In June 2020, over half of North American consumers surveyed by Shopify stated the COVID-19 pandemic had modified the way in which they are going to store going ahead. Trying again now, how did this play out?
The reply is that the shift has been extra pronounced than anybody may have predicted. As provide chains nonetheless battle to recuperate and inflation is reining in family spending, small companies have been hit laborious.
Whereas inflation is predicted to sluggish in 2023, small companies might want to cope with shifting client calls for and loyalty within the wake of rising prices. What new buying behaviors have emerged? Which client traits will affect manufacturers essentially the most? And the way can enterprise house owners reply?
Forward, dig in to the information and discover skilled predictions to assist information your advertising technique, meet buyer expectations, and future-proof what you are promoting. Plus, get a generation-by-generation breakdown of the highest traits by demographic.
11 client traits to look at in 2023
- Consumers impacted by inflation are in search of offers
- Social adverts nonetheless large driver of buy selections
- Model loyalty is waning
- Model collaborations lower acquisition prices
- Social commerce and discovery maintain robust on TikTok
- Prospects demand low-friction returns
- Manufacturers look to omnichannel experiences to succeed in extra clients
- Constructing relationships begins native
- Provide chain points persist, regardless of buyer expectation
- Personalization is in demand
- Purchase now, pay later choices well-liked with youthful buyers
1. Consumers impacted by inflation are in search of offers
Whereas the luxurious merchandise market is predicted to see an uptick this yr, mid-tier or “aspirational luxurious” manufacturers will battle most to supply worth to clients with out damaging their repute. Tightening spending has prompted model loyalty to wane, with customers on the lookout for offers. Buying habits are trending towards saving cash and worth comparability.
📊 What the analysis exhibits:
- Eight in 10 Individuals surveyed in one ballot consider 2023 shall be a yr of financial issue
- 56% of households plan to economize this yr by decreasing bills
How small companies can reply
Providing reductions or different monetary incentives to draw price-conscious customers is one strategy—however it could not work for each model. This could lower into already narrower margins for companies confronted with rising prices. Some enterprise house owners could even keep away from gross sales, as this has a destructive affect on a model’s picture. Bundling merchandise, including a subscription possibility, and providing reward playing cards with a minimal buy can all assist enhance conversion.
2. Social adverts nonetheless large driver of buy selections
Regardless of the rising price of buying a buyer and the decrease return on advert spend (ROAS), social adverts are nonetheless a prime driver of purchases within the US, analysis finds. On some platforms, social commerce hasn’t seen uptake at fairly the speed anticipated, inflicting corporations to revert to a “again to fundamentals” strategy to promoting.
📊 What the analysis exhibits:
- 78% of customers say they’re extra keen to purchase from a model if they’ve a superb expertise on social.
- Social media advert spend elevated greater than 38% between 2020 and 2021, rising to virtually $230 billion in 2022.
- Whereas the fee per thousand advert impressions (CPMs) elevated throughout this time, it started to fall within the second half of 2022.
How small companies can reply
Earlier than investing in social media promoting, perceive the place your advert {dollars} shall be finest spent. Selecting the platform the place nearly all of your audience hangs out or the channel the place you’ve already discovered success with natural advertising is one of the best first step. Begin small and check, check, check!
3. Model loyalty is waning
A number of components can push your clients to purchase out of your rivals. Competitors is rising whereas spending energy is predicted to lower, inspiring customers to be extra vital of the place they’re placing their {dollars}.
Worth, although, isn’t the one motive for waning loyalty. Shopper habits are aligning an increasing number of with their values, pushing many to go for manufacturers with sustainable enterprise practices. Prospects are additionally in search of handy, responsive, and customized buying experiences—they usually’re keen to look elsewhere to search out them.
📊 What the analysis exhibits:
- Greater than 70% of customers purchased from the competitor of their go-to model between Could 2021 and Could 2022.
- 46% of customers will transfer to a competitor if their regular model is out of inventory.
- Greater than 70% of customers surveyed say they just like the comfort of immediately buying merchandise whereas searching on social media.
How small companies can reply
Retaining current clients remains to be less expensive than buying new ones, which means investing in loyalty is essential. Reward loyal clients with unique reductions and perks. Reevaluate your stock administration methods to keep away from dropping clients to out-of-stock merchandise. Lastly, attraction to the social and emotional curiosity of youthful customers by implementing a sustainability technique and speaking environmental affect.
4. Model collaborations lower acquisition prices
Altering social algorithms, excessive ROAS, and stricter privateness legal guidelines governing third-party knowledge imply attaining attain is more difficult, so manufacturers are turning to collaborations to fill the hole. Buyer curiosity in your model can solely enhance with endorsement from a trusted firm or on-line character.
📊 What the analysis reveals:
- Almost one-third of customers say influencer suggestions are extra impactful than these from buddies or household.
- Person-generated content material is 8.7 occasions extra impactful than influencer content material.
