Smartphones and the internet have given consumers immediate access to information. Now, they can make decisions on any products and services at their convenience. This shift has changed how consumers shop and interact with brands. At the same time, social media continues to empower consumers with louder voices and broader platforms to express their opinions, share experiences, and influence their peers’ purchasing decisions.
Businesses face the critical challenge of staying relevant. The pace at which technology and consumer behaviours change demands agility and adaptability from brands. Companies that quickly understand and act on these new consumer expectations, leveraging technology to meet their demands, will find themselves in a position of strength. On the other hand, businesses that are slow to recognise and respond to these changes risk falling behind, and potentially becoming obsolete.
This dynamic landscape highlights the need for businesses to stay ahead in technology and consumer trends to thrive in the modern marketplace.
There are 5 consumer behaviours that you should know about.
1. Consumers Demand Personalisation
We are talking about shifting from mass advertising to personalised messaging. The days of a one-size-fits-all approach to marketing and customer service are long gone. With the advancement in technology and data available, consumers expect a personalised experience from businesses. They are expecting tailored product recommendations and customised communication. They want to feel seen and valued by the companies they support.
Why is personalisation important?
Personalisation creates a more positive and memorable experience for customers. When consumers receive relevant content that aligns with their interests and preferences, they are more likely to engage with the brand and take desired actions. Eventually, they feel appreciated, valued, and more importantly satisfied. This can nurture a sense of loyalty and increase their likelihood of return purchases and brand advocacy.
Studies have shown that personalised marketing can lead to” a 20% increase in sales and a 15% increase in customer loyalty.”
What steps should businesses take?
- Must invest in technology and data analysis tools to gather and analyse customer information. (tracking online behaviour, purchase history, and demographic data)
- Use this data to create targeted marketing campaigns and personalised communication with customers. (Sending personalised emails, offering product recommendations based on browsing history)
- Use customer feedback and reviews to understand their needs and preferences better. (Responding to comments and addressing concerns)
2. Consumers Want Experiences. Not Just Products.
While the product is still essential, today’s consumers are looking for more than just a tangible item. This includes things like personalised packaging, reward programmes, and exclusive events or services. What we call experiential marketing.
The Benefits of Experiential Marketing
- Allows for a deeper connection with consumers by creating an emotional attachment to the brand. This in turn can lead to increased brand loyalty and word-of-mouth marketing.
- Permits for more effective targeting as it attracts consumers who are already interested in the product or brand.
Some well-known examples of successful experiential marketing include Coca-Cola’s “Share a Coke” campaign, where personalised bottles were distributed with consumers’ names on them. Also, Red Bull’s “Stratos” campaign, where a skydiver jumped from the stratosphere in partnership with Red Bull. These campaigns generated buzz and media attention but also created a personal connection between consumers and the brand.
How to Implement Experiential Marketing
- Must understand their target audience and what kind of experiences would appeal to them. This could range from hosting a concert or festival for music lovers to creating interactive installations for tech enthusiasts.
- Align the experience with the brand’s values and messaging to create a cohesive and authentic campaign.
- Use social media and other digital platforms to increase the reach of their experiential marketing efforts.
3. The Hyper-connected Consumers
Ever watched a spider weave its intricate web? This web is a fitting metaphor for the interconnected nature of modern consumers. Through the threads of social media, instant messaging, and various online platforms, consumers now are more connected than ever before.
This hyper-connectivity allows them to exchange information, reviews, and recommendations almost instantaneously. This can be seen in the influence of peer reviews and social endorsements that have surged. This is why businesses need to maintain a strong and positive online presence.
GlobalWebIndex reports that 54% of social media users have turned to these platforms for product research.
What steps should businesses take?
- Creating valuable content and responding to reviews and comments.
- Using social media for marketing and customer service.
- Using data and analytics to gain insights into their customers’ behaviour, preferences, and needs ⇒ Help tailor their offerings and improve the overall customer experience.
4. Consumers Value Transparency and Authenticity
In a world where information is readily available, consumers are becoming more conscious and vocal about the values and practices of the businesses they support. This has led to a demand for transparency and authenticity from companies, whether it’s in their sourcing of materials, ethical production processes, or commitment to social causes.
Businesses must be honest and open about their operations to build trust with their audience and maintain a positive reputation. Companies that display genuine and authentic values are more likely to attract loyal customers who align with their beliefs.
Ways Businesses Can Incorporate Transparency and Authenticity
- Sustainability reporting, which discloses the company’s environmental, social, and governance (ESG) performance. It shows a commitment to responsible practices and provides consumers with information to make informed purchasing decisions.
- Cause marketing is where businesses align themselves with social or environmental causes ( donations, partnerships, or campaigns that raise awareness and support for these causes).
5. Consumers Expect Seamless Omni-Channel Experiences
Consumers expect a seamless transition from one channel to another, whether they’re browsing products online, visiting a physical store, or interacting through mobile apps. This omni-channel experience ensures that every touchpoint is consistent, convenient, and tailored to their preferences. Shoppers want the ease of switching from their laptop to their mobile device without missing a beat, or reserving an item online and picking it up in-store.
What steps should businesses take?
- Invest in the right technology and systems. This includes having a user-friendly website, mobile app, and in-store technology such as self-checkout or contactless payments.
- Focus on creating a cohesive brand image and messaging across all channels like using consistent branding, tone, and visuals to reinforce the brand’s identity and values.
Final Thoughts
The digital landscape and consumer expectations are continuously changing, and businesses must adapt to stay informed. Having an online presence alone is no longer enough, you need to create a unique user experience that sets your brand apart.
However, you should also keep up with trends and take proactive steps to address them. Trends can be your momentum driver if you know how to strategically incorporate them into your business and marketing strategy.