How well did you navigate this past year? What are your goals for next year? A little research and thought will probably reveal that consumer behavior is changing.
With changing economic times and a fast-moving political environment, what consumers want and when they want it is constantly in flux. How do you prepare for that? What should you do to ensure your business is ready to make Q1 a success?
While there is no guarantee of what the future brings, you can use current trends and insights to prepare for these behavioral shifts. We’ve been watching a few consumer behavior trends this year, knowing they will be influential as we move into the new year.
Inflation Is Impacting Spending Habits
Prices are nearly 20 percent higher than they were three years ago. Depending on your industry and who you are marketing to, that may change how your customers buy.
Faced with economic uncertainty, consumers are taking another look at their budgets, re-evaluating their spending habits, and looking for new ways to stretch their incomes a bit further. Of course, this impacts higher-income households differently than middle- and lower-income households, which may be prioritizing savings and slowing down spending.
How can you respond? Payment options are always a good choice for offering flexibility. Consumers younger than 55 use cash for just 12 percent of payments, compared to 22 percent for those 55 and over. Younger consumers are happy to pay with digital wallets—how flexible are your offerings?
Speed Means More Customers
If you’re looking to connect with more customers, analyze every step of your online sales process. There has been a radical shift in the retail landscape—drive around, and you’ll see the evidence. People know how to find what they want on a mobile device and aren’t afraid to buy when they see it.
Instead of sales pages and lengthy marketing funnels, people have adopted the “one-click” philosophy. See it. Buy it. Move on to the next thought. Social media has made it possible to buy seamlessly without ever leaving a platform. And once people have connected with a company, they can remain loyal customers if they consistently see what they want.
Social media is a good way to reach consumers, but it’s not the only way. Google is still in the loop. Statistics show that ranking at the top of your niche SERP results generates a higher click-through rate. Fewer than 1 percent of searchers ever click through to the second page of Google results.
That means using long-tail keywords is more important than ever. Yes, you can reach your clients through social media and paid advertising, but for many, a great deal of their sales are driven by organic traffic. People search. They find. They buy.
Consider Delivery Options
While it’s important to focus on visibility and fast transactions, don’t forget about what happens after the sale. Since the pandemic, shoppers have come to like the convenience of having everything delivered. Even items that were traditionally bought in-store—like groceries or eyeglasses—are now easily purchased online.
You don’t have to look any further than Amazon to see this in action, but even local stores are getting in on this trend. Depending on membership and what you buy, you have a variety of delivery options. Want it delivered in a few hours? Not a problem. Next-day service is now the new norm. The majority of consumers—88 percent—are willing to pay for same-day delivery.
If you haven’t capitalized on rapid shipping or delivery options, it might be worth checking out. Then, ensure you advertise it on your website and post it on directories like Google Business Profiles.
Influencers Influence Decisions
Love it or hate it, influencers are now a part of our lives. Through their social media accounts, they tout the latest products and services they love, helping new prospects discover and choose which brands to trust.
This is where it pays to know your market well. Gen Alpha—those born between 2010 and 2024—is 2 billion people strong. Forty-nine percent of this generation trust influencers as much as their own family and friends when it comes to product recommendations.
Influencers aren’t just for youth. Every generation has its own interests and desires. Over 75 percent of Gen X is online, and their brand loyalty is second to none.
This is why influencer marketing is still a growing marketing tool. It’s one that many marketers rely on. You don’t have to do business with the biggest names in the influencer industry to find success, either. In fact, smaller, niche influencers can have a big impact. Micro-influencers—those with 10,000 to 100,000 followers—might be more likely to have engaged followers and develop more personal relationships.
The Concept of Home Is Changing
We’re a nation that spends most of its time indoors. While there is a push to bring workers back to the office, there will continue to be a place for the home office. We’ve added movie theaters, wine vaults, and game rooms to our already growing-in-size homes, and we like spending time there.
That means there are more opportunities for those businesses that cater to our changing views of life/work balance. How can you make a difference?
If you haven’t performed keyword research, looked at marketing trends, or performed a consumer behavior analysis in a while, you might be missing out on what your customers think. Opinions change over the years. So does how technology works. People are savvier than ever at getting what they want. If you haven’t changed your marketing approach in a while, you might be missing a whole new audience.
Are you ready for Q1 this year? Does your marketing take into account ever-changing consumer behavior? Convenience is what ties these trends together; focus is what helps you improve your customer experience.
Want help as you enter the new year? We’re excited about the potential the new year holds for businesses and look forward to talking with you soon.
