Reacting to Consumer Behavior During Times of Economic Uncertainty
If we’ve learned anything in the past few years, it’s that there will always be unpredictable external forces.
As signs of economic conditions continue to fluctuate, it’s evident that consumer behavior is changing as a result. In fact, according to a recent McKinsey U.S. Pulse Survey, the number one concern of respondents was rising prices and inflation. A Gartner survey also found that 41% of shoppers expect the economy to weaken in 2023.
So how can you prepare for these changes and take advantage of these shifts in behavior during great economic uncertainty?
As a brand, you must understand and predict how consumer behavior will shift during these periods and how you can stay ahead of any changes by adjusting your marketing strategies.
Shopping at value stores
This past year, consumers have turned towards discount and warehouse stores to get more value from their spending. Snipp Interactive Inc. found that 40% of consumers shopped more at discount stores in November 2022 as compared to the previous year. Sam’s Club reported in its 2022 third quarter earnings that membership income was up 8% with membership at an all-time high.
This trend is likely to persist in 2023 as inflation remains top of mind. To cater to value shoppers, you can track shoppers’ data at these discount and warehouse stores to measure real-time changes in spending habits and preferences. What essentials are consumers purchasing? On what are they willing to splurge? And which brands or categories are coming out on top?
It’s important to note that measuring this type of data is helpful regardless of the economic environment. This information is useful to know whether consumers are looking at circulars for the best deals during belt-tightening times or if they are searching for cool recipes because they have disposable income.
Check out the rest of Molly McFarland's article at Chain Store Age!