Modern consumer behavior has changed so dramatically in the last few years that businesses aren’t reaping the economic rewards even in a booming economy. What exactly happened, and what do consumer behaviors look like right now?

First of all, online is the new normal. With 96% of Americans shopping online and 43% of the shopping from the comfort of their beds through their smartphones – retail has never been more accessible and yet engaging. Purchases from smartphones have doubled since 2018 and are here to stay.

High customer optimism and spending time have remained strong before and after the pandemic among younger customers especially.

However, what changed after the pandemic was the decrease in brand loyalty. We no longer stick to the same businesses, but we jump from store to store at unprecedented rates due to immense market saturation in online spaces. McKinsey reports that 75% of US consumers have adopted a new shopping behavior or tried a new product brand. This dynamic tendency is amplified among younger and higher-income customers. When asked why they switched brands, customers reveal age differences: older people mention value and availability, while younger consumers highlight importance and purpose.

Novel emphasis on health, hygiene, and sustainability directly reflect health anxiety experienced by consumers. McKinsey observes a desire to limit touchpoints to improve the cleanliness of the buying experience. Due to that, online shopping transactions have grown at an exponential rate, with worldwide online sales reaching approximately US$4.29 trillion last year, a 24% rise over the previous year. With a 62.6 % share, Asia-Pacific accounted for a sizable portion of the pie. In fact, more than 60% of worldwide customers have altered their purchasing habits in search of more convenience and value.

Omnichannel experience has seen increased demand and satisfaction with consumers walking in stores and shopping online with the same ease and convenience. For those unfamiliar with omnichannel – it ensures consistent, identifiable brand tone and vision throughout multiple channels that synchronize acquired customer data and create personalized experiences. The most successful categories here are jewelry, accessories, and fitness.

Constantly adapting, researching, and digitizing your user journeys will make users gravitate towards your product and remain loyal to your brand regardless of the situation in the world. 

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March 13, 2022 — ShopParty