🎉 Consumer Realities 2024: Navigating Differences🚀

#HTE 254 🔥🤖 AI & ML in Marketing Analytics ! 🙌

January 04, 2024 • Estimated Reading Time: 10 minutes

Hey Marketers! ✨✨

Get ready for a wild ride through the Consumer Realities of 2024! We're spilling the beans on a money-making approach in Marketing Analytics using cool tech like 🤖 AI and ML.

Hold onto your hats because there's more! 🙌🥳 We're about to drop the Top 5 mind-blowing ways Augmented Reality (AR) is changing how customers experience things. It's like turning everyday moments into something out of this world. 🚀🌐

Don't just scroll on by—dive in with us! We've got the lowdown on the tech and trends shaping the future. 🌟👀

🌟 Enjoy the read! 📖✨

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🌐 Navigating Consumer Realities 2024

🤖 AI & ML in Marketing Analytics: Revenue-Driven Approach

🚀 Top 5 Ways AR Transforms Customer Experience 🙌🥳

Top Reads - Real-time news right for you. 📚

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🌐 Navigating Consumer Realities 2024

As 2024 unfolds, consumers find themselves in contrasting financial situations. While some households enjoy the dissipation of inflationary concerns, allowing a return to pre-pandemic spending habits, others, particularly lower-income individuals affected by changes in government assistance, continue to face financial challenges.

💸 Strategies for CPG Brands in 2024:

Confident Consumers 🌟:

  1. High-income consumers, resilient to peak inflation, are ready to resume spending on various activities. CPG brands can tap into this opportunity by targeting grocery shoppers shifting towards premium products and convenience.

  2. 📊 Research indicates that households earning $100K to $200K prioritize convenience significantly more when shopping online for pick-up compared to those with an income of $50K or less.

  3. 🛒 Additionally, higher-income shoppers lean towards threshold events (e.g., spend X, save X) when responding to promotions.

Financially Strained Consumers 💰:

  1. For lower-income consumers affected by ongoing financial strain, CPG brands need to be mindful of budget-conscious preferences. Emphasizing affordability and value-driven promotions can resonate with this demographic.

  2. 📉 Adapting strategies to cater to the economic challenges faced by these consumers will be crucial for sustained growth.

By understanding and adapting to these dual consumer mindsets, CPG brands can navigate the diverse financial landscape and drive growth in the dynamic year ahead. 🚀

Strategies for the confident consumer include:

  • Offer products designed for easy, on-the-go use, e.g., single-serve packages.

  • Spotlight efficiency and convenience value of multifunctional products.  

  • Highlight higher-tier brands and premium ingredients. 

  • Maintain availability of core brands as consumers trade backup.

🛒 Financial Constraints (<$50K): Lower-income groups face ongoing financial challenges in 2024 due to changes in government assistance programs and the resumption of student loan repayments. Forced tradeoffs persist, leading consumers to adopt value-conscious strategies like coupon use, bulk purchases, and choosing store brands to stretch their budgets for essential needs. 📉💰

Strategies for the constrained consumer include: 

  • Offer bulk options, family packs, or bonus-sized packs.

  • Maintain introductory or no-frills price point products. 

  • Spotlight product benefits that provide cost savings. 

  • Use language and messaging about “spending smarter” and “maximizing value”.

  • Personalized coupons with messages and offers tailored to each consumer.

While the consumer landscape is becoming increasingly fragmented, CPG brands can help consumers across the economic spectrum thrive. With the right strategies tailored to each group’s needs and preferences, companies can unlock growth on both ends of the consumer divide. Those who study the data, acknowledge different mindsets, and adapt their offerings stand to win in 2024.

