Customers becoming harder to please: survey

The research compiled the opinions of almost 25‚000 consumers in 34 countries‚ across mature and emerging markets‚ to establish what influenced their purchasing behaviour and identified how companies could capitalise on the information.

Derek Engelbrecht‚ Ernst & Young retail and consumer products sector leader‚ said that the trends revealed in the survey showed that in recent years‚ customer behaviour had changed beyond recognition.

"In becoming a 'chameleon'‚ the consumer has undergone a radical 'metamorphosis' and this change has significant consequences for all customer-reliant organisations‚" Engelbrecht said.

The five broad trends that emerged from the survey were:

• Traditional market segmentation no longer holds true. The "chameleon" consumer has conflicting preferences and facets‚ which need to be accommodated.
  
• Brands are increasingly likely to influence purchasing decisions within emerging markets‚ unlike the mature markets where lower loyalty is challenging companies.
  
• Personalised communication and service is a priority. There are huge opportunities for organisations that can harness digital consumers through closer "community" vehicles‚ such as social media and other digital channels.
  
• Consumers are now equipped with all possible product‚ price and stock information and can simply bypass retailers that don't compete.
  
• These new empowered customers want a greater say in how they experience service and to be active "co-creators"‚ not passive consumers.

According to Ernst & Young‚ 62% of the "co-creator" consumers now go online for at least part of their shopping journey‚ but 85% of social media users believe brands don't use social media well to communicate with consumers‚ highlighting a significant misalignment between the two groups.

The survey identified that the level of online activity varied significantly by market; with 67% of Chinese consumers buying clothes online compared to only 18% within the Middle East‚ and just 8% in SA.

"When looking at brand loyalty‚ the level of affinity also heavily depends on the market and sector‚ with the telecoms sector enjoying the greatest loyalty and financial services sector garnering the least loyalty‚" Engelbrecht said.

The insights shown in the survey reinforce that in today's retail setting‚ very little is fixed and many things are fluid‚ whether it's behaviour or brand loyalties‚ trusted media or shopping habits‚ market segments or the role of physical stores.

What is highlighted is that digital technology is altering not only how‚ where and when consumers shop‚ but is transforming their expectations and interactions with all suppliers from retailers and manufacturers to governments and utilities.

"This change is occurring at an unprecedented rate and many organisations are not modifying their business models to keep up with the evolving demands of consumers‚ and harnessing the potential of technology‚" Ernst & Young said.