Impact of Digital Technology on Consumer Behaviour

Digital technology has expanded faster than any other breakthrough in history, reaching nearly 50% of the emerging world’s population in only two decades and revolutionising societies. Technology functions as a huge equaliser through improving connection, trade access, financial inclusion, and access to welfare. 

The world of marketing has also been hugely impacted. Technology has altered marketing by personalising and immersing consumer campaigns and offering more connected and targeted ecosystems for marketers. New marketing technology has entered the architecture and processes on which businesses are constructed, providing value to procurement and increasing the bottom line.

Digitisation has undoubtedly pushed marketers worldwide to rethink their marketing strategies. Additionally, the evolution of marketing technology has influenced customer behaviour and decision-making skills. Before knowing the impact of digital technology on customer behaviour, here are some basics of digital technology that one should be familiar with:

What is Digital Consumer Behaviour?

In marketing research, digital customer behaviour fundamentally equates to everything a person does online. What devices they use, the websites they visit, the advertisements they interact with, the pages they browse, when and how they leave, etc. When a consumer clicks on anything, it is registered, and the marketer may observe the consumer behaviour and adjust their marketing techniques accordingly.

How do Marketers measure Consumer Behaviour?

Consumer behaviour in the digital era may be tracked in various ways, the most frequent of which is via cookies. These little pieces of code reside inside the programme that was built to generate the page that the customer is seeing.

These cookies come in various ‘flavours,’ but they all function in the same manner. They enable the marketers to collect first-party data (from websites, digital campaigns, app users, and so on) and third-party data (from around the web) to better understand the content the audience interacts with online. 

However, cookies are not the only technique to monitor digital consumer behaviour. It may also be monitored via session IDs, social data, caches, and emerging technologies that can connect users even when they are not in the same session.

But why is it so essential to track digital customer behaviour? The answer lies in the impact that digital technology has on consumer behaviour.

Impact of Digital Technology on Consumer Behaviour

• Capability to Investigate and Experiment

When making a purchase choice, today’s customers have become unusually effective researchers. They are getting a better understanding and more awareness as technology provides them with a more analytical approach to making online selections.

As firms strive to sell their goods on the internet, they are exposed to a massive amount of material. This has aided customers’ purchase processes since they can now study and compare items online before deciding what to buy.

The quantity of information accessible on the Internet has even enabled them to test several products and come to a judgement. While people have enabled marketers to influence their shopping habits, the same technology has greatly empowered them as well.

Digital marketing has assisted consumers in making the most of the open interaction that firms are eager to have with them, as well as providing them with a deeper grasp of certain services and goods.

• Personalization is expected

People, according to HubSpot, seek contact with people, pieces of material, or technologies that give them the impression that their preferences and interests are being considered. Personalisation has been a major factor in determining the character of consumer behaviour in the digital era. According to a Janrain survey, around 74% of online customers are annoyed with websites when information (e.g. ads, promotions, offers) that has nothing to do with their interests surfaces.

Smart marketers and company owners are designing individualised experiences for their consumers to avoid annoyance and enhance revenue. Marketers must first determine their target market before tailoring all of their content, goods, and resources to the requirements and desires of their consumers.

This makes it simpler for consumers to purchase and enhances the possibility that if those items and services matched the customer’s specific requirements previously, they would return to the site for purchase or recommend others with similar interests and wants.

• Customers are Constantly Connected through various Platforms

Businesses are available for customer queries 24*7. They ask product-related questions, buy the product anytime, anywhere and provide feedback. Businesses must ensure that their site or app runs smoothly on all devices for a greater customer experience.

Everyone with an internet connection can access social networking sites. People are actively connecting with their businesses on social media sites and consumer forums. While consumers could always choose their brand and develop its reputation, digital marketing has only increased this ability.

Customers may interact with their brands through social media, search engines, and review websites. They may now instantaneously share their thoughts with their favourite companies. If companies reply swiftly to customer comments, they will gain even greater engagement and see an increase in sales.

• High Expectations, Less Patience

Consumers’ expectations for quick, efficient service have more than quadrupled as technology has advanced. When exposed to internet user evaluations and forums, they obtain emotive, genuine feedback about items and services.

Services and facilities that are subpar are unacceptable. Customers want companies to reply to their inquiries as quickly as feasible. They express their disappointment on public forums when they do not obtain what was promised, which negatively influences a brand’s online image.

The volume of information people get from digital marketing significantly impacts their purchase behaviour. Services such as hassle-free exchanges and next-day delivery are rapidly rising customer expectations worldwide.

Almost every company strives to provide standard features and services. However, the brand that continues to deliver greater value wins the competition.

• Customer Experience is crucial

Until a few years ago, shoppers could make a purchase regardless of how they felt about the experience. Most purchasing choices were influenced by a product that met their demands rather than the customer’s interactions with the company.

This is no longer the case.

In general, the NICE survey suggests that 95 per cent of customers value customer service, which influences brand loyalty. Online self-service and easy access to their chosen channels are two of the most critical customer service aspects in their brand loyalty choice. The majority of respondents (57%) stated they would quit a company after one or two unfavourable digital customer service experiences, but most organisations underestimate how soon that may happen. 

Conclusion

Marketers need to collaborate with technology to get the intended outcomes for their businesses. It is not difficult to get the data. The challenge is to utilise that data and transform it into meaningful insights that will make their company lucrative.