eComms Spotlight: The Power of Feedback & Collaboration
Parents in the UK face increasing pressure due to financial pressures. We explore how retailers can support families and successfully grow their business by learning from buyer behaviour and using consumer feedback
The Times suggests that the average amount of money spent on raising a child from birth to 18 in the UK in 2023 is £223,256, a rise of 10% on 2022 and a cost of £12,400 a year. We wanted to understand the impact this rise has on families and how their online buying behaviour changes when faced with having less disposable income.
Our market research suggests that with the rise in the cost of living and the need to be more mindful of spending money, a staggering 73% of respondents emphasised the importance of demonstrating value for money, highlighting a growing awareness of economic challenges.
When budgeting, respondents indicated their willingness to de-prioritise certain expenditures. Notably, 31% were inclined to de-prioritise holidays, while 28% would de-prioritise spending on clothes. This sheds light on the shifting priorities of consumers with children.
Online consumers demonstrated behavioural changes based on budget constraints. A significant 56% of respondents indicated actively searching for sale items when facing budget limitations. Additionally, 28% conducted more product and brand research than in previous years.
One particularly interesting insight relates to purchasing decisions when operating on a reduced budget. An overwhelming majority indicated a preference for buying better quality items that last longer, even with a reduced budget.
This nuanced approach to spending emphasises the value placed on durability and longevity, even when financial resources are constrained. This also demonstrates a requirement for online retailers to offer varied product lines for individuals with a different approach to less disposable income.
We interviewed the Head of Commercial Planning at one of the UKs leading retailers in child and infant products to understand the strategies employed that enable them to adapt to the changing landscape.
Two core areas that the commercial team focus and report on are KPIs around people’s behaviour and customer feedback.
“Customer feedback is incredibly important to us. We ask all customers to fill in Trustpilot reviews for the products and services they receive from us and we track several KPI’s to understand people’s behaviours over time and how that influences what they buy.
We have learnt that the success of our products relies upon setting out plans based on historical sales, then adjust based upon market knowledge and other influencing factors such as price and competition. We measure performance versus our expectations to determine future buying strategies, customer trust and business growth.”
Not only is feedback important, but they have had great success in using real customers to drive in person experience into the product decisions. “We also ask parents to test out new products and survey our colleagues on new colours and styles to gauge what we think will work best. This is so important, especially when working with marketing.”
Success also comes from the close relationship the commercial team have with marketing. “We work with marketing all the time. We make sure to schedule launches a time when there is little disruption (i.e., not in a sale or event) so we can focus our marketing activity to gain momentum for these products at the best time possible.”
Learnings and Opportunities
Internal processes have clearly lead to success for this retailer, who operate in both the online and offline space. Communication between teams as well as utilising insights around buying patterns have clearly been refined to
As consumers contend with external factors that impact their buying behaviour, retailers must not only demonstrate value for money but also understand shifting priorities and adapt their strategies to meet evolving consumer needs.
E-commerce companies, armed with data on buyer behaviours, can play a pivotal role in providing solutions that resonate with the changing needs and motivations of families with changing budgets.