2. Consumer Behavior Changes and Impacts on Growth Strategy

Understanding the foundational growth pillars is essential for scaling a business. However, as consumer behavior evolves, so must our approach to these pillars. Let’s dive into how consumer behavior shifts impact strategic growth and how companies can adapt accordingly.

The Shift in Consumer Behavior

Modern consumers are far more informed and independent than ever before. With vast information sources and increased access to technology, customers now expect more personalization, transparency, and control in their purchasing journey. Today’s successful companies are those that identify where their target audience resides, both online and offline, and leverage this intersection to drive growth.

Before the Internet: Limited Information and Few Audience Channels

In the pre-internet era, consumers had limited access to information and choices. There were few "owners of audience" — primarily magazines, television, and radio — which controlled the flow of information and often required significant budgets. This centralized audience ownership meant that marketing was mass-oriented and lacked personalization. Without the internet to fact-check or research independently, consumers were heavily reliant on sales representatives for details, leaving them with fewer options for verifying a product’s suitability for their needs.

The Internet Era: Choice and Control

With the advent of the internet, everything changed. Consumers gained control over their purchasing process, with vast resources available at their fingertips. Today, 70% of purchase decisions are made before a customer even speaks to a sales representative, showcasing the importance of independent research in buying decisions. Additionally, 74% of Brazilians over ten years old use the internet, with 99% accessing it via mobile devices. Consumers now research products through Google, consult peers, and access detailed information on the features, benefits, and reviews of a product.

The Rise of Marketing’s Influence

In the modern digital landscape, marketing has a significant influence on consumer choices. Marketers are tasked with ensuring customers understand the product or service and see it as a potential solution to their needs. Consumers expect detailed and accessible information to guide their buying journey.

Marketing's role is to provide valuable content that educates potential customers and builds trust long before they reach a sales representative. The purchasing journey now requires more than just brand recognition; it demands that consumers feel confident in their decision and secure in their trust in the brand.

The Demand for Testing and Experiential Interaction

Today’s consumers want the chance to test products and understand their value within the broader context of their specific needs. In this “Online 2.0” era, users not only seek information but also want to experience the product first-hand to confirm its utility. This hands-on interaction has given end-users (not just decision-makers) greater influence over purchasing choices.

In the past, products with lengthy implementation times, such as CRM or ERP systems, had high switching costs and required significant decision-making from C-level executives. Today, the landscape is different. Implementation times are shorter, and switching from one product to another has become easier and more efficient. With a reduced cost of change, competition has intensified, and customers are more willing to explore alternatives.

The Integration of Marketing, Sales, and Product in the Consumer Journey

With changes in consumer expectations and behaviors, a company’s marketing, sales, and product teams must work together to align with customer needs. Marketing now plays a key role in educating consumers and providing the necessary information at each stage of their journey. Sales remains essential, but its role has evolved to focus more on providing personalized insights and guidance once the consumer has already conducted much of their research. Lastly, product experience is now crucial, as it plays a significant role in demonstrating value during the consumer’s consideration and decision-making phases.

This integrated approach means that companies need to rethink their primary growth strategy — whether it’s sales-led, marketing-led, or product-led — and align it with the expectations and behaviors of their target audience. Companies must assess the effectiveness of each approach based on consumer behavior trends and be prepared to adjust their strategies accordingly to stay competitive and foster sustainable growth.

Key Takeaways

Consumer Autonomy: Modern consumers conduct extensive research before engaging with sales, requiring companies to provide accessible information across various digital touchpoints.
Testing and Hands-On Interaction: The demand for product trials and self-service tools is rising, giving end-users more influence in the purchasing process.
Reduced Switching Costs: The ease of switching products in today’s digital marketplace has heightened competition, emphasizing the importance of sustained customer engagement and satisfaction.
Integrated Sales, Marketing, and Product Strategies: Success in today’s market requires a unified approach where sales, marketing, and product teams work together to drive growth, each contributing at different points in the consumer journey.
Flexible Growth Approaches: Deciding between a sales-led, marketing-led, or product-led approach depends on consumer trends, product type, and market landscape.

In conclusion, understanding consumer behavior changes is crucial for developing a scalable and adaptive growth strategy. By aligning marketing, sales, and product efforts with evolving consumer expectations, companies can create a more customer-centric approach that drives long-term growth and success.