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2. The Active Consumer

The Active Consumer

The birth of the “active consumer” and businesses of influence

Consumer to Creator Shift.

Information and opinions are available to consumers before and during their purchase decision. They know that they have the same ability to share their experience of a product, a brand and a purchase with others. Buying is an active process for them.

The internet has transformed consumers from passive recipients of advertising into active participants in the marketplace. This shift, driven by the internet and the rise of online communities, has fundamentally changed the balance of power between brands and their audiences.

In the past, brands and advertisers had all the leverage. They controlled the narrative. Consumers were passive—accepting whatever messaging came their way, relying on what brands told them, without a care of being well-informed or easily swayed by traditional marketing tactics.

Today, consumers aren’t just consuming products; they’re also consuming information. Apart from entertainment media, consumers are viewing daily:

  1. Product information is not only government mandated more than it used to be 40-50 years ago, but also at access at any moment. The good, the bad, and the recalled. Information is no longer hidden or hard to find—it’s readily available and searchable, 24/7. This wasn’t the case 40–50 years ago, when product details were limited or buried in fine print.
  2. Product experiences. Did the product work the way it was marketed. The sheer number of reviews generated per product has grown significantly as the cost of creating media has reduced instantly: as seen through YouTube, and most importantly, from other consumers.

The Active Consumption Cycle:

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Information Overload

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A passive consumer is a consumer is an individual who engages in the act of consuming goods, services or information without actively seeking or using any critical analysis to determine if it’s worth consuming. Traditionally, this term refers to consuming media. And wasn’t a negative term.

An active consumer is a consumer that uses active consideration if a product, service, or piece of media is worth consuming in relation to their finances, health and/or interests.

Fushigi, Blopins, Bumpits… all of the greatest hits that drove most of your desires back in the 2000s; the kinds of products you saw on TV, and if the ad was good enough, you wanted them. The last of good ol’fashioned advertising. It’s hard to overstate how different things are today.

During my impressionable prime, Nickelodeon and Disney Channel days, if you wanted to know about a product, you had to rely on whatever information the company gave you and that was… mostly just marketing.

What makes today’s consumers different isn’t just that they have more choices. It’s that they have access to more information about those choices. Before buying anything, most people will check reviews, compare prices, or look at at least 50 TikToks to see what someone else thinks. It’s not that they’re more cynical; it’s that they’re more informed.

89% of consumers now read reviews before making a purchase - and that’s a huge change. For most of history, if you wanted to know if something was worth buying, you relied on the brand’s reputation, or you asked a friend. Now you can ask millions of people. And that means brands have lost their monopoly on trust. Only one in five consumers fully trust reviews on brand websites, while the majority now trust online reviews as much as personal recommendations.

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Review or be Reviewed:

And whose opinions matter the most? Other consumers.

The real point to drive home here is that the most impactful information on the internet today driving consumption isn’t brands: it’s consumers that have access to other consumers.

On “Taste”

This, however, has nuance in itself. The concept of a “review” or “reviewer” used to be exclusive to higher-up, or “tastemakers.” This isn’t to say that the role of editors, journalists, or tastemakers in general isn’t important and that it should be left to everyday individuals: because it shouldn’t. Everyday individuals have poor taste. But this is the hard truth: not everyone is looking to have amazing “taste” in every aspect of their lives. Just finding the products or information that might work best for them.

Which Opinions Matter

What consumers are looking for is:

  1. Strong Opinions from…
  2. People who’ve tried something…
  3. Recently.

Strong Opinions

Influential individuals can start countries, religions, create and destroy industries with what they do and say.

[Editors Note: I still have to write Influence is Math (going through some network science 101.)

Needless to say, they have either a strong direction on how they want for things to be or confidence in their logic behind an opinion. Individuals don’t want to hear flip flops because they can do that on their own time. They want to hear what you think and the information you have that got you there.

People Who Have Tried Something

This seems obvious, but you have to had tried the product before you… review it. Example:

The Hasselbeck incident: Liz Hasselbeck was supposed to review the Amazon Kindle and discuss her experience using it. When asked specific questions about the device, and she admitted she hadn't actually used it. Flop.

Typically, consumers are looking for someone who 1) bought it with their money 2) have video proof of them using the product which would lead to 3) real-time reactions, unedited.

Recently

Trust has shifted from brands to individuals.

  • 62% of consumers will not support brands that engage in review censorship.
  • 79% of consumers trust online reviews as much as personal recommendations.
  • Only one in five consumers fully trust brand websites' reviews, while 70% "somewhat" trust them.

Changing Spending Habits:

Consumers are adjusting their shopping habits due to inflationary pressures and increased product prices. Notable statistics include:

  • 77% of Americans are aware that prices are rising, and 54% are very concerned about it.
  • As a result, 42% plan to tighten their budgets slightly, and 41% plan to tighten their budgets significantly.
  • 59% of respondents have already switched to less expensive options.
  • 69% of respondents feel that brand names are not important during such times.

Active Consumption:

The shift towards active consumption can be categorized into three key aspects:

  1. Loyalty:
    • 53% of shoppers want automatic retail loyalty discounts applied at checkout.
    • 29% of shoppers believe their experience would improve if retailers offered promotions or deals based on past purchases.
  2. Planning Ahead:
    • 87% of shoppers consider knowing they received a good deal important when choosing a brand or retailer.
  3. Product Intentionality:
    • Over half of shoppers always conduct research before making a purchase to ensure the best possible choice.
    • In-store shoppers frequently use smartphones to shop or research products, with more than half doing so in the past week.
    • 89% of consumers worldwide read reviews before buying products.