Michael Podolsky, Cofounder and CEO of PissedConsumer, a review platform that helps consumers be heard and brands improve their service.
Staying afloat—never mind growing—in the tightly packed, highly competitive commercial environment that typifies the modern marketplace demands a lot from a business. Chief among the survival skills necessary to remain competitive is a keen eye for consumer trends and changes in consumer behavior.
Being attuned to, understanding and adapting to shifting consumer trends will refine your focus and enable your brand to apply itself effectively.
Let’s look at some current consumer behavior insights and how you can adapt your strategy to reflect them and improve the customer experience.
Privacy And Data Safety Worries
A growing concern for online consumers is the threat of fraudulent activity, such as identity theft and online scams. In fact, 41% of consumers state that knowing their personal data and transactional information are securely handled in customer service and sales interactions is essential.
Data breaches are hitting the headlines more often, and consumers are being more cautious about what personal details they share and with whom. This trend emphasizes the need for businesses to ensure rigorous, watertight security around personal data as well as assurances, education and clear terms concerning safety procedures.
Shrinkflation
Another common concern, diminishing trust and brand loyalty, is shrinkflation. According to our recent consumer trends report, it became a major issue in Q4 2024—especially during the holiday season, when shoppers were more cautious about getting the best value for their money.
With growing media coverage and social media chatter on the subject, shrinkflation is impacting consumer behavior trends and brand loyalty. Shoppers are dropping brands that are perceived as pursuing this cost-cutting tactic, which leads to consumers feeling cheated or misled.
Brands could address this by consulting the customer before changes are made. Are they willing to pay more for the same product, or will they accept corner-cutting if it maintains the same shelf price?
Refund Delays And Billing Complications
A common topic of customer complaints over the last year (particularly during the seasonal shopping peak) has been refund issues. To note, the overall return rate for 2024 was 13.21%, with merchandise returns totaling $743 billion, accounting for 14.5% of all retail sales.
Whether due to challenges in dealing with transaction volume or unclear policies, many consumers are finding themselves out of pocket for what they feel is an undue length of time.
To address this, businesses must communicate policies and timeframes clearly and, if the timeframe is protracted, provide reasoning for this delay—most customers will want to know why you are holding on to their money for so long.
Similar problems regarding billing are also seeing more light year-round. Incorrect charges and other disputes around billing that are inefficiently dealt with—particularly through digital services—are a growing cause of shopper stress.
Businesses must correct this issue by ensuring they have the capacity to deal with such conflicts quickly, whether through automation or a dedicated, empowered customer service team that can reach out and resolve issues quickly.
Customer Service Complaints
As the main meeting point between buyer and business, it’s unsurprising that customer service gets a lot of scrutiny and is behind many consumer worries. Online reviews set unresolved complaints in stone for the world to see, so it’s important to make sure you get your customer service right.
More than half of consumers say they feel stressed and exhausted when dealing with customer support. Complaints mostly revolve around poor response times, lack of customer service agent knowledge and unsatisfactory outcomes.
To create a more positive customer experience, aim to identify potential issues before they escalate. Proactive communication that suggests relevant solutions is a must.
Consistency, empathy and a problem-solving mindset are essential to providing good customer service. To this end, investing in staff training and investigating automated support to reduce the labor load on customer service agents will go a long way toward reducing the number of consumer issues.
Preparing For The Future
Looking at current consumer trends suggests that in the year ahead, we will see a shift in consumer behavior that reflects global events, financial pressures and increased expectations around fairness and quality of service.
The post-pandemic, plugged-in consumer has instant access to hundreds of thousands of information reservoirs about company activity and individual experiences with a brand. This empowerment of the consumer, coupled with the withdrawal of human staff in favor of automation, is inevitably causing communication difficulties and negative consumer feedback. As the rising cost of living hits both the shopper and the seller, brands must negotiate these challenges in a way that doesn’t make the consumer feel exploited.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
Read the full article here
