2025 Consumer Trends: Privacy, AI Skepticism, and the Decline of Feedback | Martech Edge | Best News on Marketing and Technology
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2025 Consumer Trends: Privacy, AI Skepticism, and the Decline of Feedback

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2025 Consumer Trends: Privacy, AI Skepticism, and the Decline of Feedback

2025 Consumer Trends: Privacy, AI Skepticism, and the Decline of Feedback

PR Newswire

Published on : Oct 17, 2024

According to the 2025 Consumer Trends Report by Qualtrics, consumers are becoming more privacy-sensitive, skeptical of AI, and less likely to share feedback. This shift creates challenges for companies, especially as consumer loyalty becomes increasingly fragile. Drawing on insights from nearly 24,000 consumers across 23 countries, the report identifies five key trends shaping consumer behavior in 2025.

  1. Heightened Expectations Fuel Declining Loyalty:

    • Despite fewer negative experiences, consumers are quicker to cut back on spending after a poor interaction.
    • Companies offering essential services (utilities, banks, hospitals) are less likely to lose customers than discretionary industries (airlines, hotels, fast food), but trust remains fragile.
  2. Consumers are Sharing Less Feedback:

    • Compared to 2021, consumers are significantly less likely to provide feedback on good or bad experiences.
    • Most feedback is shared with family or friends, rather than directly with companies or on social media.
    • Businesses must adopt more sophisticated listening strategies to capture consumer insights.
  3. AI Hype Gives Way to Skepticism:

    • Only 26% of consumers trust companies to use AI responsibly.
    • A growing number (51%) are concerned about the lack of human interaction in AI-driven customer service.
    • Despite these concerns, 46% of consumers are comfortable using AI in specific tasks when it benefits them.
  4. Balancing Privacy and Personalization:

    • Consumers crave tailored experiences but are reluctant to share personal data. Only 27% are comfortable with unsolicited data collection for personalization.
    • Building trust is essential for companies that want to meet personalization demands while respecting privacy concerns.
  5. Trust is the Key to Loyalty:

    • The report emphasizes the importance of trust in maintaining consumer loyalty. Setting accurate expectations and delivering on promises are more important than speed or convenience.
    • As consumers become more selective and less loyal, companies must focus on reliability and transparency to retain their customer base.

In 2025, businesses face an uphill battle in maintaining consumer loyalty, as privacy concerns, AI skepticism, and declining feedback create new challenges. Trust will be the cornerstone of customer relationships, making it critical for companies to focus on delivering reliable, transparent, and personalized experiences.