What Does Inflation Mean for a Brand?
It’s clear that inflation is affecting shoppers and retailers alike. Two-thirds of Americans are struggling to pay their grocery bills, according to a recent Swiftly survey1. Retailers have been lowering their expected earnings. So, what does (or should) this mean for brands?
The first instinct might be to cut marketing costs, especially if your brand is a discretionary product or service. But that could be a big mistake.
A brand’s short AND long term health needs to be taken into consideration during this topsy-turvy time. If your product is discretionary, it’s important to continue to maintain or grow brand awareness, so your brand stays top of mind for the time shoppers are more financially sound and are able to come back to your brand or category and make that purchase.
If you have a product that is essential, or a habitual part of the shoppers’ daily lives, there are different solutions that can be put in place that are both budget conscious and brand building at the same time. Continuing to support retailers and their objectives to maintain or grow their shopper base is a key part of any shopper or performance marketing strategy.
The Swiftly survey also found that nearly 83% of shoppers have changed their shopping habits, with 41% looking to save money via promotions or discounts. This equates to perfect timing for shopper and performance marketers to step in and benefit their brand’s shoppers.
Some high-impact benefits and promotions to consider are:
- Traditional savings, delivered via targeted digital coupons and/or rebate programs such as Ibotta
- Meal solutions with savings based on partnerships with retailers or other brands
- Brand loyalty programs like Starbucks Rewards
All of these tried and true shopper marketing tactics will provide benefits to cost-conscious shoppers.
Sources: 1 PR NewsWire