The Evolution of the Customer: The ’90s

The Evolution of the Customer: The Digitally Disruptive ’90s

Posted on September 11, 2024 by Grace Hill

Woman dressed like she's from the 90s, wearing headphones and dancing

The 1990s were a transformative decade for customer behavior, marked by significant shifts driven by technological advancements, globalization, and changing societal values. One of the most notable changes was the rise of digital technology, particularly the internet, which reshaped how customers shopped, accessed information, and interacted with brands. 

While still a far cry from today’s digital-first world, the growth of e-commerce, although still in its early stages, started to change purchasing patterns, allowing customers to shop from home and compare prices and products more easily. 

This decade also saw a growing emphasis on customer experience and a shift toward conscious consumerism that included a shift toward brand loyalty. As customers became more aware of ethical and environmental issues, they began to demand more from companies in terms of sustainability and corporate responsibility. This shift laid the groundwork for the more conscious consumerism that became more prominent in the 2000s.

If the ‘80s were awesome, the ‘90s were all about growth and change. In this blog, we will explore the key transformations that have shaped the modern customer, examining how their preferences, expectations, and interactions have evolved over time. 

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The 1990s: The Decade of “Discovery”

The 1990s were a transformative decade in America, shaped by pivotal events that impacted the nation’s cultural, political, and social landscape. Here are some events that define the decade:

  • The internet becomes mainstream, leading to the “dot-com” boom.
  • Football hero O.J. Simpson was tried but not convicted of murder.
  • President Bill Clinton’s impeachment scandal had everyone discussing the definition of “is.”
  • Columbine High School shooting, resulting in 15 killed and 23 wounded, shocks the nation.
  • Saddam Hussein invaded Kuwait, thrusting the U.S. into the Gulf War.
  • Major League Baseball players went on strike, and the World Series was canceled.

These headlines encapsulate a few significant cultural, political, and technological shifts that defined the 1990s in the United States.

How 90s Trends Impacted Customer Behaviors

 

“You’ve Got Mail”: Technology and the Internet Revolution

The early 1990s marked a turning point in customer behavior with the widespread adoption of the internet. This revolutionary technology, once accessible only to a select few, quickly became an integral part of daily life. The World Wide Web, launched in 1992, transformed how people communicated, shopped, and consumed entertainment.

Personal computers (PCs) became more affordable, powerful, and user-friendly during the 1990s, and Apple also introduced the iMac in 1998.

💡 In 1989, only 15% of American households had a computer; this more than doubled in the ‘90s.

As internet penetration soared, customers gained unprecedented access to information and products. The ‘90s witnessed the emergence of online marketplaces, email services, and social networking platforms, laying the foundation for today’s digital economy. 

Additionally, the rise of mobile technology in the late ‘90s further accelerated the shift towards a digital-first world. The introduction of the first commercially available smartphones, while still bulky and expensive, marked the beginning of a trend that would culminate in the widespread use of mobile devices in the 21st century.

Fun Facts:

  • New vocabulary: Words like Spam, Y2K, MP3, cyberspace, and e-commerce found their way into our vocabulary.
  • Texting: The first-ever SMS text message was sent on December 3, 1992. 
  • WiFi: Wi-Fi technology was released in 1997, revolutionizing how we access the internet.
  • Google: Google was founded in 1998 as a search engine to “organize the world’s information.”

“I Want It That Way”: How Music of the ‘90s Shaped Customer Behaviors

The 1990s witnessed a seismic shift in the music industry, characterized by a proliferation of genres, the rise of new artists, and technological advancements that forever altered the way customers interacted with music.

The decade saw a surge in diversity within the music landscape: Latino music grew in popularity; country became more mainstream; and the grunge movement out of Seattle introduced an alternative sound that resonated with a younger generation.

The popularity of artists like Mariah Carey, Boyz II Men, and Hootie & the Blowfish showcased the enduring appeal of traditional pop and rock genres. However, the ‘90s also marked a period of experimentation and innovation, as artists like Alanis Morissette and Nirvana pushed the boundaries with their introspective and rebellious lyrics.

