Consumer values are continually changing; so too are their behaviours, patterns, and priorities. Previous tactics used by businesses to enhance customer value must now be realigned to cater to the needs of the modern consumer.
So, with ever-changing consumer perceptions, how can you create customer value and which trends should your business keep in mind?
We have outlined three current consumer trends which your business should have at the forefront of their communications going forward: convenience, the essentials and budgets.
The term ‘convenience’ has evolved. Not only will your consumers seek a great customer experience and products or services that are instant and built for speed; they will prioritise accessibility and ease of use, due to a greater number of everyday pressures.
To cater to the growing demand for convenience and accessibility, businesses will have to offer more than just the ‘standard service’ customers have come to expect. Providing home and next-day deliveries will no longer impress your target audience - customers want these products on the same day, achieved through the likes of Amazon. Businesses should take inspiration from pharmaceutical and car dealership companies, which offer extended free trials for prescription delivery services, and pick-up and drop-off options with vehicles in terms of purchases, repairs and maintenance.
2) The essentials
Products and services that were considered essential in the past have now taken on a new meaning. Consumers are placing more value on things that were previously seen as a luxury, and which have now become fundamental basics in everyday life.
A survey conducted by Deloitte discovered that 30% of consumers across the globe were concerned about making upcoming payments. Despite these fluctuations of purchasing intent, there has been a shift in the perception of premium products. Purchases that were viewed as frivolous splurges have now become essential homeware as consumers adjust to new routines. For example, more people are purchasing at home gym equipment and other expensive products such as coffee machines, to enhance their productivity while staying indoors.
To succeed in the long-term, businesses must offer products and services that can be used from the comfort of their customer’s homes and enhance their overall wellbeing, with convenience underpinning all of these offerings.
There has also been a rise in flexible spending and payments, with the emergence of banking group Klarna and subscription-based services, which have allowed consumers to adapt their monthly budget spend. However, 64% of UK consumers set strict budget goals, and will not want to deviate from that.
To compete for consumer attention, businesses should offer attractive discounts to their customers. However, the idea of what a ‘valuable’ discount means, has been redefined. Customers want offers that are tailored to them and wish to be rewarded for their support. For example, businesses such as Lush have been at the forefront of the circular economy. Customers of Lush are rewarded for practising sustainability with a free product of their choice for returning empty packaging, and the same applies to Nespresso, who offer recycling bags for consumers to recycle their used coffee pods. Businesses who take note - and focus on providing convenient solutions to consumer concerns - will increase their customer retention rates.
Moving forward, businesses must be mindful of the budget spend of their consumers, who are financially overwhelmed, and offer more flexibility with payments, or greater value in exchange for their money.
If your business is interested in creating more customer value by rewarding customers for their spending, this can be achieved through loyalBe - a convenient and accessible rewards app.