Did you know that your eCommerce success largely depends on a particular type of customer? They are the ‘Value Buyers’. Out of the four major types of customers your business encounters, value-buyers are the ones who significantly contribute to your ROI. According to Kearney analysis, almost 70% of eCommerce revenue is driven by these value-buyers.
If you want to ensure continuous eCommerce growth, make sure you’re prioritizing value buyers. If you are looking for ideas to start, we’ve got everything covered. In this blog, we will be discussing about:
- 4 types of eCommerce buyers
- Understanding the mindset of ‘value buyers’
- 6 strategies to attract more ‘value buyers’
- How Adobe Commerce enables your business to attract value buyers?
4 types of eCommerce buyers
For ‘Price Buyers’, the only thing that matters while shopping online is the price, not the benefits or the value you are ready to offer. They would wait for longer delivery times or give up on a renowned brand that offers the same product they are looking for to grab a product at the best price possible.
Price buyers are the reason why eCommerce brands have to lower their prices to place products competitively in the market. However, the good news is this type of buyers make up only 15-20% of your buying population.
Value buyers look at the value they get from a product or a service. Price will be a concerning factor for them, but they will be ready to pay a better price if they feel your product is of good value.
Value buyers have the capability and patience to analyze the quality of a product, compare vendors offering the same products, verify the credibility of a brand, and so on. They are good decision-makers who make a purchase based on the price vs. value criteria.
Relationship Buyers are interested in forging relationships with brands or stores they buy from. They expect exclusive attention and personalized experience.
If your online business is based on a subscription model, catering to Relationship Buyers should be on your priority list. Providing free trials, helping them upgrade or downgrade plans, and offering the liberty to discontinue or rejoin at any time could win you Relationship buyers.
Poker buyers are value or relationship buyers who pose themselves as price buyers. They intend to get the best deal possible by posing as a price buyer and buying a product of good value. They seek methods like getting two vendors who offer the same product to compete and getting the benefit out of it – a rock-bottom price.
Why should you focus on value buyers?
Value buyers make up the majority of your online buyers. According to a study by Kearney, value buyers make 71% of the total online buying population. Hence, brands need to understand and prioritize experiences for them.
Value buyers operate differently and there are certain peculiar traits that can help you understand them.
Understanding the mindset of Value buyers
As we discussed before, value buyers have concerns over their budget (but that’s until they find a valuable offering from you that breaks their budget barrier). Due to their budget-oriented buying habit, they spend time researching and evaluating products. You’ll have to take into consideration that they have a planned budget in mind and play appropriately.
Attracted to discounts:
Everyone likes a good deal. Nobody will shy away from a discount. Value buyers are no exceptions. This doesn’t mean that they are deal seekers. They also have the inclination to buy the product they want for a lesser price if available. Clubbing your products with the right discounts and offers can attract more value buyers.
Not into forging relationships:
Value buyers have only one mission – to find the best product for a good price. They jump from one brand to another until they find it. So, there’s less room for brand loyalty.
Word-of-mouth and social credentials matter:
Value buyers trust recommendations from their friends and family. They also follow social media reviews and influencers in their research phase to locate the best product they are looking for.
Ideas to attract more value buyers
Based on the buying intent of value buyers we discussed above, let’s look at some of the digital experiences you can offer in your store to attract them.
1. Product assortment
Shopping behavior varies according to various criteria like gender, age groups, regional and local preferences, and so on. As a retailer, you can go for a multi-site approach (e.g. Women, Men, Kids).
A multi-site approach allows you to present your product assortment in several domains (each exclusively reserved for its target audience) within the parent domain. For each instance, you can decide your assortment type like wide assortment, deep assortment, localized assortment etc. Classifying your products through assortment simplifies the task of arriving at a price point that attracts value buyers. Also, it enables customers to find products easily and results in customer satisfaction.
As value buyers have a clear idea of what they want, providing personalized product recommendations work well. Using AI-powered product recommendation engines you can suggest products relevant to their preferences.
