Knowing When to Adjust Your Marketing Message to Your Customers
In the past couple of years, consumers have experienced changes in inflation, unemployment, gas and food prices, and interest rates, all of which send mixed messages about economic health (and personal financial security). During these times of uncertainty, people look to brands to provide value and understanding. Here are some tips for adjusting your marketing message and increasing loyalty when times are challenging.
Understand your customers.
Customers are receiving mixed and confusing economic messages which has resulted in them watching their spending and finding ways to save money. It is more important than ever to understand who your customers are and what is important to them. Private label products sales grew 11.3% in 2022. This presents an opportunity for retailers to grow their revenues by making in-house brands more premium and unique while also serving as a lower priced option for consumers.
In March at the J.P. Morgan 9th Annual Retail Round-Up Conference, Jeff Gennette, CEO of Macy’s talked about their private brand strategy and the important role it would play in the future of Macy’s. The entire Macy’s Retail-owned Brand portfolio (24 brands) is being evaluated to optimize and redefine the brands for the future. All the brands will be assessed and potentially refreshed, redefined, or eliminated. Their decisions would be grounded in market research and ultimately customer centric.
“Consumers are more mindful of how and where they’re spending money and are more mindful of substitutions.” — Suzy Davidkhanian Principal Analyst, Insider Intelligence
Another retail research example is Old Navy who is adding pockets to more of its dresses to get customers excited to shop at its stores. According to the retailer, this handy insight came from a survey the company conducted in February with 500 women aged 18 and older. Women indicated they prefer pockets because they are convenient for holding small items, which allows them to forgo carrying a handbag at times. Women also indicated that pockets are a safe place to put their hands in awkward social situations.
Navigate the New Mall Landscape
Malls still play a key role in the wider retail sales landscape and its relevance. Consumer foot traffic at shopping centers is on the rise as consumers look for ways to eliminate shipping charges for online orders and fees to return items that may not fit or work after they arrive in the mail. By understanding current consumer needs and trends, retailers who look for ways to meet shifting consumer demands with tactics such as coupons or cash back for spending a certain dollar amount can help customers find value in their brand and also build brand loyalty. Consumers need brick-and-mortar stores as a touchpoint for a number of reasons such as trying on products.
“Returns are a really big issue with retailers,” said Ethan Chernofsky, senior vice president of marketing at Placer.ai, on a recent webinar. Chernofsky explained that in-store shopping allowed for try-ons, thus eliminating returns.
Lean toward loyalty and memberships.
Building brand loyalty is a way to keep consumers coming back. However, retailers must put value and ease of use at the forefront to retain existing customers and boost purchase frequency. Discounts are the most sought-after loyalty program benefit among US consumers by a wide margin. Nearly four-fifths of respondents in Merkle’s 2022 Loyalty Barometer Report said they like to receive discounts, an increase of 9 percentage points from the previous year.
Another excellent way to drive loyalty is with a free membership program (emphasis on “free”). Consumers are looking to cut expenses , and the overabundance of paid subscription plans in the marketplace is becoming a popular way to do this. Netflix is one example where the streaming giant is looking to grow revenues by charging for password sharing. They are asking people to begin paying for something that used to be free. This may not necessarily create value for consumers, enhance ease of use or drive loyalty.
Determine your value proposition.
Being sensitive to consumer preferences is your ticket to the game. Topics like sustainability are a go with younger generations especially, who lead this charge. Climate change and protecting the environment ranked as the top personal concerns among Gen Z adults worldwide in a February 2022 study by Deloitte, ahead of both unemployment and disease prevention even during the pandemic.
Consumers increasingly factor sustainability into their online and offline purchasing decisions. They’re paying attention to the sellers’ ethical practices, whether products or their components are sustainably sourced, and if they have eco-friendly product packaging (size, material, and recyclability). Gen Z purchasers seem eager to hold the brands they buy from accountable—which is leading businesses to take sustainability more seriously, and is shifting the mindset of companies from getting bonus points to becoming table stakes.
Be there for your consumers.
Consumers want companies to listen to them, and demonstrate the brand is taking their personal situation into consideration. They want to be heard and they want to see changes that will actually help them during times of economic difficulty. Being transparent is also important along with clear communications. Now is not the time to cut down on quality or quantity. Showing empathy toward your consumers and being authentic are key points that brands should focus on in their marketing messages.
Do you know your customers and their specific needs? Market Research is the best place to start your customer centric journey!
