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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.

There has been a shift from passive to active consumption is taking place, exemplified by the emergence of "influencers" and the rise of online creators.

In the past, advertisers and businesses could easily sell products without consumers being well-informed or easily swayed by traditional marketing tactics. In short, the internet’s changed this, as even uninformed customers now have access to vast amounts of information that shapes their expectations and perceptions of products and businesses.

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The Passive Consumer

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.

The Active Consumer

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.

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The Consumer Shift:

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.