How consumer expectations and brand relationships are shifting in 2024
6 minute read
Welcome to the Consumer Benchmark report by Feefo. We are a dedicated team passionate about helping brands navigate the fast-paced consumer landscape. Our report draws insights from over 21.7 million reviews on behalf of more than 6,500 brands over seven years. We also utilised primary consumer research conducted via Censuswide in March 2024 with 2,002 participants and examined consumer trends from trusted organisations.
Use our insights to discover moments and opportunities to drive your business forward. Responding to consumer trends is just one part of thriving in an ever-shifting consumer climate. Knowing when and how to do it is an invaluable tool for dynamic brands to master.
Download the full consumer report or use this guide to help you explore how to understand your customers better and deliver value.
Top consumer trends
Before we jump straight into consumer behaviour, let's highlight trends that stand out in 2024.
- Consumers will seek more value from brands and buy less in 2024.
- Despite steady consumer confidence, there's a notable shift towards cautious spending, reflected in decreased purchases per trip across various categories.
- Where consumers are making purchases more intentionally, each transaction comes with greater expectations.
- Customers expect more value from brands across the board, from value for money to acknowledgement and engagement.
- Customers who feel valued are 54% more likely to repeat purchases. Feeling valued also makes people more likely to make a purchase or become an advocate.
- But what does value look like to a customer, aside from transactional? It can look like loyalty schemes, personalised services and feeling connected to a brand.
*All of the data mentioned in this blog are referenced in The Consumer Benchmark report.
The Consumer Landscape 2024
Consumer insights
Consumers are more cautious than ever in their spending habits. They’re seeking value for money, affordability, sustainability, and brand reputation. They’re less willing to take chances when it comes to spending money.
More than half of consumers are more likely to repeat purchases when they feel personally valued by a brand. Customers expect more than just transactions; they seek loyalty schemes, personalized services, and a sense of connection with brands.
“Consumers are more cautious than ever, less loyal, and have higher standards for the brands they choose. Understanding your customers’ expectations and providing real value is critically important, whether you’re a retailer or service provider.”Tony Wheble, CEO, Feefo
The value-driven consumer
The current consumer landscape presents challenges for brands:
- 41% of people feel less financially secure than at the start of 2023.
- 74% are concerned about the rising cost of everyday items.
- 44% plan to buy less in 2024.
- 57% plan to switch to less expensive brands.
Price remains a significant factor, but consumers seek more value beyond the price tag. They are learning to stretch their wallets, expecting the best deals while seeking ways to spend without compromising quality.
Consumers care about efficiency and value. Positive reviews often highlight excellent customer service, value for money, and convenience, while negative reviews mention untrustworthiness, poor customer service, and lack of transparency.
How can brands respond?
To navigate this landscape, brands need to:
- Offer incentives and loyalty schemes to provide tangible value.
- Balance cost with quality to satisfy the new value hunters.
- Enhance customer loyalty programs and escalate promotional initiatives.
Value
The impact of value
Feeling valued for consumers goes beyond receiving a quality product or service—it’s about leaving customers with a sense of appreciation and acknowledgement.
What makes a customer feel valued?
- Recognition through monetary rewards or expressions of thanks.
- Loyalty benefits and personalised services.
- Positive interactions and excellent customer service.
Sharing personal data
64% of people are willing to share their data with brands in exchange for:
- Exclusive discounts or offers (40%).
- Improved product or service quality (29%).
- Personalised recommendations (26%).
- Community benefits (19%).
Consumers expect brands to connect with them by responding to feedback and personalising experiences based on their needs.
How can brands respond?
To offer customers value, brands need to:
- Offer affordable products, reliable communication, and excellent customer service.
- Analyse where satisfaction is at its lowest across the customer journey and seek improvements.
- Recognise and acknowledge your customers - through tangible rewards and responsive communication.
Authenticity
The growing desire for authenticity
People value brands that are transparent, honest, consistent, and reliable. Verified reviews, transparent communication, and human customer support are increasingly important.
The power of word-of-mouth
With the rise of online shopping, word-of-mouth tools have become crucial for building trust. Reviews are now as trusted as personal recommendations, and brands with excellent reviews see higher customer spending.
Addressing negative reviews
Negative reviews provide insight and an opportunity for brands to demonstrate how they handle customer experiences. Consumers seek authenticity and want to see how brands respond to negative feedback.
When customers can’t speak face to face, reviews become an incredibly important decision-making tool.
How can brands respond?
To appear as authentic brand, companies can:
- Display reviews that are verified and from genuine customers.
- Value the negative as much as the positive – respond to negative reviews and show others how you deal with all customer experiences.
- Share your values and ideals as a brand - people value honesty above perfection.
Connection
Connection seekers
Customers no longer want transactional relationships; they expect long-term connections with brands. They want to be valued, acknowledged, and rewarded.
The importance of responses
Responding to reviews significantly increases the likelihood of repeat purchases. Consumers want to express negative experiences and see how brands handle them. Post-sales engagement boosts credibility and fosters a sense of connection.
Personal service
Consumers appreciate personalised products or services and value brands that understand their needs. Leveraging data and insights can help brands provide more tailored experiences.
How can brands respond?
To create a sense of connection with customers, brands need to:
- Engage with customers and respond to feedback, whether public, private, positive or negative.
- Ensure they’re offering moments of human connection in their customer journey.
- Show customers their feedback matters by making improvements based on their insights.
Conclusion
The Consumer Benchmark report reveals that consumers are becoming more value-driven, cautious with their spending, and seeking authentic connections with brands. To thrive in this landscape, brands need to understand and meet these evolving expectations by offering tangible value, maintaining transparency, and fostering genuine connections.
Responding to consumer trends is just one part of learning how to weather an ever-shifting consumer climate and become a successful brand. Knowing when and how to do it is invaluable for resilient brands.
Discover how evolved your customer insight strategy is by completing our business questionnaire. It takes two minutes, from start to finish, and provides you with actionable advice on how to build a value exchange that sets your business apart.
Find out more
Feefo helps you not only collect authentic customer feedback but also understand your insights and make find actionable improvements. Contact Feefo today to find out more.
