Decoding the Science Behind Consumer Motivations – Guest Blog By Brandon Hunt
After battling to stay afloat during the economic downturn, retailers are finally feeling optimistic again. According to The Commerce Department, Retail sales (which account for a third of consumer spending) are on the rise with March seeing the sharpest increase in nearly 2 years.
However, while spending is up consumers haven’t forgotten the recession and they are still being cautious with their purchase decisions. As the summer shopping season approaches, retailers who are aggressive with their promotional offers will be the ones to drive traffic both online and in stores.
The booming popularity of online deal sites is proof that shoppers are looking for a better way to save. In recent years we’ve seen a real shift in the retail industry. Merchants are recognizing that in order to spend, consumers need motivation and companies have become more committed to helping shoppers save money.
Consumers are taking the time to really do their research to find the best deals and make the best purchase decisions. Retailers would be wise to do the same, and many are. We’ve found that many retailers are using our site to research their competitors’ deals and promotions. Consumers have many choices when they shop, and for the most part they are not brand loyal. They are going to shop around, so it is a good idea to know what your competitors are offering and how your pricing and promotions compare. Taking it a step further, retailers have realized the benefit of technology that allows them to predict shopper behavior for individualized recommendations and promotional offers, and they are capitalizing on it.
Aggressive offers have multiple purposes. They drive new business, help retailers unload discontinued products, and convince consumers to act on purchases they’ve been contemplating.
Thanks to modern technologies, shoppers have more control than ever before over where they purchase goods, forcing retailers compete for their attention. Realizing that their survival depends on their ability to adapt to this customer-centric world, retailers are becoming masterful at keeping the attention of shoppers through aggressive offers.
Brandon Hunt is the co-founder of DealScience.com.