VIEWPOINT
are changing. As well as what and how people are buying, where they are buying is an equally significant consideration.
A look at new Springboard data reveals footfall in Northern retail zones is significantly lower than in London, so we might also assume these trends will apply to digital commerce too as inflation bites. In which case, marketing teams will need to weigh up regional targeting to align to demand, while ensuring overall visibility for the longer term.
GET THE BALANCE RIGHT Online retailer Ocado has reported that the price of its average customer basket has fallen by six per cent, with its chief executive saying that consumers are either switching to value-based brands or buying smaller quantities.
Clearly then, as even loyal customers for the upscale retailers make changes to their shopping habits, there’s pressure to (literally) take stock and invest in marketing their more affordable ranges.
While shoppers are looking for bargains, it doesn’t mean they’re falling completely out of love with higher-end products. At least within reason. Te Lipstick Index, a theory that consumers invest in affordable luxuries to boost their moods when an economy nosedives, should give brand marketers
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hope that small-ticket luxury goods - such as grooming and self-care products - are still categories that can do well.
Brands can’t assume the strategies they had in place at the beginning of the year are applicable now. You may need to reconsider which product lines to focus on as customer behaviours change, for instance, but using the digital commerce tools at your disposal can make this an informed choice.
Businesses that can successfully balance essential ranges to bring shoppers in with affordable treats are best positioned to weather the coming storm, and could even see new customers come on board.
THE CUSTOMER IS STILL KING Speedy deliveries, frictionless transactions, greater personalisation, and digital communication with experts will remain fundamental to driving a purchase and customer retention - this remains true even when shoppers are feeling the pinch.
Tose that understand audience needs, balance affordable essentials and ‘feel-good’ moments, and maintain consistently high customer experience can maintain their market position - even see growth. Tat’s even in the face of increased competition from the discounters, as well as the current and coming economic turmoil.
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