How Is Financial Insecurity Impacting The Shopping Landscape?
Rebecca Brooks, Alter Agents’ Founder and CEO, recently wrote an article for Forbes in which she stresses the ways in which insecurity alters behavior.
Amid a global cost-of-living crisis – with inflation rates creeping up, widespread corporate layoffs and some studies showing that stress over financial matters is at its highest rate since 2008 – financial insecurity is fueling significant changes in shopper behavior right now, and boosting shopper promiscuity.
With even more shoppers making decisions in the moment and deviating from traditional paths to purchase, brand loyalty continues to decline rapidly, Rebecca warns.
Yet she notes: “When shoppers are looking for solutions, brands have a unique opportunity to meet new customers where they are now by offering them that solution.”
That said, purchase decision-making varies wildly according to category, and Rebecca stresses that a context in which ‘loyalty cannot be counted on’ requires a new set of considerations when it comes to pricing products and services.
“Uncertain financial times mean that you will likely lose existing customers as they seek more economical options, and possibly gain others whose shopping context is different,” she writes, adding: “You’ll have to look at the long-term effects of new pricing that goes past the squeeze of today while exploring other strategies to gain and retain customers.”
One way to do this to discover where you can connect most meaningfully with your audiences. For instance, where are shoppers in your category going for their information? And what opportunities do brands and retailers have to intersect with shoppers at the right time? The right market research approach can help you answer these questions.
While shopper promiscuity and the decline of brand loyalty have been on the rise for some time, she concludes, today’s financial insecurity is accelerating the process. This means that understanding your audience and pinpointing their needs and expectations is more important than ever.
How can we help you understand how to serve your audience today?
To read the full artice, visit: https://www.forbes.com/sites/forbesagencycouncil/2023/02/14/how-is-financial-insecurity-impacting-the-shopping-landscape/?sh=4c5a10564d24
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