Conscious commerce. Conscious commerce is driving a shift in consumer behavior, with an increased focus on budgeting and research before purchasing. Consumers are prioritizing value and looking for ways to save, whether through buying second-hand items or reducing the number of products they buy. A way in which brands can tap into this trend in 2023 is by creating membership programs that offer discounted products and foster a sense of community through transparency and cost savings.
This trend originates from the report:
OMD - Signals 2023
However, consumers are reporting that 63% of their social media purchases are unplanned or impulse buys. So we are seeing a discrepancy between claims and behaviors as consumers change their purchase habits. While touchpoints between consumer and purchase have increased, it is less clear whether impulse buying has reduced or if it is simply easier online.
Key Considerations: Brand loyalty will be challenged as people put more emphasis on price. Reviews will become increasingly influential as people consider new options. Second-hand retail has grown in popularity – consider ways your brand can lean into this behavior.
Continue engaging consumers beyond functional messaging to maintain willingness to pay. 55% will be tracking or budgeting how much they spend. 52% will be undertaking more research before purchasing.
49% plan to reuse, mend or repurpose things they already own. 46% plan to reduce the number of products or goods they buy. 39% plan to buy second-hand and resale items.
One brand implication which we anticipate will be important in 2023 is membership communities. Brands can support customers through a membership programme to encourage brand loyalty which has suffered as people put more focus on price. Create a scheme where consumers pay an annual or monthly fee to access products that are discounted or have no mark-up.
Ensure that the average savings are greater than the membership fee, and that prices stay low. Create a sense of community by being transparent..