One in every three British households will trim their household spending this year, according to KPMG, the global network of professional firms providing audit, tax and advisory services, and most people will likely cut the products they see as superfluous.
Why it matters
As inflation and the increased costs of living bite consumers at a time when brands are aiming for post-COVID growth, companies will need to rethink their product propositions, explains Jacob Lovewell, senior experience strategist at ad agency RAPP UK, writing for WARC.
Happily, there are things that brands can do to ensure that they can grow by getting people to put their hands in their pockets – even if those pockets aren’t as deep as they once were. And if brands are prepared to look at how they can flex their products, growth is a distinct reality.
Brands need to understand the individual needs of customers and talk to them in a way that treats them as people instead of numbers. In doing so, marketers can forge a more prominent and positive presence in the mind of their audience. But having a proper understanding of an audience can also unlock opportunities with new product development.
- If a brand’s product serves more than one purpose for a consumer, then it is an investment worthy of spend more than a single-purpose or single-use product.
- Understand the individual needs of customers and talk to them in a way that treats them as people instead of numbers. In doing so, marketers can forge a more prominent and positive presence in the mind of their audience.
- It doesn’t have to be a binary choice between super expensive or bargain bucket products. Giving customers the chance to choose their level of spend is an emerging trend.
- Wise premium brands will understand that their products offer an experience of escapism that is worth paying more for.
This article first appeared in www.warc.com
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