Consumer-Driven Innovation in 2021

Consumers want to prioritize saving money, however, with no increase in salaries, saving efforts have remained stagnant. On the bright side, non- essential spending is on the rise, signaling increasing consumer confidence. The number of consumers spending more on purchases such as fashion, home décor, and electronics has increased from 22% in 2020 to 29% in 2021. In addition, 65% of our consumers told us that they had traveled in the past six months.

This is encouraging; nevertheless, non-essential spending faces strong headwinds with uncertainty about the continuing impact of COVID-19, fewer Americans working, incomes significantly impacted, and the rising cost of goods. It is likely that essential purchases will continue to represent the lion’s share of consumer spending until deeper into the recovery.

Last year, consumers were exploring alternate shopping methods and tech solutions for everyday activities. Discounts and conveniences that prioritized safety like free shipping, curbside pickup, and physical store modifications also had big impacts on purchasing behaviors. As a result, buying by brand suffered as availability and cost, driven by disrupted supply chains, became key factors.

This year, consumers continue to use alternative shopping methods and tech solutions for everyday activities. Price is the most important factor in choosing a new product or service, as noted by 83% of respondents. Availability and convenience are also critical for consumers, at 54%, with many trying new brands as a result. Nevertheless, trusted brands are still a consideration for many consumers with 55% of respondents looking at brand as an influencer when selecting a new product of service.

Consumers have tried new and different technologies to meet the changing environment and want to continue to do so in the future. Our study revealed that consumers who scheduled an appointment or joined a waitlist online before arriving at their destination has increased from 20% in 2020 to 39% in 2021. Almost half of consumers attended virtual appointments in the last six months. And consumers intend to continue to use these technologies, with the majority planning to attend virtual appointments, and schedule appointments or join waitlists online.

Online chat is also on the rise, with 29% very interested in continuing to communicate via online chat. Whether a mega financial institution or your local restaurant, the standard for quality customer service remains extraordinarily high, yet the way that customer service is delivered has changed. Faced with staffing and cost issues, businesses are turning to customer service technology platforms that don’t involve live human conversation — text messaging and self-service portals, just to name a few. Goodbye human interaction, hello chatbot.

While there are some indicators that consumers are “returning to normal,” many behaviors, habits, and trends that were witnessed during the COVID-19 pandemic remain consistent today. And many of those might be here to stay – indicating a “new normal.”