What drives consumer choices today?

Understanding consumer behavior is key to staying ahead in the digital marketplace. Wunderkind surveyed over 1,500 consumers across the U.K. and the U.S., capturing insights from a broad range of demographics, including age, income, and shopping habits.

The survey zeroes in on three critical areas: digital purchase behavior, the impact of online marketplaces, and the growing importance of brand websites. The findings show the patterns and preferences that help brands refine their strategies to better align with consumer expectations in these rapidly changing times.

Digital purchase behavior is a core focus, sharing insights into how consumers interact with online shopping platforms and what drives their purchasing decisions. The survey also explores the influence of online marketplaces, which have become increasingly dominant in the e-commerce space.

It also highlights the importance of brand websites in capturing consumer loyalty and maintaining profitable margins. Exploring these areas, businesses can gain a clearer understanding of how to chart a course through the complexities of today’s digital market.

Why online shopping is exploding and what it means for you

How more people are shopping online every week

Online shopping is becoming more common, with 33% of consumers now making purchases online on a weekly basis. This isn’t a passing phase; it’s expected to grow, with 25% of consumers planning to increase their online shopping in the coming year.

The convenience of online shopping, combined with a wider selection of products and competitive pricing, makes it an attractive option for a broad range of consumers.

Surges in online shopping are disrupting the retail landscape. Brands that can capitalize on this trend by offering smoother online experiences and maintaining strong digital presences are likely to see major benefits.

Understanding the frequency with which consumers shop online and the factors that drive them to do so is key for any business looking to thrive in today’s competitive environment.

Young consumers are leading the digital charge

Young consumers, particularly those aged 25-34, are leading the shift towards more frequent online shopping. This demographic is tech-savvy and highly engaged in digital commerce. Their shopping habits are driving the adoption of new technologies and platforms, making them a critical audience for brands to target.

This group values convenience, speed, and personalization in their shopping experiences—and they’re more likely to make purchases through mobile devices and expect brands to offer personalized recommendations and unified user experiences.

Businesses that cater to the preferences of this younger demographic through investing in mobile-friendly platforms and personalized marketing strategies are well-positioned to capture their loyalty.

How to make customers buy straight from your site

Keeping your margins high

Selling directly through a brand’s website lets businesses keep higher margins by cutting out intermediaries like online marketplaces—providing a more direct line to the customer—and helping brands build stronger relationships and gather valuable first-party data.

Incentivizing direct purchases is key for encouraging consumers to buy from a brand’s website rather than a marketplace.

Strategies such as offering exclusive products, personalized promotions, and superior customer service can make a brand’s website the preferred shopping destination. Businesses must focus on direct sales if they’re to improve customer loyalty, grow their margins, and gain deeper insights into consumer behavior.

Proven ways to get shoppers to skip marketplaces

Creating compelling value propositions is key to encouraging consumers to bypass online marketplaces and shop directly on a brand’s website. Exclusive offers, loyalty programs, and personalized shopping experiences are effective ways to differentiate a brand’s site from broader marketplaces like Amazon or eBay.

Value propositions should be clearly communicated to consumers, clearly pointing out the benefits of shopping directly with the brand. For example, offering faster shipping, better customer support, or unique product bundles can tip the scales in favor of direct purchases.

Brands should provide tangible benefits to persuade consumers to make their purchases directly, ultimately retaining more control over the customer experience and improving profitability.

Use data to make your marketing hit home every time

How smart data use crushes competitors

Data-driven marketing is a must for businesses aiming to stay competitive in today’s business and digital climate. Leveraging extensive data lets brands tailor their marketing efforts with precision, delivering personalized messages that resonate with individual consumers.

The Wunderkind Identity Network’s data pool is a good example of how a rich database can support hyper-personalized marketing efforts, giving brands a strong edge over competitors who rely on less targeted approaches.

This approach typically involves using customer data to understand behaviors, preferences, and purchasing patterns. Analyzing this data, businesses can craft marketing campaigns that speak directly to the needs and desires of their target audience, increasing engagement and driving higher conversion rates.

Why going personal is your best bet

Personalized marketing strategies are proving to be one of the most effective ways to engage customers and drive sales. Data depth and breadth enable brands to create more relevant and impactful customer experiences, which in turn lead to higher levels of customer satisfaction and loyalty.

Brands that invest in personalized marketing are seeing tangible results in the form of improved customer engagement, higher conversion rates, and increased revenue.

Personalization goes beyond just using a customer’s name in an email—typically involving understanding the customer’s journey, anticipating their needs, and providing tailored solutions that meet those needs at every touchpoint.

Stay ahead by tapping into what customers really want

Connect with customers where they are

Email continues to dominate as the preferred method for personalized offers, particularly among older consumers who value the familiarity and convenience of this channel. Brands targeting this demographic should continue to invest in email marketing, focusing on delivering personalized, relevant content that meets the expectations of these consumers.

