How has consumer behaviour changed in 2022?
Whilst shopping continues to be the most popular pastime, the recent cost-of-living squeeze has impacted consumer behaviour. With a new post pandemic life and priorities, higher expenditure, and less disposable income overall, subscriptions are being scrapped, dining out has become a luxury and shoppers have become more frugal.
But what has caused these social and economic changes?
Consumer Behaviour Influences
Rising cost of living
The second half of the year has seen a rise In the cost of living with the price of food, energy and fuel skyrocketing. With no sign of it slowing down, an astonishing 77% of UK adults are concerned of the rising costs, with 87% already seeing an increase in their usual spend.
As a result, British consumers are adapting their behaviour to save money and are prioritizing what is essential and what is not. 60% of adults are now spending less on non-essentials, whilst 35% are shopping around more to get the best deals.
Post pandemic power
The global pandemic has permanently impacted shopping behavior. Pushing more people to shop online than ever before. Whether it’s down to ease, more product choice or because of social distancing, consumers continue to value online shopping. Even after local and national restrictions have eased. Which goes to show, that this behavioural shift is here to stay.
Gen Z have entered the workforce
A generation brought up on technology and social media have entered the workforce. This means that Gen Zers have less responsibilities, more disposable income than ever before, and technology at their fingertips.
A consumer group with strong and distinctive wants and needs, they like to not only interact with brands across multiple platforms, but are looking for brands who can entertain, educate and provide a fun shopping experience all from their mobile device.
So what does all of this mean for consumers and brands?
In 2022, consumers are wanting more meaningful interactions and a valuable purchasing experience from brands. Whether that’s a mobile friendly website, to be part of a social community that learns and grows, or to know that the brands they’re buying from are giving back to society.
Brands need to offer a lot more than price and quality to capture the hearts of consumers in an ever-competitive market. Consider adapting to the following consumer trends and get your brand to stand out from the crowd.
With online shopping habits here to stay, mobile commerce is as popular as ever. Whether you’re looking for a best of-guide or are on the hunt for a new pair of trainers, mobile is still the go-to device when it comes to buying online.
Now that more and more people are shopping online and shopping around to get the best price for their buck, mobile optimisation has never been more important. Not only does it play a crucial role in preventing website bounces and abandoning purchases, but it also offers a better customer experience than a non-optimised site.
Bands should look to invest in long-term mobile growth as it looks like the mobile commerce trend is only going to continue to grow.
The pandemic triggered many consumers to make drastic personal changes and reassess their values, lifestyles and goals. Leading to the rise of the conscious consumer. This means people have become more aware of the environmental impact their shopping habits have, and after two years are shopping local, are continuing to support local and other independent brands.
32% are also buying fewer things or consuming less thanks to the rising cost of living. Meaning that brands now have to work even harder to win over cash strapped consumers.
So what is it that consumers want from brands? Aside from competitive prices and quality, they want to see brands tackle big societal issues, such as climate change and poverty as well as building long-lasting loyalties.
As one of the fastest growing ecommerce trends, more and more consumers are turning to voice search when searching the web for information and purchases. A popular search method for Gen Z and Millennials, a whopping 71% prefer to conduct queries by voice instead of typing.
These younger tech-savvy generations will continue to lead the way when it comes to search trends. Thanks to their mobile-first mindset, these smartphone users will continue to use voice assistants to find an answer to their queries. So it’s no surprise to learn that businesses need to optimize their on site content to meet this growing demand.
Purchase with purpose
Increased living costs has meant that consumers are now only making purchases with a purpose. Whether that’s buying essential food items only, prioritizing health & wellbeing or switching to cheaper brands, each interaction has to have a meaningful purpose.
Since the pandemic, 70% of British consumers are more aware than ever of their home’s role in wellbeing. And despite economic uncertainty, are prioritizing their home and garden space to help meet their wellbeing needs.
Not only that, UK adults are no longer making decisions based purely on price and brand recognition. They’re looking to engage with brands who reflect their values, have a strong societal purpose and offer a fantastic customer experience.
So what does this mean for your brand? Today’s customers expect action, not just talk. With 70% of people choosing to make purposeful purchases from purpose-driven brands, those without risk not only losing out on customers but also devaluing their brand.
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