Why We Buy, What We Buy
Consumer behavior is a key driver of consumer spending. Retailers of all stripes slice and dice their customers’ buying patterns to keep customers coming back or to dip deeper into their wallets. Surprisingly many retailers rely largely on past results or gut instinct to drive future plans. In today’s economy that’s not sound thinking.
Smart retailers today are looking into consumers broad psychological patterns to crack the code of why we buy, what we buy.
Acosta Marketing Group has created an insightful research project in consumer behavior. The report, called “The Why? Behind The Buy” is designed to capture big picture issues such as the impact of current economic conditions and demographic buying behavior but also drill down into shopper behavior for certain product categories.
This year’s report is especially insightful. It says, “Faced with increasing competitive business more of the same is just not good enough” continuing, “retailers must look beyond simple promotional tactics to create true sustainable demand. They need to redefine value over price, and cultivate demand with compelling product innovation, uniques benefit claims and superior product experiences.” This is the exact thinking that drives us at Thought-Tech, so we find the reports findings to validate our position completely.
Some takeaways from the report that may be of interest include:
79% of shoppers are spending more - because prices are up…not because they are buying more (big difference here!)
84% buy what they’ve bought before - a telling lack of creativity by merchants
66% expect their income to stay the same – if that’s the case, how do you dig deeper into their wallets?
11% increase in monthly grocery spend - up to $309 a month
The challenge of integrating digital into the retail mix stands out. It says, “The influence of digital on grocery shopping continues as leading CPG companies and retailers forge ahead with new, creative ways to advance shopper marketing programs and improve shopper experience.” The importance of this statement does not lead a retailer to have cute apps for in store digital stuff to do. It is important to know that 71% of consumers plan their trip before going to the store. And how do they do that planning? Both online and with their smartphones. That is the point of opportunity for a digital connection.
The report focuses primarily on consumer packaged goods (CPG) but the takeaways are significant for virtually every retail sector.
If your brand or business is looking to redefine value over price, and ways to cultivate demand with compelling product innovation, uniques benefit claims and superior product experiences - contact us! Thought-Tech will guide your brand or business out the shadows of “me too” into the rarefied air of uniqueness – firstname.lastname@example.org