Consumer Behaviour Shifts: Driving Market Transformation

Authored by Girish Upadhyay, Chief Operating Officer, Glassbox Ventures

The evolving consumer journey reflects significant shifts in how people make purchasing decisions and interact with brands. With rapid advancements in technology and changing consumer expectations, businesses must adapt their strategies to stay relevant. Here are 5 principles of the evolving consumer journey which every brand needs to embrace:

1. Connected Consumers

• Consumer-Centric Innovation: Today’s consumer is young, restless, empathetic and emotional. Innovating with this consumer in mind means continuously gathering feedback, understanding pain points, and iterating on products and services to meet evolving needs. 

• Agility and Adaptability: To keep up with changing consumer behavior, businesses must be agile and ready to pivot strategies quickly. This includes adapting marketing strategies, product offerings, and customer experience strategies.

Apple's success is often attributed to its commitment to consumer-centric innovation, be it their relentless focus on user experience, seamless integration between devices, design and aesthetics, its commitment to privacy or its customer support and services. Design a business around the customer's needs, interests, and expectations, rather than focusing on products or revenue models. 

2. Omnichannel Personalisation

• Omnichannel Experience: Consumers expect a seamless experience across multiple channels, whether online or offline. Brands need to integrate their marketing, sales, and customer service efforts across these channels.

• Personalization: Advances in data analytics and AI allow for highly personalized marketing. Tailoring content and recommendations to individual preferences is becoming a norm.

Brands like Tata Motors and Mahindra & Mahindra are leveraging virtual showrooms and online configurators where customers can explore models, customize features, and even book test drives online, which can then be completed at a physical dealership. Hyundai and Kia provide online booking options, allowing customers to reserve their vehicle with a deposit and explore financing options through digital platforms, streamlining the buying process. Maruti Suzuki and Honda use data analytics to deliver personalized marketing messages and offers based on customer behaviour, preferences, and past interactions.

3. Shift to E-commerce

• Online Shopping Growth: The rise of e-commerce platforms and mobile shopping has transformed traditional retail. Brands need to optimize their online presence and provide smooth, secure, and user-friendly digital shopping experiences.

• Social Commerce: Social media platforms are becoming significant sales channels. Integrating shopping features directly into social media apps is crucial for engaging with consumers.

The quick commerce revolution in India led by Zepto, Blinkit, Swiggy Instamart represents a transformative shift in how goods are delivered to consumers, emphasizing speed, convenience, and efficiency. Facebook shops, Whatsapp Business, Instagram are allowing businesses to create product catalogues and interact with customers directly via social media platforms and chats. By leveraging social media's interactive and community-oriented features, social commerce is offering a dynamic and engaging way for brands to connect with consumers and drive sales.

4. Emerging Technologies

• Artificial Intelligence: AI is revolutionizing customer service with chatbots, virtual assistants, and predictive analytics. These tools help businesses provide timely and relevant customer interactions.

• AR/VR and Metaverse: AR and VR are enhancing the shopping experience by allowing consumers to visualize products in their own space or try them out virtually.

Lenskart very smartly uses AI and AR technologies to offer virtual try-on features for eyewear, helping customers find the right frame and lens combinations without visiting a store. Similarly, many Indian brands are increasingly integrating AI into their operations to drive innovation and enhance customer experiences. From personalized recommendations and virtual try-ons to fraud detection and route optimization, AI and use of AR/VR is playing a crucial role in transforming various sectors.

5. Trust and Data Privacy

• Transparency and Ethics: Consumers are increasingly concerned about the ethical practices of the brands they support. Building and maintaining consumer trust involves not only protecting data but also being transparent about how it is used.

• Regulations: With stringent data protection regulations like GDPR and Digital India act, companies must prioritize data privacy and security. This includes obtaining clear consent and safeguarding customer information.

Brands like HDFC Bank, TCS, Amazon have shown efforts to safeguard customer data and ensure compliance with relevant laws which helps build trust and protect user information in an increasingly digital world.  

Conclusion

To successfully navigate the evolving consumer journey, businesses must embrace digital transformation, prioritize customer-centric approaches, and remain adaptable to new trends and technologies. Brands need to SHATTER old paradigms and BUILD something new and authentic. At Glassbox Ventures, in collaboration with our clients, we create brands and solutions that deeply resonate with today’s consumers, ensuring your marketing is both contemporary and profoundly impactful.

It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change – Charles Darwin

DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.