Online Buying Behavior: The Difference between Men and Women

Online Buying Behavior: The Difference between Men and Women

Are Men and Women equals when it comes to shopping?

The answer, unsurprisingly, is – definitely not. While much has changed in recent years, there are still some behavioral aspects that set these two genders apart. What this article is primarily tackles though is the difference between online buying behavior between men and women.

Despite growing gender equality in the workplace, stereotypes are still very prevalent in the household. A lot of families still see the male as the provider, while women (although they may also work) are still tasked with shopping for the family. As such, it really is no surprise that women dominate online retail.

The Stats: Where Women Win

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Women spend approximately 20% more time browsing through shopping sites online than men. While some key categories like sports, electronics, and outdoor goods are still predominantly controlled by men, women lead almost every other retail category.

What’s more, women don’t just spend more time shopping online. They also spend significantly more money in most categories for online purchases.

As an eCommerce retailer, it’s important to not only know who your audience will most likely be, but also the factors that will affect their purchase decisions. If you’re targeting women for example, you should know that women take coupons much more seriously than men. In fact, 68% of women shoppers (vs. 60% of male shoppers) are likely to use coupons when they want to save money while shopping online. They are also more likely to shop when there are sales (49% vs. 36%), and sign up for incentive programs (33% vs. 23%).

The Stats: How Men Measure Up

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However, one of the advantages men hold over women when it comes to online shopping is their dominance of the m-commerce market. Although there are several factors that affect this, such as the fact that men are more likely to own a smartphone than women, the point is that eCommerce merchants who focus their efforts on the mobile market should definitely cater their services to better deal with the needs of the male audience.

The two genders also approach online shopping differently. Males tend to stick to whatever mission they assign themselves when they shop online, whereas women tend to wander among different product categories. Before deciding on a purchase, men tend to search for information on the particular product’s page, while women tend to just scan the information before moving on to the next potential product. This often leads to more impulse purchases from women than from men.

Additionally, women also depend on social media more than men when making a purchase decision. Women are also much more likely to recommend a product to friends and family on a social networking site (35% vs. 28%).

Lastly, despite the apparent differences in shopping behavior though, Shoppercentric, a UK based research firm, claims that the younger shoppers, whether male or female, display mostly identical shopping patterns.

So what do all these facts and figures mean for an eCommerce merchant?

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First off, if you are providing a product or service primarily for men, it’s better if it’s within the male-dominated categories. When presenting your product, make sure to give accurate and detailed descriptions of your product. Show why you are superior to your competition and provide customer reviews and testimonials proving it.

On the other hand, if you’re product or service is for the female demographic, it might be better to make your site more interactive. Give the users a chance to communicate with one another via chat, forums, or reviews. Pay particular attention to ease of navigation, filtering, and sorting. You might even want to pay more attention to creating promotions and sales in order to give female purchasers more incentive to choose your product over your competitors.

If you are catering to younger shoppers, you might want to give them detailed product information, customer reviews, and opportunities for social interaction.

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Why You Need Start Preparing Your eCommerce Store for the Holiday Season NOW!

Why You Need Start Preparing Your eCommerce Store for the Holiday Season NOW!

You might think it’s a bit preemptive to start planning for the Holidays now, but it’s almost too late already.  Think about it this way: if you want to make a bunch of changes to your eCommerce website such as an upgrade, a new design, or any new features you need a significant amount of time to get it done.  You’ll need to define the project, gather proposals from various service providers, go through contract negotiation, and then have the work completed.  A fully custom design, implementation and customization can take a couple months, so don’t delay any further and start thinking about the holiday season and how you’re going to prepare for it. 

Also you need to plan out your MARKETING! The last thing that you want to do is stay up all night on November, 23 trying to write email copy and change your AdWords ads to holiday specific text.  Start planning now, and you’ll definitely have a more profitable season with much less stress. 

So that’s the overview about why, but let’s go over the direction as well as the specific things you can do to make your holiday season more successful.  We’ll go over checklists, specific ideas and tactics to make your store ready for the 2010 holidays.

Design Changes
You might want to change some of the main site graphics to seasonal, relevant images.  If you have pictures of people within the design, make sure they’re wearing coats, and you can throw some snowflakes in the header to make it feel like winter.

Sales
Of course you’re going to have a holiday sale.  But which works better, 10% off your order over $X or Free Shipping?  Start testing now! Something as simple as the wording of a deal can effect your conversion rate drastically.

Gift Wrapping
You can offer gift wrapping as an upsell during checkout.  If you’re going to offer this option though, it’s important to plan ahead and get this process worked out within your current procedures.

Delivery Schedules / Deadlines
You can create a sense of urgency if you put the proper messaging on your site.  For instance, “Order before December 20th for Guaranteed Arrival before Christmas!” This short message, repeated throughout the website, could be the push that someone needs to get through the checkout.

Updated Returns Policy
When it comes to gifts, one of the main concerns that people have when buying online is possibly having to return the item.  They might be afraid that the clothing won’t fit properly or the item will arrive defective.  Make sure that your return policy is easy to find and easy to understand.

Add Video to Product Descriptions
One of the main reasons that customers abandon product pages is because they didn’t get a good enough “look” at the product.  If you have a short video of someone reviewing the item or simply demonstrating it, it builds confidence with the potential customer and differentiates you from your competitors.  Anything that you can do that will get someone to push “Add To Cart” is crucial.

Beef Up Customer Support
Make sure that you have enough staff to take calls, answer questions, and train them to sell!  You should have multiple ways for visitors to contact you online via toll-free number, email, chat, twitter or even fax.  It can’t hurt to have the pathways to contact you because if someone wants to call you, they are very close to purchasing.  On the other hand, you also want to have support for current/past customers because that is what sparks people to talk about their experiences.  Think about how Zappos.com because so popular from having incredible customer service.

