17 Apr Trend: Cost of Living & New consumer behaviors
Cost of Living: New consumer behaviors
With more than half of consumers spending less on non-essentials alongside rising inflation and increasing financial anxiety, we look at how consumer behaviours are adapting to the cost-of-living crisis. Even those at higher income levels will be feeling the pinch.
Consumer behaviour:
With financial anxiety, consumers are looking for support and understanding.
Brand strategy:
Brands have an opportunity here to show empathy to consumers, by making it easier for existing customers to stay loyal. A few examples:
- Double down on customer service. Consumers are looking for support and understanding these days; ensure your team is fully prepared and willing to go the extra mile for all customers.
- Freeze prices or, if prices really need to rise, explain why and be transparent on how pricing is established.
- Save on (for example) paper cards and vouchers. It’s a way to reduce waste and in effect, avoid raising prices; an interesting way to grow brand awareness and make a positive impact.
Communication value:
Shifting brand messaging to focus on value is a surefire way to get through to consumers. Highlight how your product/service saves them money in the long run.
House of Treats member
Nina (31), mother of an 8-month-old son, tells us why she’s a fan of the HEMA ‘meegroei rompers’ (growth rompers).
“They’re practical, financially favourable and more sustainable as they last longer.”
What’s so good about this strategy?
“They filmed a clip about ‘meegroei rompers’, explaining that these rompers will last twice as long. Then their Head of Finance makes a fun appearance, saying: ‘But we will then sell fewer rompers and this will bring down our revenue”. And the voice- over acknowledges this and continues that they went on with the plan anyway. Which tells us that HEMA made a choice for the better of the planet, giving a strong and positive message.”
Read here Nina’s member story.
How can companies grow and make an impact? Our community consist of early-adopters. They present themselves as rather free-spirited, ambitious, and independent people. Brands can help them to confirm and convey their identity. And vice versa. How we do this? first we start with quantitative research to obtain facts & numbers. After quantitative insights, we gather the ‘stories behind the facts’. These give a deeper psychological understanding of customers’ motivation and barriers that influence the respondent’s experience of trends.
**This article is part of our trend report 2022 ‘5 trending topics straight from our early adaptor community of Millenials & Gen Z’ers’
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