The PwC 2024 Voice of the Consumer Survey provides valuable insights into the evolving consumer landscape, highlighting the growing importance of trust, sustainability, and technology in shaping consumer behavior and preferences.
Here are some key takeaways from the survey:
Trust as a Crucial Factor
Trust has emerged as a critical factor for consumers when engaging with brands. As consumers navigate numerous disruptions, among them, financial, ecological, and technological challenges, they prioritize reassurance and reliability from the companies they interact with.
Eighty-three percent of consumers cited protection of their personal data as one of the most crucial factors in earning their trust. Eighty percent demand assurances that their personal information will not be shared. However, only around half feel confident in understanding how their data is stored and shared, and almost three quarters (71%) express concerns about the security of their personal data on social media in particular.
Sustainability
The PwC survey also revealed a growing consumer focus on sustainability, with 85% of respondents experiencing the disruptive effects of climate change in daily living. As a result, consumers prioritize consumption practices that integrate sustainability-focused practices.
Almost half of consumers (46%) reported buying more sustainable products to reduce their environmental impact. They’re willing to pay a premium for sustainably produced or sourced goods, with an average willingness to pay almost ten percent more for products meeting specific environmental criteria. Such criteria include considering locally-sourced, upcycled/recycled, or eco-friendly materials, produced in supply chains with lower carbon footprints.
Social Media and Technology
Social media’s prominence as a primary source of brand awareness and product consumption has visibly surged, almost half of consumers claimed to purchase products directly through social media, up from less than a quarter in 2019.
Sixty-seven percent of the respondents claimed to use social media to discover new brands, and 70% sought reviews to validate brands before purchasing. Social media influencers help with sales – 41% of respondents mention celebrity or influencer influence in their decision to make purchases.
Whilst technology platforms shape consumer habits, they drive anxieties with as much as 83% of consumers saying that the protection of personal data is one of the most crucial factors in brands earning consumer trust.
Cost-of-Living and Inflation
Despite a focus on sustainability, consumers are challenged by cost-of-living pressures with a third citing inflation as the biggest impact on their consumption habits. Sixty-two percent of consumers say the most significant increase in spending is on groceries with inflation driving the price of essential goods ever higher.
Implications for the modern organization
The survey results have significant implications for businesses operating in the consumer markets. Companies must strike a delicate balance between consumer affordability and environmental impact to source and retain consumers in the year ahead. Zero-party and First Party data’s impact is critical in every decision that a business plans to take.
Digital engagement and service delivery through social media channels is all very well but there need to be social contracts with consumers – consider how your business does this. These kinds of contracts are facilitated by self-service data lifecycle management and consent in order to maintain organizational and brand reputation.
Building trust with consumers is paramount, and companies must prioritize data privacy and security measures to instill confidence in how consumers’ personal information is handled.
Transparency and credible reporting on sustainability practices are also crucial to resonate with the growing segment of consumers seeking to align their purchases with their values.
The PwC 2024 Voice of the Consumer Survey highlights the evolving consumer landscape, where trust, sustainability, and technology are shaping consumer behavior and preferences. The piece also make some targeted recommendations for brands.
Companies must adapt their strategies to address these trends, balancing affordability with environmental impact, prioritizing data privacy and security, and leveraging digital channels and social media effectively. In all this, Pretectum CMDM can help.