Consumer Expectations are Shifting and Opportunities for Innovation Abound
It’s a brave new world out there. Or is it? That’s what we endeavored to find out through our Consumer-Driven Innovation Survey, which was designed to provide both a better understanding of, and insights into, how consumer purchasing behaviors, perceptions, and needs have evolved over the past year. We also wanted to explore the impact that technology, incentives, and innovation have had, and are having, on people’s decisions to choose one retailer or purchasing method over another.
Since this is our second study in as many years, a good place to start this year’s conversation is with last year’s “Consumer-Driven Innovation in 2020” report. In that report, we observed that “COVID-19 continues to be a dominating feature, significantly impacting individuals and the economy as a whole. With no clear end to the pandemic in sight, consumers and companies alike are proceeding cautiously, navigating the ups and downs of new outbreaks, remote working, lockdown orders – even everyday activities.”
So, what has (and has not) changed between Fall 2020 and Fall 2021? In September of last year, unemployment was over 10%. Today, it is less than 5%. Roughly 188 million Americans have received the vaccine and yet, “more people worldwide have died of COVID-19 so far this year than during all of last year.” (1) As for the economy, S&P provides these September 2021 observations: “While still running hot, the U.S. economy has cooled as summer ends. Supply disruptions remain the leading suspect slowing the world’s biggest economy, and the delta variant is now an additional drag.”(2)
Given that, how much of a return to normal have we experienced in 2021 and how are consumers responding to it? Our findings show how consumer expectations have shifted. These are shifts that, if leveraged properly, can provide companies with both present and future opportunities.