4 Consumer Trends to Watch in 2023
What is the greatest desire of every marketer this year? Discover the hidden “consumer crystal ball” to help them navigate one of the most unpredictable economies in recent history, of course! Jokes aside, 2023 will be a year where many brands could find themselves choosing between investing in performance marketing and building brand awareness to generate real business results.
Well, you don’t need a crystal ball to know you need both approaches working hand-in-hand. If you narrow your marketing strategies toward just awareness or performance, you could risk doing more damage to your business in 2023 than good. You need to be top of mind (awareness) with your customers for them to make a purchase (performance), right?
We may not know what the stars predict for us, but we do have some insightful consumer trends to help marketers build a market strategy that generates business growth. So, let’s push away the hocus pocus and dive into the 2023 consumer trends that can help brighten your marketing future.
In-store shopping is rebounding
Brick-and-mortar is back! With COVID-19 worries fading and eager shoppers returning to stores, brick-and-mortar has made a strong comeback. 71% of consumers said they shop in brick-and-mortar stores as often as, or more than before the pandemic, per a Mood Media survey. Another factor that will likely encourage more consumers to shop in physical stores comes from an unexpected occurrence: inflation!
Due to the price increases caused by inflation, more consumers will be pickier about where and how they spend. To get the most bang for their buck, many will opt to shop in person to inspect items firsthand and avoid potentially costly shipping and returns fees. According to JLL, 54.5% of shoppers said their primary reason for shopping in physical stores was to see and handle products before purchasing. Roughly one-third (32.7%) of shoppers even admit to shopping in-store to avoid shipping costs and delays.
What does this mean, marketers? From neighborhood targeting to on-premise targeting, make sure you have the necessary marketing tools to capitalize on this consumer behavior trend and drive more consumers to your physical store.
Consumers will spend even more time streaming
Who doesn’t enjoy streaming videos, movies, and TV shows online? With many expecting inflation to drive prices up of everyday items, let alone entertainment purchases, people will likely opt to stay at home and binge-watch their favorite content.
eMarketer predicts US residents will spend more than an hour and a half per day with subscription over-the-top (OTT) services in 2023. To provide context, people spent just under an hour per day streaming these services pre-pandemic. It’s also worth noting that roughly half of CTV viewers are Gen-Zers or Millennials. These two generations also boast the largest CTV user growth rates, with a 5.9% increase for Gen-Zers, and a 3.3% increase for Millennials.
How can you use this consumer trend to your advantage? Consider leveraging OTT & CTV advertising in your upcoming marketing plan, especially if your brand targets Millennials and/or Generation Z.
People will be mindful of how and where they spend money
As inflation eats into shoppers’ paychecks, consumers will pay a lot more attention to their spending habits. With reports predicting a 70% chance of a US recession next year, don’t be surprised to see many bracing for economic impact. Even if inflation eases, it may be a while before consumers return to their pre-COVID spending habits.
People have felt the impact of inflation this whole year. In April 2022, 72% of US adults noticed the inflation affecting gas prices, causing 32% of adults to cut back. According to an ICSC report, roughly 90% of people surveyed said inflation would affect their holiday spending. Considering many are already preparing for the worst, brands cannot overlook that people will tighten their wallets.
What can you do to jump on this consumer spending trend? Brands need to find more ways to provide value and convenience, regardless of whether customers shop in physical stores or online shops. Connect with consumers online and offline by promoting discounts and special offers through cross-device targeting.
Hybrid shopping experiences are here to stay
We live in an interconnected world, marketers! Even though the e-commerce trend greatly accelerated during the pandemic, brick-and-mortar is far from obsolete. In fact, brick-and-mortar plays a complex yet valuable role for keen retailers. Today, it is essential for brands to develop eye-catching ways to blend digital and physical experiences for their consumers.
According to a NetSuite survey, 63% of respondents would pay more for a product if they had a personalized in-store experience. These personalized hybrid experiences offer consumers the opportunity to discover new products, conduct more in-depth research, and better connect with their favorite brands. This 2023 consumer trend sounds like music to any marketer’s ear!
How can you combine the best of online and in-store shopping to create a lasting consumer impression? Make sure your brand approaches its upcoming marketing plan with an omnichannel strategy. From mobile advertising to display advertising, there are many hybrid-based marketing tactics to create a unique online and offline brand experience.
Let’s make this your year, marketers! Keep these 2023 consumer trends top of mind to help you better connect with your target audience. By keeping in mind the recession, the tendency toward or in-store shopping, the increase in streaming, and the hybrid shopping experience, you’ll have the tools you need to create the best strategy for your brand.
Contact GroundTruth to see how you can take your marketing plan to the next level.