At the same time, there is a noticeable shift towards SMS as a preferred communication channel among younger consumers—pointing to the growing demand for instant, direct communication.

Brands looking to engage younger audiences should consider incorporating SMS into their marketing strategies, offering personalized offers and updates that can be delivered straight to the consumer’s mobile device. Through adapting to these preferences, businesses can make sure they’re reaching their customers through the channels they prefer.

Ads that actually work and how to make them

Tailored ads are the most effective way to capture consumer interest and drive engagement. Ads that are customized to match consumer interests and behaviors outperform generic advertising efforts, resulting in higher click-through rates and better overall performance.

Creating these ads requires a deep understanding of the consumer’s preferences and behaviors, which can be gleaned from data analytics. Brands should segment audiences and craft messages that align with their specific interests to deliver ads that are both relevant and impactful.

This then improves the effectiveness of advertising campaigns and positively impacts the overall customer experience by reducing ad fatigue and making interactions more enjoyable.

How to create ads people actually want to see

The key to creating successful ads lies in making them visually appealing and non-disruptive. Consumers are increasingly wary of intrusive advertising, and brands must adapt by designing ads that blend subtly into the user experience. This demands focusing on aesthetics, relevance, and timing to make sure ads are both engaging and respectful of the consumer’s space.

Non-disruptive ads are those that add value to the consumer rather than interrupting their experience. For example, native ads that align with the content the consumer is already viewing, or well-timed offers that meet an immediate need, can improve rather than detract from the user experience..

Why your data strategy needs a major upgrade

New rules for data collection

As third-party cookies phase out, the need for robust first-party data collection becomes more urgent. Brands must shift their focus to gathering data directly from their customers through interactions on their websites, apps, and other owned channels. This data is more reliable and provides a deeper understanding of the customer, leading to more personalized and effective marketing strategies.

With the decline of third-party data, investing in first-party data strategies is no longer optional; it’s essential for maintaining a competitive edge.

First-party data is now at the core of successful digital marketing, letting brands build richer customer profiles, tailor their messaging with greater precision, and deliver experiences that align closely with customer expectations.

Winning tactics to build your own data

Building a strong first-party data collection strategy involves several key tactics. Encouraging direct interactions with customers is one of the most effective ways to gather valuable data—which can be achieved through engaging content, interactive features, and personalized offers that incentivize consumers to share their information.

Brands should also prioritize transparency and trust when collecting data. Consumers are more willing to share their information if they understand how it will be used and see clear benefits from doing so. Through clearly communicating the value exchange—what consumers get in return for sharing their data—brands can build up trust and encourage more data sharing.

How to dominate both marketplaces and direct sales

Use YouTube and Facebook to boost your reach

YouTube and Facebook continue to dominate as the most influential ad channels in digital marketing—offering vast audiences and sophisticated targeting options, making them ideal for brands looking to reach specific consumer segments.

The key is to understand how to use these platforms effectively to shape consumer impressions and drive purchases.

On YouTube, video content can be used to tell compelling brand stories, showcase products in action, or provide valuable information that captures consumer interest. Facebook, with its powerful targeting capabilities and diverse ad formats, lets brands engage consumers at multiple touchpoints throughout their journey.

Master these platforms to drive sales

Maximizing advertising impact on YouTube and Facebook requires a clear understanding of each platform’s strengths and how to leverage them. On YouTube, brands should focus on creating engaging video content that aligns with consumer interests and encourages sharing.

For Facebook, using dynamic ads that retarget users based on their previous interactions can increase relevance and boost conversions.

Brands should also consider cross-channel strategies that integrate both platforms, using data insights to create cohesive campaigns that follow the consumer across their journey—increasing the chances of engagement while building a consistent brand presence that reinforces consumer trust and loyalty.

Go deep into data to transform your business

The interactive data engagement tool offers businesses the ability to explore consumer data in real-time, providing a dynamic way to understand market trends and preferences. Users can filter data by different demographics such as age, country, household income, and gender, allowing for a more tailored analysis of consumer behavior.

This tool helps businesses ask specific questions and gain insights that are directly applicable to their unique situations. Companies can then identify patterns and opportunities that may not be immediately obvious, improving their ability to make data-driven decisions that align with their strategic goals.

Final thoughts

As the digital climate shifts and consumer expectations evolve, ask yourself: Is your brand truly listening to what your customers want, or are you still guessing?

It’s time to think beyond traditional strategies and explore how you can create more meaningful, data-driven connections that keep consumers coming back. What steps will you take today to make your brand irresistible in their eyes?

Tim Boesen

September 12, 2024

9 Min