Consumers are moving on; will you be left behind?
As consumers move on to define a new version of normal, consumer products companies and retailers can rebound too, shaping a new future for their organizations and their brands. Here are four actions to consider:
1. Analyze your festive sales season data with a different lens
This year’s festive trading period is more important than ever. It’s likely to be your first big opportunity to see how emerging consumer behaviors are impacting your brands and understand your future consumer. But getting to those insights will require a deeper layer of analysis. Can you go beyond the typical metrics to learn about the future consumer’s mindset, values and habits, and how changes here could influence purchase decisions? Better analysis now will help you deliver against consumer and investor expectations in 2022 and beyond.
2. Invest in the data and technologies that can make you a trusted part of the consumer’s life
Consumers are moving on but are still cautious. They want brands and experiences they can trust, brands that follow through on their promises – whether it’s a delivery that arrives on-time or the provenance of a product. Those companies that win and secure trust will become an integrated part of the consumer’s life. It’s no longer about the customer being in the center of your world, but you being in theirs. It requires a shift in mindset. Where can you generate value the customer appreciates (and that works for you, too)? What technology capabilities will it take to make that happen?
3. Make it easy for people to move back and forth between physical and digital channels
Finding ways to connect to the consumer directly has never been more critical. With people shopping more online and spending more time at home with their mobile, tablet or laptop, traditional ways to engage no longer hold the value they once did. Consumers will be increasingly able to pick and choose where, when and how they engage with brands – and they want to move seamlessly between the physical and digital worlds. With the lines between the two blurring, whether it’s replicating real life on digital or the immediacy of digital in store, consumers expect the best of both worlds. Creating a cohesive experience and removing any points of friction that interrupt it will be fundamental to success.
4. Transform your business model for an age where people want to consume better, not buy more
More people are reshaping their consumption habits. Some want to do more to preserve the planet; others just want to buy less, but buy better quality. Understanding what’s driving customers’ purchase behavior could require a radical response from you. For instance, could you streamline and rethink your portfolio to deliver products that last longer – through redesign, or subscription, rental or resell models? It could take a refreshed approach to quality, sourcing and service to successfully drive this shift, to keep existing customers happy or attract new ones, and to maintain their loyalty. If you move to a ‘better rather than more’ world, what new services, content and experiences will you create to drive new sources of value and revenue?