The News: DISQO, a brand experience platform, recently released its 2024 Consumer Trends report, which outlines consumer behavior and sentiment for the upcoming year. One key point is the prevailing apprehension among consumers, with almost two-thirds expressing a negative overall outlook. More information on this research can be found in this press release on the DISQO website.
2024 Consumer Trends Report Indicates Continued Negative Outlook
Analyst Take: The results of DISQO’s 2024 Consumer Trends report paint a picture of overarching apprehension on the part of consumers in the face of global conflicts, inflationary pressures, and political uncertainties. Consumers are becoming increasingly cautious and budget conscious. This year may be one where companies have an opportunity to let their customer experience (CX) shine and be a deciding factor as consumers weigh purchasing decisions.
Financial Perceptions and Spending Patterns
For 2024, 63% of consumers have an overall negative outlook. Only one-fifth of consumers feel positive. Optimism grows toward the longer term; in looking ahead 5 years, nearly a third (30%) of consumers feel more optimistic than they do about this upcoming year (+10 points).
The economy is top of mind with inflation (64%) and a recession (54%) listed as top concerns. While many consumers have optimism regarding their personal finances in 2024, inflationary concerns are still impacting their spending plans across all product categories. Overall, consumers are predicting that they will spend more in non-discretionary categories. Those consumers worried about inflation were over 30% more likely than those who were not to say they are planning to spend less on travel, dining out, live entertainment, clothing, and cosmetics. They were also more likely to say they planned to spend less across every category except for groceries, for which they were 14% more likely to say they were expecting to pay more.
Brand Experience in the Spotlight
This feeling of apprehension about the future, as the data shows, will trickle down into purchasing decisions. Companies may need to do a bit more to not only move a consumer to purchase but also create deepened brand loyalty as price becomes more of a factor.
When respondents were asked about what touchpoint influenced their brand view the most, the actual experience with the brand, meaning the interaction with products and services, topped the list at 61%. This was followed by online reviews (48%) and what friends and family say (43%). Social media also plays a role with 18% listing it as an influential touchpoint.
When asked about specific attributes that impact consumers’ impressions of a brand, value, quality, trust, and customer services were the key elements.
When asked about loyalty, it was a slightly different breakdown. Quality (66%) and good customer service (53%) were top when asked about what factors drive loyalty. Additionally, a third of consumers also said that frequent discounts or offers and loyalty rewards were important drivers.
Key Takeaways
- Ensure voice of the customer and customer feedback programs continue to be a key component to any CX strategy. People are learning about a brand not just from an actual experience but from external factors such as reviews and social media. Companies must know what is being talked about and put that chatter into actionable insights.
- Gather a deep understanding of the customer and try to connect the data points so that customers can feel more “known.” Connect it for personalization and to also make for more friction-free CX when they interact with customer service.
- Review loyalty offerings to make sure they are up to date and meeting the expectations of customers.
- Recognize that good customer service is a must have to keep customers coming back. With consumers putting a more critical eye on what they will be laying out money on this year, anything companies can do to engender that sense of trust—that if something goes wrong, the company will make it right and the process of making it right will be painless—will go a long way.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Other Insights from The Futurum Group:
Salesforce’s Connected Shopper Report: Digital, Physical & Service Crucial
SurveyMonkey’s State of CX Report Reveals Customer Feedback Is a Priority for CX Teams in 2023
Author Information
As a detail-oriented researcher, Sherril is expert at discovering, gathering and compiling industry and market data to create clear, actionable market and competitive intelligence. With deep experience in market analysis and segmentation she is a consummate collaborator with strong communication skills adept at supporting and forming relationships with cross-functional teams in all levels of organizations.
Sherril holds a Master of Business Administration in Marketing from University of Colorado, Boulder and a Bachelor of Arts in Psychology from Rutgers University.
