We maintain a watching brief on consumer behaviour and have consolidated the latest findings from the Klaviyo Consumer Survey Report and the Mintel 2024 Global Consumer Trends report, in the following blog. We've encapsulated the trends that brands should be aware of, in order to stay ahead of the game.

According to Klaviyo, (a US based research company, with findings based on 3k+ US consumers) consumers are torn between in-store and online shopping. While they are 2.25 times more likely to prefer shopping online, they still split their shopping between the two. When consumers do head in-store, it's often to touch the product and take advantage of immediate availability. Important for marketeers is that Klaviyo found that nearly half of consumers prefer receiving marketing information through email.

Worth also noting that in 2023, Vista undertook research with 346 parents via Mother & Baby for nursery products brand, Graco. We found that when it comes to buying baby products and important safety products such as car seats, 50% research online and 53% of parents seek reassurance from purchasing from an expert in store. We also found 61% have taken advice instore and then purchased online for the best deal.

Insights like this pose a problem to marketers who rely on last click attribution models to justify spend because, according to ChatGPT only 20% of consumers type in a specific URL, with 80% opting to navigate via a search engine. So, we can assume that while the retailers sealed the deal, Google will have claimed to have driven 80% of those purchases.  Overall it indicates that all brands must have a multi-platform marketing strategy.

In terms of the economy and spending, Klaviyo found that overall consumer opinion of the economy is cautious. While younger generations tend to have a more optimistic view, consumers of all ages are cautious when it comes to discretionary spending. Expect consumers to allocate most of their budgets to conventional goods into the near future. However, conversely as younger consumers have a more positive economic outlook, brands should also expect them to make non-essential purchases.

Mintel focuses on the importance of human skills and connections in a technology-driven world. Brands and consumers are increasingly seeking out uniquely human elements to strike a balance between progress and preservation. In particular, the focus on human connections and experiences is expected to drive brand strategies and improve customer relationships.

The report also emphasises the importance of sustainability in everyday life. As consumers become more conscious of environmental issues, brands that prioritise sustainability will likely resonate more. In a world where consumer priorities are constantly being reassessed, brands must also adapt and collaborate. This means finding new ways to partner with consumers and work together towards common goals.

Overall, brands that pay attention to these trends and behaviours will be better equipped to meet the needs of their consumers. Whether it's finding new ways to connect with customers on a human level or prioritising sustainability, brands that stay ahead of the curve are more likely to succeed in the long run.

Diving into the key findings in each report:

Klaviyo:

• Economic Perceptions: Overall, opinion of the current US economy is cautious, with 59% of consumers feeling negatively about the economy. However, 42% feel neutral or positive, and 46% believe it’s holding steady or improving. Younger generations, such as Gen Z and millennials, tend to have a more optimistic view of the economy.
• In-store vs. Online Shopping: Consumers are 2.25x more likely to prefer shopping online, but they are currently shopping equally online and in-store. Those who prefer in-store shopping do so to touch the product and have immediate availability, while those who prefer online shopping do so for convenience. Interestingly, nearly half of consumers prefer receiving marketing information through email.
• Current vs. Future Spending: Consumers continue to allocate most of their budgets to conventional goods. They expect to continue doing so in the future and maybe more cautious with discretionary spending. However, younger consumers, due to their more positive economic outlook, are more likely to engage in non-essential spending.

Mintel:

• Focuses on the importance of human skills and connections in a technology-driven world, the need to prioritise sustainability, the collaboration between brands and consumers, and the reassessment of consumer priorities.
• Emphasises that in a world dominated by algorithms and technology, human skills, emotions, and connections are crucial. It suggests that brands and consumers will increasingly seek out uniquely human elements to strike a balance between progress and preservation.
• Predicts a focus on human connections and experiences to drive brand strategies and improve customer relationships.
• Acknowledges the importance of sustainability and the need to incorporate it into everyday life. Consumers and brands will have to prioritise survival within a new climate context. 
• The five key trends for brands to pay attention to are:

1.    Being Human – consumers want technology to forge connections and will seek empathy and service that only a human can provide

2.    More Than Money – consumers define ‘quality’ in new ways, reassessing their perception of what ‘value’ means to them

3.    Relationship Renaissance – seeking new forms of intimacy away from screens for their physical and mental health, a broader sense of community is developing, beyond the nuclear family

4.    New Green Reality – survival within a new climate context must be a priority and with many consumers are sceptical of brand claims, brands must demonstrate meaningful and measurable progress. Trust and reassurance is key

5.    Positive Perspectives – consumers look to brands for answers and ways to deal with uncertainty and support with building resilience to withstand. And co-exist alongside potential adversities