaction?
- K-mart (need I say more).
The wheel has already been invented, so instead of trying to invent a competitor, let’s re-invent the brand we have to better serve our customers.
As business owners, so many of us work IN the business, instead of working ON the business and it’s easy to miss the changing trends. When was the last time you took a critical eye to your core customer definition and competitive positioning?
Beware the fad market trends, the proverbial Snake Oil, and the wannabees, and focus on creating a robust and engaging brand that not only listens to but also responds to your customers’ evolving needs.
At the end of the day, what the customer “needs” is somewhat predictable, but what the customer “wants” is where the magic happens, and lifetime value is built!
Is it time to have a look at your brand’s current positioning and messaging strategy to enhance and refine the emotional connection with your prospects and customers?
FAQs
1. How has consumer behavior in e-commerce changed after the pandemic?
Consumer behavior shifted by a big margin after the pandemic. Lockdowns highlighted gaps in customer experiences. Expectations evolved rapidly. In 2024, customers would further demand seamless, personalized interactions and are less forgiving of poor service. Studies show that 80% of consumers expect personalized experiences. Estimated 65% switch brands due to poor engagement.
2. Why do businesses fail when they ignore customer trends?
Ignoring customer trends often leads to irrelevance. Many iconic brands failed because they didn’t adapt. For example:
- Blockbuster: Dismissed the rise of streaming services and lost to Netflix.
- Fotomat Booths: Became obsolete when digital photography took over.
- K-mart: Failed to modernize and lost ground to competitors like Walmart and Amazon.
These examples show that staying tuned to customer needs and market trends is essential for survival.
3. How can businesses improve customer engagement and build loyalty?
Businesses can improve customer engagement by:
- Listening to customer needs and wants: Understand what motivates your audience and creates emotional connections.
- Refining brand messaging: Update your positioning to resonate with your target audience.
- Focusing on long-term loyalty: Provide consistent value and experiences that go beyond just meeting basic needs.
As Gartner reports, 89% of companies now compete on customer experience, highlighting its importance for retaining loyal customers.
4. What’s the difference between customer “needs” and “wants”?
Customer “needs” refer to basic expectations. It includes competitive prices, quality products, and fast shipping. Customer needs are predictable and necessary. However, “wants” involve emotional connections and unique desires that differentiate your brand. Addressing “wants” builds loyalty and lifetime value. For example, personalized recommendations or features that make customers feel valued can turn a one-time buyer into a repeat customer. As Steve Jobs once said, “People don’t know what they want until you show it to them.”
