PORTLAND, Ore.--(BUSINESS WIRE)--SheerID, the global leader in identity marketing, today announced the findings of a survey designed to understand how the current economy is impacting consumer’s spending habits. The survey also sought to understand how shoppers felt about the economic downturn, how their purchasing behavior has changed, and what brands can do to engage, acquire, and retain them. This new data comes from a survey of more than 3,500 consumers in the United Kingdom (UK), Germany, and France that was conducted by market research software provider, Centiment in May of 2023.
The psychological and financial impact of economic uncertainty
The survey found that more than 80% of consumers in the UK, France, and Germany expect the current economic downturn to last more than 12 months. And in response to higher prices, higher interest rates, and their bleak outlook on the financial future, more than 90% of shoppers are reducing or changing their spending habits. Specifically, they are spending less (54%), eating out less (49%), purchasing fewer non-essential items (51%), and shopping with less expensive brands (44%).
The majority of consumers also said they were spending less in more than half of the categories they were asked about - spending less on software (55%), travel (53%), furniture (58%), apparel, footwear, and accessories (54%), gaming (58%), electronics (56%), take-out/food delivery (64%), and craft/home improvement supplies (58%).
What consumers want from retailers
Survey respondents revealed that they are inspired to purchase from retailers who create an emotional connection with them while also providing price relief.
When asked what would motivate them to try a new brand, 63% indicated “an exclusive discount for my community” is the preferred option. This was by far the most popular tactic, beating out a general discount (53%), better customer service (36%), access to buy-now-pay-later financing (24%), the opportunity to buy online and pickup in-store (26%) and even personalized offers based on interests collected from their website activity (19%).
Needs of consumers vary by affinity group
All consumers like discounts, but the survey revealed that consumers who belong to communities they strongly identify with found exclusive offers for their group more compelling - 89% of students, 81% of healthcare workers, and 73% of teachers said receiving a special discount for their communities would motivate them to try a new brand.
Brand generosity inspires emotional engagement and customer acquisition
More than 60% of all the consumer communities surveyed said they feel more emotionally connected to brands that give them an exclusive offer.
Consumers are loyal to brands that reward them for the groups they belong to
Survey results indicate that exclusive offers plant the seed for tremendous brand loyalty. More than 70% of consumer communities - including 79% of teachers, 76% of healthcare workers, and 75% of students - said they would likely join a brand’s loyalty program to receive an exclusive offer.
That seed of loyalty grows into a deep commitment to the brand. Seven in ten consumers belonging to identity-based communities said they are more loyal to brands that give them an exclusive offer. And exclusive offers turn consumer communities into brand advocates at an even higher rate. More than 9 in 10 said they would share an exclusive offer with others who were eligible for it.
“There’s no question that the down economy has stoked consumer pessimism and chilled spending, but these findings give brands a clear path to engage shoppers,” stated Jake Weatherly, CEO of SheerID. “Providing consumers with an exclusive offer based on the group status that they are proud of is a tried and true strategy for meeting both their emotional and financial needs. And when brands do that, they attract and retain loyal customers in good times and bad.”
Access the full report here:
SheerID engaged the market research software provider Centiment to survey 3,500 individuals, including students, teachers, healthcare practitioners, and the general population. Centiment provided the pool of qualified panelists to answer the survey. Panelists sign-up to provide their feedback in exchange for a monetary reward. As part of the panelist onboarding process, they are run through a series of security checks prior to reporting profile data that the company uses to invite them to be qualified.
SheerID is the global leader in identity verification. With SheerID, brands identify and acquire customers from highly valued consumer communities — such as the military, students, teachers, first responders, and more — with personalized offers, gated by instant verification from the largest set of authoritative data worldwide. SheerID verifies over 2.5 billion people via more than 20,000 authoritative data sources; provides global insights from hundreds of the world’s leading brands, and never shares or sells customer data. As a result, the world’s biggest brands — including Amazon, Home Depot, Spotify, and T-Mobile — rely on SheerID as their identity marketing partner.
Founded in 2011, SheerID is backed by Fortson VC, Brighton Park Capital, Centana Growth Partners, Voyager Capital, and CVC Growth Partners. SheerID is ISO Certified and is a member of the MACH Alliance, the group of independent technology companies dedicated to advocating for open, best-of-breed technology ecosystems. In 2023, SheerID ranked among the highest-scoring businesses on Inc. Magazine’s Annual List of Best Workplaces. For more information, please visit SheerID or follow us on Twitter, LinkedIn, Facebook, and TikTok.