Have you made changes to drive your business growth using customer-centric strategies that are based on current trends?
Don’t know which ones are most relevant?
Then read on for a description of each and ideas on actions you can take to reap significant benefits in your growth and profitability.
Introduction
The landscape of customer-centricity continues to evolve rapidly as we move into the second half of 2024. Changes are being driven by technology, changing consumer expectations, and global dynamics.
Companies that fail to keep pace with these shifts risk falling behind, while those that embrace customer-centric strategies based on the latest 2024 trends will thrive.
In this article, we’ll explore the latest tendencies shaping customer-centricity, provide examples of how forward-thinking companies are leading the way, and include relevant statistics that illustrate the importance of these trends.
The Key Trends Impacting Customer-centric Strategies in 2024
Let’s start by reviewing the leading trends we have seen in the first half of this year. Are you aware of them all? And more importantly, have you made changes to benefit from some if not all of them?
1. Enhanced Focus on Customer-Centricity
Customer-centricity, once a differentiator, is now an expectation! In 2024, more companies have focused on customer-centricity as their core business strategy. This goes beyond lip service and involves deep integration of customer feedback, behaviours, and pain points into product development, marketing, and service delivery. Are you walking the talk?
A recent study by PwC found that 73% of consumers point to customer experience as an important factor in their purchasing decisions. Still, only 49% of U.S. consumers say companies provide a good experience. This disparity presents a significant opportunity for businesses that can truly place customers at the heart of everything they do.
Companies such as Allbirds, a sustainable shoe company, exemplify this focus by consistently involving their customers in product development through feedback loops, surveys, and data analytics. As a result, Allbirds has grown exponentially by delivering products that align with customer desires for both comfort and sustainability.
Patagonia is another company that excels in customer-centricity. Known for its environmental activism and durable products, Patagonia directly aligns its business operations with customer values.
A standout example of this is their “Worn Wear” program, which encourages customers to buy used Patagonia gear, repair their products, or trade in old items for store credit. This program not only addresses customer pain points related to sustainability but also strengthens loyalty.
According to a 2021 survey, 87% of Patagonia customers expressed increased loyalty due to the company’s ethical practices and customer-first initiatives.
As businesses increasingly adopt customer-centric strategies, expect to see more companies integrating customer feedback into every aspect of their operations.
2. Integration of Artificial Intelligence (AI)
Artificial intelligence is no longer a novelty; it’s a necessity for delivering hyper-personalized customer experiences.
In 2024, AI is already playing an ever-increasing role in predictive analytics, hyper-personalization, and customer support automation.
A McKinsey report revealed that personalization can lift revenue by 5% to 15% and increase the efficiency of marketing spend by 10% to 30%.
AI helps companies analyze vast amounts of data to predict customer preferences and behaviours, enabling them to offer relevant products or services at just the right moment.
That’s why I see AI as “Augmented Intelligence” rather than “Artificial Intelligence.”
Netflix uses AI to recommend content based on a viewer’s history, behaviour, and preferences, which significantly enhances user engagement. In 2022, Netflix attributed over 80% of its streamed content to its AI-driven recommendation engine. This level of hyper-personalization is expected to continue evolving across industries.
Stitch Fix, an online personal styling service, is a prime example of a company leveraging AI to revolutionize the customer experience. By analyzing data on individual preferences and using algorithms, Stitch Fix can recommend clothing options tailored to each customer’s taste and size. The company’s combination of AI with human stylists has allowed them to personalize at scale—an impressive feat that has driven significant growth. According to their 2023 earnings report, Stitch Fix’s revenue was $1.7 billion, with personalization being cited as a core contributor to customer retention and satisfaction.
Another use of AI that should be mentioned, is in streamlining customer service through AI-driven chatbots and virtual assistants.
Companies like Lemonade, a digital insurance provider, use AI bots to handle the majority of customer queries and claims. With AI driving operational efficiencies and customer satisfaction, Lemonade can resolve claims in seconds, enhancing the customer experience and setting new standards for what customers expect in digital interactions.
3. Emphasis on Sustainability
Sustainability has moved from a niche concern to a mainstream priority.
According to a survey by IBM and the National Retail Federation, nearly 70% of consumers in 2021 stated that they would pay a premium of 35% more for sustainable products. This trend shows no signs of slowing down as businesses recognize that sustainability is not just about doing the right thing—it’s also a critical factor in customer satisfaction and brand loyalty.
In 2024, consumers will continue to favour brands that align with their values, especially when it comes to environmental impact.
Brands such as Beyond Meat and Impossible Foods have capitalized on this trend by offering plant-based alternatives that appeal to environmentally conscious consumers. Beyond Meat, for instance, reported a 38% year-over-year increase in revenue in 2023, largely driven by consumers seeking sustainable options.
IKEA is another brand that has doubled down on sustainability, with a commitment to becoming climate-positive by 2030. The company’s “Buy Back & Resell” program allows customers to sell their old furniture back to IKEA, which is then refurbished and resold. This not only reduces waste but also gives customers a financial incentive to participate in a circular economy.
According to IKEA’s sustainability report, their efforts to become more eco-friendly have resonated with customers, with 70% of IKEA shoppers stating that the brand’s sustainability initiatives influenced their purchase decisions.
In 2024, the integration of sustainability into business models will be essential for brands that want to build lasting customer relationships. Companies that can demonstrate a genuine commitment to environmental and ethical practices will enjoy enhanced loyalty and a stronger competitive edge.
4. Omnichannel Experience
Customers no longer see distinctions between online, in-store, or mobile interactions—they expect seamless, integrated experiences across all platforms.
According to research by Harvard Business Review, 73% of consumers use multiple channels during their shopping journey, and companies that adopt omnichannel strategies achieve 91% greater year-over-year customer retention rates compared to those that don’t.
