Keeping up with the latest consumer behavior trends helps you stay ahead of the competition. It also helps you run better marketing campaigns to attract your target audience.
Staying current isn’t a one-time thing but an ongoing strategy that impacts your company’s revenue and relevance. Ahead, you’ll learn ten hot consumer behavior trends to look out for in 2024.
Top 10 consumer behavior trends to adopt
1. Consumers are budget-conscious when shopping online
The cost of living crisis has caused people to change how they spend online, with 55% of people shifting toward methods that allow them to track spending more accurately.
As of April 2023, 47% of consumers surveyed by Paysafe said they’ve abandoned online shopping carts owing to budget limitations. Faced with economic uncertainty, consumers are streamlining their budgets, re-evaluating their spending habits, and seeking deals and discounts. This may result in lower demand for buy now, pay later (BNPL) payment methods.
Consumers want to stay in control and keep financial details safe and secure. From a retailer’s perspective, use the tools available to meet consumers where they are. Making payments faster and more convenient will help you build trust and encourage customers to shop more frequently.
“Consumers are still buying,” says Shelley Martin, founder of Skinician, “but the items they spend their money on must be well worth the investment. Solve problems well, as many of them as possible, with one product, then tell your consumers how your product makes life better.”
2. Inflation and rising prices are still a common concern
Record inflation and hefty price increases for essentials are a big concern for 72% of consumers. As spending power decreases, 96% of consumers intend to adopt some type of cost-saving behavior, and a growing number of people (39%) identify as “not impacted financially, but cautious with spending.”
Deloitte’s Center for Consumer Industry found that more folks are saving money, while discretionary spending in Restaurants, Leisure Travel, Electronics, and Clothing/Apparel saw substantial decreases as of February 2024.
US consumers are using different strategies to save money, like:
- Driving less
- Shopping online or closer to home
- Stocking up when items are on sale
- Using coupons
- Finding stores with lower prices
- Buying store brands
Inflation impacts all spending categories, like apparel, footwear, household goods, dining out, and gas. Companies must proactively prepare for behavior changes as people navigate rising concerns of inflation and recession.
3. Many customers are not willing to cut subscription services
While consumers spend less across the board, subscription services are one expense they will not cut out. Some 47% of respondents to Paysafe’s survey would choose to keep film and TV services out of all their subscriptions if they had to cut back overall.
4. Consumers want more payment options
The average consumer is willing to part with their disposable income if you’re willing to meet their changing expectations. Another consumer behavior trend is the demand for more payment options beyond credit and debit cards.
Paysafe’s Lost in Transaction 2023 report found that more people (52%) are leaving their homes without a physical wallet and paying for everyday purchases with a mobile wallet, like Apple Pay or Shop Pay. Some 55% of respondents believe mobile wallets will replace physical cards over the next ten years.
Consumers are more lenient with smaller businesses when it comes to payment options. But if you’re a large business, 73% of consumers expect you to offer all payment methods online, including digital wallets and eCash.
Shop Pay stands out as a payment solution for speed and security during checkout. Customers can store their payment information securely in Shop Pay and check out faster than on regular websites.
5. In-store shopping is still a preference for many consumers
Though ecommerce has seen a significant uptick in past years, in-person shopping is still the preferred method for many consumers—especially for big-ticket items.
A survey from Pragma and Statista on why consumers shop in physical stores found that:
- 20% of respondents said they wanted to acquire the desired product immediately.
- 16% of respondents said trying the product and experiencing brand values are the greatest motivations for shopping in-store.
- 14% of consumers shop in person because of close proximity to the physical store.
How can you improve your store’s customer experience? By providing:
- Exclusive in-store deals
- Fun experiences
- Top-notch customer service
💡A digitally native brand, Wildling decided to launch showrooms in Germany to let customers try on shoes before buying them. With Shopify POS, the brand saw a 50% higher rate of first-time shoppers in showrooms and a 5% increase in stock availability after integrating all sales channels. Read Wilding’s story.
