As we tiptoe into 2024, a pivotal year for consumer behaviour and marketing trends, one can’t help but ponder: How is the evolving world of marketing and uncertain economic times going to influence my business?
In 2024, we’re going to be witnessing shifts that aren’t just nudging the needle; they’re moving mountains. The rise of personalised experiences, heightened privacy concerns, and the intricate understanding of consumer decisions – these aren’t just trends; they’re the new rulebook for staying ahead in the game and making sure you’re marketing is generating real results.
KEY INSIGHTS IN A SNAPSHOT
- Understanding Consumer Buying Behaviours: Going behind surface-level metrics to understand not just what people are buying, but why they are making these choices.
- Email Marketing Dominance: Emails count for nearly two-thirds of Australia and New Zealand consumers purchasing as a result of an email they received over the last 12 months.
- Brand Loyalty: Consumers are prepared to pay more to purchase from their preferred brand.
- Personalisation and Customisation: We’re seeing more consumers wanting personalised content and offers from trusted brands that recognise them as an individual.
- Privacy and Security: Consumers are more conscious then ever when it comes brands using and storing their data.
- Increase in AI Activity: We’re only just seeing the tip of the AI iceberg and 2024 is going to be the year where we see a significant shift in how it will affect businesses; good and bad.
- Economic Sensitivity: Economic concerns are front of mind for most consumers. As a result, 53% are less likely to make an impulsive purchase and 48% will be relying more on loyalty program benefits when making purchases.
THE HEART OF MARKETING IN 2024
1. UNDERSTANDING CONSUMER BUYING BEHAVIOURS
In a world where every click, every like, and every swipe tells a story, understanding the ‘why’ behind consumer choices is more than advantageous – it’s critical.
In 2024, we are going to be seeing more businesses taking a more proactive approach to understanding the distinctions of their consumer’s behaviours. This will be a pivotal point for marketing efforts, by going behind surface-level metrics to understanding how your consumers act, think, and behave to comprehend not just what they are buying, but WHY they are making these choices. With this understanding comes the power to tailor your marketing strategies, to resonate, engage, and connect with your audience on a level that’s not just transactional, but transformational.
Brands like Uber, Apple and Coca Cola already employ teams of behaviour scientists and consumer behaviour experts to research and analyse how their consumers are engaging and interacting with their products / services – and finding new and innovative ways to market and communicate with them based on their wants and needs to drive higher results.
This includes incorporating emotional drivers and connecting personal values in their marketing, using social influence, understanding lifestyle and convenience; and then crafting narrative and designing strategies with these consumer insights at the forefront.
Not sure where to start? Check out our FREE Consumer Behaviour Playbook.
2. Email Marketing Continues to Dominate
Email remains the most effective sales driver for marketers, with a remarkable 64% of Australian and New Zealand consumers influenced by this channel, citing they have made a purchase directly from an email they have received over the past 12 months (which is an increase by 8% since 2022).
At present, we are seeing emails outperform both social media advertising and posts by 21%*, with no outlook for this to change in the near future. Of course, different channels present different outcomes for different industries, but as a whole email marketing shouldn’t be overlooked in 2024.
The key to a good email marketing strategy:
- Segmentation and targeted content that resonate with individual preferences that the consumer has expressed interest in, rather than “casting and blasting” generic content to your entire database.
- Balance your content between informative, educational, and promotional, so that your emails are value-driven, and not always salesy. Emails that add value tend to have higher open rates and can strengthen customer loyalty.
- Clear and compelling subject lines that are intriguing and reflective of the email content.
- Utilise A/B testing to understand what works best of your audience.
- Remain customers / client-centric, providing relevant and engaging content that meets the needs and interests of your audience.
3. BRAND LOYALTY
It’s no surprise that Brand Loyalty continues to be a driving strategy in 2024. With inflation continuing to rise and economic uncertainty set to stay for the foreseeable future, building a loyal client base is the best (and easiest) way to grow. Whilst price does have its place when it comes to being the deciding factor, 66% of Australian and New Zealand consumers are happy to pay more to purchase from their favourite brands – 14% higher than consumers from across the world.
But loyalty doesn’t come easy, so you’ve got to work for it. Loyalty begins when a consumer feels emotionally connected with your business, with 21% of ANZ consumers describing the relationship with their favourite brand as one in which said brand understands them on their level.
There are several other factors that engender lasting brand loyalty and what ANZ consumers find important or critically important are fairly simple: have a great product or service that aligns with their needs (87%), good customer service (84%), product availability (83%), complemented by a plentiful range of options (88%),
Where you can differentiate for your competitors could lie in other factors, like: 72% of ANZ consumers state a brand’s website or mobile app is key to keeping them coming back, 69% want a loyalty program, and an overwhelming 84% want robust data privacy policies. messaging that treats them like an individual (83%), a brand that surprises them with unexpected rewards (69%).
The heart of Brand Loyalty now hinges on emotional connections, shared values, and relationship marketing which recognises the customer / client as an individual. Investments in improving these areas will ensure a long-term return and happy customers.
4. PERSONALISATION AND CUSTOMISATION
Personalisation is not just preferred; it is expected moving into 2024. With 60% of ANZ consumers expressing frustration over receiving irrelevant content or offers and 46% feeling disconnected when messages don’t reflect their needs, the importance of personalisation becomes even more evident.
With the rise of AI technologies, we are seeing an increasing amount of generic content and lack of original ideas, bots replacing online customer service, and automations giving generic (often unhelpful) information; which is causing frustration and boredom amongst consumers. Consumers are actively seeking out novelty for its ability to draw attention and generate engagement.
