Consumer Insights Survey 2022
The New Equation of The New Consumer
Today, the omnichannel world is indispensable in retailers’ agenda. In addition, shopping experiences, purchasing power and sustainability influence the preferences of consumers in Türkiye more than ever. In order to better understand consumer wants and needs, as well as their behaviours, PwC Türkiye conducted Consumer Insights Survey 2022 with Ipsos.
The 5 outstanding trends according to the key findings of the survey:
1- The impact of deteriorating economic conditions on consumer purchasing power
40% of participants don’t agree that the economy will improve in the upcoming decade, and this percentage is higher than those who, for the first time since 2006 believe the economy will improve. However, consumers are more hopeful about their personal economies.
From the pandemic process on, the percentage of participants who believe macroeconomic developments in Türkiye are negative increased from 50% to 71%, while the microeconomic assessments of participants were more optimistic. While 71% say the macroeconomy of the country is negative, 37% believe the same for their personal economy.
2- Increasing use of digital channels by younger generations
Depending on the category, 6-9 of every 10 consumers use mobile devices and/or computers when shopping. Accommodations, transport and entertainment are the categories where digital channels are most often preferred. Use of digital channels as sources of information and channels for purchasing continues to spread widely as younger generations join the consumer segment.
When asked about campaigns, which are among the top factors that trigger consumer purchasing decisions, 7-8 of every 10 participants say that they prefer using discount codes/coupons and free delivery.
For online shopping, which is becoming increasingly widespread, delivery and return processes, where the consumer is contacted directly, have an impact on customer experience. The results of the survey suggest that consumers are generally content with the delivery experience in online shopping. The most important criteria for customer satisfaction are simultaneous tracking of delivery, delivery without damage or missing items, the professional behaviour of delivery staff, delivery location and time, and the flexibility provided to the delivery recipient. Among the top factors that improve customer satisfaction, especially for women, are no extra cost for returns and no questions asked returns.
3- The transformation of stores into information and experience centers
The consumer still thinks of the store as the most important source of information in the grocery, apparel, and consumer electronics/electrical household appliances categories. Although the use of digital channels is becoming more widespread, companies should reimagine in-store services from a customer experience perspective to meet the consumer's changing expectations of stores.
Stores will retain their importance as channels for consumers in the long term. However, the reasons for visiting stores will be more about experiencing the brand and getting information. Categories where clients prefer stores most as information sources are grocery, apparel, and consumer electronics/electrical home appliances. For grocery shopping, 81% of consumers visit stores for information, and 73% uses stores as the purchasing channel.
4- Adaptation of trending technologies not meeting expectations
Social media, which may become a new commercial channel, is still primarily a source of information for consumers. The terms “metaverse” and “NFT”, which recently came into use, are known by 25% of consumers. However, it seems much progress is needed in order for consumers to understand them in detail and use them daily. We are of the opinion that this process is an evolution, and not a revolution. Cryptocurrencies are better-known throughout all segments of the population.
Today, when the customer journey more and more often begins on online platforms where products are evaluated based on reliable information, social media seems to be used mostly for internet research and to collect feedback from family and friends. Owing to social media, consumers access not only the user experiences of those they are close to, but also global user experiences. The survey, carried out for 8 different categories including apparel, grocery shopping, entertainment, and accommodations, suggests that social media still has an impact on consumer shopping preferences.
5- The increasing importance of sustainability
71% of participants say they have heard about sustainability. Consumers, believe that the public administration and product/service providers are the main responsible for sustainability. They claim that their own responsibility is quite limited. This makes sustainability, a required focus for organisations, a top item on the agenda. However, only 7% of participants say they are ready to pay more for sustainability. Climate change retains its importance on the global agenda. Environmental issues related to climate change are the topics that come to mind most for consumers.
While sustainability evokes statements concerning continuity, recycling, the environment, and protecting nature, 88% of participants say that sustainability is about conserving water, food and the environment. 64% of participants believe that the public administration is most responsible for encouraging the public to adopt sustainable behaviours and/or lifestyles.
Conclusion
Inflation, which is high globally, causes consumers to prioritise certain product categories and requests in Türkiye. Instead of buying immediately from the channels where they obtain information about products and services they require, consumers continue the research and comparison process until they make their purchasing decision.
PwC Türkiye believes that retail and consumer products industry should answer the strategic questions below to remain competitive in the new customer equation.
- What are the improvements in areas such as product, channel and supply chain that will address consumers’ economic concerns?
- What strategies should be adopted for omnichannel management? How should the operating model be designed to implement this strategy?
- How should the client-oriented experience be designed to stand from competitors in the retail of the future?
- How can social media and new digital technologies be turned to competitive advantage?
- How ready are we for sustainability in the eyes of companies and customers? Which steps should be taken to get ready?
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