New Banner Ads
If you advertise with Banner Ads, you should start brainstorming some new designs.  Also start thinking of new places to advertise, and new media buying strategies that can drive tons of traffic to your site. 

New Adwords  (PPC) Keywords / Ads
Don’t wait until the last minute to add new keywords into your campaigns that are seasonally specific.  Also, try testing out new Ad Copy that has holiday style to it. Add in a coupon code, mention a shipping deadline or another offer. 

Gift Categories / Gift Guide
Organized your items into gift categories by person or price (Great Gifts for Mom, Dad, etc…). If you give visitors useful search options and filters, it lets them find what they want faster; speed is key during the holidays.

Affiliate Relations
If you have an affiliate program, get them excited about promoting your products.  Show them landing pages, new items and sales that they can promote before they start.  This allows super-affiliates to get banners made, plan media buys, start new PPC campaigns and test them out before it’s too late. 

New Products
Do some research and figure out what types of products in your industry are going to be the popular items of the season.  If you’re going to stock these items, remember there’s significant work to do each time (ordering inventory, storage, photos, description, etc…).  So start the research soon so you’re prepared to launch them in the Fall.

Shipping Deals
Shipping is the #1 type of sale that you can offer your visitors.  Having free shipping makes the ordering process seem more realistic and it makes the price seem more feasible (since there’s no addition involved).  Another great tactic is to have Free Shipping on orders above $X.  You’ll get a higher average order and happier clients.

Social Media
Start building your following now! Starting a Social Media campaign in November would be a waste of time; however if you have 5000 followers (on twitter for instance) by then you can turn it into a traffic generator, a communication/ support platform and more.  Also remember, 200 happy, engaged followers is much better than 10,000 random people. Get your following organically and you’ll be much better off.

Cart Abandonment Recapture
You can automate the recapturing of an abandoned cart by sending an email to the user with the previous cart contents. 

Gift Receipts & Gift Messages
Have checkout options to add a note or gift receipt to the order.  This way, there’s proof of purchase but the price isn’t in the box.  It works especially well when offering gifts that are sent directly to the recipient.

Backup Server / Increased Bandwidth
If you’re doing media buys and adding a huge budget to your AdWords account you might want to upgrade your web server to make sure that your site doesn’t go down during periods of high traffic.

These are just a few of the things you can do to prepare your site for the holidays and increase your conversion rate.

Selling & Upselling with Psychology & Human Behavior

Selling & Upselling with Psychology & Human Behavior

 

Ted.com is one of my favorite websites ever. The entire site is filled with some of the most interesting, captivating, thought provoking and mind blowing presentations from the world’s top geniuses and experts. I highly recommend clicking around Ted.com and learning something…

I recently watched this particular video called, “Are we in control of our own Decisions?” by Dan Ariely. Dan Ariely is a behavioral economist and wrote the book “Predictably Irrational” (Official Site). His TED Talk is brilliant and has a few ideas that we can use in our online marketing and on our eCommerce websites.

Watch the Video here:

Default Options

One of my favorite takeaways from this video was the idea that a majority of people will simply agree with or comply with the default option. This was evident in the studies that showed the countries with high and low rates of citizens willing to donate their organs. If the question was, “check here to opt in” the country had a low acceptance rate, and when the question was “check here to opt out” the acceptance rate was extremely high.

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How can you use this in your marketing?

You can use it in an upsell process. You have to be VERY careful, and transparent when you’re doing it so customers don’t become alienated by your website or flood your customer service number with complaints. Don’t just add extra cost to the checkout, make sure it’s apparent to the customer that it’s happen. There are many marketers and checkout processes that do (usually in the domain registration space (GoDaddy is king), web hosting and info marketing).

Think about this. A product is in your inventory and listed on your site for $10. After the customer gets the product in their cart, and gets to the checkout there is an automatic upsell before the order confirmation. This upsell charges $X that might change the shipping or improve the actual the item in some way by adding a feature, it could be a warranty, insurance, or even an extra product (for example, if you sell glasses, upsell a cleaning and repair kit). If the upsell’s price is marginal (based on the price of the original item, probably adding around 10% – 20% to the order), and the upsell is included by default, you might expect a low rate of opt out based on the data shown by Ariely in the video.

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The upsell should be very obvious though so the customer can easily choose to opt out. Just imagine all of your order values increasing by adding in a few upsell options in your checkout and making them the default choice.

Price Anchoring (forcing a Good Deal)

The other takeaway that I thought was excellent and applicable was the price anchoring technique that The Economist magazine uses to drastically increase the number of subscribers that would take a higher priced item. They offer a web only, print only and a web + print option. The Web Only option is $59, the print only is $125, and the web + print is $125. Look at the results that Dan Ariely got from polling students at MIT, with the print only and without the print only options.

The results when the print only deal was an option:

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and the results without the print only option:

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This is incredible! When people think they are getting a good deal, they are likely to take the good deal but when there are two distinct and different options, price usually wins. Try positioning your products, shipping options or upsells in a way that your customers are getting something for nothing or getting a great deal… A/B test and see what happens. Brainstorm how you can do it like The Economist Magazine did it.

Think about Amazon.com – they offer free “super saver” shipping on any orders over $25. I know that I’ve added an extra product or two into my cart just to get over the minimum price, usually sending it to over $30. I doubt I’m the only one… have you ever done the same thing? This increases the average order value for Amazon which improves their marketing ROI and average $/Visitor among other important stats.

Thanks for reading! Have any feedback or some other ideas from the video? Leave some comments below!

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