Wednesday, February 14, 2024
spot_img
HomeMarket TrendsWhy Small Retailers are Losing Customers & How to Stop It?

Why Small Retailers are Losing Customers & How to Stop It?

- Advertisement -

Small retailers are losing potential customers because they lack the convenience Gen Z and Millennials expect, according to new research by GoDaddy.

GoDaddy recently surveyed 1,000 small retailers to determine whether they believe they provide their customers with a convenient online experience.

Interestingly, while 91% of the retailers believed they offer a convenient online experience, the survey revealed a significant difference in consumer sentiment. Only 21% of consumers, and a mere 19% of Generation Z individuals, agreed with the retailers’ assessment.

Overall, while small businesses identified Gen Z and Millennials as top target audiences, their current practices tend to cater more to older generations. However, there is still an opportunity for entrepreneurs to earn younger consumers, as 73% percent of Gen Z and 75% of Millennials say they would shop more at small retail stores if they offered the same convenience as larger chains

Here are the areas of convenience that 1,000 consumers across the U.S. rated as top priorities and how small businesses are stacking up:

Ways to Pay

  • 73% of Gen Z and 83% of Millennials said “Buy Online, Pickup In-Store” is important to them, but only 1 in 3 (34%) small retailers offer it.
  • 85% of Gen Z and 82% of Millennials said it is important for small retailers to accept contactless digital payments, yet 27% of small businesses do not accept digital wallet payments

Online Shopping

  • Unsurprisingly, 90% of consumers said it is important for small retailers to offer free shipping, yet 2 in 5 (38%) do not offer it.
  • 89% of consumers said that it is important for small retailers to have a website, but 24% surveyed do not have one.
  • 55% of Gen Z and 61% of Millennials said it is very important for them to have the option to make purchases directly from a retailer’s website, but nearly 3 in 10 (28%) do not have an online store.
  • The majority of consumers (65%) said they are more likely to purchase if they knew the personal story of the brand, however, 1 in 5 do not share their story.

Social Media

  • The overwhelming majority of young consumers (80% of Gen Z and 75% of Millennials) said it is important for retailers to have storefronts linked to their social pages for easy shopping. Unfortunately, small retailers are primarily using their social accounts for brand awareness over sales. Only 25% are using social media to sell physical products and 19% to sell digital products.
  • 41% of Gen Z and 43% of Millennials have followed a brand on social media for a discount, but 47% of small retailers do not offer a discount code when someone follows them on social media

“Consumers are ultimately looking for convenience, and if small businesses aren’t meeting these expectations, they’re likely losing business,” said GoDaddy Trends Expert Amy Jennette. 

The Solution to Improving Sales

Although nearly all small retailers (91%) agreed it’s important to make sure their business is keeping up with tech innovations, they are not quite meeting the high expectations of an increasingly tech-savvy consumer base.

Moving into 2024, small businesses should aim to work smarter and lean on technology designed to make meeting these consumer preferences easier.

GoDaddy helps entrepreneurs build their businesses online with domains and websites, AI-infused marketing tools, and convenient ways to accept secure payments online and in person.

To learn more about GoDaddy and its shopping solutions, visit GoDaddy.com.

- Advertisement -
Advertisement Booking.com

Subscribe to our newsletter

To be updated with all the latest news, features and special announcements.

Advertisement

Latest