The Digital Consumer in 2019 - A summary of top predictions from major industry trend reports SYZYGY DIGITAL INSIGHT 2019 - Digital Wellbeing
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The Digital Consumer in 2019 A summary of top predictions from major industry trend reports SYZYGY DIGITAL INSIGHT 2019 Pantone colour of the year 2019 Living coral #FA7268
The Digital Consumer in 2019 THE DIGITAL CONSUMER IN 2019 Every year, the agency world predicts the key trends that will shape online consumer behaviour over the coming year. Through a thematic analysis, we've distilled 200MB of predictions from 20 top trend forecasting reports into 9 need-to-know core trends for 2019. These 9 ‘trends of trends’ represent the key changes in how consumers will use digital technology to meet their underlying needs. As such, they represent a consensus view from industry for how to be on-trend, create value, improve experience and build relevance in 2019. SYZYGY Digital Insight 2
SUMMARY: THE DIGITAL CONSUMER IN 2019 Augmented 9 trends driving changes in Humanity consumer behaviour Trust Maximum Issues Security Green Purpose Digital Shift Pays Wellbeing Visual Voice Culture First Smart Automation
The Digital Consumer in 2019 EXECUTIVE SUMMARY In 2019, digital consumer behaviour will take a defensive turn. The major theme emerging from 2019 trend reports is that consumers will seek protection and security from a world of real or imagined threats. The winning USP in 2019? We will keep you safe. If consumers are expected to look for protection from threats, what exactly are they looking for? The one meta-theme emerging from trend reports is the quest for wellbeing. In a disruptive, divided and divisive world consumers are looking to find equilibrium, balance and meaning in their personal, social, digital and work lives. Many forecasters are predicting an increased consumer concern for digital wellbeing. Expect consumers to be more mindful of perceived risks associated with elevated screen-time, excessive social media use and device-dependency. To the degree that human wellbeing ultimately depends on the wellbeing of the planet, expect a ‘green-shift' trend to more sustainable conscious consumerism in digital and beyond. Similarly, expect consumers to embrace brands and businesses that use digital technology to promote consumer wellbeing by balancing their profit motive with a commitment to purpose, people and the planet. So the overall message to brands is simple and clear. To succeed in 2019, put the wellbeing of consumers at the heart of your strategy. SYZYGY Digital Insight 4
COMMENTARY: 2019 CONSUMER PSYCHOLOGY IN GERMANY Dr. Paul Marsden, SYZYGY’s consumer psychologist, interprets the suffering from mental health issues such as anxiety disorders, panic latest trend reports and suggest that brands will need to connect with a attacks or depression. new ‘Generation Z’ mindset in 2019. As Gen Z takes over the reigns of consumer culture from Millennial Trend forecasting is more art than science. So the 2019 reports on predecessors, it makes sense that their generational concerns come to global consumer trends should be read with a pinch of salt. the fore. So anxious consumers are looking for digital solutions that Nevertheless, this year’s trend reports are interesting because they make their world safer (‘maximum security’, ‘digital wellbeing’), restore display a remarkable consistency in their predictions. trust (‘trust issues’) and help them cope better in a challenging world (‘augmented humanity’). They are looking for brands to make a broken Overall, we can expect consumers to be less confident, more fearful world better (‘purpose pays’, ‘green-shift’). And of course they are and increasingly security-conscious in 2019. German data from looking for technology to help them better navigate their digitally- January 2019 supports this prediction and reveals a 5% drop in German powered lives (‘voice-first’, ‘visual culture’, ‘smart automation’). consumer confidence over the last 12 months. What does this means for consumer brands? What can brands do to The 2019 trends also make sense from a generational perspective. In reconnect digitally with consumers in 2019? Addressing the underlying Germany, we are experiencing the emerging influence of Generation Z needs shaping trends in consumer behaviour is key. Also helpful will be on consumer culture. ‘Gen Z’ is the generational cohort of adults and a sensitivity to consumer wellbeing in 2019. Psychologically, wellbeing teens born after 1995, and represents the first generation of pure digital is a state in which life is experienced and evaluated positively, and natives. As it comes of age, Gen Z is raising the bar on overall consumer which depends on having confidence in facing life’s challenges. expectations based on experiences with the on-demand digital However, as the German consumer confidence data and 2019 trends economy. show, consumers are low on confidence. So the opportunity is clear. If consumer brands bottle and sell confidence, reassurance and safety Generational research also indicates that Gen Z is shaping up to be 2019, then they will thrive. In short, the winning value proposition in less confident, less hopeful and more anxious than its Millennial elders. 2019 in Germany is ‘we will keep you safe’. For example, here in Germany depression among young adults has risen 76% over the past decade, with one in four young adults now SYZYGY wishes you a safe and prosperous 2019.
