Marketing Leaders Must Shift Strategies to Address Consumer and Cultural Trends.
Sixty-eight percent of consumers report they feel taken advantage of when brands use dynamic pricing, according to a survey by
A
'While inflation may have eased, suspicion and frustration have not - and these negative sentiments are fueling distrust and price paranoia,' said
'Marketing leaders must demonstrate price stability and bolster customer retention with price-stabilizing tools and perks for loyalty program members. In categories with more price volatility, empower consumers to make the most of a fast-paced market.'.
Making do with less isn't just a tactic, it's a flex.
In this post-inflation era, consumers are reframing thrift as aspirational, giving cache to a growing trend of conspicuous underconsumption. While saving money is a driver, 68% of consumers cite intrinsic or self improvement motivations for reducing consumption, and 33% of
'These consumers are embracing frugality to regain control after years of inflation-driven thrift. They are intentionally reducing consumption and curbing wasteful habits, with the added benefit of saving money,' said Muhl. 'Leaders should lean into playful austerity and support consumers' efforts to go bare bones.'
'Norming' offers consumers a much-desired objective perspective.
As consumers' experiences become increasingly in sync with their personal behaviors and preferences, they are seeking an objective understanding of their position within the broader societal context.
'Norming' offers them a counterbalance to the narrow focus created by constant personalization. In fact, a large majority (82%) of consumers report doing at least one 'norming' activity in the past year, whether crowdsourcing opinions in an online community to see if others respond or think similarly to them, or comparing consumption habits or financial progress.
'At a time when consumers feel adrift in uncertainty, marketing leaders should avoid over-relying on interactive decision tools like quizzes and suggestion engines - these emphasize individual consumer needs, which can feel isolating and provoke skepticism,' said Muhl. 'Consumers value context for its own sake, so marketing leaders should provide them with insights that help them understand themselves within a broader context rather than solely guiding them to a product decision.'
Human-free automation is on the rise.
Human-free automation technologies are driving engagement and fostering greater connection and interest in future experiences.
When asked about automated tech (e.g., delivery drones, cashier-less stores), 74% of consumers express openness to the tech, with 30% already having tried and would use at least one of these technologies again.
'Marketing leaders must ensure the transactional benefits of human-free automated services or experiences, such as speed and convenience, are prioritized. It's also important to lean into more intrinsic drivers such as novelty and fun, to reinforce and enhance the experience,' said Muhl.
Baby boomers drive a widening generation gap.
Consumer behavior has always been influenced by age and life stage, but baby boomers stand out now more than ever. They continue to thrive and express greater confidence than younger groups, which is intensifying cultural divides and posing challenges for brands trying to navigate these differences.
'While variations in consumer attitudes and behaviors across different life stages are anticipated, the generation gap with baby boomers signifies a deeper and more pressing issue. This is particularly important for leaders whose brands must forge genuine connections across generational cohorts,' said Muhl.
'Marketing leaders should use optimistic themes and traditional media strategies to engage baby boomers, while deploying smart social media strategies and more culturally sensitive themes to reach younger consumers,' Muhl concluded.
Gartner clients can read more in: 'Gartner's Top
About Gartner for Marketers
Gartner for Marketers provides the objective, expert advice, and proven tools that CMOs and other marketing leaders need to seize the right opportunities with clarity and confidence, and to stay ahead of the trends that matter. With in-depth research and analysis, Gartner for Marketers helps you focus on the opportunities with the greatest potential to deliver results. More information on Gartner for Marketers is available online at www.gartner.com/marketing. Follow news and updates from the Gartner Marketing practice on X and LinkedIn using #GartnerMKTG. Members of the media can find additional information and insights in the Gartner Marketing Newsroom.
(C) 2024 Electronic News Publishing, source