3 Current Trends Affecting Shopper Behavior
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No doubt, there is a lot going on in the world right now that has a direct effect on shopper behavior. While the restrictions related to the COVID pandemic have loosened, we are now faced with several other emerging factors that are affecting consumers, retailers, and consumer brands alike: inflation, supply chain shortages, employment challenges, sustainability and diversity initiatives, health and safety concerns, and more.
Retail brands need to understand the changes in shopper concerns and behaviors if they want to be successful going forward. However, identifying those changes and accommodating them can be a challenge. Our article covers what we believe to be three of the biggest changes in shopper behavior and how brand marketers can adapt to cater to those changes.
1. Reduced Spending
One of the biggest, and more obvious, trends is a reduction in consumer spending. As supply chain issues, inflation, and unemployment continue to make life more expensive, consumers must cut spending where they can. According to a recent TransUnion study, 64% of Americans are extremely or very concerned about inflation. Many working-class people simply do not have the money they need to maintain their lifestyles.
This is also one of the more challenging trends for retail businesses to address. Much like the recession of 2008-2009, shoppers are now more drawn to how they can save money and get more bang for their buck. Many shoppers are trying private label and off-brands for the first time to save money. Discount stores like Dollar General and Big Lots are gaining a new audience of shoppers looking to reduce their spending.
In-store marketing and point-of-purchase displays should promote affordable products and offers to persuade shoppers to make purchases: coupons, hard-to-pass sales events, limited-time offers, BOGOs, and more.
2. Buying Better
Another big trend is consumers focusing more on buying higher quality products that offer a good value. Many shoppers now prefer to buy reliable and well-made products from retailers and CPG brands that will last a long time vs. cheaper, more disposable products. The rationale is that these products are less wasteful and less likely to need repairs or to be replaced, which saves money in the long run.
According to Marketing Brainology, consumers’ buying decisions are 80% emotional and 20% logical. In-store marketing and merchandise displays that focus on shoppers’ emotions and address why they should consider spending more on these items will go a long way to influence purchase decisions.
3. Connecting With a Brand and Their Values
Arguably the most important trend gaining ground is the modern consumer’s desire to connect with a brand and its values. This also applies to the emotional aspect of consumer spending as mentioned above. Today’s consumers put much more weight on a business’s values, actions, and attitudes toward safety and social issues. They want to connect with and spend their money at a company that shares their values as part of the customer experience.
It is essential for retail and consumer brands to understand what matters to their target audience, and not only align themselves with this, but give consumers the opportunity to learn about their efforts via retail marketing in-store and online.
Patagonia is a great example of a business understanding its core customers. Patagonia predominantly sells outdoor gear and clothing, focusing on hikers, backpackers, etc. Because of this, they know that many of their customers value the environment, sustainability, and conservation.
Patagonia actively supports those causes in a variety of ways such as donating money, being outspoken about those issues, working with grassroots activists and organizations, and more. In return, their customers appreciate the consistent effort and commitment to its values and are loyal to the brand.
It is important that any efforts are honest and transparent. Modern consumers can tell the difference between a company pandering or greenwashing and being sincere.
Conclusion
Today’s retail climate is causing a shift in shopping behavior. Because of factors such as inflation, supply chain shortages, sustainability concerns, and more, consumers are focused on reducing spending, buying better, and connecting with brands that share similar values. While it may seem challenging to address these changes, brands can accommodate today’s consumers by shifting their retail and in-store marketing towards better deals, higher quality products, and issues/values that consumers care about post-pandemic and beyond.
Orora Visual supports retail and consumer brands with visual communication solutions to seamlessly execute your marketing goals at the store level: Creative Services | POP Print | Displays | Retail Environments | Specialty Packaging | Fulfillment | and Technology to manage your complex in-store promotions. Contact us to learn more!