This week we took a moment to look back at the year that was and to look into our crystal ball for 2022 to predict some trends that we expect to see.
Health on my Terms
After a rough 2 years globally there is a growing consumer desire for services, products and store experiences that contribute to better physical and mental wellbeing. Particularly those that place the power back in the patient's hand. Examples include: apps like Calm and Headspace as an alternative or accompaniment to therapy. Genetic and health marker testing companies such as Circle offer users access to easy to understand actionable data on their DNA and over 500+ reports related to their health from the comfort of their home without their GPs blessing. Not to mention, over the counter rapid COVID test kits that will likely be in every home by the end of 2022.
Gen Z purchasing power
If you can believe it, the babies of the 90’s and early 00’s are now starting to have babies of their own! This Gen Z consumer power is unlike that of the Millennial consumer. Even though they won't peak in their influence for another 7-10 years they have significant influence on what the older generations buy. They care about CSR, sustainability, brand values but at the same time they are interested in unique, braggable, luxury, boutique shopping experiences over everyday mall shopping. If no one saw you buy it did it even happen? Definitely a fascinating space to watch!
The death and rebirth (?) of the influencer
Consumers are wising up to ingenuine influencers. Authenticity reigns supreme. Your target market can spot a like minded consumer but they can spot a forced endorsement even quicker! That's not to say that there isn't still a place in the marketing mix for influencers but brands are working with influencers now in a more considered way and they are now educated on the value, expectations and deliverables that go into a successful campaign.
It's all about the conversation
Marketing teams are coming to the realisation they are no longer the sole orchestrator of their dialogue. They are purely one other voice in it. As a result, teams must be nimble, on the pulse and willing to be a part of the conversation. It's certainly a challenging change of days gone by where the narrative could be carefully crafted and controlled from HQ. Instead of viewing this as a risk or a deviation from the plan, great teams embrace spontaneity and their brand community. Preferring to encourage the chat rather than control it.
DTC like a VIPWith the continued growth of DTC (Direct to Consumer), the expectation of a level of service that mimics an in store experience has risen particularly during the last year. This includes immediate online replies, live in stock data and increased power for customer service teams to go above and beyond. Many businesses have also grown frustrated with the fact that they have been reliant on shipping partners to ensure a good CX, to the point that many have created their own fleets to ensure they can control the entire journey from cart to doorstep.We've also seen a rise in more digital face to face shopping - evident in the rise of 1 on 1 video personal shoppers used by the likes of Mecca Cosmetica. Allowing customers at home to have expert eyes and ears in the store for them for a small fee.
Hands off in storeResearch suggests more and more everyday retailers are rolling out self checkout units. Progressive Grocer noted self checkout installations had increased by 25% in 2020. Aldi Australia launched their systems in June 2021 to mixed reviews. Whilst the offering allows for low contact transactions many fear its ruining local job creation and putting too much of an onus on the consumer to “work for their purchase”.
Cart Simplification
With rolling lockdowns and plenty of time spent at home consumers have been relying on e-commerce for their everyday needs (such as toilet paper!) more than ever before. They now expect simplified ecommerce carts. When executed well, this means less steps which equals less abandonment. A win win for everyone!
Staying Connected We've been apart for so long and as such we are craving human connection, interactions and to create and evoke memories.The challenge will be going into 2022 - what and how do we transition back to face to face? Major corporate events, festivals, expos will need to make this call. Will expect to see more.
1. Online Gaming - Worldwide gamer spending on in-game content increased by 12 percent year-over-year
(Statista 2021)2. Online Sentimental Gifting - with increased shipping delays, travel restrictions and concerns around the health safety of immuno-compromised friends and family a sharp increase in easy digital gifts that are still thoughtful, unique and sentimental is expected. Items such as Peleoton memberships, Masterclass subscriptions and Storyworth 12 month books have seen a ton of success in this space.
Food Tourism at Home
With those hesitant to mingle in 2022, COVID companies such as top restaurant delivery service Providoor will continue to see success in offering the ability to fine dine in the safety of their home. Who doesn't want to eat truffles in their slippers?
What else have you seen gaining momentum for 2022?