In this guide, we’ve listed the top 6 consumer trends for 2024. You’ll also learn how to use the trend to unlock growth in the year ahead.
1. Customer-Centric Approach
Now more than ever, customer interactions can have a decisive impact on loyalty and trust. Consumers are re-evaluating their social, work, and purchasing decisions, which can significantly affect employee and customer retention.
In 2021, a Mastercard study revealed that 74% of consumers are more likely to buy from brands that demonstrated concern and provided excellent care for customers during the pandemic.
A customer-centric approach is vital for growth and customer retention in 2024. But most companies still face significant barriers to becoming customer-centric:
Access and usability of customer data are crucial for gaining the insights needed to provide enhanced customer experiences.
In our latest Digital Gap Survey, only 32% of business leaders agreed that their company knows how to use data in a meaningful and actionable way. Brands need to collect data and have the capabilities to use it.
In 2024, brands should focus on building their data capabilities and put the customer experience at the heart of their digital strategy.
2. Seamless Omnichannel Experience
One of the biggest consumer trends of the last few years is the rise of omnichannel shopping. Consumers are used to interacting with businesses on multiple devices throughout the buyer’s journey. Whichever device or channel a consumer chooses to use, they expect the experience to be smooth and rewarding.
The global pandemic has seen growing popularity for omnichannel experiences among all consumer demographics.
According to PwC, 41% of people purchased products using their smartphones at least once per week in 2021. Up from 24% in 2019.
In the last 12 months, how often have you bought products using the following shopping channels?
Customer experience leaders like Amazon have set the expectation level for omnichannel shopping and communication. As a result, consumers now compare the experience of buying from your brand to this higher standard.
To succeed with omnichannel, brands need to focus on creating cohesive experiences. For many companies, that means breaking down data silos. By establishing a customer data platform, companies can increase collaboration between departments. Marketing, sales, and customer service need to work in unison to provide the experiences customers demand in 2024.
3. Sustainability
Consumers are increasingly concerned about environmental and ethical sustainability. This consumer trend has accelerated, with 85% of people changing their purchase behavior towards more sustainable products and services over the last five years.
In a 2020 survey, 77% of consumers stated that it was very or moderately important that a brand was sustainable and environmentally responsible. Consumers also preferred brands that support recycling, with 76% believing it was very or moderately important.
Environmentally friendly brand attributes that are important to consumers worldwide:
These consumer trends highlight the importance of adopting environmentally sustainable initiates. This can include carbon offsetting, more efficient manufacturing, and sustainable materials and supply chains.
Consumers want to buy from brands that are aligned with their values.
The outdoor brand Patagonia has consistently been one of the most forward-thinking companies regarding sustainability. Patagonia doesn’t try to “greenwash” and is transparent about the impact of its operations.
In 2020, the company conducted a study on plastic packaging in the shipping of its products. When the brand trialed plastic-free alternatives, 30% of garments became damaged and unsaleable. Customers can see why the brand chooses to use plastic packaging and the steps taken to try and find alternative solutions.
Being open and transparent is the main takeaway. Even if you cannot achieve immediate results, showing customers how you are taking steps to be more sustainable can significantly impact brand image and consumer purchasing decisions.
4. Digitization: All Digital World
The pandemic has accelerated consumer digital adoption. Even the demographics that had been the most hesitant have embraced digital solutions and channels.
In the U.K., 49% of adults that had yet to make an online transaction completed an online purchase during the pandemic. In the U.S., the percentage of first-time online buyers is 60%.
In 2024, more and more consumers will see the world as all-digital. The consumer trends and behaviors picked up during the pandemic are likely to stick.
As a result, consumer expectations will be even higher for digital experiences. A recent survey revealed that nearly 60% of customers believe companies should provide cutting-edge digital experiences to win their loyalty.
Brands need to focus their efforts on enhancing the digital customer experience and using technology to deliver better solutions.
This is a challenge that most executives are aware they need to overcome. For example, almost 90% of CEOs think their business model needs to change to be economically viable in 2023. And more than 50% view technology as a way to differentiate their brand from competitors.
The winners in 2024 and beyond will be the brands that can harness technology to create digital and in-store experiences that delight their customers. Retailers need to determine the types of experiences that will make consumers visit a brick-and-mortar store. That will involve new value propositions and new business models for many brands.
5. Purchase Directly From Brands
Consumers control how, when, and where they choose to engage with brands. In an age where a shopper can use their smartphone to find dozens of retailers selling the same product, the customer experience has become a key differentiator.
That’s why consumers are increasingly choosing to buy direct from brands. In a 2021 Google-commissioned survey, 60% of online shoppers stated that they would go out of their way to purchase directly from a brand, with 66% of shoppers buying directly from a brand in the last three months.
This consumer trend highlights an opportunity for brands that have relied on traditional B2C business models. It also shows the importance of establishing strong digital sales channels.
When consumers visit a brand’s website, 82% expect to be able to purchase directly. Nearly 90% would also buy directly from a brand’s website if they could.
To capitalize on these consumer trends, brands need to take ownership of the customer experience. Adopting direct-to-consumer business models and creating digital experiences that consumers cannot get from third-party resellers is key to growth.
In 2024, consumers want to feel a stronger connection with brands, be part of a community, and get more value from their purchasing experiences.
6. Humanize Your Brand With Storytelling
Two of the biggest marketing trends over the last several years have been the rise of user-generated content and influencer marketing. These trends have become so powerful because they use storytelling to humanize brands and make them relatable.
People want to buy from other people - not a faceless robotic company. Storytelling is how consumers connect with brands, understand problems, and learn the benefits of products.
In a 2020 survey, brand storytelling was the second most popular type of video marketing that companies were investing in.
Storytelling can play a vital role throughout the buyer’s journey. It can tell the story of the brand’s history, the people in the organization, the supply chains right through to the end customers. It can build a community around the brand and deliver the immersive experiences that consumers want.
While it doesn’t directly impact conversions like an ad campaign promoting a product, it’s a powerful tool for brand awareness and strengthening customer relationships.
