With the ever-changing commerce landscape and continually developing technologies, consumer behavior is changing. If you want your business to stay relevant and get ahead of competitors, you must appeal to these behaviors by following the latest trends. By gearing your business to consumers and what they want, you can attract them and convert them into loyal customers. However, you may not be aware of all the latest consumer behavior trends and their importance.
Some of the consumer behavior trends we'll be looking at in this article include:
- The demand for more convenient payment options
- Social commerce
- Personalization using zero-party data
- Macro-influencer popularity
- Omnichannel experiences
- Quality over quantity of products
- Mobile shopping
- Sustainability practices
- Improved health and well-being
- Developments in AI and VR
Knowing more about consumer behavior and other trends will help you optimize your marketing and sales efforts to establish a better connection with the average consumer.
Top 10 consumer behavior trends in 2024
As you develop your business strategy for the next year, consider the following key online consumer behavior trends:
Consumers ask for convenient payment options
Consumers continue to seek more convenient payment options when completing purchases. One of these payment methods is a "buy now, pay later" service, which around 60% of consumers have reported using. Additionally, people want to see other more convenient ways to pay online and offline. This includes contactless tap and mobile wallet payments.
If you want to boost sales, you must include a versatile payment system that allows shoppers to choose their ideal payment method. This will lead to a significantly higher number of conversions as people won't be as restricted in their payment options.
Social commerce continues to flourish
A growing number of people are shopping not just online but through social media channels. Millions of people use platforms like Facebook and Instagram every day. They're turning to these platforms to purchase their favorite products for optimum convenience.
As social media shopping, or social commerce, continues to grow, Deloitte Global predicts that this market will reach over $1 trillion internationally by the end of 2023. People can easily view products in carousels and other visual presentations on their favorite platforms. They have convenient "buy now" buttons that allow for almost instant purchases. This keeps them on these social media sites, eliminating the need for them to go anywhere else to complete their orders.
If your business offers social media buying options, this will further increase sales among off-site customers who might not have the time or patience to visit your website.
Also, as the infographic below from SmartInsights shows, the need for video and imagery now far outweighs the demand for text posts and ads on social media. People generally prefer platforms like Instagram, YouTube, and TikTok to consume social media. They will likely engage with brands more frequently through visual media.
Personalization with zero-party data is in demand
Google has announced that it's getting rid of third-party cookies. While the search engine giant has delayed this removal multiple times, it's still an inevitability. As such, businesses need to do what they can to prepare for a cookie-less world.
Many businesses will still be able to use first-party cookies to collect data about user activity on their websites, which can provide some valuable insights. However, zero-party data is potentially even more vital and is generally more favorable among consumers who worry about privacy invasion. Unlike first-party data that websites collect from users without their knowledge, zero-party cookies explicitly ask for their permission to collect this information. This zero-party data could include everything from names and emails to in-depth interests and preferences, all of which can help with personalization.
There are many ways you can collect zero-party data from customers. One such tool is Storyly. Storyly enables brands to create full-screen, interactive, and dynamic Stories on their app or website to maximize engagement. You can use the interactive features of Storyly Stories, such as polls, quizzes and question stickers to collect zero-party data about users’ preferences, likes and needs. These features incentivize users to voluntarily provide information about their experiences and preferences. Brands can see users’ responses and use the information to create personalized user experiences that appeal to each person's unique preferences.
Influencers continue to influence
Many brands are turning to influencer marketing to connect with audiences through social media. Although many businesses aspire to partner with celebrities who have the biggest influence on social media, macro-influencers are seeing increased popularity. These influencers are the next level down from celebrities, with around 100,000 to one million followers on average.
The best strategy is to get in touch with micro-influencers with around 10k–100k followers, provide them with your products for free, and ask them to share an honest review with their audience.
Omnichannel experiences are valued
Customers continue to engage with omnichannel brand experiences that grab and hold their attention. Companies that implement omnichannel strategies tend to retain up to 89% of their customers. Those with weaker omnichannel efforts only retain around 33% of customers.
Omnichannel experiences refer to a combination of online and in-store experiences. People like shopping both online and in brick-and-mortar locations. If you can connect these experiences to stay in your customers' minds, you'll attract more business in the long term.
An example of a successful omnichannel strategy could consist of a blend of online and in-store experiences. For example, a customer might see an ad for your store online, leading the customer to visit your website. On your website, you could then encourage customers to visit your store for an exclusive discount. When those customers visit your store, they can receive additional coupon cards with a QR code that they can scan using their smartphones. It leaves them back to your website to make online purchases.
