Rising costs of living are impacting Australians nationwide and household budgets are feeling the squeeze from every angle. But even in times of uncertainty, the weekly grocery shop remains a necessity.
All customers are taking control where they can, changing how they shop and plan in order to make their budgets go further. From tightening their belts on daily essentials, to stepping up their engagement with loyalty programs, where there’s a will to find value, customers are finding a way.
In the past few years, we’ve been no strangers to change and uncertainty. But while we see light at the end of the pandemic tunnel, macro-economic factors are proving to be a real and tangible concern for customers and marketers.
For customers, breaking free from the shackles of lockdowns provided a sense of optimism and excitement, but recent increases in the cost of living have started to pinch the family budget. We know 68% of customers are being more careful with spending (vs 6 months ago) and this is reflected in what makes it into the weekly grocery shop. The average basket hovers around 15 items, up slightly over Covid, but down over the past twelve months.
The uncertainty that exists isn’t unique to customers; brands and marketers are also staring down an uncertain period where marketing budgets will need to be justified and link directly to real business outcomes.
For brands, it’s increasingly important to show up for customers where and how they choose to shop. As marketer Mark Ritson once said, “The best marketers will be upping, not cutting, their budgets”.
But there’s a silver lining in these turbulent times and that’s where retail media and Cartology can help. Our deep connection to customers, omnichannel retail media network and ability to position your brand along the connected shopping journey will ensure your brand is in the basket in 2023.
40% of customers are saying they’ve cut back and are only buying the essentials. They’re reducing their basket size, with 40% saying they’ve cut back and are only buying the essentials.
Seeking value for money, ~39% are trading out for less expensive product alternatives as customers seek value for money.
6.2 value hacks are applied on average per customer including boosting Everyday Rewards offers and buying on sale.
From value to loyalty, let’s look a little closer at what’s on the agenda for customers in the current climate.
While price is important, two-thirds of value perception still comes from other factors such as freshness, health and sustainability.
25% of customers are embracing online grocery shopping as a way to manage the weekly budget.
1 in 5 customers have been more engaged with loyalty and rewards programs as a result of rising prices.
Now is the time for brands to show up for customers, when every purchase decision counts. That’s where Cartology can help. Our omnichannel retail media solutions from sofa to shelf, can position your brand strategically along the connected customer journey to ensure your brand reaches, engages and impacts customers in the moments that matter most.