🤖 AI & ML in Marketing Analytics: Revenue-Driven Approach

Immediate Impact and Tangible ROI:

  • AI/ML integration delivers an immediate impact on revenue, offering a high-value return on investment. 💰

  • Strengthens customer relationships through personalized campaigns, fostering brand loyalty. 🤝

Strategic Martech Evolution:

  • View AI/ML as guiding principles, not just features, for a transformative martech strategy. 🔄

  • Leverage the existing automation landscape in martech, a product of decades of heavy investment. 🤖

Data Silo Breakdown with Modern Tools:

  • Modern AI/ML tools excel in breaking down data silos, enhancing competitiveness for enterprises. 🌐

  • Upstream data environments witness a transformative wave, addressing the defining silos in customer data landscapes. 🌊

Evergreen Priority of Marketing Analytics:

  • Unmatched direct impact on revenue makes marketing analytics an evergreen top priority for executives. 📈

  • BCG CEO research underscores AI's competitiveness with consumer behavior changes and climate/sustainability as top business opportunities. 🌍

First-Party Data and Analytics Transformation:

  • BCG highlights the differentiating, relevant, and consistently high-quality nature of first-party data. 🎯

  • The imperative shift towards data and analytics meets the demands of the complex consumer attention economy. 🔍

Evolutionary Value from Martech Ecosystems:

  • Executives focus on developing organizational abilities for proprietary data sets, fueling significant investments in martech stacks. 💡

  • The composable approach addresses data challenges, allowing nimble navigation on a lighter tech budget. 🔄

Efficient Harmonious Strategy:

  • Data as a currency is exchanged across a marketing application ecosystem, optimizing performance efficiently. 💼

  • Positive proof points showcase the contingency of operating at scale with data, especially as enabled by ML, for personalization. 📊

Seizing the Future of Marketing Analytics:

  • Amid evolving landscapes, businesses must embrace AI/ML and a composable approach for sustained growth and innovation. 🚀

  • The blend of strategic AI/ML adoption and a composable martech approach offers a robust framework for future-proof marketing strategies. 🛡️

The Top 5 Ways AR is Transforming Customer Experience 🙌🥳

Set to surpass $50 billion in 2024, industries are eagerly adopting augmented reality to elevate customer experience to new heights.

Augmented Reality Examples: How Brands are Transforming E-Commerce

As AR becomes more prevalent on e-commerce sites, physical store visits are no longer necessary to test favorite products.

1. The Virtual Fitting Room

AR addresses a key barrier in online shopping—the inability to experience products fully. Virtual try-ons enable brands to project live images of consumers, allowing them to test makeup colors and try on apparel digitally. Sephora and YSL Beauty are notable examples, of using AR to enhance the virtual try-on experience.

2. Preview Placement

AR extends beyond fashion, assisting consumers in selecting furniture. Spatial Augmented Reality (AR) lets users virtually place furniture within their living spaces, helping them visualize how new pieces will look. IKEA and Amazon have successfully integrated AR features into their online shopping experiences.

3. Interactive User Manuals

For products requiring instructions, AR-powered interactive manuals offer a digital and visualized way for consumers to engage with instructions. This enhances consumer aftercare, providing on-page support for assembly and understanding product functionalities.

4. AR Social Media Filters

AR social filters, commonly seen on platforms like Snapchat and Instagram, have been utilized by brands to enhance product try-ons and boost online engagement. Brands like Adidas Originals, Kylie Cosmetics, and Disney leverage AR filters for interactive and fun customer experiences.

5. Comparing Augmented Reality (AR) Technologies

Before incorporating AR into an online shop, understanding the types of AR is essential.

  • Marker-Based AR: Requires a camera and a marker, such as a QR code. Users point their smartphones at the marker to view 3D digital overlays.

  • Markerless AR: Accessed via a link or app, this type of AR works by scanning an area around the user and placing digital overlays on flat surfaces.

  • Location-Based AR: Leverages GPS to overlay 3D experiences onto real-life environments, providing information about landmarks and interactive maps.

AR in E-commerce is Just Getting Started

As we enter a new era of the digital high street, AR is poised to dominate brand engagement and enhance the modern user experience. By 2025, revenue generated by AR and VR in the retail industry is expected to reach $1.6 billion. The question remains: Where could technology go next? After the e-commerce boom driven by the pandemic, AR/VR solutions are likely just the beginning for digitized shopping experiences.

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