Consumer Appetite:
What do consumers want?
10/06/2021
Consumer Appetite:
What do consumers want?
10/06/2021
Consumer wants, needs and demands are constantly changing and we need to keep track of these changes. Both positive events (e.g. winning a lottery) and negative events (e.g. Covid-19) can shift consumer appetite and how it changes depend on the individuals. Here are some examples of changes in consumer appetite:
- In March 2021, Malta recorded a reduction of 86.3% inbound visitors when compared to the same month of last year (NSO, 2021). Covid-19 and laws, reduced the consumers’ appetite to travel.
- 93% of consumers would use alternative payments such as biometrics, QR code and digital currencies (Mastercard, 2021). Advancement in technology and increased importance given to security could have led to this shift.
- Plant-based food market expected to grow at a CAGR of 11.9% from 2020 to 2027 with an estimated value of $74.2billion by 2027 (Cision, 2021). Consumers’ appetite for plant-based food changed because of an increase in awareness of the impact food has on the environment and/or because of an increase in sensitivity towards animals.
No matter what leads to changes, we know that these changes exist and we need to track them
Consumer wants, needs and demands are constantly changing and we need to keep track of these changes. Both positive events (e.g. winning a lottery) and negative events (e.g. Covid-19) can shift consumer appetite and how it changes depend on the individuals. Here are some examples of changes in consumer appetite:
- In March 2021, Malta recorded a reduction of 86.3% inbound visitors when compared to the same month of last year (NSO, 2021). Covid-19 and laws, reduced the consumers’ appetite to travel.
- 93% of consumers would use alternative payments such as biometrics, QR code and digital currencies (Mastercard, 2021). Advancement in technology and increased importance given to security could have led to this shift.
- Plant-based food market expected to grow at a CAGR of 11.9% from 2020 to 2027 with an estimated value of $74.2billion by 2027 (Cision, 2021). Consumers’ appetite for plant-based food changed because of an increase in awareness of the impact food has on the environment and/or because of an increase in sensitivity towards animals.
No matter what leads to changes, we know that these changes exist and we need to track them
In short, new opportunities. When we identify the changes in consumer appetite, we can identify new opportunities both for prospective and current customers. Then, we can propose the product/service that would satisfy the consumers’ needs and we either acquire new clients or strengthen the relationships with existing ones. Both of these will build our brand image. Amazon did just that, they understood that consumers’ appetite for efficient online shopping with great customer service was increasing and they proposed a fast, reliable and effective online shopping experience. Blockbuster did the opposite, they did not understand that consumers wanted to watch movies and shows on their laptops at home. Think about it, they could have bought Netflix for $50 million, now Netflix is worth about $40 billion dollars and Blockbuster? Bankrupt. When one understands their consumers they can offer the service/product to meet their needs.
In short, new opportunities. When we identify the changes in consumer appetite, we can identify new opportunities both for prospective and current customers. Then, we can propose the product/service that would satisfy the consumers’ needs and we either acquire new clients or strengthen the relationships with existing ones. Both of these will build our brand image. Amazon did just that, they understood that consumers’ appetite for efficient online shopping with great customer service was increasing and they proposed a fast, reliable and effective online shopping experience. Blockbuster did the opposite, they did not understand that consumers wanted to watch movies and shows on their laptops at home. Think about it, they could have bought Netflix for $50 million, now Netflix is worth about $40 billion dollars and Blockbuster? Bankrupt. When one understands their consumers they can offer the service/product to meet their needs.
When should you conduct research to understand consumer appetite?
Constantly. I mean, you do not eat healthy once a year and expect to be fit (in the next point I will talk more about this). Although one should conduct market research constantly, there are certain moments when doing so is of utmost importance. For example, when introducing a new service/product, when entering a new market or there are new entrants and a yearly evaluation.
When should you conduct research to understand consumer appetite?
Constantly. I mean, you do not eat healthy once a year and expect to be fit (in the next point I will talk more about this). Although one should conduct market research constantly, there are certain moments when doing so is of utmost importance. For example, when introducing a new service/product, when entering a new market or there are new entrants and a yearly evaluation.
How to identify changes in consumer appetite?
There are two main ways, and they are illustrated in the figure below. Firstly, the “Frequent Exercises”, these are usually free (or low cost), do not require a lot of effort and can be done often, either on a daily basis or weekly. Examples include reading industry news, identifying trends on social media like LinkedIn, following webinars and networking. The “Other Exercises” require more time, effort and more resources, these include secondary research, transactional data analysis, persona creation and digital external surveys. Both lists provide some examples but in reality, the sky’s the limit when it comes to market research. One group of exercises is not more important than the other, but they should be done together as they complement each other and can provide clarity.
How to identify changes in consumer appetite?
There are two main ways, and they are illustrated in the figure below. Firstly, the “Frequent Exercises”, these are usually free (or low cost), do not require a lot of effort and can be done often, either on a daily basis or weekly. Examples include reading industry news, identifying trends on social media like LinkedIn, following webinars and networking. The “Other Exercises” require more time, effort and more resources, these include secondary research, transactional data analysis, persona creation and digital external surveys. Both lists provide some examples but in reality, the sky’s the limit when it comes to market research. One group of exercises is not more important than the other, but they should be done together as they complement each other and can provide clarity.
Consumer appetite is constantly changing and there are several reasons for this. As could be seen with Amazon, understanding consumer appetite can be very valuable and as seen with Blockbuster, not understanding it can be detrimental. Therefore it is important to constantly keep an eye out and understand the changes by conducting frequent exercises and combining them with the other exercises mentioned above.
This article follows the webinar organised by Onest Data on Thursday 3rd June 2021.
Consumer appetite is constantly changing and there are several reasons for this. As could be seen with Amazon, understanding consumer appetite can be very valuable and as seen with Blockbuster, not understanding it can be detrimental. Therefore it is important to constantly keep an eye out and understand the changes by conducting frequent exercises and combining them with the other exercises mentioned above.
This article follows the webinar organised by Onest Data on Thursday 3rd June 2021.
