HOW WILL CONSUMERS SPEND IN 2023? (SHIFTS IN CONSUMER SPENDING)
As the world continues to recover from the economic impacts caused from the COVID-19 pandemic, consumers have shifted their spending habits. Despite being on the cusp of a recession, studies show that consumers are willing to spend now more than ever. However, these once enthusiastic customers are now more cautious of where their money goes.
Unlike previous years, 2023 is going to be an uncertain time for consumers. As a small business it is important to create marketing strategies that will make customers trust you enough to invest in your company.
The key for businesses, especially small businesses, is to stay ahead of the curve by understanding consumer trends. Here are some ways that consumers will likely spend their money in the coming year and how it has shifted with the economic uncertainty.
CONSCIOUS CONSUMPTION AND SUSTAINABILITY
One trend that has gained popularity in recent years is sustainability and conscious consumption. As consumers are being made aware of the harmful effects and the carbon footprint caused by dangerous products, there has been an increase of desire for eco-friendly products. In fact, one third of consumers stated that they would pay a premium price for sustainable products.
As the demand for sustainable products has increased drastically with the use of social media, it has become the expectation for most consumers. Now is the time to invest in sustainable products, according to Shikha Jain, author of the Global Consumer. She states, “Companies must invest, innovate and transform their business models now to protect their long-term profitability and viability. The rise of sustainable disruptors and increasing consumer awareness will all serve to drive the expectation for affordable sustainable alternatives.”
EXPERIENCES VALUED OVER MATERIAL POSSESSIONS
After consumers were forced to stay inside during the pandemic, people are eager to get out and explore the world that once felt impossible to see. As the demand for travel, dining, and live outings has increased dramatically in the last year, the trend is set to continue in 2023. By using social media, you can create experiences that are just as valuable as interpersonal experiences.
In addition, with consumers becoming more mindful of their investments, there has been an increase in people investing in experiences that help them achieve their goals. Whatever your company may provide, you can help these consumers achieve those goals by marketing your product in a more experiential way, like incorporating the use of video.
Consumers want products that are tailored to their needs and preferences. As a small business, you can take advantage of this trend by advertising your product and having a consistent digital brand. Your chances of engaging the consumer will increase. Read more about “Your Digital Brand | Why is it Important?” to learn more about the importance of digital brand consistency.
Social media makes it easier than ever to learn customer preferences. By using polls, surveys, or Q&As, small businesses can identify how to help their customer's needs and wants. With less than 40% of marketers using consumer research to drive decisions, now is the time to take advantage of that gap and use consumer insights to further solidify your clientele.
With trends that are always evolving, it is important for small businesses to keep up with consumer trends in order to create effective marketing strategies. Small businesses that align their product or services with these upcoming trends have a chance of increasing their revenue by attracting new customers. Unsure of how to stay ahead of the curve? Ezer Digital Consulting can help. Contact us today for a free consultation.