Last year, accelerated digital transformation and the strong entry of businesses of all sizes into e-commerce, forced by the pandemic, were regular topics of our discussions. Many companies were virtually “catapulted” 5 years into the future. This applies both to the sales process, advertising as well as communication between employees, or with customers.
This is due to changes in consumer behaviour. Since the beginning of the pandemic consumers have been spending much more time in the Internet. This can be seen, for example, in Facebook statistics. At the peak of the pandemic, the amount of information sent through our messaging apps increased by more than 50 per cent.
Although the era of digital trade had already been announced for quite some time, it was 2020 that fulfilled this prediction. Small and medium-sized companies were particularly involved in this. For example, 18 per cent of Polish companies have already increased the share of e-sales in their turnover as a result of the pandemic.1 Polish companies have also put social media to good use: 67% of the surveyed companies in Poland use Facebook, and 56% of them have declared that by using all of our applications they have managed to strengthen their company’s position.2 This trend has grown stronger in the wake of the pandemic.
1. Report “State of Small Business”, Facebook, World Bank, OECD, 2020
2. Facebook SMB Survey Poland, IPSOS, 2019
Ewa Tumanow
Facebook
Client Partner, Central Eastern Europe
Digital trade brings generations together
The importance of digital channels is strengthened by the entry of Generation Z into adulthood. In 2020, 3.2 billion people were under 25 years of age – this is more than 40% of the global population. We should remember that Generation Z is the largest generation in history. This is one-fourth of the population with a current purchasing power of USD 730 billion a year.3
Growing up in a world with 24-hour news coverage of tumultuous events taking place worldwide, the children of Generation Z have witnessed a global financial crisis, a huge recession, international terrorism, widely publicized cyberattacks and claims of fake news permeating culture. As a result, Generation Z children are not easily deceived; they can very easily pick up on scam and marketing spin. They expect transparency and authenticity from everyone, including brands. What is more, as many as 79% of the representatives of Generation Z surveyed throughout the world believe that the pro-ecological behaviour of brands has gained importance.4
The increase in the role of digital channels in trade has not been caused by the youngest generation alone. Consumers of all ages have become even more digital. They look for opinions and recommendations in the Internet, they compare offers that interest them, and they shop online more often and in larger numbers than ever before. But the credit for the dynamic increase in the popularity of mobile devices and e-commerce goes mainly to Generation X and the baby boomer generation. For example, in 2019 in Poland the percentage of surveyed consumers in the baby boomer generation, i.e. those born before 1964 who use their mobile phones to discover, browse and purchase products at Christmas increased by 85 per cent compared with the previous year.5 Once the pandemic is over, most of them will continue to use the technologies they learned to use during the COVID-19 epidemic.
3. Facebook IQ, 2020
4. Facebook IQ, 2020
5. Facebook IQ, 2020
Even fewer difficulties
Consumer demands are also growing in step with the frequency of online shopping. They expect more efficient communication with the seller, faster delivery and more accurate information. The pandemic has changed the approach of consumers and companies to e-commerce permanently. That is why enterprises must adapt to the new expectations and make better use of online sales tools.
Due to rising consumer expectations in online trading, companies must strive to reduce and eliminate all friction on the digital and physical path to purchase. This includes every step or delay that could cause a shopper to abandon the purchase path. This could include, e.g., a font that is too small on the website, poor quality photos, content which does not fit on the screen, unclear product descriptions, payment problems. On average, 82% of mobile shoppers experience such difficulties when shopping.6 Last year, we launched Facebook Shops precisely to help companies to reduce or eliminate many such issues. It is worth remembering that as many as 78% of online purchases are made using mobile devices, so the design of the offer in that channel is of key importance.7
It is also important to guarantee efficient communication with consumers through the channels they use every day. That is why it is worth thinking about using online messaging apps such as Messenger or WhatsApp for fast, convenient and immediate contact with customers.
Companies – regardless of their industry and target audience – must find a new way of interacting with the buyers of their services and products. They must be where customers are now, and they must think about what platforms are best to maintain contact with them.
6. Facebook IQ, 2020
7. Facebook IQ, 2019
Age of discovery commerce
During the pandemic, Poles feel more comfortable shopping at home. But since shopping has moved to the Internet, responding to identified consumer needs alone is not enough. Many of them also look for inspirations in social media, discovering new products and new brands there.
This is an important shift in the paradigm made possible thanks to the advanced AI technology and the data power of platforms such as Facebook or Instagram. Today, it is not the consumer that searches for a product of interest online, but it is the product itself that “finds” the consumer based on his interests and tastes. We have called this new approach “Discovery commerce”.
This mind-set based on discovery is not entirely new – however, the changes in this direction have been significantly accelerated by the lockdown. Consumers have been forced to try new ways of shopping, and many people have liked them. Sixty percent of consumers around the world declared that they have recently tried a new store, website or brand, and most of them plan to use them in the future.8 Forty-six percent of surveyed Poles claim that they will also shop more online when the pandemic is over.9
The pandemic is an extremely difficult experience for many companies – even the largest ones. However, we can only hope that the crash course in e-commerce it has offered them will bring benefits in the longer term.
8. Perspectives on retail and consumer goods, McKinsey, 2020
9. GlobalWebIndex, 2020
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