Value buyers evaluate three or more products before they make their purchase decision. Product recommendation simplifies the task of value buyers to find relevant product suggestions. You can know more about the benefits of product recommendation engines and how they work in our blog.
3. Detailed product information
As we know, value buyers research a lot before buying, and product data is one of the key factors that influence their decision-making. Value buyers want to know granular details of products they are comparing or contemplating to buy. Product information images, descriptions, specifications, user manuals, shipping costs, warranty details, etc can give users a clear idea for buying. Explore more on how PIM can help brands leverage content to improve customer experience in our blog.
4. Reviews and ratings
Analyzing reviews and ratings is part and parcel of a value buyer’s product evaluation process. They trust reviews and ratings from previous buyers. Build genuine reviews, testimonials and ratings for your product to attract value buyers.
5. Efficient supply chain
Make sure that you provide a smooth fulfillment experience. You can partner with a 3PL logistics partner to outsource your fulfillment responsibilities from picking and packing to managing returns or manage it all by yourself, establishing smooth workflows that let your fulfillment personnel collaborate and work efficiently. You can also provide multiple delivery options, like same-day delivery, buy-online-pickup-in-store, curbside pickup, and so on.
6. Customer engagement
Though value buyers are brand-agnostic, providing an engaging customer experience can encourage them to come back over time. Experiences like guided selling can help value buyers quickly narrow down the products they are looking for. Rewarding value buyers with loyalty points for regular purchases can encourage them to come back for more.
How Adobe Commerce enables your business to attract value buyers?
Adobe Commerce is one of the appropriate platforms you might want to use, besides other good options like BigCommerce and SFCC (Salesforce Commerce Cloud). Adobe Commerce has all the functionalities and features needed by merchants like you to attract value buyers.
Considering the essentials to attract value buyers in the above section, we have listed some of the built-in features of Adobe Commerce that’ll help you implement them.
Adobe Commerce provides multi-site support by default. You can have multiple sites exclusively based on gender, age group, etc. You can manage everything from a single interface, which makes administration and monitoring easy. Splitting your products across multiple sites widens your scope for assortment width and depth, exhibiting a precise range of products customers can choose from.
Adobe Commerce’s AI product recommendation engine powered by Adobe Sensei provides personalized product recommendations for customers. Based on their past buying behavior, like preferences, wishlists, purchases, and so on, the recommendation engine suggests the most relevant products that align with their interest. To compare Adobe Sensei with other product recommendation engines, check out our blog.
Product Information Management
Adobe Commerce has Akeneo (product information management tool) as its technology partner and offers PIM support by default. Using PIM, you can surface products in the storefront with content that matters the most for customers. Product images, descriptions, price tags, specifications, demos and walkthrough videos, warranty details and lots more for thousands of SKUs can be added, edited and organized clutter-free with PIM.
Flexible Fulfillment Options
Adobe Commerce provides merchants with support for essential delivery methods like free shipping, Flat Rate, Table Rates and In-store delivery. If you are looking to partner with shipping carriers, Adobe Commerce offers built-in integrations for UPS, USPS, DHL, and FedEx, making it easy to manage fulfillment right from your store’s backend itself. On top of these, you have the flexibility to integrate any other third-party shipping carrier.
Adobe Commerce’s ‘Product Reviews’ feature enables merchants to collect reviews from customers and display them alongside product information in PDP (product detail page). You can moderate reviews, edit, approve and publish reviews. You can also moderate reviews customer-wise or product-wise.
Value buyers, who constitute the most important segment of your buying population, need to be catered to. Providing the experiences such customers expect can bring significant change to your ROI. If you are looking at more strategies to focus on value buyers, Ziffity can help. If you are contemplating platforms to enable such experiences, our eCommerce experts can give a detailed walkthrough on potential platforms like Adobe Commerce, BigCommerce and Salesforce Commerce Cloud to get you started.