Consumers are re-evaluating the value of money and the balance between convenience and cost after a decade of on-demand services. A challenge lies in understanding what consumers truly value, as there is a shift towards balancing price and value with urgency and convenience, likely driven by a resurgence in DIY activities and economic factors. This may lead to a new demand for personalization, relevant tools and resources for people who want to do more with less or return to a simpler life.
This trend originates from the report:
FORERUNNER - The Dinner Party ‘24
But this convenience and access ultimately came at a price — and a price that’s hiked sharply in recent years through membership and service fees while companies work towards profitability and navigate the impacts of inflation. After a decade of growing accustomed to clicking a button for immediate service and satisfaction, consumers may be changing their tune, particularly when there’s a price premium. When asked about how they prioritize time, cost and convenience, 61% of the total group of respondents said they prioritize money over convenience and 66% said they prefer to DIY vs.
paying to outsource. Interest in DIY is spikes across all the archetypes, even and especially for the more time-constrained, family-oriented archetype, Juggler. The challenge will lie in understanding the nuances of what consumers really “value”.
While many durable, important businesses have been built within the on-demand industry, it seems the larger market may now be oversaturated and thwarted by an over emphasis on convenience vs. cost. We imagine this marks the beginning of a pendulum swing to a place of balancing price and value with urgency and convenience.
This may stem from the pandemic reintroducing people to living quieter, simpler lives where DIY activities of all forms (ex: building standing desks, cooking, dying one’s own hair) experienced a renaissance. And presumably, a looming recession and rising inflation will continue to drive people away from mounting service fees. In a world where people are increasingly discerning about how they spend their money, we’re likely to see new needs emerge as on-demand habits begin to unwind and more traditional approaches come back into focus.
The challenge will lie in understand- ing the nuances of what consumers really “value” in each area of their lives — and it won’t be as simple as everything being fast. Rather, the bar for personalization may hit another inflection point, or there will be a need for added services and experiences to warrant spend. And with a consumer group seemingly up for doing the work again, opportunity exists to provide relevant tools and resources for people who are now actively looking to do more with less, or re-engage in activities and experiences that help harken back to a simpler life.