What Do Consumers Want in 2023?

BrandingMarketingThe 4 P'sStrategy
Written By Amber Ellem
Graphic of shopping trolley with line graph

Consumer trends and what they mean for your marketing.

The consumer landscape is always changing. New products, technologies and innovations change how we interact with businesses and receive their products or services.

 

In 2023, keeping up with these changes is essential. Here are 5 trends shaping Australian consumers and how they should inform your 2023 marketing strategy.

Trend 1: Online shopping is here to stay

As the pandemic pushed businesses and consumers online, many experts questioned whether this was an emerging trend or merely a crisis response. In 2023, we can confirm that online shopping is here to stay. According to GfK, the proportion of online sales has plateaued – at around 35% – but, this figure remains higher than it was pre-pandemic.

In Australia, online shopping has certainly taken hold. Australia Post found that November 2022 was the biggest month for online shopping in Australian history.

Data showed a 38% increase on the previous month and a 3% rise on the previous year. While the annual Cyber Weekend sales made an impact here, the data still suggests that consumers are more comfortable than ever shopping online.

It’s also interesting to note the wide range of products being purchased – from fashion, health and beauty to home and garden, specialty food and liquor, and recreational goods.

Of course, the economic pressure and uncertainty that we are facing in early 2023 will have an impact on the volume and amount of online spending. However, the skew towards online shopping over the bricks-and-mortar experience will remain.

Marketing tip: Invest in your website

A user-friendly, mobile-optimised website makes buying online simple for consumers. Whether you’re revamping an old site or starting from scratch – this investment can help future-proof your business. Product-based businesses should make sure they have an eCommerce platform set up. For service-based businesses, it’s about generating warm leads with a contact form.

Trend 2: Quality and experience over cost

Many businesses assume price is the deciding factor for consumers – but the truth is, quality often comes first. In fact, more than half of consumers say that quality is the most important factor when they’re deciding which brand to buy.

It’s not just the quality of the product that matters, but also the quality of the customer experience.

From how easy it is to find information on a product to how fast you can get it delivered, consumers are looking for a seamless purchase journey.

Let’s use abandoned carts as an example. Other than a product being out of stock, the top reasons for abandoning a purchase include:

  • Not enough information on the site

  • Unclear product imagery

  • Lack of good reviews

These reasons suggest that consumers can be swayed by the quality of information you share on your product. With the right kind of sales page, you can keep them hooked on your brand.

Adding new delivery options is another way to create a quality customer experience.

Over half of Australian consumers have opted at least once for click and collect when buying online. They’re drawn to the option because it has immediate delivery and avoids shipping costs.

Marketing tip: Lead with quality

Providing a quality experience comes down to the type of business you’re in. For product-based businesses, it’s all about the sales or product pages. These should be easy to navigate and understand; providing all the right information to incentivise a purchase. Don’t just stop at descriptions and photos either – think about adding videos which show your wares in action.

In a service-based business, it’s still about word of mouth. Building a solid reputation through customer reviews and testimonials is one way to highlight the quality of your brand. Don’t just collect them for your own benefit – share them with potential customers too. Try crafting a testimonial page on your website, share them in a social post or send an email newsletter.

Trend 3: Branding is your best asset

Every time we make a purchase, we’re surrounded by choice. Branding is the secret ingredient that helps us decide between similar options. Consumers ask questions like does this company share my values? Are they known for high-quality products? Will they be reliable?

Quality and cost remain the top two incentives for consumers, but coming in at number three is brand trust. GWI reports that 32% of global internet users consider whether they trust a brand before purchasing from them. A further 16% ask themselves if they align with the brand’s values.

In Australia, brand values are especially important. GfK reports that 62% of Australian consumers say they only buy products and services that appeal to their beliefs, values or ideals. The most important values for Australians include honesty, family, authenticity, independence and enjoyment of life.

Marketing tip: Build trust in your brand

Behind every consumer statistic, lies a real person. Building trust in your brand comes down to building relationships with consumers. Actively expressing your brand values, creating empathetic content and rewarding loyalty are three ways you can connect with customers on a deeper level. From a marketing perspective, these might look like:

  • Releasing a social impact report

  • Writing blogs and articles that address your audience’s pain points

  • Celebrating loyalty milestones like one year with a customer 

Trend 4: Consumers crave inspiration and authenticity

In 2023, most consumers are done with being sold. What they crave is inspiration. According to GWI, finding new ideas or inspiration has overtaken product and brand research as a key reason for using the internet.

The top 5 ways that consumers find new products

  • Browsing marketplaces

  • Brand or retailer websites

  • Word of mouth

  • Social media feed

  • Amazon recommended products

Source: ChannelAdvisor

Rather than looking for a specific item, we are seeking something bigger – we are asking brands to help us live better lives. Consumers begin from a place of curiosity by opening a social page, visiting an online marketplace or website with the intent of finding something new.

They’re also becoming more aware of manipulation tactics, like fake reviews. GWI found that trust in online reviews has dropped 11% since 2020. Instead, consumers want to see real-life content – such as an influencer using a product, a business giving a tutorial or a real customer unboxing their latest purchase. This is known as user-generated content, or UGC.

Marketing tip: Create more organic content

Where an ad seeks to sell a product or service, organic content seeks to entertain and educate. From regularly updating your social feeds to posting a monthly blog – there are lots of economical ways to increase your organic content. We don’t think advertising should be thrown away completely – but we do recognise the growing importance of inspirational, customer-first content that is authentic. On the topic of authenticity - be mindful of your use of AI-generated content. It’s a great efficiency tool, but not an excuse not to create original organic content.

Trend 5: Reach young consumers on social media

As Millennials and Gen Z forge their careers and begin earning better incomes, they will also start shaping the consumer landscape. Now is the perfect time to get on board with their purchasing habits if this demographic is one of your target markets. One trend that holds firm with younger generations is their preference for social media.

More than 50% of Australian consumers between 18-35 discover products that they purchase on social media, according to ChannelAdvisor. For Gen Z, it’s even the first place they look.

GWI reports that 48% of Gen Z consumers use social media for brand or product information, while only 44% rely on search engines. The last time that search engines came out on top was in 2016.

Impulse buying is also more popular with young consumers. While 41% of Gen Z and Millennials make an impulse purchase every 2-3 weeks, only 10% of Baby Boomers share the habit. Businesses can grab attention by having an easy or quick checkout process and using social media buy buttons.

Marketing tip: Get comfortable with social media

With multiple social platforms to choose from, we can almost guarantee there’s one out there to suit your business. Not only does a social media presence help you to reach a younger audience, it’s also a great space for building brand awareness.

If you’ve never tried socials before, start with just one platform. Set up a profile and explore how it works. Many small businesses choose to outsource their marketing – including social media – because they find it easier to manage with some expert help.

Turning consumer trends into effective marketing strategies

Ebony & Salt are a strategic marketing agency that focus on simplifying marketing for small-medium businesses. We offer the skills of an in-house marketing department with the personalised service of a boutique brand. To turn trends into a measurable, creative marketing plan – reach out for a chat.

 
Amber Ellem
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