Understanding Customer Buying Behaviour in Retailing

“To understand the man, you must first walk a mile in his shoes.”

This traditional proverb signifies the importance of empathy and perspective. At GMG, we understand that each of the divisions we work in requires special attention and care. So, when we step into the consumer’s journey as Retailers, we can better anticipate needs and tailor our strategies to support retailers and meet market demands.

The dynamism of the retail landscape, of course, makes everything fast-paced and requires us to understand these behaviours to meet the ever-evolving demands of consumers. We are also witnessing a new era of more data-driven consumption. Therefore, tracking and analysing customer behaviour enables companies like us to optimise their strategies and cater to them more effectively. Below, we explore customer buying behaviour from a company’s perspective, examining buying patterns, decision stages, data-gathering methods, and ways to leverage insights for business growth.

Customer buying behaviour in retailing: an up-close look

?Let’s look at customer behaviour in more detail.

Our shopping behaviour is shaped by various factors, including psychological drivers, personal preferences, social influences, and economic conditions. From a business perspective, understanding these factors provides insight into how best to support retailers with products that align with customer expectations, particularly in terms of pricing, packaging, product quality, and availability.

It’s important to acknowledge that buying behaviour can be impacted through a variety of variables. Some examples include the demographic, season, and even the time of day. A customer’s path to purchase—whether in-store or online—can be complicated and often influenced by promotions, trends, and convenience. We can take a look at Millennial and Gen Z consumers as an example. They may prioritise brand ethics and sustainability over other factors. This will, of course, impact their buying decisions. Then, in comparison, we could see that previous generations have a higher value on brand loyalty and price sensitivity.

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Customer's buying behaviour patterns

Buying behaviour can be broken down into four main types of patterns. The following matrix provides a quick summary of how they work.

Let’s start with ‘Complex Buying Behaviour’. This occurs when customers are making significant, high-involvement purchases and may need to extensively research and evaluate different options. For distributors like us, this behaviour signals an opportunity to emphasise detailed product information and highlight features that set their products apart from competitors.

Next, there is ‘Dissonance-Reducing Buying Behaviour’, where customers have a small level of anxiety surrounding their purchase choice. This is quite often due to high stakes (like cost), but this occurs without a strong difference between brands. In these cases, we can support retailers by ensuring customers have access to post-purchase resources, such as guarantees or customer service support, to minimise regret.

‘Habitual Buying Behaviour’ can be seen when customers make low-involvement, routine purchases. These products are ones that customers usually buy out of habit and are often part of an established routine. This makes consistent availability and visibility essential. Businesses can assist by maintaining a steady supply of these products to avoid disrupting customers’ buying patterns.

Customers who enjoy trying new brands or products for the sake of novelty, typically with low-risk items like snacks or personal care products, exhibit the ‘Variety-Seeking Buying Behaviour’. Do you consistently like to try new brands of chocolates? Or do you enjoy experiencing the same types of products but from different stores? Retailers can cater to this pattern by introducing new or seasonal products and by encouraging retailers to rotate inventory options to keep customers interested.

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Customer buying stages and related behaviours

We can look at the buying journey in several stages, each marked by distinct behaviours and needs. Companies who understand these phases can better align their offerings with the shopper’s journey:

??Awareness: Clear branding and promotional materials can effectively capture the consumer’s attention, especially for new or seasonal products like during Ramadan.

??Consideration: This is when consumers look at the available options. At this point, it’s common to have concerns about pricing, product reviews, or recommendations. We can help consumers by providing comprehensive product information, competitive pricing, and perhaps even samples for trial use.

? Decision: This is where a customer chooses a product and finally makes the decision to complete the purchase. We can help facilitate this decision by providing smooth product accessibility and availability, whether in-store or online.

? Post-Purchase Behaviour: One of the key stages in creating product champions and community is aftercare. It’s not just about buying a product. It’s common to evaluate your decision after a purchase. Gathering feedback and ensuring quality control will help encourage repeat purchases and build loyalty.

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How customer experiences shape the buying behaviour of consumers

Crucially, any retailer trying to stay competitive in today’s market must understand customer buying behaviour. Factors such as price, product quality, and brand reputation often influence purchasing decisions but one aspect, frequently overlooked, is?customer experience.

Retailers must recognise that customer experience is not just a “nice-to-have” but a strategic driver of buying behaviour. Let’s explore how experiences impact buying behavior, and how retailers can leverage this insight to improve sales and customer loyalty.

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The Role of Customer Experience in Buying Behavior

When referring to customer experience (CX), we observe the total journey that consumers will navigate. This includes everything from browsing your website to engaging with your staff, from exploring your physical store, all the way to after-sales support. Everything has an impact on CX. The overall perception a customer has of your brand is based on their interactions across these various touchpoints.

Providing a positive experience can foster trust, increase spending, and encourage repeat purchases. On the other hand, poor experiences can lead to dissatisfaction, lost sales, and even negative reviews that deter future customers.

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Linking CX to Buying Patterns

1.?An emotional connection can foster loyalty Customers are more likely to buy from brands that make them feel valued and understood. For example, personalised recommendations based on past purchases or preferences create a sense of connection that encourages loyalty and repeat purchases. This shows that brands value what an end-user needs whilst providing a portfolio to match. Sharing stories behind products makes the retailer-customer relationship less distant, making them part of the family. #GMG1family

2. Seamless Interactions Boost Confidence As mentioned, a smoother and hassle-free journey—from browsing to checkout—can positively influence buying behaviour. Long wait times, confusing navigation, or unhelpful staff can frustrate customers, causing them to abandon purchases or seek alternatives.

3.?Word of Mouth & Social Proof One of the most understated marketing tool, is word of mouth. Exceptional experiences often lead to positive conversations around a company which heavily influences the buying decisions of others. Retailers who delight their customers, create advocates who spread the word, impacting the buying patterns of new prospects.

4.?Post-Purchase Support Reinforces Decisions How you handle returns, refunds, or customer inquiries post-purchase can either strengthen a buyer’s confidence in your brand or push them to competitors. Satisfied customers are more likely to purchase again and spend more over time.

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How do we gather data on consumer behaviour in retail?

We know that gathering data on customer behaviour is vital for making informed inventory and marketing decisions. Actionable data can be attained via a variety of methods.

It’s quite common to observe sales data trends over a specific period of time to understand customer preferences. This type of analysis has been expanded to real-time insights such as basket size, cross-selling information, peak buying periods, and popular product categories.

Next, and perhaps the hardest to action, would be customer surveys and feedback forms. It is a very direct way of gathering feedback and data from customers. While it can be difficult to quantify data, it can provide interesting information.

With the world of retail becoming a combination of in-store and online experiences, the latter can also produce useful data. For online retail channels, website analytics, social media insights, and digital advertising performance data can even shape trends and purchasing behaviours. These insights support companies in understanding which products are attracting attention and which marketing messages are most effective.

Understanding customer buying behaviour in retail is a must. In order to stay competitive and responsive to market demands, observing choices is important. By closely monitoring consumer behaviour patterns, stages, and feedback, retailers can align their product offerings with customer preferences and collaborate more effectively with retail partners. Gathering and applying insights into buying behaviour allows companies to anticipate shifts, maintain strong relationships with retailers, and drive growth in an increasingly customer-centric market.

For retailers, the path to success in retail lies in becoming experts on the customer journey—not only to predict needs but also to meet them more effectively and ensure customer satisfaction through their retail partners.

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By Sagarika N.

?[AR1]Ref: https://www.clootrack.com/knowledge-base/types-of-consumer-behavior

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