The widespread availability of CD burners and the emergence of online file-sharing services like Napster disrupted the traditional music industry model. These developments empowered customers to take control of their music consumption, leading to a shift in both customer behavior and expectations.

Baggy and Prep and Grunge, Oh My! How ‘90s Fashion & Style Evolved

The 1990s ushered in a wave of fashion trends that significantly impacted customer behaviors. Youth culture, in particular, experienced a stylistic revolution with the rise of grunge and preppy aesthetics. Hip-hop influenced menswear, with baggy jeans worn low on the hips becoming a defining look. Meanwhile, women embraced a retro vibe, sporting bell-bottoms and peasant tops reminiscent of the 1970s.

Designers like Liz Claiborne, DKNY, and Tommy Hilfiger capitalized on these trends, offering accessible and stylish options for the masses. The casual Friday trend, which gained momentum in the ‘90s, eventually evolved into a more relaxed work dress code altogether. 

💡By 1998, 53% of companies allowed casual attire, up from just 7% in 1992.

The power suit, a staple of the 1980s, lost its dominance as women embraced a more minimalist style. Hair trends also underwent a transformation, replacing the voluminous styles of the previous decade with more natural hairstyles that included messy updos and basic ponytails. While there were brief trends like the iconic “Rachel” hairstyle inspired by Jennifer Aniston’s character on “Friends,” the overall emphasis was on simplicity and authenticity.

These fashion shifts not only reflected the cultural “mood” of the decade but also influenced customer spending habits and shaped the retail landscape. The ‘90s marked a departure from the excess and extravagance of the ‘80s and paved the way for a more casual and relaxed approach to style and self-expression.

“Show Me the Money!”: Film & Television Hold Increasing Sway Over Customer Behaviors

Television and film played increasingly pivotal roles in shaping customer behaviors during the ‘90s. By 1990, over 50 million households (nearly 60% of American homes) had a cable subscription. By 1998, an overwhelming 98% of U.S. households owned televisions, with the average viewer spending a staggering seven hours per day watching their favorite shows. 

The ‘90s were a golden era for television, with a mix of sitcoms, dramas, and animated shows leading the ratings. Some of the top-rated TV shows of the decade include:

  • “Seinfeld”
  • “ER”
  • “Friends”
  • “Home Improvement”
  • “The Simpsons”

News programs like “60 Minutes,” “20/20,” and “Dateline NBC” also dominated the airwaves, informing and influencing viewers on a wide range of topics. And who can forget David Letterman’s “Late Show” with its iconic “Top 10” lists? 

The film industry also thrived during the 1990s with the emergence of mega-plex theaters offering cinematic experiences on a grand scale. After their theatrical runs, the rapid release of films on home video further expanded access to popular movies. 

Here are the top five movies of the decade based on box office success, cultural impact, and critical acclaim:

  • “Titanic”
  • “Jurassic Park”
  • “The Lion King”
  • “Forrest Gump”
  • “The Matrix”

These films not only dominated the box office but also left a lasting legacy in the film industry and popular culture.

Lifestyle in the ‘90s: Work Hard, Play Hard

The 1990s swung between economic hardship and prosperity. The decade began with a recession, reflected in rising oil prices, interest rates, and a decline in credit availability. Sadly, this also led to social issues like increased depression, alcoholism, and drug abuse. 

However, the later part of the ‘90s witnessed a booming economy with record-low unemployment, a minimum wage increase to $5.15, and a surge in stock trading. The Dow Jones even hit 11,000 by 1999, creating significant wealth for many Americans. 

This economic expansion fueled a 40% increase in travel and a growing interest in health and nutrition, ironically coinciding with a rise in obesity rates. And interestingly enough, working from home became more popular toward the end of the decade.