6. Demand for sustainable products
As shoppers become more conscientious, sustainable products become an important factor in purchasing decisions. According to a survey by PWC, 80% of consumers say they’d pay up to 5% more for sustainably produced goods.
The NYU Stern Center for Sustainable Business also reports that products marketed as sustainable grew about 2 times faster with a 17.3% market share and achieved a five-year CAGR of 9.43% versus 4.98% for those not marketed as sustainable.
A few forward-thinking companies like Allbirds have pioneered sustainability, but research shows that Gen Z consumers are driving the conversation. A recent report from First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania found that senior retail executives do not understand consumers’ preferences around sustainable offerings and shopping.
The report also found that:
- Two-thirds of consumers from all generations will pay more for sustainable products
- 44% of consumers rank product sustainability higher than brand name
- Three-quarters of consumers say sustainability is somewhat or very important to them
According to Insider, by 2030, Gen Z will earn 27% of the world’s income, surpassing millennials by 2031.
Consumers buy sustainable products and brands primarily to help the environment. To capture future market share, you must align with Gen Z’s values before it’s too late.
7. Personalization with zero-party data
Ecommerce personalization has been a hot topic, and for good reason. Personalization efforts can generate conversion rate uplifts of between 2-5%, on average, and boost loyalty in 68% of consumers.
Personalization, in short, is when a shop uses unique customer data to show dynamic content. What a customer sees is based on their demographic segment, browsing history, past purchases, device, and more.
As online shopping becomes more omnichannel, or having multiple channels influence purchasing behaviors, retailers are adapting their marketing strategies. You have endless options to reach your customers from emails to TikTok ads and text messages.
Rather than guess what messages or products they’ll respond to, you can use zero-party data to learn who your customers are. Zero-party data refers to any information a customer shares with you, such as their shopping habits or preferences, in exchange for better shopping experiences.
Shoppers are happy to give brands this information, too. In Movable Ink’s report, over half (58%) of consumers agree that they share more personal information with the brands they are loyal to in exchange for more personalization.
In a recent tech upgrade, Walmart continued to invest in personalization. People can now try on clothes using their own photos with the brand’s virtual apparel try-on feature. “By making it personalized, it helps narrow that decision-making for them because we know who they are, we know what they’re shopping for,” Brock McKeel, SVP of site experience at Walmart, told Modern Retail. “We get to know them.”
8. More social commerce spending will take place on TikTok
Facebook and Instagram have led the social commerce movement, but TikTok is right behind them. TikTok has become a powerful social media platform for product discovery and ecommerce. Brands like Adidas and Chipotle have had major success with their TikTok campaigns, and many more are following suit.
But TikTok has become much more than an emerging video app. It’s become the home of shoppable entertainment. Some 56% of users are more likely to discover relevant products from an ad, according to a recent TikTok study by research firm Material.
Insider Intelligence also reports that TikTok gained more shoppers (11.6 million) than the net increase of Facebook, Instagram, and Pinterest combined (6.4 million). TikTok will continue adding social buyers in 2024, reaching 40.7 million.
With so many people using TikTok to discover, research, and review products, they want TikTok to become part of their shopping journey. According to TikTok, 61% of its users have engaged in ecommerce behaviors on the platform, and 48% are interested in purchasing on or from TikTok in the next three months. Brands that can play to the strengths of TikTok will be able to get more sales from social customers.
9. More brands will adopt the direct-to-consumer-first model
DTC is booming. A report by Circuit shows 85% of businesses are using a DTC model, while 94% of tech leaders are interested in switching to it in 2024. Statista expects we’ll reach $213 billion in 2024.
DTC brands make up approximately 13% of all ecommerce businesses in the US, according to a study by PipeCandy. New brands using a DTC-first model benefit from easier market entry, faster and cheaper fulfillment, and higher customer lifetime value than traditional retail.
