How Tinuiti's 2020 Amazon Shopper Survey Can Help Marketers Navigate Changing Audience Behavior

Amazon has come a long way and is now leading the revenue race with a large market share in e-commerce, cloud computing, video streaming, music, groceries, and an online pharmacy. Tinuiti’s 2020 Amazon Shopper Survey reveals some fascinating consumer behavior and purchase patterns. Let’s look at the insights that came through and how it can help marketers.

TinuitiOpens a new window commissioned the 2020 Amazon Shopper SurveyOpens a new window that was conducted by SurvataOpens a new window between January and February 2020, where 2,001 American consumers aged 18 and above were asked about shopping on Amazon in the past six months to understand how shopping behavior and the Amazon marketplace have evolved.

Since this study took place before the coronavirus (COVID-19) took the world by storm, the answers are not in line with current behavior and shopping trends. But the hope is that marketers can focus on these insights to guide future marketing strategies and bounce back.

Learn More: How Marketing Leaders Can Manage the Impact of Coronavirus (COVID-19) on RevenueOpens a new window

Based on the responses, the key findings from the survey are as follows:

• 46% more shoppers spent over $500 on Amazon in 2020 than in 2019
• 70% were Prime members and 28% shopped during Prime Day (56% more than 2019)
• 55% shopped for electronics, computers and office supplies (male to female ratio was 3:2) and 37% were Gen Z and Millennials
• 57% weren’t willing to try new products or brands, Gen Z makes up 33% that rarely do
• 89% of Super Spenders occasionally try new products or brands, and 54% would rather try new products on Amazon compared to other sites
• 36% of Gen Z are worried about counterfeit electronics, computers, and office products but trust customer reviews
• 65% continue to shop via desktop or laptop computers, and Gen Z leads the number of shoppers that use the mobile site and app
• 12% used voice shopping of which 9.7% are aged 65 and above (Baby Boomers)
• 50% of mobile traffic is window shopping, while 40% of laptop and desktop users know what they want
• Over 43% occasionally check prices elsewhere, the majority of whom are Baby Boomers and Millennial women
• 68% rarely notice ads due to banner blindness, 24% find mobile ad placements valuable
   

Overall, Amazon shoppers make purchase decisions based on price, convenience, and the number of reviews and ratings. This makes it easier for you as a marketer to know what to focus your promotional efforts on.

Learn More: Your 2020 Amazon Marketing RoadmapOpens a new window

Key Takeaways for Marketers

Having a presence on Amazon can provide a major boost to brand reach and engagement, which could help connect with different audience segments and improve sales. Here’s our take on the insights:

1. Price is the winning factor
 

For 42% of respondents, price was the biggest deciding factor. While marketers can’t always determine pricing, it may be beneficial to note that price can be leveraged in ad and marketing campaigns. As we saw above, Baby Boomers and Millennial women are most likely to compare prices, while less than 1 in 4 of Gen Z and Super Spenders (who $100 monthly on Amazon) check pricing or consider it a deciding factor.

With pricing as the focal point, marketers can ensure that messaging is modified for each audience segment, though the approach will vary depending on the demographic.

2. Convenience shipping is important, but not a priority
 

Although the convenience of shipping is the second most crucial deciding factor, it seems to be decreasing in importance over the years. This can be attributed to the growing normalcy of receiving deliveries within a week. While Prime members do enjoy the option of one-day deliveries, other customers prefer free delivery as opposed to quick delivery.

Since delivery has slowly declining importance as a factor, focus on keeping this aspect of the business functional without struggling to excel. Ensure you can provide delivery of goods according to industry standards while also offering quicker deliveries for a price.

3. Reviews and ratings to the rescue
 

The number of ratings or reviews a product has plays a more significant role in purchase decisions than ever before. For 1 in 10 shoppers, it is a top priority. This is mainly important to Super Spenders, but also to Gen Z customers who can be convinced by valuable descriptions or photos. 

Their focus on content, whether product descriptions, media, or inputs from peers, only iterates the fact that content is king and a key area to prioritize. Ensure product descriptions are infused with the right mix of valuable information, appealing pictures, and wit and humor to grab consumer attention.

4. Focus on Gen Z
 

The under 25 generation has recently entered the workforce and is wary of how they spend their money. However, they seldom cross-check prices and spend $50 or less on Amazon monthly. As opposed to previous generations, they count on user reviews and trust them to be a deciding factor. The majority of Gen Z also likes to browse through the mobile app but sticks to purchasing from known brands.

While the consumer characteristics of this generation need to be explored further, you can use each of these data points to conjure an effective strategy for each consumer segment. Prioritizing their value will ensure they connect with your brand.

Learn More: How Will Marketing Strategies Evolve in Times of Coronavirus (COVID-19)?Opens a new window

What’s Next

This study provides an in-depth understanding of the varying demographics and preferences when it comes to all things Amazon. Here are a few tips you can follow to prepare a marketing strategy for Amazon:

1. While Super Spenders and frequent shoppers are open to trying new brands and products, they need a final nudge to make a purchase. Targeting these two groups, specifically, can be quite fruitful.
2. To navigate banner blindness, and cater to Gen Z that finds ads informative, take to mobile advertising and reach the audience that’s most receptive to it.
3. While voice search may be new and perceived as a priority for Gen Z, Baby Boomers are finding shopping through voice assistants quite convenient. Simplifying payment processes will ensure this medium becomes profitable.
4. Prime members are the most proactive when it comes to shopping and trusting the products sold on Amazon, connecting to them is sure to get you loyal, converting customers.
5. The biggest category is electronics, computers, and office supplies, which means the competition is high, and you’re going to have to create a unique bond with consumers to be in the running. Customer experience (CX) could be the differentiating factor here.
    

Brands need to focus on creating a winning strategy that will consider all these aspects. Create your ideal buyer persona keeping the generations in mind and find the right ways to target each persona based on these findings. It will ensure newer prospects are reached, and existing customers stay loyal.

Do you have an Amazon marketing strategy yet? Tell us on Twitter,Opens a new window LinkedIn, oOpens a new window n FacebookOpens a new window ; we’re listening!