It is important to remember that while striving to deliver better personalisation, it’s critical to recognise the line between what’s cool, what adds value and what is creepy and overly intrusive when using consumer’s data (especially when marketing to an audience that you don’t have an existing relationship with yet).
For example: 75% of ANZ consumers state ads from brands they don’t know based on location data are creepy, 67% of ANZ consumers state retargeting ads derived from third-party cookie tracking are creepy, 79% of ANZ consumers state recommendations based on past purchases are cool, and 57% of ANZ consumers state personalised offers after staying on a brand’s site for 2+ minutes are cool.
The key is to find a balance between AI automation, the data you have at hand, and human creativity. AI should be used to gather insights and automate routine tasks, while human marketers should focus on creating unique, creative experiences that resonates with your audience.
Delivering an exceptional service is always about putting your clients at the heart of everything, breaking down barriers to create a personalised approach.
5. PRIVACY AND SECURITY
In an era where data breaches are becoming more and more commonplace, consumers are placing a higher importance on taking proactive measures to protect their data online. In fact, 56% of consumers admit to using privacy mode on their browsers, while 53% of consumers are actively installing ad blocking technologies on their devices (a 33% increase to what we saw in 2022). Combined with the demise of third-party tracking cookies, the impact of “snooping” advertising and third-party data is declining, quickly.
As a result, direct or owned channels like email, web, and SMS are becoming vital for cultivating consumer relationships. The focus is shifting towards ethically sourcing personal and preference data directly from consumers, rather than relying on third-party sources. This approach is not only more respectful of consumer privacy but also aligns with their preferences.
It’s crucial for brands to prioritise privacy and security in their data handling practices. Transparency is key – brands that are open about how they collect and use consumer data can build trust and confidence. This transparent approach, coupled with using the data to enhance consumer experiences, can provide brands with a significant competitive advantage. Establishing trust in this way is not just about compliance; it’s about connecting with consumers on a level that respects their privacy while offering them tangible value in return.
6. INCREASE IN AI
The rise of Artificial Intelligence (AI) in marketing offers exciting opportunities for innovation and efficiency in 2024. Over the past 24 months alone, we saw how these rapidly growing technologies started to revolutionise how businesses interact with customers, processed and analysed vast amounts of data to gain a deeper insights into customer preferences and trends, and personalised marketing efforts.
However, the proliferation of AI in marketing is not without its drawbacks, something that we will start to see / hear more of in 2024. One of the primary concerns revolves around the ethical implications and risks associated with AI-driven strategies. Issues such as data privacy, consumer manipulation, copywriting, and the potential for bias in AI algorithms pose significant challenges and will become a vital watch point for businesses. There’s a delicate balance between leveraging AI for effective marketing, respecting consumer rights and privacy, and managing the risks that come with using it.
We’ve already seen the likes of Google utilising various algorithms and techniques to detect AI-generated content and differentiate it from human-generated content. This is why it’s so important to ensure that you are layering in your own experience, knowledge, and brand voice to any AI-generated content, rather than simply copying and pasting from the likes of ChatGPT.
Remember that the integration of AI in marketing should be done with a focus on enhancing human decision-making, not replacing it.
7. Economic sensitivity
With prevailing economic uncertainties continuing to play out in 2024, marketers are presented with unique challenges when it comes to engaging, and converting, consumers. With 65% of ANZ consumers feeling pessimistic about the cost of living and 58% about the overall economic outlook, present a unique challenge for marketers, these sentiments are likely to significantly influence consumer buying behaviour over the next 12 months.
So, how will economic conditions change consumer buying behaviour in 2024? And how will that impact your marketing efforts?
- Reduced Impulse Buying: With 53% of consumers making less impulsive purchases and extending their consideration phase, marketers need to rethink their approach to instant conversion strategies. This shift suggests a need for more informative and engaging content that keeps potential customers engaged over a longer decision-making period.
- Waiting for Sales: As 47% of consumers are waiting longer to make purchases, hoping for sales, it’s crucial for marketers to strategically plan their discount and sales campaigns. Flash sales, time-limited offers, and exclusive discounts for loyal customers can be effective tactics.
- Increased Reliance on Loyalty Programs: With 48% leaning more on loyalty program benefits, there’s a golden opportunity for brands to revamp their loyalty schemes. Providing tangible value, personalised rewards, and exclusive experiences can be a key differentiator.
- More Informed Purchasing Decisions: The fact that 53% of consumers are doing more research than before indicates a trend towards more informed and deliberate purchasing decisions. Marketers should focus on providing comprehensive, transparent, and accessible information about their products and services.
FOOD FOR THOUGHT
The rise of Artificial Intelligence (AI) in marketing offers exciting opportunities for innovation and efficiency in 2024. Over the past 24 months alone, we saw how these rapidly growing technologies started to revolutionise how businesses interact with customers, processed and analysed vast amounts of data to gain a deeper insights into customer preferences and trends, and personalised marketing efforts.
However, the proliferation of AI in marketing is not without its drawbacks, something that we will start to see / hear more of in 2024. One of the primary concerns revolves around the ethical implications and risks associated with AI-driven strategies. Issues such as data privacy, consumer manipulation, copywriting, and the potential for bias in AI algorithms pose significant challenges and will become a vital watch point for businesses. There’s a delicate balance between leveraging AI for effective marketing, respecting consumer rights and privacy, and managing the risks that come with using it.
We’ve already seen the likes of Google utilising various algorithms and techniques to detect AI-generated content and differentiate it from human-generated content. This is why it’s so important to ensure that you are layering in your own experience, knowledge, and brand voice to any AI-generated content, rather than simply copying and pasting from the likes of ChatGPT.
Remember that the integration of AI in marketing should be done with a focus on enhancing human decision-making, not replacing it.
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