Loyalty, Commerce, and the New Consumer – Chapter Rewind from Marketing (re)Focus, 2022

The COVID-19 pandemic has drastically altered our understanding of the world. People are changing the way they buy, live, and think. In a matter of months, the virus has altered the consumer products industry, accelerating long-term underlying tendencies.

New habits lasted beyond the crisis, influencing what we value, how and where we shop, and how we live and work. Consumer products companies are now preparing for the future by looking at the current changes.

So, what are these new consumers’ characteristics and how the pandemic has affected their purchasing habits?

Leading industry professionals discussed all this and more in an insightful session on ‘Loyalty, Commerce, and the New Consumer,’ at our virtual conference, Marketing (re)Focus, 2022. Our distinguished speaker was:

• Theresa McEndree, Chief Marketing Officer (CMO), Recurly

Let’s dig further into some of the key takeaways from this session and discover how marketers can build loyalty, attract new customers, and increase sales in today’s industry.

Reimagined Consumers: Who Are They?

Consumers have reassessed their priorities and are increasingly focused on their life’s purpose. We refer to these contemporary customers as “reimagined consumers.”

Considering the fact that every single person, everywhere, experienced and responded to the pandemic in their own unique way. Purchase issues that were formerly minor and exclusive to certain demographic groups have been mainstreamed by these customers. For example, previously, it was mostly younger consumers who wanted a brand’s bigger mission to fit with their attitude on life but not anymore.

The Motivations for New-Age Consumers

Price and quality have long been and continue to be the most important factors in consumers’ decision-making. They have lost some of their clout among reimagined buyers. Brands should take greater responsibility in pushing the reimagined to live by their values and making them feel more relevant in the world, according to the new consumers.

We perceive this as having long-term repercussions rather than just epidemic effects. The pandemic has accelerated the shift to digital technology that informs and facilitates purchases. Price and quality are now easy to assess, thanks to Amazon and Google.

According to the data revealed by Theresa, there are five unique purchasing reasons that revolve around a desire to feel better and have faith in the products and services they use. Health and safety, service and personal care, ease and convenience, product origin, and trust and reputation are the factors to consider.

The Impact of New-Consumer Behavior on Purchase Loyalty

Consumers have reacted to the crisis and the ensuing disruption of typical consumer patterns all across the world. They are experimenting with different shopping habits and adamantly intend to keep doing so in the future. However, in countries, such as Germany and Japan, with a mild degree of economic shock, the adjustment has been less pronounced.

Given customers’ price sensitivity, the value remains the most compelling motivation for them to test new brands and stores. The most commonly mentioned reasons in customers’ purchase decisions, outside price, are convenience and availability. However, when choosing new brands, quality and purpose should be taken into account more than anything else.

Top Trends Driving Subscriptions

Any business organization’s ability to generate money depends on two factors:

• Periodically attracting new customers
• Keeping customers by subscribing to the brand’s various verticals

This is why businesses consider loyalty programs (subscriptions) as a long-term investment.

The subscription model is profitable for the company and has well-defined risks, making it easier for investors to assess the company. Customers are ready and willing to pay for the enterprises that have created a long-term match between product/service and market.

The introduction of a subscription-based business model can enhance a company’s valuation by 8X. Investors are more interested in such enterprises because they have consistent revenue sources.

According to Theresa, the average consumer spends $273 on subscription services per month, up from $237 in 2018. This extra 15% equates to an extra $430 spent per year.

Digital subscriptions are expected to more than double in size to $1.5 trillion by 2025⁽ⁱ⁾, indicating that the subscription economy is not just a fleeting fad.

Conclusion

Consumer attitudes, behaviors, and purchasing patterns have all changed since the pandemic, and many of these new ways have persisted. People are shopping more consciously, buying local, and embracing internet commerce, even if their purchases are currently based on the most fundamental requirements.

Want to Learn More About New-Consumer Behavior? Talk to Us!

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