By Jonathan Baker The signs of the current times are in action. People want to save money. This is obviously due to the implementation of tariffs as well as the overall economy. Recent studies reveal how consumers changing their saving and spending habits. As far as spending goes, their focus is, unsurprisingly, on necessities over non-essentials. Marketers and advertisers must watch and adjust accordingly. Some Consumers are Cutting Back—or Beyond The downturn in consumer sentiment regarding the economy was declared earlier this year. Citing a recent study conducted by market research constituency Alter Agents, Media Post summed up how this downturn is playing out now. Approximately 1,000 people who participated in this study answered how they planned to reduce—or postpone—their spending of disposable income. (Indeed, one may wonder if the concept of “disposable income” will become obsolete.) The breakdown of how and where consumers will save is as follows (in descending order): 45 percent are cutting back on overall spending on non-essentials. 36 percent will not dine out as often as they did pre-tariffs. 25 percent intend to delay making particularly costly purchases, such as cars, electronics, or new homes. 24 percent are going so far as to conserve how much the use their homes’ utilities. 20 percent plan to either postpone or even cancel their vacation plans. If there is any silver lining in the cloudy percentages above, it is that none of them fully equal or surpass half of all consumers. (On a related point, recent reports noted that two-thirds of consumers felt relatively confident as far as purchasing necessities was concerned.) So, how can marketers and advertisers change the catchword in the above title from “SAVE” to “SPEND”? Another Catchword: Relationships While nothing is guaranteed—particularly in the current economy—marketers and advertisers should take steps to maintain their current relationships with their respective customer bases. And the emphasis is on relationships. Brand and Customer Relationships in Action Rebecca Brooks, CEO of Alter Agents, recommends building on already proven strategies and selling points that appeal to customers. Brands that have had past success via loyalty programs, for example, should consider adding extra perks to future campaigns. In today’s times, brands that have provided exceptional value for their goods and services should capitalize on this. Brands may achieve this by reaching out to satisfied customers and asking them to post positive feedback on Google Reviews, as well as any social media sites they are featured on. It all comes back to the give-and-take relationships between brands and their customers. Takeaway Summing up the current economic challenges, Ms. Brooks stated: “Brands that want to thrive in this environment must be proactive, supportive, and strategic in how they connect with their customers.” The EGC Group can help your brand or business navigate this unpredictable journey. Whether you need to maintain your current strategy or pivot to remain valuable to your customers so that they will save their money to spend on what you have to offer, we can help. Find out how by contacting us.
