From rumblings of tech layoffs, hiring freezes, stock prices dropping, and interest rates soaring -signs of economic woes are beginning to spook consumers. With this at the top of shoppers’ minds, marketers need to start planning for new consumer behavior. Presenters across Commerce Week panels all touched upon tactics brands can pivot to during difficult economic times. Here are the key areas you should be focusing your marketing dollars on today to prepare for tomorrow.
Gen Z Shoppers
Research has found that Gen Z is the least affected by inflation. They continue to splurge in key areas and show no sign of slowing interests. When it does come to saving money, 65% of Gen Z say they will shop online to save. This behavior furthers marketers’ needs to obtain and satisfy Gen Z consumers for hard economic times.
To capture Gen Z’s affection, turn your spend away from search and into social commerce tactics. Google’s SVP of Search found that younger generations are more often using TikTok or Instagram for recommendations rather than Google. Undecided consumers love the immersive experience social commerce can provide through real time commenting and videos. These strategies can help foster an environment to build a cohort of brand affectionate consumers.
When wallets are tight, it’s better to have a few loyal customers than a large base that you can’t rely on for repeat purchases. That’s where community-based commerce comes into play. Brands need to be building and growing their loyal fan base now tin order to prepare for the coming financial year.
Hyper-focused social commerce campaigns are the best way to build a loyal fan base. Now is the time brands should be spending more on innovative shoppable media, social commerce initiatives, and shoppable livestreaming. These commerce methods foster a more intimate shopping experience for consumers. This is where you can convert an ad hoc purchaser into a brand enthusiast.
Added Value for Higher Prices
Instead of viewing price as a barrier to consumer conversion, think of your product’s value. Added value can be a key conversion tactic once you have already captured consumers in your funnel. Brands can get away with higher pricing if they are providing shoppers with more value. If brands focus their efforts and KPIs on adding value to customers' lives, their products become priceless.
This could be achieved through various tactics such as new product bundles, faster shipping times, improved product packaging, additional loyalty programming, more detailed product description pages, or promoting mission-driven messaging. Start testing and learning various added value tactics to see what your consumers respond to best. Additionally, look at changing KPIs to be driven more by how your commerce journey makes your consumer feel.
Difficult economic and marketplace challenges don’t have to take away from your commerce marketing. If you begin planning today and anticipate consumer behavior for the future, your online sales can continue growing with the right audience. Focusing on testing innovative marketing today, could be your saving grace in the impending market.
This article is part of the Adweek Commerce Week Trends Report 2022 – download the full report here.