Sustainable buying choices are becoming popular among customers
Consumer interest in environmentally friendly purchasing is rising, and most young Americans are ready to pay extra on products that are more ecologically friendly.
That's an important finding of a study conducted by Tata Consultancy Services of customers. In October 2022, the TCS Thought Leadership Institute surveyed 3,000 people in the U.S. and the U.K. (1,500 in the U.S. and 1,500 in the U.K.).
Despite the fact that 55% of American customers are reducing their discretionary spending, the desire to buy from sustainable shops persists.
According to the poll, a sizable majority of American customers (86%) place priority on an item's sustainability or ethical sourcing, and an average of 69% of all questioned consumers had recently paid more for sustainable items. But 62% would be more likely to purchase with a particular shop if they received rewards for making sustainable decisions.
The poll also showed that all age groups are interested in adopting tech-enabled shopping experiences, with millennials showing the most interest in nearly all digital shopping tools, including contactless checkout (60%) and the usage of QR codes to obtain more information (54%).
Retailers must get smart and rely on data and insights with technologies that deliver the highest return on investment in the short and long term, as stated by Ashish Khurana, retail head, Americas, TCS. Consumers are tightening their wallets and belts in today's environment. At the same time, businesses have a chance to use this challenging moment to cultivate customer loyalty, trust, and enthusiasm. The winners will be those who can ingeniously assist their clients in making ethical decisions, upholding their principles, and eventually making them feel good about purchasing with them.
Other conclusions are as follows:
All age groups want to alter their spending habits in order to cope with the current economic difficulties. The buying habits of millennials, which are still expanding, seem to be less affected, since 70% of them are more prepared to trade their personal information now than they were a year ago for discounts and benefits. Compared to other age groups, especially Gen Z (65%), this is higher.
Ninety percent of Gen Z and millennials say they prioritize making sustainable choices.