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STUDY: Consumers Growing Increasingly Cautious and Price Sensitive

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STUDY: Consumers Growing Increasingly Cautious and Price Sensitive

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A newly released study conducted by Vericast indicates consumers are leaving brands that aren’t perceived to offer value.

The 2021 Deals & Coupons Report conducted by the marketing solutions company reveals that consumers are increasingly cautious and price sensitive, often trading brand loyalty for the best value.

The online survey of nearly 2,000 consumers conducted last July found that 60% of shoppers are seeking more coupons, discounts and deals to offset higher prices across shopping categories such as groceries, dining, and apparel. Nearly half of respondents (45%) said they’ve recently switched brands to save money, while more than half (53%) are shopping at multiple stores to find the best price.

Judging by the report (which can be accessed by filling out a form by clicking here), today’s consumers are also using more channels than ever to find value, and demand coupons via means like direct mail and online.

“Consumers want coupons and discounts but can’t always find them when and where they want to,” said Sarah O’Grady, vice president of brand marketing at Vericast. “Marketers must adapt with a broad and balanced omnichannel approach to satisfy price sensitive shoppers and re-establish brand loyalty.”

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NOTEWORTHY FINDINGS

The report included multiple eye-opening statistics pertaining to the food industry, including the following:

  • 76% of affluent customers (with household income $100K-plus) are highly influenced by discounts, coupons and deals when they shop for groceries
  • 77% of shoppers are noticing higher prices lately
  • 40% of shoppers feel more positive toward a brand or store that offers a coupon or discount
  • 64% report that coupons, discounts and deals allow them to discover new products or brands
  • 44% feel good about a coupon or discount that comes in the mail because it’s an exclusive offer not everyone receives

KEYS TO CONNECTING WITH TODAY’S CONSUMERS

According to Vericast, the best way for brands and retailers to connect with today’s value-hungry consumers is through the following methods:

  • Identify new behaviors: Higher prices are driving more consumers to proactively seek value and use more discounts in 2021. Marketers must take this into account and understand that a compelling offer may make the difference in a buying decision for a consumer with a tight budget. More than half (57%) say coupons, discounts or deals have a high or medium influence on their purchasing decisions.
  • Go where the people are: Consumers are looking for deals and coupons in-person, online and through traditional channels.
  • Make deals part of your loyalty strategy: Report results found that 40% of consumers feel more positively towards brands that offer discounts or coupons, and 39% are more likely to make a repeat purchase – which Vericast presents an opportunity for marketers to rapidly build loyalty.

“Moving into the holiday season, there is a sense of urgency and big opportunity for retailers to reconnect with shoppers and build loyalty by delivering value wherever they are,” said O’Grady.

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