As the new year approaches, certain consumer trends are expected to continue in 2025, while others may have run their course.
In this installment of CO–’s premier event series, Ready. Set. Scale., small business experts discussed what they can expect from consumers in the new year and how these trends can shape their strategies for growth and success in the year ahead.
- Elaine Buxton, President and CEO of mystery shopping business Confero Inc. (the 2024 CO—100 Top Small Business), discussed how an omnichannel experience presents both new opportunities and challenges to small businesses.
- Buxton also encouraged small businesses to make data privacy a top priority in 2025.
- CO— Vice President and Editor-in-Chief Jeanette Mulvey and Editorial Director of Features Barbara Thau highlighted using artificial intelligence (AI) in customer service and innovations poised to shape the market in the new year.
The good and the bad of omnichannel experiences
The “omnichannel experience” has enabled businesses to meet consumers where they are by being present on multiple platforms. While the expansion of channels presents ample opportunity to better serve consumers, Buxton, whose company specializes in customer experience and brand research, noted that it also presents operational challenges for small businesses, including:
- Inconsistent service across channels. Customers may receive different answers or levels of service depending on whether they interact online, in person, or via phone.
- Operational breakdowns. Advancing technology may cause internal disruptions. For example, an online order might not sync seamlessly with in-store pickup processes.
- Balancing in-person and digital demands. Businesses often struggle to allocate resources effectively when faced with surges in both physical and online orders.
“You've got this giant web of processes going on that are increasingly difficult to manage and … identify, and [this] creates a lot of opportunity for there to be exceptions and pain points for the customer,” Buxton said.
Buxton advised businesses to take a proactive approach by conducting internal audits to identify and resolve process inefficiencies.
[Read more: Omnichannel vs. Multichannel Sales Strategies]
While the expansion of channels presents ample opportunity to better serve consumers, Buxton, whose company specializes in customer experience and brand research, noted that it also presents operational challenges for small businesses.
Consumers are changing their tone about data privacy
Another key focus for 2025 will be the growing emphasis on data privacy. This issue now goes beyond compliance and has become integral to building and maintaining customer trust.
Buxton emphasized the growing consumer awareness of how their data is used and the demand for transparency.
“If you are asking for an email address or a phone number so the customer can get communications from you, they … expect more clear information … [such as], ‘What are you going to send me, and what is the value to me?’” she said.
Buxton recommended these best practices for using consumer data:
- Protect sensitive information. Avoid publicly sharing phone numbers or other personal details.
- Be transparent about data use. Clearly explain the benefits customers will receive in exchange for sharing their contact information.
- Be proactive about preventing data breaches. Small businesses must remain vigilant about cybersecurity, as breaches can erode trust.
By prioritizing data security, small businesses can position themselves as trustworthy partners in a competitive marketplace.
[Read more: A Small Business Guide to Third-Party Data]
Emerging consumer trends on the horizon for 2025
AI-powered chatbots are “democratizing customer service,” said Thau. She noted that chatbots contributed to 2% higher conversion rates during Cyber Week 2024, while mobile commerce reached a tipping point, with 70% of online sales occurring on mobile devices.
“Conversational commerce has become so much richer because these AI agents are … more sophisticated ... so we're seeing the return on investment,” said Thau.
Looking ahead to 2025, businesses are embracing trends that prioritize wellness and value. The rise of therapeutic wellness highlights the growing consumer demand for self-care, with companies integrating meaningful gestures like personalized notes or wellness-focused travel experiences such as sleep tourism.
Meanwhile, a shift from deep discounts to value-added experiences emphasizes the importance of creating meaningful connections with customers beyond the transaction.
“Think of your brand as an experience,” Thau said. “Consumers want experiences … and there's more spending on experiences than products.”
[Read more: Start. Run. Grow. Mastering the Customer Experience]
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.