Digging deeper into the consumer mindset

We are now seeing that the proportion of Americans who think it is a “good time to wait” on making significant purchases is higher than it was during the Great Recession. And yet we also saw robust spending during the Christmas holiday – so where does the rubber meet the road for consumer spending today?

It turns out that many shoppers are bending the rules when it comes to patience and frugality.

Retailers saddled with extra inventory are allowing people to defer the costs of purchases. And consumers – recognizing the opportunity costs of waiting when supply chains are fragile – are hunting for deals on search engines, applying coupon codes, or finding lower-priced copycat products.

Opportunity spaces to watch

Put aside assumptions about deal seekers
Services like Groupon – as well as buying groups – have made it not just easy, but even trendy to leverage bargains. The result: Deal seeking is not just for those with less to spend; it is also a high-end game. So, bending the rules on waiting really spans the economic spectrum – and it is becoming an essential offering for brands. Many consumers are simply unwilling to pay full price for non-necessities, and products are meeting their demands. The bottom line: If you are not playing the deal game, you will likely be at a disadvantage.

Remember to reward loyal buyers
In our Consumer Life data, preferring to shop at stores that offer loyalty programs has risen from 48% in 2017 to 65% this past summer (2022). Beyond just giving people a deal, brands can give them the additional incentive of a reward.

Keep a close watch on returns
Retailers like Amazon and Walmart have made returns so simple, some of us have become conditioned to shop spontaneously and then just return what we don’t like or need. Maybe it is not surprising, then, that 60% of retailers are rethinking their return strategy – making it more difficult to bring items back. Encouraging customers to be more thoughtful and definitive about your purchase could be an unexpected way to boost your bottom line in 2023.