The Marketing Funnel: Navigating the Infinite Loop of Next-Generation Consumer Behaviour
New research from agency Archrival and industry experts reveals how the Next Generation are rewriting the consumer path to purchase.
Over the last few decades, marketers have become obsessed with the “consumer funnel,” where shopping online or offline followed a linear trajectory (or so they thought!). This predetermined path to purchase consisted of conventional stages: awareness, interest, desire, and action. And prioritised reaching as many people as possible with sweeping, general advertisements.
However, the Next-Gen has shattered this traditional model, ushering in an era where the path to purchase is anything but linear.
This generation, characterised by its digital fluency, diverse influences, and insatiable appetite for authenticity, has redefined the consumer journey as an infinite loop of inspiration, exploration, community, and loyalty.
Inspiration:
Inspiration is not merely a fleeting moment but a constant stream of influence that shapes their worldview and consumption habits. Social media reigns supreme as the primary source of inspiration, particularly for fashion and beauty purchases. Platforms like YouTube, TikTok, and Instagram serve as virtual runways where trends are born and circulated with lightning speed.
However, amidst this sea of content, brands face the challenge of standing out amidst the noise. These guys are now exposed to an unprecedented array of brands and advertisements, the key lies in delivering curated inspiration tailored to individual tastes and preferences. From celebrity endorsements to influencer collaborations, brands are leveraging diverse channels to spark meaningful connections with their audience.
Exploration:
Once inspired, they embark on a journey of exploration, delving into the nitty-gritty details of products and brands. While social commerce holds promise, the reality is that many consumers are more inclined to use social media as a research tool rather than a direct purchasing platform. From scouring reviews to comparing prices, this generation seeks transparency and authenticity in their quest for the perfect purchase.
As brands navigate this landscape, the emphasis shifts from impulse buying to informed decision-making. User-generated content (UGC) emerges as a powerful tool, offering authentic insights into products and fostering a sense of community among consumers. Whether it's through tutorials or testimonials, brands that prioritise UGC create touchpoints that resonate long after the purchase is made.
Community:
In an age of hyper-connectivity, community lies at the heart of brand loyalty. Consumers seek more than just products; they crave belonging and connection. Brands that transcend transactional relationships and build immersive universes find favour with this discerning audience. From wellness communities to virtual events, these brands offer a sense of identity and purpose that extends far beyond the product itself.
UGC plays a pivotal role in community building, allowing consumers to become co-creators of the brand narrative. By celebrating real-life customers and fostering meaningful interactions, brands create spaces where loyalty flourishes organically. In the eyes of the consumer, loyalty is not defined by purchases alone but by the sense of belonging and camaraderie fostered by the brand.
Loyalty:
In the era with new generations speeding through, loyalty is a two-way street. Brands must earn the trust and allegiance of their audience through meaningful engagement and genuine value propositions. While traditional loyalty programs still hold sway, the consumer places equal importance on intangible factors such as brand advocacy and social currency.
For brands, success lies in creating a holistic ecosystem of touchpoints that resonate with values and aspirations. From immersive retail experiences to digital communities, each interaction shapes the narrative of loyalty in profound ways. By embracing the infinite loop of inspiration, exploration, community, and loyalty, brands can forge lasting connections with the next generation of consumers.
In 2024 and beyond, the brands that thrive will be those that understand the intricacies of the path to purchase and embrace the evolving dynamics of consumer behaviour. As the journey continues, one thing remains certain: the future belongs to those who dare to navigate the infinite loop.