Consumers seek savings like never before and are looking for ways to lighten the load on their wallets in the grocery store, with 87% changing their spending habits due to inflation.
BIGGER CRAVING FOR SAVINGS
Consumers remain concerned about inflation as 2022 comes to an end, and one-third aren’t confident that inflation relief is imminent. Such concern and lack of confidence appear to be on the money.
No end in sight
of shoppers spend more for the same amount of food than they did in the past — and one-third of these consumers are seeing an increase of at least $50 per regular grocery bill
of consumers are concerned about being able to afford food for their families because of inflation
Few shoppers haven’t changed their shopping habits in response to inflation.
Goodbye, old shopping habits
of consumers shop differently in the face of rising grocery prices
of consumers whose shopping habits have changed in inflationary times have started to look for coupons to counteract the impact of price increases on their grocery bill
The ranks of “engaged shoppers” who have used a digital coupon in the past 13 weeks have expanded by
of consumers create a shopping list before heading to the grocery store — and for many, coupons dictate its contents
Shoppers’ preference for digital coupons has gradually increased over the past few years, with redemption rates surpassing traditional paper coupon redemption in 2021 and remaining especially marked in 2022. Moreover, digital coupons maintain an increasing lead over paper coupons this year — even with lower distribution than FSIs.
Digital coupons gain ground
So, digital should be the focus of your investments in promotions. And if you fail to provide incentives when your competitors do? Customers will default to the brand that offers the savings they seek before they even enter the store — guaranteed and with no questions asked.
After making a “brand-switching” purchase, 41% of grocery shoppers would repurchase their original brand if it was available alongside the new brand, and 39% would repurchase the new brand
BUT
63% of shoppers would choose their preferred brand over a lower-priced one if they were offered a coupon or discount
To switch…
or not to switch?
Cultivating and maintaining loyalty among the grocery shoppers of 2022 — who are dealing with price increases and worried about affording the food they need for their family — is more difficult than in the past. Still, winning this uphill battle isn’t impossible.
CUSTOMER LOYALTY: HARDER TO GAIN, HARDER TO MAINTAIN
Leaning heavily on digital coupons in your promotional mix allows you to maximize your budget because of the flexibility they afford. This includes the flexibility to create targeted offers, such as consistent, but lower discounts for loyal customers or slightly higher discounts that attract lapsed or new buyers by lowering the friction to purchase.
Hitting loyalty targets with targeted incentives
One Inmar Intelligence client, an air freshener brand, wanted to improve the efficiency of execution among familiar buyer segments while simultaneously driving trial among non-buyers purchasing in the category. Leveraging targeted offers improved the brand’s cost-per-unit-moved (CPUM) by 27% and increased redemption across the total program by 335%.
Digital offers
spark increased redemption…and more
Given the high volume of brand-switching occurring now and in times of financial distress, incentive strategies are key to gaining new loyal customers and retaining existing ones.
Digital coupons offer a level of flexibility that makes planning current and future activations even easier. Additionally, while ease of targeting customers is a major benefit of “going digital” with promotions, doing so leads to other big benefits.
MOVING FORWARD WITH FLEXIBILITY
Faster turnaround times than other promotional methods, like FSIs, get digital offers into the market sooner.
Speeding offers to market
Digital offers can also be revised until they go live and even “in flight.” Inmar Intelligence has a dedicated team whose members monitor the budget and performance of your promotion campaigns, looking for areas to optimize and providing strategic recommendations.
Revisions? No problem
Inmar Intelligence can manage your budget in real time and optimize promotions while they are live. This lets you adjust your digital offers at any time and in real time — whether to respond to market changes or moves by your competitors. Both flexibility and quick response are essential in grappling with the tumultuous inflationary market conditions of the past year, which we foresee as continuing into 2023. You can keep offering incentives to price-conscious consumers while remaining mindful of your budget.
Getting real — real time, that is
Brands aren’t the only ones feeling the effects of inflation. Retailers are losing shoppers too, with 62% of consumers switching supermarkets due to rising costs. Your retail partners will appreciate any savings your brand can provide — and promote it to shoppers to keep them coming back.
A boost for retailers
Continuing to invest in promotions is important — it’s a strategy that allows brands to gain and maintain customer share when the competition is fiercer than ever. And with digital incentives comes the high degree of flexibility that makes investments made in tumultuous times that much safer.
The final word
Reach out to solutions@inmar.com to discuss your inflationary marketing strategy with our team and determine how you can maximize your budget with digital promotions.
87%
of consumers are changing their spending habits due to inflation
60%
76%
Nearly
83%
55%
18.5%
90%
year-over-year
SOURCES
July 2022 Inmar Intelligence Brand-Switching Survey
October 2022 Inmar Intelligence Brand-Switching Survey
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