How can brands provide value for customers this Christmas?
Article by Claire Latham, Planner at Eleven Miles
As the days are getting shorter and the weather's getting colder, it's safe to say the festive season is almost upon us. The streets are lighting up with decorations, store displays are becoming more festive, and the eagerly anticipated Christmas adverts are starting to roll out. However, this Christmas we will be persevering through a cost of living crisis and the majority of people in the UK are feeling worried about its impact. Understanding the widespread impact of the crisis, it's worth questioning if there's a role for brands to play in supporting customers, and how they can provide value during this festive season.
The cost of living crisis is having a large impact on people today and this in turn is affecting how people are choosing to spend their money, with rising prices becoming the number one concern amongst consumers in the UK. As a result, many are shopping around to find the best value for products, switching brands, and trying private labels. As we move further into winter, this is also expected to impact Christmas spending, with nearly 6 in 10 Britons planning to spend less than usual this Christmas. Understanding how consumer spending behaviour is changing will be valuable for brands moving forward, but another consideration is how do customers actively want brands to support them through the cost of living crisis?
According to research conducted with more than 2,000 adults by Reach Solutions, 87% of respondents said they expected to hear from brands just as much, or more, during economic instability. 77% expected to see prices increase over the next three to six months and 58% agreed that brands should help them through it. In addition, a survey of 2,000 adults commissioned by the IPA and carried out by Opinium earlier this year revealed insights into the top ways consumers want to be supported by brands. The top reason being keeping prices fair (57%), followed by a price freeze on value-range products or services (36%), offer more value for money promotions (33%) and reward existing customers' loyalty (30%). This shows that many customers consider brands as having a key role in helping them through tough economic times.
Overall the cost of living crisis is having a significant impact on consumers today and with Christmas normally being an expensive time of year, we can understand how this may be front of mind for many this festive season. However, there is an opportunity for brands to consider how they can provide value and support for customers. This can range from offering loyalty programmes which provide exclusive discounts for products whilst rewarding loyalty. This shifts the loyalty programme away from being an exclusive points rewarding system to one which provides a way of reducing the customer's overall spend whilst also building points through loyalty. Another example of providing value is by sharing practical information to help customers, such as the likes of tips and 'how to's.
However, it is important to note that this is a complex topic, so what might be suitable for one brand might not be suitable for another. Ultimately, the best way for brands to determine how they can add value will be through a detailed understanding of their customer base. Understanding the challenges and needs of customers today will provide brands with insight into how they can offer value in ways which are meaningful whilst also remaining authentic to the brand. This will also enable brands to communicate and market to their customers effectively, whilst creating value for customers throughout the festive season and beyond.
If you would like to gain a deeper understanding of your market, or help with customer comms, drop us a message and the team can take the reigns from there.