This article is based on Michael Nevski’s talk at #Demand24 in Denver. As an RMA member, you can enjoy the complete recording here.

What does it take for brands to thrive in a world where uncertainty is the new normal?

As the Director of Global Insights at Visa, I’ve had the opportunity to study consumer behavior across 200 markets, and I’ve seen firsthand how economic instability, political shifts, and rapid technological advancements are reshaping how people spend and interact with brands. 

Consumers today are navigating rising costs, unpredictable markets, and eroding trust in institutions. In this environment, traditional marketing strategies simply aren’t enough.

In this article, I’ll explore the evolving landscape of consumer behavior and examine the key ways brands can adapt to stay relevant and build long-term loyalty.

Here’s a taste of what we’ll cover:

  • The rise of consumer caution and its impact on spending habits
  • How generational differences shape financial behavior, from Gen Z’s save-and-splurge mindset to Millennials’ financial maturity
  • The role of emerging technologies like generative AI in reshaping shopping experiences
  • Practical strategies for brands to adapt and thrive in uncertain times

Let’s dive in.

Uncertainty: The new normal

Right now, many consumers are feeling a sense of uncertainty. They’re being bombarded daily by the media and news, which only adds to their concerns. 

If you put yourself in their shoes, you’ll see what they’re dealing with: rising mortgage rates, post-COVID challenges, and geopolitical events like the war in Ukraine, among others. 

This uncertainty has become the new normal, and it’s not going away anytime soon. It’s important to recognize that these events impact different demographics in different ways, which means we need to understand and address these differences.

Another factor we need to consider is the erosion of institutional trust, including trust in brands like ours. Consumers are dealing with a lot of uncertainty, and it’s affecting their relationship with brands. Understanding this is key when we think about the consumer journey and the various touchpoints along the way.

As brands, what can we do in the face of all this uncertainty? To start, we need to analyze the evidence. So, let’s take a closer look at what’s going on with today’s consumers. 

Economic sentiment: What the data tells us

According to Morning Consult’s data, consumer confidence is pretty volatile at the moment, reflecting consumers’ emotional well-being. Consumers feel uncertain about the future, which influences their behavior. 

In this environment, consumers are looking for three main things from brands in this environment: a break, a win, and a reason.

  1. A break: This is about self-care, escapism, and joy. With the constant stress, consumers seek ways to disconnect from the harsh realities of the world and take care of themselves.
  2. A win: Consumers expect something in return from the brands they interact with, like self-interest, wealth, or personal growth; we need to show how we can help them achieve that.
  3. A reason: Whether they’re Gen Z or Boomers, city dwellers or living the rural dream, consumers want brands to offer a clear value proposition. They’re constantly seeking reasons to trust brands and feel confident in their choices.

Higher-income consumers and growing concerns

Surprisingly, affluent consumers – those we’d expect to feel more secure – are increasingly worried about the economy. For instance, many in corporate America fear job loss, which directly impacts their financial confidence. 

This concern extends to debt, particularly in light of student loan repayment programs. Among higher-income consumers, 73% and 69%, respectively, express concerns about missing payments or even defaulting on their loans. This shapes their spending priorities, as they focus on paying off mortgages or credit card debt instead of making big purchases.