2024 Trends Revisited: AI, Brand Loyalty, and Storytelling in the Real World?
Each year there are predictions for upcoming market research trends, but how accurate are they in reality? As we find ourselves in summer (although you wouldn’t believe it from the weather!), we have passed the halfway point of 2024. To mark the occasion, we’ve been reviewing how some predicted consumer trends are playing out.
We’ve selected 3 key trends highlighted in the fantastic VML Future 100 report which are most relevant to the research we’ve been doing and conversations we’ve been having at Magenta: AI (no surprise there), brand loyalty, and brand stories. Read on for our take on how these are playing out in real time...
Predicted trend 1: Gen Alpha’s familiarity with technology means they will struggle with offline relationships
Magenta’s observation: Gen Alpha may be the first generation to get the right balance of living both online and offline
VML’s Future 100 report predicted that AI would have a significant influence on the lives of Gen Alpha over the course of 2024. As Gen AI becomes more common in the technology we use every day, it was predicted that it will begin to shape Gen Alpha’s relationships with others as ‘we’re at a point where we have to understand how many of [gen alpha’s] friends are real and how many are synthetic. And frankly, it may or may not matter.’ However, how accurate is this prediction?
Gen Alpha are those born since 2010, and it’s predicted that they will reflect a combination of strong media literacy skills combined with a determined social conscience. However, it would be an assumption that their technological savviness translates to a life lived solely online. Many Gen Alpha have Millennial parents – a generation who witnessed the good, the bad and the ugly of the internet through personal experiences, and who therefore as a result want to carefully monitor their children’s online usage. The influence of Millennial parents may also see Gen Alpha take a step back from technology and enjoy the 1980s nostalgia of their parents’ childhoods as families prioritise instilling their childhood values in their own Gen Alpha children.
Through our own research, we’re witnessing the undeniable influence AI is having on the lives of Gen Alpha. After being introduced to online learning in the face of the COVID-19 pandemic, this latest generation will never know the experience of trying to complete homework without the help of ChatGPT. Increasingly more of their conversations are taking place online – predominantly with their existing friends but also to make new friends, whether it is gaming via Roblox, or social media via Snapchat, or online chat platforms such as WhatsApp.
However, what we’re also seeing, is that whilst a familiarity with AI will inevitably trickle – or pour, into the lives of Gen Alpha, this is also counteracted by their conscious effort to find a balance between spending time online and taking a step back to spend time with friends and family in-person. Whilst they will inevitably have more online relationships than any generation before, they are already showing signs of monitoring their internet usage to ensure they are their happiest, healthiest, selves – a rather mature step for a generation where the oldest members are only currently 14 years old!
Our recent work with Ofcom really brought this to life, where we found that Gen Alpha are using their high media literacy to have a more positive experience online, how the skills they’re learning through search, social media and gaming are transferable into offline experiences, and that sometimes a moment of meditation or a walk in the fresh air is the perfect antidote to doom scrolling. Read the full report here.
Predicted trend 2: Consumers are shifting their loyalty towards paid brand memberships
Magenta’s observation: whilst paid brand memberships offer appeal to those who can afford them, brands that create stand-out positive experiences for customers will generate higher loyalty
It was predicted that in 2024, there would be an increase in consumers moving towards paid-for membership schemes and the various benefits they offer, as opposed to traditional loyalty programs. So, how is this trend playing out, and what insights have we uncovered?
The shift towards paid memberships began accelerating a few years ago, particularly during the COVID-19 pandemic:
Netflix saw 16 million new users join their services during the first three months of 2020, sparked by the beginning of lockdown. Despite a loss of 200,000 subscribers in early 2022, Netflix’s mitigation of price-tiered membership options and a crackdown on password sharing has since seen them continue their pandemic popularity.
Amazon Prime memberships grew by 200 million new customers during the COVID-19 pandemic, and has continued to grow post-pandemic.
Meal kit delivery service HelloFresh attracted 7.3 million global customers in the first three months of 2021. Following the pandemic, HelloFresh has continued to see a demand for their meal kits.
A 2020 McKinsey survey found that customers who belong to paid loyalty schemes are 60% more likely to make a purchase with a brand after buying into a subscription. This suggests that consumers who invest in these programs are more committed to maximizing their benefits.
