Here’s How Raised Cost of Living is Impacting Consumer Behavior

The world is in the midst of a profound cost of living crisis, and there are many factors at play here most of which will take many years to reach their full conclusion. Businesses are struggling to keep their revenues up in this period of widespread global inflation, and it turns out that this crisis is also having a surprising impact on consumer behavior with all things having been considered and taken into account. Researchers at Twilio just put out a report that sheds some light on this trend.

With all of that having been said and now out of the way, it is important to note that customers still want efficient services no matter the cost. Data that was gleaned from around 8,700 participants across Europe revealed that 25% of consumers continue to desire efficiency above all else. In spite of the fact that this is the case, businesses can’t rely solely on speedy order completion because of the fact that this is the sort of thing that could potentially end up letting other factors fall by the wayside.

A similar number of customers, or 25% to be precise, stated that emotional connection to a brand was their main priority. 24% also preferred to by from brands that displayed some expertise in their niches and fields. Hence, speed, expertise and attitude are the three pillars that can hold brands up in these trying times. They can’t focus on one at the expense of others, since that might make it harder for them to hold on to customers than might have been the case otherwise.

One thing that this research highlights is the difficulties that customers face in trying to obtain information or answers to questions from brands. Tasks that involved knowledge were consistently difficult for brands, and that makes it harder for customers to find out where they can locate logistics partners among others. Only 13% of consumers who responded to this survey said that they were easily able to manage logistics after making a purchase.

Finding out about a brand’s position on inclusivity and diversity can also hold a lot of importance for customers, and only about 11.5% were able to find that information easily. They often have to turn to calling or messaging customer support representatives, and if brands try to make engaging posts that mention these details they might be able to save a lot of time and money by freeing up customer support for other more serious matters.

If there is one piece of advise that brands can get from this report, it is that they should focus more on engagement that is driven by emotions. This can allow brands to forge long lasting relationships with their customers. Consumers are looking for brands that can provide input and help them with sensitive topics, and if they manage to provide the desired information they would create a lot of brand loyalty among their customers.

39% of consumers stated that they bought from brands again after experiencing efficiency in service or product provision. That should therefore become a main point of focus for brands so that they can increase their sales and weather the inflationary period whilst staying above water.

Read next: Study estimates that digital foot traffic will surpass 450 billion sessions following upcoming holiday sales
Previous Post Next Post