The Digital Consumer in 2019 1. AUGMENTED HUMANITY 2019 will not be the year that Augmented Reality takes off. Instead, it will be the year that ‘Augmented Humanity’ drives behaviour as consumers turn to technology to enhance performance and potential. Isobar name-checks ‘augmented humanity’ as the meta trend of 2019 to denote the use of personal technology to enrich life and enhance performance. Canvas8 concurs, proposing that people will look to technology to boost their personal capabilities and competences. Foresight Factory, Trendwatching and Trendhunter all expect augmented humanity to express itself through a growing desire for ‘educator brands’ that ‘future-proof’ people with the skills, knowledge and connections needed to win in a disrupted future. Likewise, Ericsson sees consumers turning to the ‘Internet of Skills’ to acquire and master new skills. Trendhunter sees an increased role for influencers in a growing desire for online education. Beyond education, R/GA predicts the rise of XR (extended or experiential reality) that combines technologies that augment and extend human experience. Gartner expects this technology to deliver more immersive experiences. In the spirit of self-improvement, Mintel anticipates the rise of the brand challenge, where consumers are invited to step outside of their comfort zone and push themselves to the limit. SYZYGY Digital Insight 6
The Digital Consumer in 2019 2. TRUST ISSUES In a post-truth world of fake news, propaganda bots and data breaches, expect a trust deficit to grow between consumers and brands. Forrester dub 2019 the year of ‘Zero Trust’. In a climate of distrust, JWT expects a ‘reputational reckoning’ for technology if it is perceived as manipulating, modifying and monetising consumer behaviour. JWT anticipates a rise in online fact-checking as distrustful consumers opt for brand facts over brand stories. In 2019, expect consumers to be more wary of brands losing, abusing or misusing personal data. Forrester predicts that one consumer brand will lose 25% of its value through a data scandal this year. Contagious foresees more wariness of surveillance tech used to track consumers. Canvas8, Mindshare, R/GA, WGSN and Edelman all expect increased appeal for digital technology that builds rather than erodes brand transparency, brand accountability and brand truth. JWT, Accenture, Gartner and R/GA expect consumer-first empowering privacy policies and digital ethics to appeal in 2019. SYZYGY Digital Insight 7
The Digital Consumer in 2019 3. MAXIMUM SECURITY Tagged as the new mega-trend for 2019, Trendwatching predicts that safety and security will be top of mind for consumers in 2019. Safety- first and security-conscious consumers will be drawn to brands promising to provide safe harbour in a disrupted and volatile world. Following massive data breaches, Trendwatching, Trendhunter, and R/GA all expect that personal data security will remain a top concern in 2019. Personal security will also be a priority, with Future Lab, Trendwatching and Isobar predicting an increased need to feel safe at home, out and about, at work and in education. In this context, Trendhunter anticipates a growing acceptance of technology designed to enhance public and private security, including facial recognition technology. Foresight Factory predicts the rise of a ‘prepper mindset’ among consumers as they prepare to cope with real or imagined threats. As political polarisation raises concerns about future stability, Canvas8 expects personal security, financial security and home security technology to have enhanced appeal in 2019. Future Lab predicts financial insecurity will be on the minds of more consumers in slowing, unequal or volatile economies. SYZYGY Digital Insight 8
The Digital Consumer in 2019 4. GREEN SHIFT As sustainability goes mainstream, expect increased concerns about the effects of digital technology on the environment. Say hello to digital sustainability. Does e-commerce help or harm the environment? What about on- demand services, server farms, electric cars, batteries, digital devices or their packaging? For JWT, brand sustainability will be the new need-to-have requirement in 2019. Facebook IQ notes the desire for green and sustainable products across consumer categories. Foresight Factory predicts a war on waste in 2019 as the desire for responsible consumption grows. Digital products and services that reduce, recycle or re-use will appeal. For CB Insights, green is the new black in technology. Expect customer journey maps to be redrawn with the end-user placed at the centre of a circular economy. Ericsson predicts the rise of an ‘eco-me’ trend, in which digital technology promotes self-knowledge about environmental impact and offers solutions to help reduce it. Ford expects consumers will turn to brands to help them lower their environmental footprint. Expect more technology for tracking and reporting the environmental impact of people and brands. With increased concern over the environmental impact of physical products and experiences, Future Lab predicts a consumer shift to virtual products and experiences. SYZYGY Digital Insight 9