Buyers prefer quality over quantity
People don't turn to their favorite brands because they want a lot of a particular product. They go to them for top-quality products. While some products might be best to buy together in bundles or bulk supplies, you should never sacrifice quality for quantity.
Make sure all the products you sell are of consistently good quality to keep customers returning. Otherwise, they may find that while your products are affordable in quantities of two or more, the quality just isn't worth the investment. Do your best to strike a balance between the two to appeal to your customers as much as possible.
Consumers rely on mobile for shopping
Mobile commerce or m-commerce continues to become more popular among consumers, as people shop using their mobile devices, including smartphones and tablets. So many apps and eCommerce websites make it easier than ever for people to shop quickly with one tap and a smooth checkout process, and you should do the same.
With the convenience of m-commerce, it's no wonder that this market continues to grow at a rapid rate. Today, retail m-commerce accounts for around 6.5% of total retail sales. That number is expected to rise to 8.7% by 2026. It's likely to reach a whopping 40.4% of eCommerce sales in 2024.
One of the reasons for the increase in the popularity of mobile eCommerce is the development and implementation of mobile wallets. People can easily and instantly use solutions like Google Pay, Apple Pay, and Amazon Pay to complete mobile orders without the need to enter all their payment details. As a result, people can buy on impulse more easily on the go or at home using their mobile devices on a whim.
If you can target mobile users with an optimal m-commerce experience, you can boost mobile sales. You can appeal to mobile users by creating a mobile-friendly website. This will also help with search engine optimization efforts. You can develop a mobile app that's exclusively designed for mobile devices.
Demand for sustainability is increasing
More consumers than ever care deeply about the environment along with social responsibility. They want to know that the brands they trust share these values. According to one McKinsey report, around 60% of survey respondents stated that they want products with sustainable packaging. 78% revealed that sustainability was a key element of their lifestyle.
While there has been debate about whether consumers truly demand sustainable products, McKinsey and NielsenIQ attempted to find out just how much demand there is, ultimately discovering that products with environmental, social, and governance (ESG) claims behind them saw an average cumulative growth of 28% within five years. This is significantly higher than products without those claims, which saw a 20% average cumulative growth over the same period.
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Whether you produce products with sustainable materials and packaging or production processes, it helps to have sustainable practices behind your business. If your business aims toward increased sustainability, it's important to advertise this to your customers. One way to do so could be to include a section about sustainability in an "About Us" page or even devote an entire page to a summary of your sustainability practices. Post on social media about your efforts and disclose them in ads.
If you can jump on the sustainability bandwagon, this will go a long way in winning more people over and keeping your existing customers loyal.
Consumers prioritize health and well-being
People not only care more about the environment and social responsibility today, but they also care about their well-being. The average consumer wants to find better ways to practice self-care and self-improvement. This applies to both physical and mental health.
The health and wellness market is only going to expand over time. Recent statistics find that the sales of these products will increase annually at a rate of about 10% in the coming years.
Even if your products don't fall within the health and wellness space, you can find ways to promote their benefits. For example, a business promoting a time tracking or scheduling app could encourage users to figure out how to schedule some time for a workout or appropriate meal times when dieting. A company selling beauty products such as makeup could also promote the natural ingredients included in these products and detail how they help keep skin healthy.
AI and VR are here to stay
Two of the biggest technological developments in recent years have been artificial intelligence (AI) and virtual reality (VR). While VR has seen impressive innovations and has many applications in leisure and commercial arenas, AI has taken over the headlines of today's tech news.
Developments like ChatGPT have shown just how powerful AI has become. It's increasingly able to mimic humans and replicate their abilities in everything from writing to programming. Meanwhile, VR allows for some of the most immersive virtual experiences today. Visuals and interactions become more complex and realistic in virtual spaces. The possibilities are nearly endless when you combine these technologies to empower your business.
It is also expected that AI and VR will also merge soon. AI-generated art makes its way into virtual reality experiences that people can interact with beyond mere visuals.
Watch for the latest consumer behavior trends
These and other upcoming and ongoing consumer behavior trends will influence how businesses develop their commerce strategies. By keeping up with consumer behavior trends, you'll ensure your brand remains consistently relevant and never falls behind competitors. You'll appeal to your customer base and stay in the spotlight as you navigate the ever-changing commerce landscape.
The key is to implement the right tools to accompany your strategies. Using solutions like Storyly, you can gain the upper hand you need to flourish in your industry.
