This piece was originally published in Forbes.
Marketing efforts mean nothing if they don’t drive business growth, and for most companies, that ultimately means moving the needle on sales. Consumers are increasingly making these transactions online, with the global e-commerce market expected to be worth $6.3 trillion in 2024, up from $5.8 trillion last year, and with 23% of all retail purchases projected to take place online by 2027.
Accordingly, new digital pathways to purchase have emerged. Between 2019 and 2023, the number of e-commerce sites worldwide increased from 9.2 million to over 26.2 million. As brands recognize the need to foster audience-centric shopping as part of a holistic, modern marketing strategy, they’re actively exploring how to bridge the gap between cultural relevance, digital experiences, and checkout counters.
One fast-growing example is TikTok’s e-commerce tab, TikTok Shop, where creators of all sizes drive consumers to make purchases through their content. Bloomberg reported the company aims to grow its U.S. e-commerce business to as much as $17.5 billion this year. Meanwhile, Amazon and others are testing metaverse-style shopping experiences, showcasing items for purchase in virtual showrooms for the holiday season and beyond. New retail media networks are also proliferating, with over 200 today compared to just 40 in February of 2022. That’s not to mention all the other places, online and off, where consumers engage with brands that aren’t equipped with direct purchase options.
As potential stops on the shopper journey continue to multiply, it’s not enough for brands to simply show up in the digital marketplace. They must understand the unique values, perspectives, and digital comfort zones of each target audience and be willing to challenge assumptions. Research on U.S. consumers from the team at GALE, for example, highlights several generational and gender-driven behaviors that brands should consider when guiding consumers toward online purchases.
Over a quarter of Gen Z consumers, the research showed, make purchases online almost daily, with habits suggesting they view online shopping as a hobby. They often make impulsive purchases for reasons including boredom, retail therapy, and late-night scrolling. Despite their reputation for being entirely dismissive of ads, nearly half of this generation reported finding personalized digital ads that know their tastes to be helpful for online shopping. Organizations should continue using brand-forward, community-centric strategies for long-term brand building with Gen Z, but they should also consider Gen Z’s online shopping experience as just that—an experience they love that brands can enhance. In fact, research from Tinuiti shows Gen Z is three times more likely than older generations to opt in to tracking prompts, like Apple’s App Tracking Transparency, to see more relevant advertising.
GALE’s research also found that men tend to be more impulsive online shoppers than women, who are more likely to abandon their carts at checkout. For example, 41% of women, compared to only 25% of men, said they would not follow through with an online order if they didn’t meet the minimum for free shipping. This supports research from CNBC and Acorn showing that, despite stereotypes of women as frivolous spenders, men were equally likely to make impulse buys and spend more than women when they do. If the bar for getting women through the online checkout process is higher, the need for brands to achieve cultural relevance and loyalty (outside of when this audience is actively engaged in shopping) is as well.
These represent just a few of the many nuances marketers must consider—and more deeply examine through the lens of their specific target audience—to drive overall business growth.
Marketers must recognize that the digital marketplace, like any other piece of the puzzle, is not a one-size-fits-all environment. Online shopping habits are diverse and will continue to evolve as the space itself evolves. Crafting tailored omnichannel experiences bolstered by community-focused, audience-centric brand strategies will enable organizations to more effectively connect with consumers—before, during, and after their shopping experience, wherever and however they choose to shop.
