Since COVID-19, consumer behaviour has been evolving quickly and, often, unpredictably. What was once just an adaptation to the pandemic has since solidified into lasting behaviour changes.
And not only this. Economic pressure, rapid technological advancements and shifting cultural values also have something to say about how people interact with brands. Societal priorities are also changing. Gen Z is growing up and ready to spend, and they want to see wellness and meaningful experiences as part of the deal.
If you’re in business, you’ll want to understand these nuances to stay on top of the game. Anticipate the changes, and you’ll build a stronger connection with your audience, foster loyalty, and always stand out in the crowd.
So, what are the biggest shifts in consumer behaviour right now? Join us as we go through the insights from an expert marketing agency in London.
The Growing Scepticism Toward AI and Digital Interactions
Every business and marketing agency is hailing AI as the transformative force in commerce and business right now. Yes, it helps us streamline, personalise recommendations, and predict our customers’ needs, but audiences remain wary of AI-driven interactions.
Many worry that it will replace human touchpoints, leading to impersonal experiences (and remember, experience is what they value!), mistakes, and misuse of the sensitive data businesses perpetually collect.
Research shows that 51% of consumers feel uncomfortable with the idea of AI handling customer service tasks, removing the human they can connect with. For many, shopping is also about connection, empathy, and reassurance. And that’s still something humans do better.
Rely solely on AI, and you’ll risk alienating the customers you have. Blend technology and human engagement, and you’ll be on to striking the balance between the innovation we can no longer escape and your audience’s trust.
The Embrace of Sustainability and Ethical Consumption
Environmental and ethical considerations are seriously intertwined with consumers’ purchasing decisions. Being sustainable is not longer a niche concern, it is the baseline expectation for many shoppers. Consumers appreciate eco-friendly products, sustainable packaging, and brands with transparent, ethical practices.
Millennials and Gen Z are at the forefront of this movement, using their buying power to support companies that align with these values. 58% of consumers are willing to pay a premium for sustainable products. These sustainable practices are now becoming less of a nuisance and more of a real business opportunity.
Another proof of this behavioural change is that consumers are now signalling the importance of buying locally from their own markets, both for economic and sustainable reasons. This trend has been growing in the last five years and will only continue to evolve.
The Influence of Social Media and Influencers… Is Changing
Everything is on Instagram and TikTok. They’ve become central to how consumers discover and evaluate products, but their role is more nuanced. Many consumers now report that social media is their least trusted source for purchasing decisions, yet these platforms remain essential channels where they foster social connections. While the channels themselves are not considered trustworthy, the family and friends people connect with on them are, to this day, their most trusted sources.
Influencer marketing leverages this precise dynamic, with recommendations from trusted personalities impacting purchasing choices even when direct trust in advertising is broken and low.
What does it mean for you as a brand? You need to become crafty in coming up with strategies that integrate influencer content and peer recommendations. However, we must understand that influence is less about direct messaging and more about social context and the art of subtle persuasion.
The Rise of Experiential and Wellness-Oriented Spending
The younger consumers who care about sustainability and ethical practices are also shifting their priorities away from traditional material possessions. They would much rather invest in experiences that will enhance their quality of life. Wellness, travel, and affordable luxuries are all central to the lifestyle they aim for and their spending habits. The desire is clear: personal growth and memorable moments rather than the accumulation of goods.
Globally, this shift is extremely beneficial for industries such as hospitality and fitness, as they already offer meaningful, experience-driven services. Such businesses are naturally already aligned with the modern consumer values.
The Instant-Gratification Mindset
One of the many things that COVID-19 did was make people spend more time alone and online. Naturally, this was logical at the time of the pandemic, but what’s been discovered is that people still tend to do that. The reliance on digital connectivity and at-home activities is still a permanent part of daily life. Consumers are now more intent on immediate gratification and convenience and have a higher focus on self than before.
What this means is that there’s a growing demand for convenience that has cemented a bring-it-to-me mindset. Consumers expect a faster, more convenient shopping experience with rapid delivery, sometimes within just two hours. And this is becoming the norm, raising the bar for businesses competing in an instant-gratification market.
Meeting this demand is now essential for retaining customer loyalty and staying competitive.
Looking Ahead To a New Customer Landscape
The way consumers interact with brands has fundamentally shifted, and these changes are, for better or for worse, here to stay. To succeed in this evolving environment, businesses need to be attuned to the ever-changing priorities of their audiences and have as their ultimate goal to understand them. In doing so, they can build deeper connections, foster loyalty, and stand out in the competitive market.
Stay ahead of the curve: understand today’s shifts, anticipate tomorrow’s trends, and you’ll not just meet expectations—you’ll lead the game.
