Customer Data Analysis: Insights on Filipino Buying Behavior
The relationship between customers and businesses is like a revolving wheel, with customer behavior shaping business strategies, influencing customer behavior. The size of this wheel and the frequency of its rotations represent how effective a company’s actions are at influencing consumer behavior.
Businesses understandably want to turn the wheel faster, and the key to doing so comes from customer data analysis.
However, the vibrant markets in the Philippines, with its rich and varied cultures, can make it challenging to interpret customer data accurately. This article can help your business understand a country with constantly evolving consumer preferences and trends.
Factors Influencing Filipino Buying Behavior
Tailoring your marketing strategies based on Filipinos’ buying behavior can help you better understand and connect with them. Below are factors that can significantly shape consumer decisions in the Philippines.
1. Sales
Filipinos are known to be highly responsive to sales and promotions, actively seeking discounts and special offers when purchasing. Double-day sales, such as February 2 (2/2) or March 3 (3/3), are particularly popular nationwide in online and offline marketplaces.
Limited-time deals and exclusive discounts further enhance the sense of urgency, driving immediate action from customers.
2. Value for money
The recent pandemic and global socioeconomic events have made Filipinos more value-conscious than ever. Good quality products that they can buy at high quantities affordably resonate well with savvy Filipino buyers—no one wants to feel like they’ve overpaid, after all.
3. Brand reputation
Building a strong brand reputation and establishing trust goes a long way toward influencing Filipinos’ purchasing decisions. Companies with a strong brand presence and positive customer experiences tend to attract loyal buyers in the Philippines.
Consistency in product quality, excellent customer service, and a positive online reputation instill confidence and encourage repeat business among Filipino consumers.
4. TV advertisements
Television remains a popular medium in the Philippines for news and entertainment. Well-crafted advertisements on local channels have the potential to reach broad audiences, influencing their preferences and behavior.
Filipino consumers often have strong connections with their favorite celebrities, and celebrity endorsements can significantly impact brand perception and consumer behavior.
5. Social media influence
Social media is dominant in the Philippines, keeping Filipinos connected and informed across thousands of islands. Facebook and Messenger are particularly popular, with TikTok also gaining traction. With the widespread use of social media platforms, businesses can reach massive audiences with minimal effort.
Insights on Filipino Buying Behavior Through Data
It’s easier to grasp the significance of specific claims with numbers and studies behind them. Here are some data-backed insights into Filipino consumer behavior.
1. Online shopping versus physical stores
Despite the rapid growth of e-commerce, most Filipinos (77%) still prefer shopping at physical stores. The sensory experience and immediacy of brick-and-mortar locations hold strong appeal for consumers.
However, the same study found that competitive prices, a wider range of products, and the convenience of home delivery can sway consumer preference toward online shopping.
2. Brand loyalty and trust
Filipinos value brands that provide good experiences and are likelier to recommend them to others. Nearly 80% of satisfied customers in the Philippines recommend their trusted brands to their peers. While customer retention programs may require time to yield results, Filipinos appreciate the extra effort put in by businesses.
Additionally, prefer personalized experiences and are willing to spend more for better treatment. These underscore why focusing on customer experiences is a good investment.
3. Payment preferences
Filipino buyers vary in payment preferences. While cash is still the leader, credit cards and digital wallets are quickly gaining popularity, each with 16% of digital sales in 2021. Businesses need to provide as many options as possible to cater to Filipinos’ varying tastes.
4. Social influence
Public sentiment worldwide often holds brands accountable to the consumers’ values, and the Philippines is no exception. Social values influence to focus more on the goods or services provider than the products. Some hot topics in the country are environmental sustainability, social responsibility, and inclusivity.
4 Strategies to Help Influence Filipino Buying Behavior
Businesses can employ strategic approaches tailored to the unique consumer buying behavior in the Philippines, including:
1. Customer profiling and segmentation
Your Filipino customer base is likely incredibly diverse. Customer profiling and segmentation can help you efficiently tailor your marketing efforts to specific groups. For example, a clothing retailer may segment customers into different age groups to create customized messaging and product offerings.
2. Customized marketing campaigns
Using your understanding of customer data and insights, you can create customized marketing campaigns that address your target audience’s needs. Personalization is the secret to capturing the attention of Filipino consumers.
An online retailer, for instance, can review customer browsing and purchase histories to send personalized product recommendations. These types of customized marketing can increase the likelihood of conversion.
3. Localization of products and services
Adapting your products and services to suit local contexts and preferences can significantly enhance their appeal. This process can involve translating into local languages, making cultural references, and including familiar design elements.
A great example is how global fast-food chains introduce menu items that cater to local tastes. They also often collaborate with local celebrities for endorsement to establish a stronger connection with diners in the country.
4. Influencer collaborations
Many Filipinos are die-hard fans of at least a few local influencers. These icons have a solid following and instantly resonate with their audience. Their reach and credibility can do wonders for establishing your products and services as trustworthy.
Skincare brands, for example, can collaborate with popular beauty vloggers to showcase their products working on a person people recognize and trust.
Understand the Filipino Market
Consumer buying behavior in the Philippines can be as complex and interwoven as the country’s cultures and islands. However, understanding these intricacies is paramount to succeed in the dynamic market. Using customer data analysis, you can navigate and adapt to local preferences effectively.
Want to unlock the power of customer data? Contact Inquiro today and discover how our customer data analytics can take your business to the next level!
Interested to uncover new insights about the market? Get in touch with us today and let’s see what we can discover together. Email us at info@inquiro.ph.