How small companies can reply
Companies can use collaborations with different complementary manufacturers, influencers, and creators to entry audiences that mirror their goal buyer. Model-to-brand collabs can contain co-creating a product, expertise, contest, occasion, or marketing campaign. Collabs with influencers and creators are normally paid endorsements however can typically additionally contain a co-created product or expertise. And don’t neglect to have interaction with influential, loyal followers for genuine testimonials.
5. Social commerce and discovery maintain robust on TikTok
One platform is dominating the social commerce area: TikTok. TikTok reported in 2022 that its platform is 1.7 occasions extra prone to be the supply for product discovery than different platforms. The social community additionally grew to become shoppable final yr, monetizing the favored #TikTokMadeMeBuyIt development.
📊 What the analysis exhibits:
- The share of TikTok customers who’re social consumers is predicted to surpass Fb’s in 2024.
- Google discovered that 40% of web customers aged 18 to 24 begin an web search on TikTok or Instagram—relatively than utilizing Google.
How small companies can reply
TikTok is usually a profitable secondary gross sales channel for ecommerce companies seeking to goal youthful millennials, Gen Z, and the latest Gen Alpha cohort to age into the platform. Creators can even monetize audiences by promoting by TikTok and a Shopify Starter Plan, with out having to construct an internet site from scratch. As an increasing number of younger individuals are buying by way of cellular gadgets, spend money on vertical video content material for TikTok, Instagram Reels, and YouTube Shorts.
6. Prospects demand low-friction returns
Whereas free returns have been a staple service supplied by giant chain retailers for years, many like Zara and H&M are returning to charging delivery charges. However clients, accustomed to the development of no-hassle returns whereas on-line buying, proceed to demand it. How can manufacturers provide a frictionless return coverage that doesn’t lower into their backside line?
📊 What the analysis exhibits:
Prime returns frustrations reported by customers:
- Having to pay for return delivery (41%)
- Paying a restocking price (36%)
- Excessive charges related to the return delivery (31%)
How small companies can reply
With margins tightening, providing free returns could also be out of the query for some small companies. That doesn’t imply you’ll be able to’t discover artistic methods to make the returns course of much less painful. Fight returns earlier than they occur by bettering measurement charts, photographing clothes on quite a lot of fashions, providing a private buying assistant service, or utilizing a digital try-on app. Another choice is to attempt a returns portal app that creates a easy and self-directed returns expertise.
7. Manufacturers look to omnichannel experiences to succeed in extra clients
With provide chain points, waning loyalty, and extra competitors, direct-to-consumer (DTC) ecommerce manufacturers are in search of new methods to succeed in their clients. Shoppers are beginning their discovery journeys in locations apart from conventional serps. Discovering new avenues to get in entrance of consumers shall be key in 2023.
📊 What the analysis reveals:
- Amazon tops the listing for on-line buying searches amongst US adults, with 63% reporting they use the location to find merchandise.

How small companies can reply
Taking an omnichannel strategy may help manufacturers increase attain in an more and more noisy area. Alongside your ecommerce retailer, floor your merchandise on different channels like Amazon, by way of on-line marketplaces, by social promoting, and in bodily shops.
8. Constructing relationships begins native
Shoppers are returning to in-store buying, which is nice information for native companies with a retail presence. However even these companies have to step up their recreation, placing extra emphasis on creating worth for his or her clients by model expertise. DTC manufacturers are even getting in on the motion, with many including bodily touchpoints to the client expertise.
📊 What the analysis exhibits:
- Half of Gen Z buyers favor in-store buying, regardless of being online-native.
- Greater than a 3rd of buyers say they like to buy in retailer for the expertise.
How small companies can reply
Whether or not or not your model has the means to have a retail presence, model expertise is more and more necessary to clients. Don’t simply promote merchandise. Promote them your model story, provide them worth past their buy, and have interaction immediately on group channels. Alternate options to a full brick-and-mortar expertise embrace launching a pop-up store, wholesaling to different retailers, and collaborating in native markets.
9. Provide chain points persist, regardless of buyer expectation
Sixty-six p.c of worldwide manufacturers surveyed by Shopify anticipate provide chain points to get even worse in 2023. However impatient customers aren’t ready for these points to resolve.
📊 What the analysis exhibits:
- One survey discovered that, in response to provide chain disruptions, 29% of consumers have modified the retail retailer they normally store in, and 40% say they use comparability websites for on-line buying.
- Corporations that use AI-enabled provide chain administration have proven an enchancment of 15% in logistics prices, 35% in stock ranges, and 65% in service ranges.
How small companies can reply
The Shopify Plus Commerce Traits 2023 report presents this recommendation to companies seeking to future-proof logistics networks:
- Maintain extra stock to keep away from going out of inventory.
- Discover further distributors and suppliers to diversify product sources.
- Shrink return charges by serving to clients make extra knowledgeable purchases.
- Digitize provide chains through the use of apps and AI to automate and streamline processes.