The trend toward omnichannel experiences is accelerating in 2024, with companies investing in cohesive platforms that allow customers to switch seamlessly between digital and physical channels. The COVID-19 pandemic accelerated this shift, and it has since become an enduring expectation.
Sephora, a beauty retailer, is a leader in omnichannel customer experience. The company’s Beauty Insider loyalty program is integrated across both its online platform and brick-and-mortar stores, allowing customers to earn and redeem points, access personalized product recommendations, and receive customized offers regardless of where or how they shop. Sephora’s investment in an omnichannel experience has paid off: a study from Sailthru showed that Sephora’s omnichannel customers spent 2.5 times more than single-channel shoppers.
Sephora has also embraced the power of mobile, offering features like augmented reality (AR) to allow users to try on makeup virtually via its app, providing a seamless and engaging experience that blurs the line between physical and digital shopping. As businesses continue to enhance their omnichannel strategies, customer retention and loyalty will improve significantly.
5. Personalization at Scale
Personalization is no longer a one-size-fits-all approach—companies are now tasked with delivering highly personalized experiences to millions of customers at scale.
A Salesforce report from 2022 found that 66% of consumers expect companies to understand their unique needs, yet many companies struggle to meet this demand consistently.
In 2024, advancements in AI, machine learning, and data analytics are enabling companies to deliver hyper-personalized experiences that feel individual, even at scale.
Spotify, the global music streaming giant, excels in personalization at scale. By leveraging AI and machine learning, Spotify provides customized playlists, song recommendations, and listening insights tailored to each user’s preferences. Its “Discover Weekly” and “Release Radar” playlists are algorithmically generated for each user, based on their listening habits and preferences.
As of 2023, Spotify had 551 million active users globally, and personalized recommendations are a core reason for their continued growth. According to Spotify, 90% of their users engage with personalized playlists each week, demonstrating the power of personalization in retaining users.
Retailers are also catching up. Amazon’s recommendation engine, which accounts for 35% of the company’s sales, uses customer data to predict what products a user might want based on past behaviour, searches, and purchases. This level of personalization at scale has become the gold standard for e-commerce and is expected to spread across industries as more companies integrate advanced personalization techniques.
6. Building Trust through Values
Consumers today care about more than just the quality of a product or service—they want to engage with brands that share their values.
A 2023 Edelman Trust Barometer report found that 63% of consumers buy or advocate for brands based on their beliefs and values.
In 2024, businesses that authentically align with their customers’ values will cultivate stronger trust, loyalty, and advocacy.
Ben & Jerry’s is a company that has consistently aligned its business with progressive values, advocating for climate action, racial equality, and fair trade practices. Their commitment to social justice is deeply embedded in their brand identity, which resonates strongly with their customer base.
Despite being owned by Unilever, Ben & Jerry’s maintains a strong stance on political and social issues, leading to greater brand loyalty among ethically-minded consumers. The company has reported that its social justice initiatives have helped drive stronger connections with its customers, particularly among younger demographics.
Aligning business practices with customer values doesn’t just foster loyalty—it can transform customers into brand advocates. Brands that authentically reflect the values of their customers are more likely to benefit from word-of-mouth marketing and social media amplification.
In 2024, this trend will continue to grow, especially as younger generations such as Millennials and Gen Z increasingly demand transparency and ethical behavior from the brands they support.
7. Leveraging Emerging Technologies
Emerging technologies such as virtual reality (VR) and augmented reality (AR) are no longer just experimental novelties—they are becoming key drivers of immersive customer experiences.
In 2024, businesses that invest in these technologies to create interactive, engaging customer interactions will stand out from the competition.
According to a 2022 study by PwC, 43% of consumers are willing to pay more for a product if they can experience it through augmented or virtual reality.
IKEA is leveraging augmented reality through its IKEA Place app, which allows customers to visualize furniture and home décor in their own spaces via AR before making a purchase. This technology helps reduce uncertainty and increases customer confidence in purchasing decisions. A study from Harvard Business Review found that AR experiences like IKEA’s increase conversion rates by as much as 30%. This is because customers are more likely to complete a purchase when they feel confident that a product will meet their needs.
Similarly, other brands are using VR to transform customer engagement. For example, car manufacturers like Audi offer VR test drives that allow customers to experience new models without leaving the showroom. By immersing customers in the driving experience, these companies create a more memorable and engaging sales process, which enhances brand perception and drives higher sales.
Emerging technologies such as AR and VR are not just enhancing the customer experience, they are creating new opportunities for businesses to differentiate themselves in competitive markets. As these technologies become more affordable and accessible, more companies will adopt them to engage customers in fresh and innovative ways.
Conclusions on Customer-centric Strategies
As we move into the second half of 2024, customer-centricity is evolving from a strategic advantage to a business necessity.
The companies that lead the way will be those that focus on deeply understanding their customers, using cutting-edge technology to deliver personalized and seamless experiences, and aligning their values with those of their customer base.
Whether it’s through the integration of AI, the creation of omnichannel experiences, or a commitment to sustainability, the businesses that put their customers at the heart of their strategies will build stronger relationships and foster long-term loyalty. By staying ahead of these trends, smart CEOs can position their companies for sustained growth and success in an increasingly competitive marketplace.
To implement these strategies effectively, businesses need expert guidance. As a global customer experience consultant, I can help your company navigate these trends and create a customer-first strategy that drives measurable results. Reach out to learn how I can assist your business in leveraging these trends to stay ahead of the curve in 2024 and beyond.
If you are not consistently upgrading your customer-centric strategies, then we should talk. You will come away with at least three ideas you can action immediately. Book your time NOW!
