Zenith Digital Unplugged: Understanding post-pandemic consumer to unlock growth

Authored by Priyanka Kapur, Senior VP, Zenith India.

While the pandemic’s repercussions are still being felt, the consumer has emerged as a changed being and is continuously evolving basis the crisis. They have created new routines, found new values, experienced new technologies and reset their priorities. But one thing is certain: they want brands to help them make the right choices.

To remain relevant and in business as marketeers and media experts, it’s imperative that we evolve our connections in line with this change.

As per a Publicis Media Data Intelligence report published recently, there are 5 key trends that have emerged globally and are shaping the future of communication and interactivity. And these very much are translating to India as well.

#1 Conscious spending

Consumers are changing their spend patterns. Given the current scenario and economic uncertainty, consumers are forced to continually re-evaluate their priorities and their budgets. They want to make smart financial choices without sacrificing their quality of life.

Brands need to seek this opportunity to build loyalty and adapt their offerings to the changing needs. Factors such as flexibility, longevity and sustainability will play an increasingly important role. 48% of Indian consumers agree that companies can do more than governments to change the world (Source: MINTEL Global Consumer Trends 2023)

Implications – Brands need to employ strategies to make them stand out not only as convenient options, but also as brands that serve consumers’ purpose. Keeping the consumers engaged is the big challenge. Being visible at the right time (placements), being useful (rewards, coupons) and being convenient (new payment methods, commerce) is what drives the edge.

#2 Seeking Balance

Given the fact that the pandemic is largely behind us and is now a part of life, consumers have decided to find balance, focus on their own well-being and rediscover priorities. They have dealt with a lot and are now tired of putting their own well-being second place. The demand for indulgence, comfort and escapism grows.

Regarding work, flexibility is the priority for 2023. Digital detox is another priority encouraging people to reduce smartphone usage and delete unnecessary apps.

Implications – A day in the consumer’s life is changing and new routines are being created. It is important for brands to evolve and be part of this journey. The digital detox means less fragmentation. How do brands leverage that to be relevant and break the clutter.

#3 AI Goes Mainstream

Pandemic-driven digitisation is a fact that has impacted many industries. While chatbots are nothing new, the arrival of ChatGPT from Open AI has managed to attract everyone’s attention.

Generative AI, which uses machine learning models to create new and original content, has emerged as a significant trend in 2023, with applications in fields such as art, music, and language generation. With advancements in AI technology, generative models have become more sophisticated, leading to increasingly impressive and lifelike outputs.

Big Tech, including Google, Meta and Amazon, have each invested heavily in this space, which is estimated to grow at a CAGR of 34.3% in revenue by 2030 (Source: Global Newswire).

Marketing and media are already feeling the impact of generative AI. The worldwide generative media market is expected to reach almost $398 million by 2025 (Source: Deloitte Tech).

Implications – Generative AI can offer several advantages for businesses, including the ability to create customized content at scale, which can be particularly useful in influencer marketing campaigns. AI influencers aren’t real, but their impact is! However, when a trend goes viral so fast, all brands tend to react in the same way. How can your brand stand out and utilize all the possibilities of AI in a unique and innovative way?

#4 Widespread distrust

Consumers are increasingly distrustful, whether in the political, economic, legal, or even digital spheres. Moreover, with the explosion of digital technologies, companies are collecting huge amounts of data about consumers’ online and offline activities. In such a scenario, how can companies gain and build trust in the personal data that customers provide them?

As new regulations come into effect, data privacy will take on a new urgency. Collecting data will also become more and more challenging as consumers will expect value in exchange for their data.

Implications – Data strategies need to be built in a way that help brands better prioritise their customers’ privacy. Brands can both protect customers’ privacy while incentivising them with value and services, such as personalisation. They need to prepare for the future and use data to improve the customer experience and position themselves as transparent and trustworthy.

#5 Community Power

The human race has always relied on communities. They play an important role in bringing people together and giving them a real sense of belonging. In recent years, people have found belonging through interest groups on digital channels, and some of these habits have found a permanent place in their lives. 

We live in a time when new technologies offer resources to help grow, build and reinvigorate communities. People are seeking out new places online where they can feel a greater sense of belonging.

Implications – For brands, the opportunity lies in exploring new places to connect more deeply with people. Brands can leverage these communities to engage consumers and make them co-creators and vehicles for innovation. To grow a customer base, brands need to engage and reward their communities, especially Gen Z.

The Way Forward

Brands need to craft new journeys to be able to cope up and evolve with the changes that consumers are making. The big challenge is to keep the consumers engaged and be agile to adapt to these changes. Preparation for the future and usage of data is also something that brands would need to adopt quickly.

Be it some of the trends above or a mix of all, the post pandemic trends are here to stay and the advantage any brand would have is to be able to adapt and adopt to these before their competitors do.