The Google Global Market Insights team just released the latest consumer behavior insights after analyzing billions of recent search queries. These insights are intended to help us act in an environment of economic uncertainty – for Rinck, our clients, and their consumers.
I’ve condensed the learnings down and developed some initial ideas for how we can address this changing landscape.
While spending is slowing down with the current reality of inflation, and looming threat of even greater costs in the future, that doesn’t mean consumers have completely stopped spending. Spending priorities have shifted towards VALUE and AFFORDABILITY. And when consumers do decide to purchase things, they are looking for QUALITY (most especially for major expenditures).
The good news: Consumers aren’t fully ready to give up on small luxuries just yet!
However, they are looking for savings and deals wherever and whenever possible. Keyword strings with the following inclusions have grown significantly over the last 3-5 months:
- go on sale or usage of sale
- free
- low or no-cost adventures/outings
- budget
Among travel, searches for hostels, shorter trips (i.e., day trips) and last-minute deals (“cheap last-minute flights”) have grown. And for real estate, searches for tiny homes or cheap land are on the rise. Affordable housing and rental options have also grown 60% YOY.
All of this demonstrates creative ways consumers are trying to get around the cost changes in the market.
Dealing with rising costs is the current reality for more people and something we will continue managing for the foreseeable future. What can marketers do in the face of rising costs and slower sales? Use these tips to take action to address inflation-triggered consumer behavioral shifts and keep your brand driving revenue.
So, what can we do to better market ourselves and be a part of the consideration for consumers who are wary of spending? Here are just a few initial ideas on how to respond to this behavioral change.
- Push these consumer priorities forward in messaging and content. Be aware of this growing consumer mindset and address how you as a brand understand it.
- Define value of product or service and how that can fit within a consumer’s budget. How does their dollar work harder by selecting your brand?
- Position product and service benefits through the lens of value, affordability, and quality.
- Partner targeting opportunities (like keywords or HHI) with these key messages and benefits.
- Focus on retaining current customers as this can be the best source for consistent income as they are already aware of your product/service benefits.
- Bolster upsell and cross-sell promotions to increase repeat purchase and increase CLtV.
Dealing with rising costs is the current reality for more people and something we will continue managing for the foreseeable future. What can marketers do in the face of rising costs and slower sales? Use these tips to take action to address inflation-triggered consumer behavioral shifts and keep your brand driving revenue.