10. Personalization is in demand
Many customers anticipate manufacturers to supply customized buying experiences, each in-store and on-line. However client curiosity in buying experiences tailor-made to their pursuits is matched by their concern for privateness.
📊 What the analysis reveals:
- Curiosity in personalization is rising drastically. In 2022, 62% of customers surveyed in a single examine stated a model would lose their loyalty if it didn’t ship a personalised expertise, up from 45% the earlier yr.
- One examine discovered that 74% of customers surveyed stated they extremely worth their knowledge privateness and 82% are involved about how corporations are utilizing their private knowledge.

How small companies can reply
Take a balanced strategy to utilizing private knowledge to create experiences to your clients. Cut back reliance on third-party knowledge options and transfer to gathering knowledge immediately, be clear about how you’ll use this knowledge to keep up belief with clients, and keep compliant with privateness legal guidelines.
You may personalize the client expertise utilizing AI to make product suggestions primarily based in your buyer’s exercise. Attempt quizzes or chatbot private buying assistants, and ship tailor-made advertising messages particular to their shopping for habits and preferences.
11. Purchase now, pay later choices well-liked with youthful buyers
Struggle inflation woes by providing clients a purchase now, pay later (BNPL) possibility. The recognition of this cost methodology, particularly amongst youthful buyers, continues to extend as customers watch their spending.
📊 What the analysis exhibits:
- The BNPL market was valued at $141.8 billion in 2021 and is anticipated to develop greater than 33.3% between 2021 and 2026.
- Almost half of millennial and Gen Z buyers deliberate to make use of BNPL through the 2022 vacation season.
How small companies can reply
Allow Store Pay Installments in your on-line retailer to simply provide a BNPL possibility to your clients. This offers them flexibility to make a purchase order inside their budgets by interest-free funds over time—eradicating a possible barrier to creating a sale.
Shopper traits by technology
Whereas lots of the above traits are constant amongst all customers, companies ought to perceive the wants of their explicit goal buyer. Forward are notable traits rising by technology.
Boomer traits
Manufacturers focusing on a Boomer viewers shouldn’t low cost extra conventional promoting channels. Sixty-two p.c of this group reported that they uncover merchandise most frequently by cable tv adverts.
In product traits, Pinterest search knowledge exhibits that curiosity is up for celebration provides amongst this technology. These of their “YOLO years” are celebrating birthdays and golden anniversaries in an enormous means.
Gen X traits
Belief, loyalty, and private experiences are key to profitable the {dollars} of this demographic. One examine discovered that 82% of Gen X will buy a product at full worth if they need it. In-store buying can be most well-liked by this group, with 73% saying they buy merchandise this fashion.
Millennial traits
Changing this technology means extra than simply providing an awesome product. Millennials are more and more voting with their {dollars}, and 41% say they like to help manufacturers that supply sustainable merchandise or take a stance on social points.
1 / 4 of oldsters within the US are millennials. When catering merchandise and advertising messages to this group, it’s necessary to know their priorities. Pinterest predicts a deal with “the fourth trimester” as younger mother and father are prioritizing self-care and psychological well being, put up childbirth. Millennial mothers report utilizing private networks and communities to tell buy selections.
Gen Z traits
Sustainability is so necessary to this demographic that 75% say it’s extra influential than model title. Gen Z even have distinctive social media habits, with over half planning to get trend and wonder inspiration from digital influencers and avatars. Urge for food for AI doesn’t cease there, although—85% say they like chatbots and automatic customer support over chatting with a stay agent.
Gen Alpha traits
The oldest of this technology at the moment are teenagers and are a demographic of future customers that manufacturers shouldn’t ignore. However even earlier than these children have their very own disposable revenue, they already wield important affect over family spending. Attraction to Gen Alpha by clear, significant, and genuine messaging, say consultants.
Adapting to client calls for in 2023
Many small companies are nonetheless reeling from the impacts of the previous few years. People who survived did so by adapting enterprise fashions and rising choices for his or her clients. As client traits shift once more, manufacturers ought to preserve the suggestions loop open, diversify their provide chains, and discover new gross sales channels to cater to buyer expectations whereas defending their backside line.
Analysis help by Jane Zhang
Pictures by Pexels
Characteristic picture by Cornelia Li
Shopper traits FAQ
What are client traits?
Shopper traits are patterns of buying habits that change over time. They’re usually decided by consultants primarily based on knowledge, client conduct surveys, and research that study how individuals spend cash and make buying selections.
What are examples of client traits?
- TikTok for product discovery and buying amongst youthful customers
- Expanded use of cost choices like digital wallets and purchase now, pay later
- Model loyalty shifting as a consequence of extra selection and worth buying
- Shoppers selecting eco-friendly merchandise or manufacturers that take a stand on environmental points
- A return to buying in bodily shops
What do customers need in 2023?
Shopper conduct is shifting towards making extra cautious buy selections as inflation places a pressure on budgets. Consumers are in search of higher worth whereas additionally on the lookout for optimistic model experiences, making sustainable decisions, and in search of versatile buying choices.