A survey from Shopify in June 2020 revealed that over half of consumers in North America agreed that the COVID-19 pandemic was a significant factor in changing their purchasing behavior. Naturally, most businesses were affected, especially small businesses lacking the financial resources to recover in the long term. However, for entrepreneurs who may be planning to expand their business or try entering new markets to strengthen their business, but are still hesitant about what to do because the economy in 2023 is not recovering immediately. If you make a wrong strategy, it could lead to a complete collapse.
Therefore, in this article, Relevant Audience has compiled consumer trends that are trending in 2023 to give business operators time to prepare and apply them to marketing strategies. What interesting things are there? Let’s take a look together.
1. Most Consumers Tend to Be Price Hunters
As everyone knows, the COVID-19 pandemic has impacted consumers’ income both directly and indirectly, causing more concern about spending and creating a behavior called price hunters or Price Hunters who will wait to buy products or services only when there are promotions or attractive special offers. They will search for the desired products through various platforms or other channels to get the product at the desired price. Brands can adapt to this consumer behavior by organizing more promotions or offering special services such as free shipping when purchasing a certain amount to attract new consumers.
2. Social Ads Are Still an Important Factor in Decision Making
Advertising on social media platforms remains a popular and effective channel for promoting products. Moreover, most platforms currently have features that support Social Commerce, making it easier for consumers to make purchase decisions.
- 78% of consumers agree that they are willing to buy products if they receive a good experience from advertising on social media platforms
- Ad Spend for social media platforms increased by more than 38% between 2020 and 2021 and nearly $230 billion in 2022
3. Consumers Have Decreasing Brand Loyalty
When most consumers prioritize price, naturally the “Brand Loyalty” strategy will shake and yield less results, especially if the brand’s products or services are not significantly different from competitors in the market who may offer better prices. Coupled with other factors consistent with personal needs, most consumers are willing to look for products from other brands immediately if they like them enough.
- More than 70% of consumers, according to a survey, buy products from competitor brands of their favorite brands
- 46% of consumers will decide to buy products from competitor brands if their favorite brand does not have the product
- Over 70% of consumers stated that convenience in buying products immediately is an important factor in buying products on social media
4. Personalization Marketing Strategies Are Important
In 2023, most consumers expect brands to provide a more personalized shopping experience, or what is known as Personalization Marketing, which is becoming a popular strategy among consumers in this era. By collecting consumer data and analyzing customer behavior in depth. Importantly, it must be consistent with the Data & Privacy trend that must build confidence for consumers regarding data security.
- Interest in Personalization strategies has increased significantly. In 2022, 62% of consumers stated that most brands will lose Brand Loyalty if they cannot provide a personalized experience for consumers.
5. Social Commerce on TikTok
TikTok is a social media platform that has been continuously gaining popularity, to the point where many marketing experts have commented that TikTok may become a Search Engine replacing Google for users in the Gen Z group. It can be seen that TikTok itself is developing various features that launch to support the needs of users, especially TikTok Shopping, which is another channel for Social Commerce. Users of the platform can buy various products while using the app instantly.
- In 2024, there is a chance that the group of consumers who like to buy products on social media on TikTok will surpass the Facebook platform
- According to a report from Google, 40% of internet users aged 18 to 24 have started using TikTok or Instagram instead of Google Search
Concluding Remarks
If you have read this far, we hope that novice entrepreneurs or marketers who are just starting to develop strategies for 2023 can take the information above and apply or adapt it to their businesses. Rest assured that anyone looking for a way to survive or wants to grow their business this year will not be disappointed.
Consult Digital Marketing with Relevant Audience
Relevant Audience is a company providing services related to Digital Performance Marketing Agency, with the main goal of providing digital marketing services to help businesses reach target audiences who are looking for products or services at the right time, place, and device through various online channels. Our services cover Search Marketing, Social Media Ads, Search Ads and SEO (Search Engine Optimization) to Influencer Marketing and is also part of the Google Partners program.
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