some are based on pricing and inflation. And people are reacting differently. Gen Z, for example, is reacting quite differently from other generations. So, again, nuances matter. More time alone and online Monica Toriello: Let’s get into the five trends that you discuss in your report. The first trend sounds a little depressing: “People are spending more time alone and online.” Kari Alldredge: There has been a remarkable shift in how people spend their time. That behavior that many of us developed during the pandemic, when we had no choice but to be online and alone, really has persisted. This is universal across demographic groups and globally: Consumers report that they have an extra three hours of free time in their week. We were interested to understand what consumers are doing with that free time, and we found that nearly all of it is being spent online and alone in a myriad of different activities—everything from hobbies and fitness to shopping. What are the implications for consumer-facing companies? The first one is pretty obvious: Meet consumers where they are. Eighty percent of surveyed consumers—and again, this is true around the world—shopped online in the last month. So, brands really need to think about their online presence and how they’re showing up online. There are other, more subtle implications for companies to consider. One is this notion of immediate gratification. During the pandemic, we all came to expect that we could order something, and it would show up immediately. Consumers are expecting immediate gratification and convenience. We’ve seen about 20 percent annual growth in food delivery over the five years since the pandemic. It’s an explosion of a behavior that was pretty nascent prior to 2020. So, think about ways to reduce barriers and friction. Also, particularly for retailers and other experiential consumer-facing companies, thinking about gamification is critical—whether it’s gamifying your loyalty program or finding other ways to engage with consumers online and meet them where they are. Monica Toriello: Can you give an example of that, Kari? How—or what—are companies gamifying? Kari Alldredge: The best examples I’ve seen are in loyalty programs , whether it’s a direct-to- consumer company or even a brick-and-mortar retailer that makes achieving the next level of status a bit of a game. You can earn points, you see a leaderboard, you get badges for different activities on their site or in their stores. Christina Adams: Some of that gamification and online interaction then drives in-store behavior. Certainly, there is a growing percentage of online-only shopping, but, by far, the majority of shopping is still omnichannel . It could be discovery or participation online, but How today’s consumers are spending their time and money 3