Impact of Technology on Consumer Behaviour
Today I want to talk about ‘How Consumers Use Technology and Its Impact on Their Lives’.
Introduction
It’s mind blowing to think that when I started senior high school the internet and social media weren’t heard of back then. Fast forward to 2020 and the internet has transformed the world we live in and there are many big changes still ahead.
In this presentation, I am excited to be able to share with you key facts about:
• how do we access the Internet,
• what digital devices do we use,
• how do we go about searching online for information,
• what do we prefer to buy online, and
• how do marketers use online video and how is this impacting on our lives.
I will also highlight some exciting consumer trends in the digital space that I’m sure will spark your interest.
Let’s get started.
How do we access the Internet?
Today, there are nearly 5 billion Internet users across the globe according to (Statista 2019).
Average global mobile and fixed
broadband download Number
of worldwide internet users as of January 2019, by region (in millions)
(Statista 2019)
There are now nearly 22 million internet users here in Australia i.e. 87% of the population according to (Statista 2019). Another staggering statistic revealed by (ROI 2019), is that 93% of Australians are reportedly using the internet every day.
Google is the most popularly used mobile device and desktop computer search engine among Australians, with a 95% share of the market according to (ROI 2019).
What Digital Devices do consumers use?
Globally, on average people own up to 4 devices according to a Global Web Index Report.
The smartphone was consumers preferred device to access the internet.
(Global Web Index 2018)
The smartphone was consumers preferred device to access the internet.
(Global Web Index 2018)
How do customers search for information?
One big factor influencing a consumer’s purchasing decision is the rise of online customer reviews, customer testimonials as well as customers rating their experience.
(Nidhi 2020)
What do consumers buy online?
(Acquire StarTrack
Inside Australian Online Shopping, 2017 eCommerce
Industry Paper, 2017)
Online Marketplaces such as eBay and Amazon have made it extremely easy for retailers and people to sell their products and for consumers to buy them using a desktop or mobile device.
According to Price Waterhouse Cooper’s 2018 Global Insights Survey over 90% of consumers used social media to compare and find information about products and services. However, over half of these consumers still visit a ‘brick-and-mortar’ store at least weekly.
(Statista 2019)
According to (Roy Morgan 2018), nearly 10 million Australians are shopping online. The popular products Australians like to buy online include: books, videos, music, apparel and electronics.
How is online video used by marketers and consumers globally?
According to (Cisco 2019), by 2022 online videos will make up more than 82% of all consumer internet traffic. Really … the statistics are astounding!
As of this year, over 1.9 billion people use YouTube to create and watch video content. That’s about one-third of the internet (Biteable (n.d.)).
(Marketing Charts 2019)
As online video consumption increases, so too has the associated spend on online advertising. By 2021, online ad spend is expected to catapult to $61 billion.
What consumer trends should we look out for in 2020?
(Mkonnekt 2019)
Brick-and-Click Model of Business
Consumers are buying more products online and then pick-up in store which highlights the need for traditional retailers to move to a ‘Brick-and-Click’ model of business.
Tik Tok
Tik Tok, a video sharing channel, is touted to be the ‘Next Big Thing’ with over 500 million active users. It is a platform for marketers to consider for advertising brands targeting younger people.
(Fang Marketing 2019)
Artificial Intelligence, Virtual Reality Experience and Chatbots
Google, Amazon and Microsoft are leading the way in the use of Artificial Intelligence, Virtual Reality and Chatbots to provide a highly personalised website user experience and optimise voice search queries according to (Digital Doughnut 2018).
(Digital Crew 2019)
Virtual and Augmented Reality Advertising
According to (Digital Doughnut 2018), Virtual and Augmented Reality Advertising will provide a more realistic shopping experience motivating consumers to make a purchase.
View video on YouTube:
[view on YouTube]
With over 1 billion users WhatsApp has become the world’s leading text and voice messaging app.
(Statista 2019)
Video Content and Video Marketing
Consumers are demanding more ‘real time’ Video Content and ‘Live Streaming’ of events which is the fastest growing segment of video marketing.
Influencer Marketing
Influencer marketing continues to rise in popularity and beyond 2020 is set to set to become an $8 billion industry (Later 2019).
Google’s Voice Activated Smart Speakers
Google’s Voice Activated Smart Speakers have become helpful companions and it is predicted that half of all Google searches will be by voice this year.
(Aslam 2020)
There you have it some important consumer trends to look out for this year.
Summary
Consumers’ relationship with technology is constantly changing with high global internet connectivity, the rise in popularity of social media and growth in mobile device ownership.
What this means for ‘brick-and-mortar’ and ‘brick-and-click’ businesses is it comes down to tailoring and personalising the product or service to meet the needs of consumers.
Today's shoppers are time poor, keen for a bargain and want to shop with retailers that can deliver their products on time in good condition and have a satisfactory returns policy.
This is now the new reality facing 'brick-and-mortar' businesses.
No matter how you spin it, digital marketing is here to stay for businesses advertising and selling their products online, as well as using social media to connect with customers, and for people of all ages and from all walks of life to interact with one another.
Until next time ….
View Slideshare Presentation: https://bit.ly/2M2qek1
References
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