Consumer Behavior Study Upends Common Misconception That the Vast Majority of Online Shoppers are Ready to Buy
Indianapolis — August 8, 2018 — PERQ, experts in online consumer engagement and shopping behavior, has released new analysis of consumer call-to-action (CTA) data with key learnings for websites of brick and mortar businesses who sell (or lease) high-consideration, big ticket items — especially in the automotive, home furnishing and multifamily leasing verticals.
The research, which looks closely at click-to-conversion behavior as well as the overall online experience, found key patterns in the way consumers approach researching and shopping for big-ticket items. The data illuminates serious flaws in long-held assumptions about what consumers want to do once they’ve reached a website and has significant implications for the efficacy of artificial intelligence (AI) in helping engage these website visitors.
“A common misconception for big ticket retailers is that their website visitors are ready-to-buy and are close to the bottom of the shopping funnel, which means that many of these businesses are approaching web engagement in the exact opposite direction of how their customers are behaving,”
said Muhammad Yasin, Vice President of Marketing at PERQ. “Our data reveals that most of these online web visitors are in the process of educating themselves, and doing extensive research before they finalize the purchase in person.
This presents a major opportunity for businesses to nurture consumers they may otherwise lose before they make the decision to buy.
For example, PERQ’s insights on automotive retailing show that, rather than going to dealer websites for “buy” tools, like credit apps and trade-in appraisals which is what conventional wisdom assumes, 77% of car shoppers on dealership websites are actually at the beginning or middle of the process and are interested in tools that help them make a decision.
A similar misconception exists in home furnishing where retailers often treat websites as static, digital brochures and at multifamily websites, where leasing companies fail to engage apartment shoppers early in their research with compelling website content that helps spur the consumer’s decision.
Global researcher Gartner[1] says that next-generation customers strongly desire self-service and don’t see the need for a salesperson for tasks that they can — and prefer to — accomplish themselves.
AI-powered websites featuring online customer journeys help streamline a shopper’s propensity for self-service by using historical data to hone down choices and next steps and to drive relevant CTAs dynamically for each consumer.
Key insights
The data revealed insights that all industries can leverage to improve click-to-action conversion and website engagement and shows that AI-enabled websites that intuitively and dynamically change for each consumer’s personal shopping journey delivers improved results both on and offline:
Insight Findings Optimize for mobile Conversions increase 50% when websites are optimized for mobile. That includes a 95% increase in banner performance, 167% for sidebars, and 7% for buttons. CTA Placement Matters Sidebar click performance improves 200% when moved from top left to bottom right.
Multiple Engagements Means Higher Close Rate Likelihood to buy increases by 66% for consumers that engage with two CTAs, while the likelihood to buy for those that engage with five CTAs goes up to 230%.
“It’s no longer a ‘buy now’ world, especially for retailers who need to capture high research customers and guide them into their brick and mortar location, ” said Yasin. “Our data shows that today's websites must be driven by AI technology as a way to adjust the consumer story and stay relevant to the specific needs and interests of buyers.”
Study methodology
PERQ reviewed consumer data captured from 8 million CTA renderings from more than a half-million visitors on PERQ’s website platform. Data collected includes all types of lead formats, and during all phases of the consumer journey. For more of PERQ’s analysis, click here.
About PERQ
PERQ (www.perq.com), boosts website conversion through its online guided shopping solution which leverages artificial intelligence to dynamically change existing websites to deliver the next best step in each buyer’s shopping journey. As experts in online consumer engagement and behavior, PERQ leverages over 10 million consumer data points, along with real-time visitor behavior.
Founded in 2001, PERQ solutions are used by more than 1,000 businesses in the home furnishing, auto retailing and multifamily industries. Its brands have been named to the Inc. “500 Fastest Growing Companies in America” list on three separate occasions. In 2017, PERQ won the Gold Stevie® Award for lead generation software and Product of the Year in the Big Business Awards.
PERQ Media Contacts
Melanie Webber, mWEBB Communications, [email protected] or 949-307-1723 Cassandra Cavanah, mWEBB Communications, [email protected] or 818-397-4630 [1] www.gartner.com/smarterwithgartner/how-to-respond-to-tomorrows-customers-today/