The Digital Consumer in 2019 5. PURPOSE PAYS In 2019, expect consumers to align their purchases with their values and beliefs. In a new era of ‘woke’ consumerism, brands will profit from taking a stand for communities and causes, and against perceived injustices and harm. JWT, R/GA and Future Lab predict a growing role for brands in solving real-world problems and embracing new roles as civic leaders, advocates and positive change agents. Ogilvy suggests a shift from value-driven consumer behaviour to values driven consumer behaviour. Digital tools and content aligned with, and promoting, purpose will resonate. Fjord predicts that consumers will use a purpose filter to clear out junk tech and digital spam from their lives. Trendwatching expects the emergence of the ‘Internet of Better Things’, where connectivity is put to the service of people, purpose and the planet. To address what Euromonitor calls the rise of the conscious consumer, Forrester predicts that 2019 will be the year that purpose regains meaning. 20% of brands are expected refine and revitalise purpose. Contagious expects a new era in which brands no longer shy away from polarising political and social issues. Forrester anticipates that 75% of consumer brands will be tempted to ‘enter the outrage’ and take a stand against injustice in 2019. 50% of those efforts are predicted to be tone-deaf and to fail. SYZYGY Digital Insight 10
The Digital Consumer in 2019 6. DIGITAL WELLBEING The wellbeing mega-trend turns digital in 2019, as consumers embrace new products, services and behaviours designed to help sooth unstable, constantly connected lifestyles. JWT, R/GA and Mintel all expect a growing consumer wariness of hazards associated with excessive screen-time, social media and Big Tech. Expect digital to be in the dock for undermining mental, physical and relationship health. JWT and Mindshare anticipate consumers becoming more mindful and critical of digital dependency and digital habits in 2019. Will digital wellbeing tools from Google, Apple and Facebook mitigate the risk of Big Tech being labelled as the new Big Tobacco? Canvas8 and Isobar see a consumer push for a healthier balance and equilibrium between digital and physical lives. As the desire to temporarily disconnect grows, Euromonitor predicts the rise of JOMO – the joy of missing out. Beyond mitigating digital hazards, CB Insights and Mintel foresee increased demand for technology that positively enhances personal wellness and wellbeing, particularly in the areas of sleep, sex and seniors. Foresight Factory, Ericsson, Euromonitor and Contagious all expect the growth of health-tech as consumers turn to technology for self-diagnosis, self-care and treatment. SYZYGY Digital Insight 11
The Digital Consumer in 2019 7. VOICE FIRST In 2019, more consumers will shift from mobile-first to a voice-first mindset as they become more comfortable with talking to digital devices, websites and virtual assistants. Mindshare and Isobar see increased adoption of voice interfaces representing a shift to a more human-centric and deeper relationship between humans and technology. Mindshare expects voice to bring a new level of intimacy, emotion and personal connection to interactions not offered by any other medium. The continued growth of smart speakers is expected, powered the SAGA virtual assistants – Siri, Alexa, Google Assistant. Ogilvy expects innovations in personalised voice response, contextual understanding, and voice integration. Accenture expects continued growth in voice search, with implications for how brands structure, present and promote digital information in 2019. R/GA anticipates more hand-free voice apps in 2019, but predicts 50% will fail because of poor customer and contextual understand. Forrester expects a backlash over poorly executed corporate chatbots that fail to live up to expectations. CB Insights sees Amazon laying more foundations for voice shopping but doubts this will take off in 2019. But as consumers come to embrace voice, Trendhunter and R/GA expect more consumer marketing campaigns that integrate with voice assistants. SYZYGY Digital Insight 12
The Digital Consumer in 2019 8. VISUAL CULTURE In 2019, visual culture will dominate online, powered by social media and enhanced by new innovations in computer vision, visual search and facial recognition. JWT predicts a growing appeal for made-for-Instagram moments in travel, shopping, entertainment, beauty, tourism, food and packaging. Trendhunter and Fjord expect museums, galleries and public spaces to boost their Instagram appeal for image conscious and status seeking consumers. Future Lab expects more consumers to use Instagram for inspiration in 2019, and for the ‘Instagram- ability’ of brands to drive consumer choice. Facebook IQ and Mindshare see more shopping on social media as visual search and e-commerce functionality evolves. A new generation of virtual social media influencers led by Lil Miquela will become popular, according to JWT, Contagious, Fjord and Mindshare. For CB Insights, the future of online visual culture includes ByteDance, valued at $75bn. Expect more consumers to make even more use of their phone camera in 2019. McKinsey, Accenture and CB Insights all expect visual search to gain traction as advances in computer vision take off. CB Insights anticipates a greater use of data visualisation, including online maps incorporating real-world and real-time data @lilmiquela layers. SYZYGY Digital Insight 13
