According to a new report by Wunderkind’s Marketing Pulse, online retail revenues in the UK remained strong in March despite the ongoing cost-of-living crisis. The report analyzed over 149.2 million shopper journeys and found that web revenues increased by 36.6% compared to the same period last year.
Despite the positive revenue growth, there is evidence to suggest that consumers are taking longer to make purchasing decisions. They are searching for the best prices and validating their purchases more thoroughly. The report revealed that web traffic increased by 60% as consumers exercised caution with their spending. This cautious approach is reflected in the fact that consumers are requiring more browsing sessions and web visits before making a purchase.
To overcome these hurdles, e-tailers need to provide incentives to encourage consumers to make the final purchase decision. Offering deals, discounts, and competitive prices can attract consumers and help them make the decision to buy.
Although web revenues were boosted by Mother’s Day, web revenues in the week leading up to the holiday were down 5.7% compared to the previous year. This indicates that consumers may have been scaling back or opting for cheaper gifts.
Overall, web conversions in March were up 80.8% compared to the previous year, indicating strong demand despite the challenges of discretionary spending. Traffic to retailers’ websites during the first quarter of the year increased by 41.6%, showing that consumers are spending more time browsing before making a purchase.
Wulfric Light-Wilkinson, General Manager, International at Wunderkind, commented on the findings, stating that retailers need to adapt to the changing behavior of consumers. He emphasized the importance of engaging customers through innovative campaigns, deals, and offers to entice them to make a purchase. Retailers should focus on re-engaging customers who have abandoned their baskets and use personalized marketing communications to drive sales.
In conclusion, in the current cost-of-living crisis, offering attractive deals, discounts, and competitive prices has become essential for retailers to attract and retain customers. By understanding consumer preferences and needs, retailers can tailor their strategies to meet these demands and ultimately drive sales.
Useful Links:
1. UK Online Sales Growth Predictions
2. Barriers to Digital Shopping
