May 09, 2018

Customers Are Shifting Their Behavior

Ok, here's the table from 2018:

And here's the table from 2014:

Now we have a handful of comparisons ... comparisons that tell us what is happening. What is happening, of course, is that customers are shifting their behavior.

Look down the Retail Channel column. These customers purchased in-store the year prior. What do you observe when comparing data four years apart?

  • The customer is 4.5 points less likely to buy in-store again.
  • The customer is 4.0 points less likely to buy via desktop e-commerce again.
  • The customer is 14.6 points more likely to buy via mobile commerce again.
You notice that the retail in-store customer changed his/her behavior. Repurchase rates decreased, and if the customer repurchased, the customer moved orders out of stores and out of traditional desktop e-commerce ... moving the orders into mobile commerce.

Across the board, customers are less likely to buy in-stores, regardless of the channel. So there is a change in behavior ... but the change is dramatic among mobile buyers. As customers increasingly shift to mobile, their likelihood of buying in stores drops significantly ... much faster than if the customer was a prior store buyer or an e-commerce / desktop buyer.

Also notice that the corporate rebuy rate dropped ... this company is less competitive today than four years ago. It's less competitive, and if the trends continue it means that customers are leaving the retail experience.

More on the two tables tomorrow.







Business Principle #1