Consumerism thrived during this period. Fads like Beanie Babies, Furbies, and Tickle-Me Elmo dominated toy shelves. At the same time, audiobooks became the rage, and sales for online booksellers like Amazon — yes, Amazon got its start selling books online — soared. 

Perhaps most significantly, the 1990s ushered in the “experience economy.” As economic prosperity rose, customers placed a higher value on experiences over possessions. This shift fueled the growth of travel, entertainment, and leisure industries, shaping customer spending habits for years to come.

How the Evolution of the Customer in the 90s Impacted Multifamily

The 1990s marked a significant shift in the multifamily housing industry, driven primarily by the evolving needs and preferences of the modern customer. As affluent individuals and families increasingly opted for apartment living over home ownership, property managers had to adapt to meet changing resident demands and preferences.

These “lifestyle renters” sought upscale amenities and convenient locations. New developments responded by offering features such as 9-foot ceilings, garages, high-end appliances, business centers, and in-home offices. All of these features quickly became expected in new construction.

To foster a sense of community, resort-style pools, organized social activities, and elaborate athletic facilities became commonplace. Additionally, larger apartment layouts, including two- and three-bedroom units, were introduced to accommodate the renter preferences of growing families and individuals seeking more space.

The 1990s also witnessed the rise of Real Estate Investment Trusts (REITs), which surpassed pension funds as the largest institutional owners of real estate by the decade’s end. This trend solidified the multifamily housing industry’s position as a lucrative investment sector.

Customer Service Takes Center Stage

The 1990s marked a pivotal era in the evolution of customer service, with profound implications for the multifamily industry. As companies began to recognize the value of customer loyalty, CRM (Customer Relationship Management) practices underwent a significant transformation.

One notable development was the emergence of loyalty programs and incentives. Companies offered perks, discounts, or exclusive offers in exchange for customer information. The familiar phrase, “Can I get your email address so we can send you coupons?” became commonplace. This shift reflected a growing understanding of the importance of building lasting customer relationships.

Moreover, customer service was no longer viewed as a static function but rather as an evolving skill that required continuous improvement. Companies invested in training and development programs to equip their customer service teams with the knowledge and tools needed to provide exceptional experiences. This emphasis on customer service excellence helped to differentiate businesses in a competitive marketplace.

In the multifamily industry, property managers began recognizing the need to go beyond basic maintenance and rent collection. By providing exceptional customer service, they could cultivate resident satisfaction, foster loyalty, and improve property performance. This included initiatives such as personalized communication, prompt maintenance responses, and community-building activities.

How Grace Hill Helps You Meet Evolving Customer Expectations

The evolution of customer service in the ‘90s laid the groundwork for the customer-centric approach that has become essential in today’s business landscape. Prioritizing resident satisfaction remains a critical piece of the multifamily puzzle, but you can’t keep doing what you’ve always done. Customers have evolved, and so must your business.  

Then — but more importantly, now — Grace Hill has a suite of industry-specific solutions that help multifamily managers and owners grow their competitive edge.

The struggle might be real, but it doesn’t have to be one you face alone. Our business is your business, and we employ multifamily experts to help our clients every step of the way. Why? Because at the end of the day, we’re more than a provider of technology solutions; we’re your partner in success.

Grace Hill’s marketing content team aims to create informative resources that help multifamily and commercial industry professionals elevate their performance. From blog posts and ebooks to infographics, checklists and webinars, the Grace Hill team has a singular focus: creating meaningful and engaging content that resonates with real estate professionals across the industry.  However, what makes Grace Hill so unique is the range of collective experience and collaborative spirit of its marketing content team. A group of talented writers with expertise in the real estate industry, overall management effectiveness, marketing strategy, and operational efficiency, the team provides new ideas to take performance to the next level. As a thought leader, Grace Hill's content team constantly pushes the envelope, experimenting with new resources and tools to keep industry professionals ahead of the curve.  Whether you're a seasoned pro or just starting out in the real estate industry, the content team at Grace Hill is creating resources to help you succeed. Learn more about Grace Hill on LinkedIn.

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