Consumer behaviours are changing around the globe, and it’s no surprise why. The rising cost of living is certainly no joke. Online research is playing a critical role in consumers’ financial decision-making as they deal with multiple crises at once, including inflation and a potential recession.
But what does this all mean for your business and your digital marketing? This blog post includes great information and insights to help you stay informed, as well as ways to keep your business thriving online.
Digital Marketing Inflation Statistics
A study released by Google in May 2022 reveals people are looking for ways to save money. Consumers are being more thoughtful with what they spend their money on, are pulling back from immediate purchase to wait for sales, and are looking for newer and cheaper brands.
Here are some points we found particularly interesting:
- In April, an average of 70% of surveyed consumers agreed they’re being more thoughtful about what they spend their money on – up from 60% who said so six months prior.
- The most commonly cited ways people are managing their spending include looking for sales/deals more often (43%), limiting their shopping to mostly what they need (41%), buying cheaper options for products (35%), and spending less on eating out (35%).
- More than half (55%) of holiday shoppers are planning to hold off on buying gift items until they’re on sale.
- 43% say they like to keep an eye out for new brands even if they aren’t planning to buy right then.
- Searches for ‘buy 1 get 1…’ have grown by over 60% globally Year-on-Year (YoY)
What Does Inflation Mean For Your Marketing?
Be Aware But Don’t Be Alarmed
As a business-owner, it’s important to be aware of consumer and market trends. Consumer behaviour is changing in response to worldwide inflation, meaning online shopping has fallen down many people’s lists of financial priorities. So, although it’s something to be aware of, don’t be alarmed if you see some temporary fluctuations in your ROAS or Revenue. It isn’t personal to you and your brand – this is occurring industry wide whether you’re in fashion, trades or hospitality.
The good news is, people are still shopping. Consumers might just need that extra motivation to convert, which is where you and your digital marketing agency can get creative! Test sales and special offers for your services/products, write website content that targets consumer desires, and emphasise your Unique Selling Proposition (USP). Google, Facebook and Instagram Ads help you reach new audiences and retarget high-value customers who are almost ready to purchase.
Your digital marketing strategy is now more important than ever. Assess where you’re spending money in your business, and make sure you’ve still allocated budget for digital marketing.
Promote Sales with Ads
43% of consumers are looking for sales and 55% of holiday shoppers are waiting to purchase until a sale. Having sales during this time, however small, may encourage your warm customers to convert.
Although having sales may mean your profit per product is lower, the incentive of a sale may entice shoppers to purchase more in one transaction and overall there may be an increase in the number of orders, so it’s super profitable in that sense! Approaching sales with a long-term mindset focused on acquiring new customers and improving your overall Customer Lifetime Value (CLV) is important.
CLV is the total worth of a customer during the entire period of your relationship. If someone purchases from you now and loves your product or service, they’re far more likely to repurchase and recommend you to others, which leads to more brand awareness and sales over time. Play the long game.
Adapt your SEO Strategy
Target popular search terms by adjusting content on your website and writing relevant blog posts. Be smart with your SEO.
Consumers are confused and uncertain; they’re looking for reassurance and guidance. Your blog posts can serve this purpose while also attracting consumers to your website. Tap into the questions your consumers have. If you’re an eCommerce retail business, write content on “How to Factor Shopping into your Budget,” or “The Best Value Fashion.” If you’re a cafe or restaurant, write about “How to Eat Out on a Budget.” Learn more about writing SEO-friendly content here.
Your content can show a sense of understanding that will resonate with your customers therefore establishing your industry authority and building trust.
Utilise Government Assistance
There’s a lot of financial government assistance for small to medium businesses if you know where to look. To save you the trouble, we’ve compiled a list of upcoming federal, QLD, VIC, and NSW government grants and payments your business may be eligible for.
Of course, government grants are always limited and generally distributed in a first-in-best-dressed methodology. From our own experience and from communicating with our clients, we know it can feel impossible to work with the system and get your application in on time. It’s frustrating.
We recommend preparing your application in advance where possible, and always hopping on to lodge it far ahead of time. So, when the application ‘opens’ at 9am, jump online at 8am and be ready to go, just in case. Although it may feel like redundant time, that extra hour or half hour could be the difference between your business receiving $50,000. If you ask us, it’s absolutely worth being safe rather than sorry.
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