This blog was written by Ben Dixon, CEO at Fonto - a specialist data agency with a unique consumer-driven data ecosystem, helping businesses make better decisions. View their StudioSpace profile here.
In the last couple of years, the cost of living has become an increasingly pressing issue for consumers worldwide. As the prices of essential goods and services continue to rise, consumers are forced to adapt their spending patterns. This shift has significant implications for marketers, who must stay attuned to changing consumer behaviours to remain competitive in the market. In this article, we will explore the impact of the cost of living crisis on consumer spending patterns and discuss how marketers can stay ahead in this challenging landscape.
The Cost of Living Crisis – challenges for marketers
The cost of living crisis is a complex issue driven by a myriad of factors including inflation, housing costs, healthcare expenses, and more. As these costs surge, consumers are left with less disposable income, forcing them to reassess their spending habits.
Let’s take a closer look at the key trends emerging from this crisis:
Cutbacks on Non-Essential Spending: Consumers are tightening their belts and reducing expenditures on non-essential items such as dining out, entertainment, and luxury goods. This trend directly affects industries that rely on discretionary spending, making it crucial for marketers to understand these shifts.
Focus on Essential Goods: Spending on necessities like groceries, utilities, and healthcare is on the rise. Consumers are prioritizing these essentials, creating opportunities for businesses in these sectors.
Digital Shopping: The rise of e-commerce has accelerated as consumers search for ways to save time and money. Marketers need to adapt their strategies to the online marketplace and cater to the changing expectations of consumers.
Brand Loyalty and Value: Consumers are becoming more discerning and value conscious. They are increasingly loyal to brands that offer quality products at reasonable prices, making it imperative for marketers to emphasize value propositions.
Financial Stress: The cost-of-living crisis has caused financial stress among many consumers. Marketers should be sensitive to this and tailor their messaging accordingly.
The Role of Data in Adapting to Change
In such a dynamic environment, staying ahead of the curve is essential for marketers. The key to success lies in data – specifically, data that provides insights into shifting consumer behaviours and preferences.
Fonto – who collect and create insights from daily transaction data is a game-changer for marketers. This completely unique platform allows for the near-real-time measurement of shifts in behaviour, and then the ability to identify and intercept groups of consumers for research to better understand the “why”.
Some recent examples of the types of insights available to marketers include:
Understanding shifting consumer behaviours and preferences is paramount to crafting successful marketing strategies. Now, more than ever, is the time to embrace the power of fast cost effective consumer data insights to transform your marketing.