Exploring the evolution of value as businesses look to build meaningful consumer relationships

A new report conducted by C Space and Hall & Partners, in partnership with Visa, has explored the evolution of value as businesses aim to deliver hyper-personalised experiences for customers in a data-led economy.

Following a spate of major global factors over the past few years – from the pandemic to the cost-of-living crisis and conflicts – the perception of value within consumers has changed indefinitely. The notion of value has taken on new meaning, extending beyond just price and embracing a more empathic, sustainable, and human approach, including reduced impact on the environment, treating employees fairly and supporting them through continued crises.

New technologies empower companies to create embedded products and seamless services that deliver greater choice and a convenient experience for consumers. Yet the necessity for businesses, and the brands that they sell, to take a human approach has never been greater.

The report, ‘Value: Relationships Under Duress’ was conducted via a multi-market qualitative and quantitative study (covering Europe, the USA and Asia) and studied the effect of the pandemic and the cost-of-living crisis on consumers' expectations of brands. It reframed the current climate as a ‘quality-of-living’ crisis, as brands observe a dramatic impact on consumer attitudes and behaviour.

Globally, more than 2 in 5 people have cut back on essentials, and half of the population say they have cut back on ‘joy’. Yet for many trading down is not an option, leaving them ‘captive’ in relationships with brands that aren’t serving them and meaning this age of uncertainty is shattering trust in brands.

At the heart of this next evolution as businesses strive to serve customers such as these, is the exponential growth of data. From a business’ point of view, it’s no longer possible to meet consumer expectations with a proprietary approach of simple value transfer via payments. A fully open data economy has limitless possibilities to unlock richer, personalised experiences and greater value, meaning customers feel more valued and loyal to a business or brand.

“Consumers remain anxious about the escalating threat of climate change, an increasingly volatile economic environment and rapid technological advances such as AI,” said Neha Mittal, Practice Director at C Space. “They continue to question whether their favourite brands are worth the investment or even whether they can afford them altogether. They are exhausted with the volume of decisions they make about what they buy. Many feel let down by the brands they have trusted for decades.

Consumers want brands to show up in ways that align with their values – with greater importance being given to personal health, family well-being and community connection. Brands must navigate the subjectivity of value to retain trust and show their authentic human approach.”

According to the report, globally a quarter of people are feeling alone, lonely and isolated. This is higher in India (44%) and lowest in Japan (12%). UK is 17% and US is 25%: Financial uncertainty, stress and other constraints are impacting decision making, meaning people are more likely to make poor judgements and take unnecessary risks that have negative long-term consequences.

Hayley Bramble, Group Strategy Director at Hall & Partners commented: “Brands should be asking what they can do to serve their customers better, make their lives easier or simply thank them for their loyalty. This is critical at a time when the pressure on ‘mental loads’ and ‘physical wallets’ is so intense. Winning brands build meaningful relationships with customers and employees but during a period of permacrises they need to bridge the solidarity gap.”

The evolution of value requires interconnectivity; a combination of both great ideas and innovation alongside the scale and resilience Visa is uniquely positioned to offer. Only then can transformative value be unlocked for people, businesses and economies.