The Digital Consumer in 2019 9. SMART AUTOMATION In 2019, expect more consumers to turn to automation technology to outsource routine or tedious tasks. For Mindshare, Euromonitor and Trendhunter, consumer-centric automation will be driven by the need to save time and effort. Ericsson cites research showing that half of all virtual assistant users now want their assistants to look after bills and subscriptions, as well as self-restocking household supplies. Foresight Factory expects consumers to turn to brands for help, inviting trusted brands to step in, take decisions, and act on their behalf. Ericsson sees an increasingly ‘Automated Society’ in 2019, in which more chores are performed without consumer intervention or assistance. Gartner predicts that the Internet of Smart Things and virtual assistants will benefit in 2019. In retail, Ogilvy expects the rise of the unmanned and automated store. Ericsson and Future Lab expect more consumers to outsource more shopping chores to technology through fully-automated ‘zero- touch consumption’. SYZYGY Digital Insight 14
The Digital Consumer in 2019 SUMMARY: 9 KEY QUESTIONS FOR DIGITAL EXPERIENCE IN 2019 Augmented Humanity Trust Issues Maximum Security How can digital improve How can digital enhance How can digital help consumer capability and (rather than erode) consumers feel more safe competence? consumer trust? and secure? Green Shift Purpose Pays Digital Wellbeing How can digital help How can digital promote a How can digital benefit the consumers reduce their purpose that matters to physical and mental health environmental footprint? consumers? of consumers? Visual Culture Voice First Smart Automation How can digital enable How can digital save How can digital help consumers keyboard-free voice people time and effort know, do, find or buy visually? interaction? by automating chores? SYZYGY Digital Insight 15
The Digital Consumer in 2019 STRATEGIC IMPLICATIONS The overarching theme emerging from these nine trends is clear. Consumers want human-first experiences in 2019. This means brands becoming more human, embracing human purpose, human needs and human goals. It means using technology to help humans flourish, thrive and grow. It means a digital strategy that is focused on people, purpose and planet as well as profit. At SYZYGY, we believe in human-first. We are evolving into the human experience company, partnering with our clients to create positive human impact, enabled and scaled by technology. We are part of ‘Team Human’. Join us. SYZYGY Digital Insight 16
The Digital Consumer in 2019 REFERENCES & SOURCES Canvas8 - Expert Outlook 2019 (link) Forrester - Predictions 2019 (link) CB Insights – Top Tech Trends 2019 (link) Future Lab - Future Forecast 2019 (link) Contagious – Most Contagious (link) Isobar – Trends Report 2019 (link) Edelman Digital – Trends Report 2019 (link) JWT Intelligence – Future 100 2109 (link) Ericsson - Hot Consumer Trends 2019 (link) Mindshare - Trends 2019 (link) Euromonitor - Top 10 Global Consumer Trends 2019 (link) Mintel - Global Consumer Trends 2019 (link) Facebook IQ - 2019 Topics & Trends Report (link) Ogilvy Consulting - Trends for 2019 (link) Fjord - Trends 2019 (link) R/GA – What to Watch in 2019 (link) Ford - Trends 2019 (link) Trendhunter - Trend Report 2019 (link) Foresight Factory - Trending 2019 (link) Trendwatching - Trend Report 2019 (link) SYZYGY Digital Insight 17
The Digital Consumer in 2019 ABOUT SYZYGY We are SYZYGY - the Human Experience company. We partner with clients to create positive impact, enabled and scaled by technology. With a team of 650 across 8 global locations, we ideate, plan, design, build, activate and maintain experiences that matter to people and grow businesses. You can find us in Bad Homburg, Berlin, Frankfurt, Hamburg, Munich, London, New York and Warsaw. In addition to our main brand, SYZYGY, and strategy consultancy firm diffferent, our agency group includes Polish design studio Ars Thanea and consultancy USEEDS°, which specialises in the customer experience. Our clients include prestigious brands such as AVIS, BMW, comdirect bank, Commerzbank, Daimler, Deutsche Bank, Mazda, Miles & More, o2 and health insurer Techniker. We are part of the WPP Group. Our beliefs: • We believe that every contact with a brand is an experience, be it a product, service, platform or communication experience. • Each experience is the result of human interaction which is why our thinking is human-centric, across employees, clients and their customers. • We believe Technology and Data are crucial, but serve a higher aim - to allow for better experiences. • Most importantly, we don’t create experiences to make money, we make money by creating better experiences. Contact: SYZYGY | Börsenstraße 2-4 | 60313 Frankfurt am Main | Germany | +49 69 710414100 | syzygy.de 18
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