Retailers must be aware of consumer preferences and behavior when shopping for items. While consumers are eager to purchase summer items early, trust is paramount in getting them to take action. Retailers should also be mindful of marketing fatigue and tailor their communication methods accordingly.
While 56% of consumers plan to shop for summer items in May and June, consumers are ready to act on sales for summer items early. As almost seven in ten (68%) want to know about sales by April, respondents to our survey said they are willing to act and buy, as 51% said an early sale could “sometimes and often” motivate them to buy.
Trust is also paramount in brands getting consumers to take action, as 73% will unsubscribe if they think a brand misused their personal information.
Then there is marketing fatigue. Two-thirds of consumers (66%) want fewer marketing messages, and 27% feel they get bombarded by marketing messages. The top preference for communication by consumers is email.
Seventy-nine percent (79%) of shoppers said that they check prices online when shopping in-store. It underscores that retailers need omnichannel capabilities. Almost eight in ten consumers say a brand caring about the environment is essential. So, it is a “must-have” moving forward for online marketers.
The motivators for consumer purchase are price 77% and quality 78%. A distant third is brand reputation at 28%.
Most consumers (72%) will budget the same or less for summer items compared to 2022. And just 22% will spend more than in 2022. And almost half of the respondents (47%) have less confidence in the economy for summer 2023 compared to 2022. Less than one quarter has more confidence in the economy.
For retailers, it means that getting consumers to spend more will be a struggle and that existing customers will hold the most promise. And retailers should be wary of cherry-picking consumers and cherish loyal customers.
What about e-commerce? Amazon has plans to start charging customers who return a lot of items, and Walmart just laid off a lot of people from their e-commerce department. But what about overall spending?
My guess is that overall spending will soften for two reasons. First, the rise in interest rates will make it harder for consumers to pay off credit card balances. Second, the rising gas prices mean consumers will have less money to spend elsewhere.
Brands and retailers are going to have work exceptionally hard to earn consumers trust and get them to spend money. There are a lot of choices and consumers know which retailers treat them well.
