Whats On The Horizon For Market Research In 2023
Melinda Shepard.
Melinda Sheppard, COO - Clean profile
As 2023 dawns, inflation, rising interest rates and the cost of living are at the forefront of people's concerns. Consumer confidence is weak and we expect the belt to tighten significantly over the festive season and into the next 12 months. According to Pureprofile's Christmas 2022 report, more than half (58%) of Australians will buy fewer presents this year to control their budget, with financial stress being the biggest stressor affecting people.
As in the early days of the pandemic, it is unclear how next year will play out or how consumers will respond to external pressures. When there are so many unknowns, it is important for companies to stay in constant contact with consumers through market research. Here's what we think is in store for the market research industry in 2023.
1. Retail should focus on value for money and overall experience
The 2022 E-Commerce Australia report, produced in partnership with IAB Australia, shows that value for money was identified by 84% of respondents as the most attractive feature of online brand commerce. Express shipping has declined as consumers prefer seamless multi-channel shopping.
Two-thirds of online shoppers said cost-of-living pressures meant they had to spend less on non-essential retail this year, while rising interest rates made 65% more cautious about spending, especially for new families. Those currently facing cost-of-living pressures are increasingly turning to online shopping to compare prices and find specific products. They are more likely to look for value in programs like store loyalty cards.
In light of these findings, research will play a vital role in determining what consumers find rewarding in an ever-changing landscape and helping retailers understand how to optimize the omnichannel shopping experience and build trust. among undecided buyers. .
2. Data protection will be a priority for consumers
Recent data breaches at Medibank and Optus have brought privacy concerns back into focus and consumers are starting to vote with their feet and ditch brands they feel have let them down.
An e-commerce report found that 55% of online shoppers are "somewhat" or "very concerned" about the use of customer data provided by their transactions.
11% of online shoppers say their level of concern depends on how much they trust the retailers they share their data with. Most online shoppers understand that their data is used for targeted advertising and marketing; However, 24% do not know if retailers share their data with other companies. In the coming year, companies should take the time to educate consumers about data usage and adopt more open approaches to their practices.
3. Brands must use new sources of data to stay competitive
Last year, we predicted that industries such as tourism, hospitality, recruitment and human resources would see the strongest growth. That appears to be the case, with tour operators, travel agencies and airlines topping the growth chart and job vacancies reaching record levels at the start of the year. In 2023, we see other industries that could grow;
- Education is set to make a comeback, with more overseas students looking to return to Australia.
- The insurance sector will also benefit from the current instability. People will seek insurance to cover their uncertainty.
- Banks and finance will also benefit. As Australia faces a possible recession, financial institutions will see increased activity as more consumers turn to them for help.
Attracting budget-conscious consumers will lead to fierce competition in all areas. Brands must prioritize learning where they stand against the competition, and consumer spending data is especially important during this time.
4. Changing definition of 'Australian family' means research knowledge is more important than ever
Research carried out this year with Insights Exchange found that a third of Australians do not identify with advertisers' and media's depiction of family/family, which typically includes parents with young children living at home and close family members. Indeed, couples with young children make up only 16% of households. 60% of Australian families are childless.
Over the next five to ten years, the traditional family structure will be replaced by clearer definitions of family as couples have children later and millennials cannot afford to own a home. For adult children (18+) still living with their parents, 55% are there to save money, while 47% say they can't afford to live anywhere else.
The baby-to-baby phenomenon has important implications for how a customer goes to the grocery store, buys gear, plans trips, and manages various services and devices. flow: This means that if four (or more) adults live in the same house, the potential cost sharing will be similar to that of roommates.
Although it is too early to say which patterns of spending and distribution dominate these living arrangements, it will have a fundamental impact on any research undertaken as it departs from conventional ideas of Australian households.
2023 will undoubtedly be another difficult year, but the opportunity is there. For brands and businesses to thrive, they must constantly listen to the consumer and evolve nimbly in response to changing economic conditions and consumer expectations.
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