Understanding your customers is no longer a “nice-to-have”. It’s a business imperative. In today’s fast-moving environment, the brands that win are those who stay close to their customers. The world has changed – and so have the people in it.
In Australia, the consumer landscape is undergoing a profound shift. Cost-of-living pressures remain front and centre for many households, especially younger Australians. In April 2025, Australian retail sales declined by 0.1%, defying expectations of a boost from two public holidays and interest rate cuts. This downturn follows modest growth in February (0.2%) and March (0.3%), indicating persistent consumer caution despite recent interest rate cuts and easing inflation. Gen Z and Millennials driving the sharpest declines. These cohorts are prioritising essentials, saving more, and delaying major purchases.
In contrast, Australians aged 50 and over are emerging as a more financially resilient and influential consumer group. Roy Morgan data reveals that over 50s now account for nearly half of all discretionary retail spending in Australia. This segment is not only wealthier on average, but more stable in their spending habits and increasingly digitally engaged—turning to online platforms for shopping, research, and peer recommendations.
Across all age groups, shoppers are more deliberate. Purchase cycles are extending, with more time spent researching products and comparing options. Google’s Australian Consumer Insights study highlights that 73% of consumers consult reviews, social content or influencers before making a new brand or product choice. This increased pre-purchase scrutiny is paired with higher expectations of brand integrity, ethical behaviour, and clear alignment to personal values.
At the same time, trust has become a key currency. In an environment of economic caution and digital overload, consumers are gravitating toward brands that consistently deliver on their promises. According to Edelman’s 2024 Trust Barometer, 64% of Australians say brand trust is now a dealbreaker in their decision to buy.
But this shift goes deeper than dollars. It reflects a cultural movement: from carefree to considered. Consumers are now driven by control, meaning, and trust. This is what we call the new value equation.
Why does customer understanding matter?
Here’s what research shows:
1. Companies that lead in customer experience outperform laggards by nearly 80% in revenue growth (Forrester)
2. Brands that meet consumers’ emotional needs create greater loyalty, stronger word-of-mouth and higher margins (Harvard Business Review)
3. Businesses that regularly conduct consumer research are more likely to innovate successfully and capture market shifts earlier (Greenbook GRIT, 2024)
Australian consumers are becoming increasingly emotionally selective and protective in their brand interactions. This means they are more cautious about where they spend their time, money, and trust.
- According to Deloitte’s 2024 Global Marketing Trends report, 57% of consumers globally say they now make purchasing decisions based on how well a brand aligns with their personal values, up from 48% in 2022. This reflects a shift towards more emotion-led brand engagement.
- Research from Think with Google shows that in Australia, “brand trust” ranks as the #1 factor influencing brand choice among consumers aged 35+.
- Roy Morgan’s 2024 trust rankings show increasing polarisation in brand trust, with Australians more likely to name both “most trusted” and “least trusted” brands – suggesting stronger emotional reactions to both positive and negative brand behaviour.
- The Harvard Business Review’s concept of emotional motivators finds that consumers who feel emotionally connected to a brand have a 306% higher lifetime value, and are more likely to recommend the brand to others.
- Kantar’s 2023 Media Reactions report highlights that advertising which creates emotional resonance is significantly more effective in converting brand consideration in a low-attention media environment.
Today’s emotionally protective consumers are more likely to be cautious and skeptical, and disengage quickly if brands fail to meet their values.
Research indicatest that consumers are increasingly:
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Wary of generic messages – they want personalised, relevant, and emotionally intelligent communication.
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Skeptical of brand promises – trust must be earned and maintained through transparency and action.
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Loyal to fewer brands – but willing to advocate for those that align with their identity and values.
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More likely to disengage if a brand fails to meet ethical, environmental, or social standards.
How can you better understand your customers?
At Insight LED, we help brands tap into the voice of the customer through research methods that are strategic, agile, and deeply human. Here’s how you can take action:
- Refresh your insights with real data – Run a quantitative survey with 500–1,000 nationally representative or category-specific consumers to test what they value today. Segment insights by age, location, or lifestyle to identify priority audiences for your brand to engage with.
- Revisit your audiences – validate your most valuable customer groups for your brand that will drive growth opportunities, like the over 50s who are a segment more likely to be increasing their spending on discretionary purchases. This group is digitally engaged, brand loyal and holds the most spending power. Our custom audience profiling can help you reach and understand them.
- Conduct online deep dive interviews- Our qualitative research uses moderated video interviews to uncover motivations, emotional drivers, and barriers to engagement – ideal for hard-to-reach segments or regional audiences.
- Identify category entry points – We uncover the moments and needs that prompt people to enter your category – and the reasons why some don’t. These powerful insights helps optimise messaging and customer journeys through leveraging drivers and addressing barriers.
- Develop actionable customer segments – Using advanced analytics, we can build data-driven personas to sharpen targeting, channel mix, and brand positioning, to ensure your campaigns are relevant, engaging and meeting the needs of your audience.
Our research methods at Insight LED:
We offer a wide range of tools to help you see your customer clearly, here are some proven evidence based approaches to better understand your customers:
- Quantitative Surveys: Fast, reliable, and scalable, we have national reach of up to 1.9 million Australians to engage in market research
- Qualitative Interviews, focus groups and forums: Emotional and behavioural depth
- Segment Profiling & Personas: Data-led storytelling
- Category Exploration: Entry points, drivers, and barriers
- Brand Health Tracking: Trends over time and brand perception
- Creative & Message Testing: Pre-launch validation of key messages, benefits and concepts to maximse impact and traction
Why choose Insight LED?
• ✅ Experienced in audience insights, hard-to-reach audiences and complex categories
• ✅ Deliver evidence-led insights that drive marketing, brand, and product decisions
• ✅ Collaborative and agile team that works as your partner
• ✅ We make insights clear, actionable, and compelling
🗓️ Book a free 20-minute Insight Strategy Session
Let’s talk about your current challenges, and we’ll design a smart research approach that unlocks clarity.