June 2023 Global Consumer Insights Survey Notes

General Overview

• The Global Consumer Insights Pulse Survey (June 2023) includes responses from 8,975 consumers across 25 countries.
• The survey highlights the necessity for businesses to empower consumers by providing tools, information, and technology that facilitate decision-making.

Key Themes

• Shifting focus from removing friction at the point of sale to prior to purchase decision-making.
• Importance of leveraging technology (e.g., generative AI, chatbots) to enhance customer experience.
• Investment in areas like customer relationship management (CRM), mobile apps, and social media is essential.
• Emphasis on sustainability and meeting social governance standards to foster loyalty and efficiency.

Insights on Consumer Behavior

• 50% of surveyed consumers plan to increase their online spending in the next six months.
• 63% of respondents have purchased directly from brand websites, indicating a significant trend towards Direct-to-Consumer (D2C) sales.
• 55% of consumers cite search engines as their primary source for pre-purchase information, with 63% also using e-commerce platforms like Amazon.

Preferences of Consumer Research Sources

• 54% use search engines
• 35% use Amazon
• 31% visit retailer websites
• 29% consult price comparison sites (popular among Gen Z)
• 18% use resale websites/apps

Device Usage During Pre-Purchase

• 56% of consumers frequently use mobile devices for pre-purchase research.
• 40% of consumers use smartphones while shopping in-store to gather product information.

Social Media Influence

• Social media ads influence 31% of consumers; this increases to 43% among Gen Z.
• Preference for ads that link directly to promotions (37%) or are sponsored on social media (34%).

Emerging Trends and Technologies

• Awareness of the metaverse grew, but user interaction remains low at 10%.
• 44% of consumers show interest in using chatbots for product information searches.
• Retailers need to focus on optimizing search engine strategies and investing in AI to enhance customer experience.

Key Recommendations

• Enhance SEO beyond keywords; create high-quality content for better visibility.
• Invest in AI for data optimization in pricing, supply chain, and customer engagement.
• Adopt a “launch and learn” strategy for integrating generative AI tools in e-commerce.

Trends in Direct-to-Consumer Sales

• 63% of consumers favor D2C for authenticity; 47% prioritize product choice; 43% seek competitive pricing.
• D2C websites are increasingly popular, particularly in clothing and electronics.
• 85% of those purchasing D2C plan to increase spending across various categories, particularly in tech.

Subscription Model Insights

• Growth in subscriptions was observed, but the trend is stabilizing as consumers reassess discretionary spending.
• 12% of subscribers from top categories have canceled services, primarily due to cost concerns.

Reasons for Subscribing or Cancelling

• Primary reasons to subscribe: 51% for convenience, 47% for cost-effectiveness.
• Cancellations attributed to the product no longer being needed (39%) or rising costs (39%).

Sustainability and Consumer Willingness to Pay

• 80% of consumers are willing to pay a premium for sustainably-produced goods, with millennials and Gen Z showing the highest willingness.
• The willingness to pay premium prices:
  • Up to 5%: Over 40%
  • Up to 10%: 10%
  • Over 30%: Nearly 7%

Addressing Returns

• Returns are a significant concern for e-commerce; 45% of consumers suggest better sizing information would reduce returns.
• Improving product descriptions and customer reviews are also seen as critical in minimizing returns.

Conclusion

• Companies must navigate the changing landscape of consumer expectations and spending habits with strategic investments in technology, sustainability, and customer experience enhancements to remain competitive in the evolving market.