Nearly one-third (31%) of UK adults report being more indecisive about what they buy compared to three years ago, with a similar percentage (30%) agreeing that the pandemic has altered their behavior and thinking. It seems that consumers have also become smarter during this period, with two-thirds (66%) stating they now seek better shopping deals. This complexity is echoed by the overwhelming majority of marketers in the study (85%), who believe that consumer behavior is more volatile than ever. They cite the cost-of-living crisis (76%), social media, environmental awareness (51%), and the ongoing impact of the global pandemic (48%) as major drivers of change over the past three years.
Given this shift, old methods of segmentation and targeting are failing to meet current needs, with 48% of marketing professionals believing that demographic data is losing its value. Marketers are increasingly turning to real-time personalization and first-party data strategies to understand this new buying behavior, with 71% saying real-time personalization is more valuable and 58% believing it will be the most important technology for staying relevant. Real-time personalization is driven by data from past searches, purchases, and customer interactions to provide relevant content and options at the moment they are needed. This typically involves event-based triggers, which can only be effective with a solid base of up-to-date customer data from various channels.
Sam Richardson, Customer Engagement Consultant at Twilio, said: “Just as current debates around outdated economic models, this research has highlighted that it’s truly time to abandon old demographic methods and customer segmentation models. People are unpredictable, and their shopping ‘journeys’ and decisions are non-linear. Marketers and customer service agents need the kind of data that allows them to be more fluid in their interactions with customers.” “The only way they can gain deeper insights into their customers and all their nuances is by focusing on the value inherent in first-party data. There’s no need to base marketing strategies on outdated categories and assumptions if you can personalize based on how people interact with your brand both historically and in the moment. Integrating all this data from across your business into a single source of truth will help organizations know exactly what their customers need at the point they need it,” he concluded.
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