Initial predictions suggested that consumers expect to receive at least a 150% return on a paid membership model. In addition to short-term rewards such as free products or discounts, subscribers also anticipate long-term benefits which should be exclusive and personalised offers. However, the trend towards paid memberships isn't universal. These schemes are most popular among higher-income consumers, potentially risking the isolation of those on a lower income. This indicates that while the trend is real, it may not be gaining traction across the entire consumer base as rapidly as predicted.
At Magenta, our resident discourse analyst, Joanne Meredith explored loyalty, and has revealed some fascinating insights that shed new light on this trend:
Loyalty Programs Are About 'Winning', Not Just Rewards: Consumers view their participation in loyalty programs as a strategic game against large companies. Every benefit they receive is perceived as a 'win' in this ongoing contest. The language used by consumers focuses on 'getting something back' rather than simply receiving rewards.
Customer Experience Trumps Other Benefits: Our analysis shows that loyalty programs, paid or otherwise, won't keep customers loyal if the overall customer experience is poor. Factors such as responsiveness to enquiries, problem-solving efficiency, and keeping promises are crucial in maintaining loyalty.
In conclusion, while the trend towards paid memberships is evident, its success hinges on brands understanding and addressing the deeper psychological and experiential factors driving consumer loyalty. Loyalty schemes, whether paid or free, must be carefully tailored to fit the right audience and their expectations of both 'winning' and receiving excellent service.
Get in touch if you want to hear our full findings on this!
Predicted trend 3: Brands will shift their storytelling from a regional or national focus to a consistent international narrative
Magenta’s observation: As younger consumers from Gen Z and Gen Alpha continue to scrutinise the transparency of brands, consistent global storytelling will become a central component for the largest brands
There were very few who didn’t know about the Barbieheimer trend of 2023, but the global promotional success of the Barbie movie also sparked debate on a possible trend for 2024: a shift towards brands having a consistent, international story to them. But have we seen this approach to branding used yet in 2024?
While it's still early in the year, we're already seeing evidence of this trend in action across various industries:
Global Climate Initiatives: Many multinational corporations are leveraging climate change as a central theme in their brand storytelling. For instance, Patagonia's consistent messaging about environmental conservation and its commitment to donate all profits to fight climate change resonates across borders, creating a unified brand narrative. Since 2021, Patagonia has removed 1,419 tons of plastic waste from the world’s oceans by creating clothing out of discarded fishing nets.
Tech Companies and AI Ethics: As artificial intelligence continues to evolve, tech giants like Microsoft, Google, and OpenAI are crafting consistent global narratives around responsible AI development. These stories emphasise their commitment to ethical AI practices, transcending national boundaries and appealing to a worldwide audience concerned about the future of technology. More recently, Microsoft has partnered with the thinktank Stimson to form a panel of stakeholders who are shaping the most responsible approach towards future AI use.
Streaming Platforms and Global Content: Netflix and other streaming services are increasingly focusing on creating and promoting "global hits" that resonate across cultures. Shows like "Squid Game" (South Korean), "Money Heist" (Spain) and “Dark” (Germany) are not just content but become part of the platform's brand story of bringing diverse, high-quality entertainment to a global audience. In 2020, Netflix launched it’s first-ever global brand campaign, “One Story Away”, including a short video highlighting Netflix’s wealth of international content through a narrative that was promoted in 27 countries.
Fashion Brands and Sustainability: Luxury fashion houses like Gucci and Stella McCartney are weaving sustainability into their brand narratives on a global scale. Their consistent messaging about eco-friendly materials and ethical production practices is shaping their brand identity worldwide. In 2023, Stella McCartney’s Spring collection included the first-ever luxury clothing to be created in a ‘circular’ approach, using regenerated and regenerable materials that can be recycled in the future to create new textiles.
These examples demonstrate how brands are crafting consistent, international stories that resonate with global audiences. The key themes often revolve around social responsibility, sustainability, and values that transcend cultural boundaries. Most importantly, the success of these global brand narratives often hinges on their authenticity and the brand's ability to back up their stories with tangible actions.
That wraps up our review. Any trends that you’ve been keeping an eye on – are they panning out as planned or veering in another direction? We’d love to hear about it either way!