Three Key Takeaways from the Future Consumer Debate

1. Evolving Consumer Expectations and Behaviour

Consumers now expect seamless, immersive engagements and prioritise sustainability and hyper-personalisation. The clear message from many retailers is be authentic, be where your target audience is (you don’t have to cover every base), and use that channel to speak to that cohort exclusively by being true to your core values.?

However, the reality in some segments is that current economic challenges are pushing consumers towards less sustainable and ethical options. With reduced disposable income, and persistent exposure to hyper-personalised digital marketing, consumers are being led into more impulsive and cost-driven decisions. In some categories, we still want to shop as we used to, but with a fraction of our usual budget, when it is so stretched in other areas of life.?

So who is influencing buying trends - retail marketeers or the consumer??

2. The new brand loyalty

The consensus is true brand loyalty appears to be fading. There are exponentially more marketing channels than 20 years ago. Consumers are inundated with ads across the entire marketing mix, leaving brands and retailers struggling to break through the noise and keep consumers interested, engaged, and loyal.

Loyalty cards have become data capture mechanisms in exchange for preferential pricing. But if all retailers use this as a strategy, where does that leave the consumer?.. with more loyalty apps than social media platforms, questioning the legitimacy of the yellow ticket ‘loyalty card price’. And how does this fit with the hyper personalised experience consumers demand??

What is clear in 2024 is that loyalty is not defined by engagement metrics like likes and shares, nor by the number of loyalty app users. It is not something retailers can take for granted. Gen Z values transparency, authenticity, and ethical practices but can be swayed by options that offer better value for their limited budgets. Maslow's hierarchy of needs remains relevant, highlighting the balance between idealism, practical necessities, and social influences when considering loyalty initiatives.

3. Importance of Data and Technology

A common thread that confirms what we already know deep down, successful retailers and brands are tech companies first and product second.?

Data-driven strategies are essential for understanding customer behaviour and enhancing personalisation. Retailers and brands need to foster a data-centric culture, improve data quality, and leverage AI and other technologies to stay agile and responsive in a rapidly changing market.

It's clear that retailers need to understand the deeper motivations and 'moments' behind purchases to anticipate evolving behaviors and trends. However, most discussions focus on internal data, such as first, second, and third-party data, which often merely recycles past sales information. This static data reveals what has happened, not what will happen. In contrast, zero-party data—explicitly consented, real-time, and unbiased—provides a genuine source of consumer intelligence. The challenge now is how to effectively gather this valuable data with transparency and value for the customer, without a bombardment from a thousand retailers.?

In summary, a technology first approach, a focus on whole consumer behaviour, speed to adapt to new loyalty trends, and product choice are essential for success in the modern retail landscape.?