Soaring inflation and economic distress have consumers looking for better deals, according to RetailDive.
And as a result, “brands and retailers are focused on finding a message that promotes value without sacrificing sales,” argues Jessica Deyo, Editor.
The article cites back-to-school shopping as a prime example of concerned consumers looking for good deals.
Deloitte parent polling shows spending could increase 8 percent over last year, resulting in $661 per child, compared to $612 last year, and they noted that 77 percent of consumers say they will switch brands if prices become too high or if items become unavailable.
Similarly, the Wall Street Journal noted that inflation and supply chain shortages have caused food shoppers try new grocery products that they wouldn’t typically purchase.
Put simply, U.S. shoppers are buying what they can find—and afford.
According to AdWeek, the longer consumers are faced with increasing prices, the more likely they will put their brand loyalty to the side and opt for more economical alternatives.
Holding onto that customer loyalty should be every marketer’s top priority. But how, you ask?
Forrester says emotionally engaging customers is key.
While brands like Walmart, Amazon and Target focused on low prices and extended sales, other popular retailers like L.L. Bean focused on value.
In their back-to-school campaign, “Dear L.L. Bean,” pushes for an emotional connection, retrieving a letter written in 2007 to the brand by a now 23-year old consumer inquiring about how to destroy the brand’s popular Book Pack bag so that her parents would buy her a new one.
The 30-second commercial (below) uses the letter as narration as it recreates the event, with the message that no matter what, the bag can’t be destroyed.
“Building emotional connections with customers must be a critical component of your loyalty strategy. Forrester’s data shows that when consumers feel appreciated by a brand, 76% of them say they’ll keep doing business with the brand.
Show your appreciation for your customers through these challenging times with personalized messages and offers that reflect your commitment to your customers’ well-being.”
Sources:
https://www.retaildive.com/news/marketers-challenged-back-to-school-inflation-spending/629363/
https://www.k12dive.com/news/inflation-concerns-not-tampering-back-to-school-shopping-plans/628498/
https://www.llbean.com/?&qs=3085166&gclid=CjwKCAjw0dKXBhBPEiwA2bmObS2lC9sP9cNttDLmH2YM6Mu_GT4bsYoBou5WN3zGMTyJ83dOSAdNQRoCkfIQAvD_BwE&gclsrc=aw.ds
https://www.forrester.com/blogs/loyalty-is-a-lifeline-durin