In fact, traditional brands like Nike have shifted to a DTC-first model in recent years. Its direct channels now comprise around 44% of its profits. The brand aims for DTC to represent around 60% of its business by 2025.
Beyond the money, consumers simply prefer the experience DTC brands provide. PWC’s study found that 63% of consumers purchased products directly from a brand’s website, and another 29% considered the D2C option.
Half of consumers say the authenticity of products drives them to DTC websites, especially when shopping for electronics, fashion, beauty, and personal care items. Greater choice of products, better stock availability, and competitive pricing come in close second and third as key purchase drivers.
10. Private labels and the quest for value
Higher prices have reduced consumers’ savings, but that won’t stop them from spending. According to Forrester Research, consumers will be cautious in how and where they spend their precious dollars while expecting to maximize economic value.
A NIQ report corroborates Forrester’s findings. Besides shifting to shopping at value stores and looking for value brands, consumers will expect value through special offers, trials, bundles, payment plans, and more.
Moreover, private labels are an increasingly viable option for consumers. As consumers turn to private labels to manage costs, they are projected to capture a 25% share of grocery sales in 10 years.
From NIQ’s report, Industry players can navigate this trend by:
- Differentiating, innovating, and finding unique spaces for their products away from the “cheaper alternative” private labels
- Nurture and maintain collaborative retailer-manufacturer relationships
Tap into consumer behaviors to influencer buying decisions
Now that you’ve seen the consumer trends for 2024, it’s time to take action. Start by adopting one or two of these trends for your business. Find which works for your audience and then build a marketing campaign to target these behaviors throughout the customer journey.
Read more
- Social Commerce Strategy: Improve Your Social Selling With These 9 Best Practices
- Where Global Business is Going in the Wake of COVID-19
- Short-Term Digital Marketing Strategies to Help Online Retailers Through COVID-19
- New York Fashion Week 2020 Trends: Sustainability, Made-to-Order and Off-Runway
- What Game Designers Can Teach You About Influencing Buying Behavior
- Direct-to-Consumer Business Model in CPG: How-To Guide for Brand Managers
- Brands Building Community During COVID-19
- 10 Lessons From the Fastest Growing Consumer Electronics Websites
- Holiday Online Shopping: The Social Commerce Trends Boosting Sales for Ecommerce Businesses
- The 30 Questions You Should Ask Before Selling Direct to Consumer
Consumer behavior FAQ
What is consumer behavior?
Consumer behavior refers to the actions taken by individuals when purchasing and using goods or services. This includes everything from the initial decision to purchase a product, to how the product is used and disposed of.
Why is it important to understand consumer buying behavior?
Understanding consumer behavior can help you more effectively target marketing and advertising efforts. It can also help you develop products that better meet the needs and wants of consumers, which improves customer service and brand loyalty levels.
What are 5 major factors that influence consumer behavior?
The five major factors that influence consumer behavior are: 1) psychological factors, 2) social factors, 3) personal factors, 4) cultural factors, and 5) economic factors.
What are the 4 types of consumer behavior?
Read more
- Social Commerce Strategy: Improve Your Social Selling With These 9 Best Practices
- Where Global Business is Going in the Wake of COVID-19
- Short-Term Digital Marketing Strategies to Help Online Retailers Through COVID-19
- New York Fashion Week 2020 Trends: Sustainability, Made-to-Order and Off-Runway
- What Game Designers Can Teach You About Influencing Buying Behavior
- Direct-to-Consumer Business Model in CPG: How-To Guide for Brand Managers
- Brands Building Community During COVID-19
- 10 Lessons From the Fastest Growing Consumer Electronics Websites
- Holiday Online Shopping: The Social Commerce Trends Boosting Sales for Ecommerce Businesses
- The 30 Questions You Should Ask Before Selling Direct to Consumer
The four types of consumer behavior are: 1) positive behavior, 2) negative behavior, 3) habitual behavior, and 4) impulse buying behavior.