In a survey of more than 4,000 consumers in the United States and the United Kingdom conducted by market research software provider Centiment in January of 2023 and sponsored by SheerID, an identity marketing firm, almost 70% of U.S. consumers and 76% of U.K. consumers expect the current economic downturn to last more than 12 months.
In the year ahead, as they respond to higher prices, higher interest rates and their outlook on the financial future, more than 90% of shoppers are reducing or changing shopping habits by spending less, cited by 50%, eating out less, by 48%, tightening their budgets, by 48, purchasing fewer non-essential items, by 45%, and shopping with less expensive brands, by 38%. Survey respondents said they were spending less in more than half of the categories they were asked about, including software, cited by 50%, travel, 51%, furniture, 52%, apparel, footwear and accessories, by 53%, gaming, by 53%, electronics, by 54%, take-out/food delivery, by 62%, and craft/home improvement supplies, by 72%.
The survey suggested that consumers are inspired to purchase from retailers who create an emotional connection directly or in terms of groups with which they identify while also providing price relief. When asked what would motivate them to try a new brand, 66% indicated an exclusive discount for a community they embrace, 55% a general discount, 37% better customer service, 26% access to buy-now-pay-later financing, and 19% personalized offers based on interests collected from their website activity.
The survey looked at communities in a broad sense and how consumers responded to their community memberships in their activities as consumers. As such, it found that exclusive offers can plant the seed for brand loyalty. So, 91% of teachers said they would likely join a brand’s loyalty program to receive an exclusive offer.
“There’s no question that the down economy has stoked consumer pessimism and chilled spending, but these findings give brands a clear path to engage shoppers,” said Jake Weatherly, CEO of SheerID, in announcing the survey results. “Providing consumers with an exclusive offer based on the group status that they are proud of is a tried and true strategy for meeting both their emotional and financial needs. And when brands do that they attract and retain loyal customers in good times and bad.”
