New Trends: How Consumers Are Spending Wisely In 2024
Consumers spending habits are shifting in response to various factors, despite growing concerns over costs. The modern purchasing journey is increasingly influenced by deal-seeking, social media, and a variety of payment options. Here are five critical statistics that highlight these changes in consumer behavior:
1. High-Income Consumers Seek Deals
According to a June 2024 report by SimplyCodes, 89% of households earning between $175,000 and $199,999 annually use online coupon codes, compared to just 53% of households with incomes between $10,000 and $24,999. The study also revealed that households earning over $125,000 are more inclined to utilize online coupons than those with lower incomes.
Implication:
Digital coupons appeal not only to budget-conscious consumers but also provide retailers with valuable insights into the effectiveness of their advertising. To maximize engagement, retailers should ensure that these coupons are easily accessible and user-friendly for consumers across all income levels.
2. Gen Z’s Willingness to Spend
A May 2024 survey by McKinsey & Company found that 63% of Gen Z consumers plan to indulge and treat themselves in the third quarter of 2024—the highest percentage among all generations. This group also reported the most significant increase in the intention to splurge compared to the first quarter of 2024.
Implication
Gen Z is focused on the present moment, presenting a unique opportunity for marketers. By creating advertisements that emphasize the value of experiences alongside products, brands can tap into Gen Z’s propensity to spend.
3. Gen Alpha’s Influence on Parental Spending
A June 2024 survey by HostingAdvice revealed that 65% of parents with Gen Alpha children are spending more due to their kids’ increased online and social media engagement.
Implication
Although direct advertising to Gen Alphas on social media is restricted, marketers can boost exposure by increasing organic content that resonates with this demographic, indirectly influencing their parents’ purchasing decisions.
4. The Impact of Video Content on Purchases
Data from an April 2024 study by Syndigo indicates that 30% of consumers in Europe and the US are more likely to purchase after viewing videos that showcase product features, tutorials, or case studies.
Implication
The rise of social search underscores the importance of content in the decision-making process. Retailers can enhance their product pages with detailed descriptions, high-quality images, and informative videos, aiding consumers in making well-informed decisions and reducing return rates.
5. Cashless Payments and Impulse Buying
A May 2024 report by Forbes Advisor found that consumers are twice as likely to make impulse purchases using card payments compared to cash. Additionally, 27% of consumers noted that not physically seeing cash makes it easier to spend.
Implication
While cash is expected to account for 24.8% of all in-store retail food and food service transactions in the US in 2024, its share is forecasted to decline by 2.6% in the coming year. Retailers should embrace this shift by offering diverse payment options and incentivizing card usage through loyalty programs or mobile apps.
