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Relevance: CMOs from different companies are taking different approaches to appeal to customers during these tough economic times. Many of these CMOs are increasing the availability of products and services, offering special deals/discounts, and increasing loyalty-driven rewards and benefits. Customers seem to respond positively to these tactics but believe that high-level executives should not be getting pay raises to maintain prices. The term 'Greedflation' likely strikes a chord among U.S. consumers, as it refers to companies using inflation as an excuse to raise prices to drive profits significantly. It should also be noted that the COVID-19 pandemic induced fear, anxiety, and uncertainty in many members of the population, and this has translated to fears around the economy and cost of living, thus further affecting consumer behaviors and attitudes. Brands that should care: All brands should be taking note of this massive shift in consumer attitudes and behaviors. Brands should respond to customers' needs during these challenging and uncertain times to maintain consumer trust. This is reflected in a Nov. 2022 survey by Opinium, which found that 78% of consumers surveyed said that marketing campaigns should be adapted to be sensitive to customers' changing priorities and needs due to the cost of living crisis. Nowadays, more U.S. consumers are looking for quality over quantity and have adjusted their priorities to avoid frivolous spending in favor of investing solely in the necessities. Brands that sell necessities like food, clothing, laundry products, body care, hygienic products, etc., are most at stake here. |
What the numbers say: PwC's Customer Loyalty Executive Survey 2023 reveals
that inflation is the most significant factor affecting consumer
loyalty in the U.S., with 49% of respondents stating so. Gartner's 2023
Cost-of-Living and Price Sentiment survey found
that 38% of respondents reported cutting their discretionary income (a
15% increase YoY) and that over 40% have opted for generic brands, store
brands, and cheaper products in at least one product category.