Data Analytics: The Economic Climate
It’s no secret that the 2022 U.S. Economy is experiencing turbulence; with inflation at a 30-yr high, shoppers are feeling the woes of current economic tribulations. Record high inflation, along with CPI rates rising as high as 8.3% in April 2022, is driving a major shift in consumer behavior.
Many consumers are seeking new ways to save money by making meaningful changes to their shopping habits. These shifts could result in savings now, and changes in brand loyalty down the line. The current economic environment has consumers feeling pessimistic about their future financial outlook:
● One-third of consumers, 33%, are not confident that inflation will return to normal in the next year, with over 33% of consumers feel very concerned about their ability to afford the resources they need for their families.
● 58% report feeling “very concerned” about inflation rates with another 20% believing that we’re not headed in the right direction.
Increased fears as to whether consumers will be able to afford groceries for their families or whether the current escalating price environment will see any reprieve, has consumer behavior shifting substantially.
Today’s shoppers are simply on the lookout for savings in the form of better deals, with 76% of consumers actively switching brands in hopes of cutting costs. Switching between brands is being done specifically with savings in mind, and these changes in behavior can be deadly to brands that have enjoyed traditionally strong consumer loyalty. However, there are still opportunities for brands to retain their hard-earned customers; 61% of consumers agree they would remain loyal to their preferred brand if offered discounts in the form of coupons or rewards. The one caveat is that many buyers want to see consistent discounting as opposed to flashy week-long sales or short-term grabs at consumer loyalty.
As this economic uncertainty continues, maintaining customer loyalty will mean incentivizing consumers with discounts and alleviating some of the pressures of rising costs. Inmar’s advanced data technology has helped its network to maintain an increased purchase frequency—up nearly 3% compared to the previous year despite economic downturns. Inmar’s analytics tools act as a catalyst for brands to foster and even amplify new consumer loyalty. Analyzing shopper behavior with Inmar’s advanced data analytics enables the consumer to find value while ensuring bands stay relevant in today's evolving market.
Recommendations for Brands on How to React to Shopper Behavior by Utilizing Data Analytics Services:
Drive loyalty with digital incentives
Proprietary Inmar data shows that shoppers are feeling the weight of inflation through added costs, with 66% seeing an increase of at least $20 on their grocery bill. Because of this, consumers are actively making shopping decisions based on incentives. If a competing brand is offering a better deal or incentivizing with digital coupons before the shopper even enters the store, a loyalty switch is inevitable. In addition to looking for savings, shoppers are cutting out things like snacks, desserts, and even bread with meals. Providing digital offers and discounts on products will reduce the chance of them being eliminated from the consumer's basket altogether.
Inmar pro tip: the busiest consumer seasons of the year, namely back-to-school and fall, are of the most important times for incentivized digital campaigns. Brands will need to take advantage of these opportunities by understanding how to best approach shoppers with a strategic digital incentive strategy, to ensure they’re maximizing the savings delivered to shoppers.
Deliver maximum savings to specific shopper segments with advanced targeting
Inmar uses advanced targeting to create personalized offers that resonate with your customers. When targeting consumers, it’s crucial to understand which shoppers are loyal to your brand and which have lapsed or brand-switched recently. Leverage data to segment your shopper base and identify patterns in behavior. This will help you to create targeted offers that are more likely to convert, which will allow previously brand-loyal customers to feel like they are receiving value, while the brand gains attention from new shopper bases, as well. Inmar takes a more surgical, data-driven approach to your digital offers so that you can respond effectively to a turbulent market while making the most efficient use of your budget.
Communicate savings broadly with digital media
Stay ahead of competition in the current economic climate by offering deals and promotions that shoppers can’t resist. One way to do this is by increasing the reach of your offers and reinforcing the total savings opportunities that you provide so that more consumers are aware of them. Awareness is key, as not only are consumers switching brands, but 53% have also begun switching retailers. Prevent your loyalists from leaving by highlighting the savings you and your brands are offering through targeted digital media, reaching them before they even come to the store. There are many ways to communicate savings opportunities to shoppers, such as advertising, social media, and in-store signage. By taking advantage of these channels, you can ensure that more shoppers are aware of the savings available when they ultimately decide to choose your brand.