Consumer Behavior Statistics Understanding the Shift in Customer Behavior

Introduction

The COVID-19 pandemic has accelerated the shift towards online shopping, revealing the ever-changing factors that influence consumer purchasing decisions. In this article, we will explore key statistics on consumer behavior from our 2024 Consumer Trends Report to shed light on what is driving consumers this year.

Social Shopping is an Ecommerce Standard

• Social shopping has become the new face of ecommerce, with 59% of marketers reporting increased social sales in 2023 compared to previous years.
• Gen Z and millennials prefer social media as their channel for product discovery, with 33% having discovered a new product on social media in the past three months.
• 1 in 4 social media users have directly purchased a product on a social media app in the same period, representing a 39% year-on-year change.
• Facebook and TikTok offer the best in-app shopping experiences and have seen the highest number of transactions.
• However, consumer trust in social media apps for buying is still relatively low, with only 47% feeling comfortable making purchases through these platforms and 45% trusting them with their card information.

Gen Z Heads the Social Shopping Pack

• Gen Z leads the way in social commerce, being more engaged in social shopping compared to other generations.
• They frequently discover new products on social media and have a higher likelihood of making direct in-app purchases.
• Gen Z’s preferred social media platforms for shopping are TikTok and Instagram, which offer seamless and user-friendly in-app shopping experiences.

Social Media Search is Growing in Popularity

• Search engine usage has decreased by 12% between May 2023 and January 2024, while social search usage has increased by 4% in the same period.
• 21% of consumers now prefer to get answers to their questions through social search, representing a 40% year-on-year increase.
• While search engines remain the most effective way to find answers, consumers are increasingly looking for a seamless buying experience that encompasses searching for products to post-purchase customer service.

Consumers Prefer Socially Responsible Brands

• 90% of respondents in a survey conducted in April 2024 believe that companies should practice social responsibility.
• Consumers are increasingly choosing to support brands that take a stance on social issues such as fair treatment of employees, diversity and inclusion, and sustainable business practices.
• This desire stems from consumers wanting to align their purchasing power with their personal values, such as supporting sustainable businesses or those that champion causes they care about.

Consumers Seek Personalization

• Consumers crave personalized experiences, but many feel that the content they see from brands is not tailored to their interests.
• Marketers share a similar sentiment, acknowledging that personalized experiences increase the likelihood of repeat customers.
• Offering product recommendations, usage recaps, and smart content are effective ways to provide personalized experiences.
• Generative AI is a new tool that marketers can utilize to boost personalization, with 77% of users reporting that it helps them create more personalized content.

Consumers Have Concerns About Data Privacy

• While consumers desire personalization, they also express concerns about how companies use their data.
• 50% of consumers typically decline to have their personal data tracked.
• 76% of respondents in our survey are concerned about how companies use their personal data, emphasizing the importance of trust in deciding whether to share data with a company.
• Users want control over their data, including the ability to choose whether to share it, delete it from a database, and ensure its secure storage.

Consumers Seek Support in DMs

• 20% of Gen Z and millennials have contacted a brand through direct messages (DMs) for customer service.
• 70% of social media marketers already offer customer service support on social media platforms to cater to the growing demand for assistance through DMs.
• With the rise of social shopping, consumers prefer a streamlined experience where they can reach out for support within the same app where they made their purchase.

Friends and Family Offer the Most Trusted Recommendations

• While influencer marketing is impactful, reviews and recommendations from friends and family hold greater weight for consumers.
• Consumers trust the opinions of their loved ones more than recommendations from influencers.
• Marketers can leverage this by sharing customer reviews and promoting user-generated content (UGC) to establish trust and relatability.

Conclusion

Understanding consumer behavior is crucial for crafting effective marketing strategies. The shift towards social shopping, the growing popularity of social media search, the demand for personalized experiences, and the desire for socially responsible brands are key trends shaping customer behavior. By adapting to these trends and addressing consumer concerns about data privacy, brands can provide the experiences and support that customers are seeking.