2021: The year of consumer

It comes as no surprise that the pandemic has significantly transformed lifestyle and spending habits. 2020 created uncertainty, fear, and chaos that deeply affected consumer opinions, preferences, and behaviors. In a time where society is dominated by strong emotions, the ability for companies to understand their customers’ wants and motivations is more important than ever. Thus, re-connecting with consumers at a personal level has become imperative in 2021 and beyond for many, if not all, businesses. This includes paying close attention to the profound changes in consumer trends, values, and behavior and adapting business and marketing strategies accordingly.

According to the 2020 Gartner Consumer Values and Lifestyle Survey, consumers have found new priorities in the way they spend their money, from going out less often to putting a cap on discretionary spending. The following trends appear to be especially important for businesses to keep an eye on:

Home Sweet Home

Although vaccinations are rapidly progressing, people still seem to feel uncomfortable socializing the way they did pre-pandemic, so brands need to find ways to meet consumers where they are and their new demand.

For example, people have been forced to spend the majority of their time at home due to the lockdown, so they have invested heavily in upgrading their living spaces to make them more comfortable through the functionality and technological features of interior design.

Health, First

People also found an impetus to practice a healthier lifestyle. Innovations in the food and beverage industry are now guided by a growing demand for healthier and sustainable alternatives, like plant-based and organic foods.

In the wellness industry, consumers are paying more attention to not just their physical health but their mental health too. More and more people have been adopting positive practices like meditation or home workouts to rebalance their lives.

Stronger Focus on CSR

A company's behavior has become just as important as what it sells. Customers are placing a higher value on social causes in their purchasing decisions than ever before, and businesses must plan for greater corporate social responsibility to gain consumer trust, especially when it comes to making a lasting impression on the younger generation.

According to the Gartner survey, the values identified by the greatest number of US consumers are equality, inclusion, and diversity. Brand and communications strategies must also be realigned to capitalize on consumers' increased interest in climate and environmental issues, social justice, and civic engagement.

Listen to Your Customer!

Unsurprisingly, social listening has emerged as the modern gateway to a consumer's door. By analyzing insights from sources like social media and review websites, brands can tap into a goldmine of consumer-rich data. This enables marketers to obtain relevant customer feedback while also improving business verticals to have a greater impact on their target customers.

Sweet Tips from Ally:

1. Stay on top of changes in consumer spending habits.
2. Try to get involved in a social or environmental cause that you are passionate about.
3. Always put the customer first.