A global survey of 5,000 consumers reveals critical changes to consumer spending amid inflation and economic uncertainty.
These findings highlight current sentiment on spending and what it will take to earn consumer loyalty in 2023.
Retail, travel, hospitality, media and entertainment most at risk as consumers rethink spending
Consumers are thinking more critically about where they will spend their money in 2023, with 81% saying they will reassess their budget over the next 12 months.
Retailers are most at risk. Seventy-nine percent of consumers say they will reassess their spending with retail brands over the coming year. Travel and hospitality and media and entertainment also face the potential for lowered spend, with 78% and 70% of consumers, respectively, reporting reassessment plans in those sectors.
Personalised, real-time experiences drive loyalty for spend-conscious consumers
An economy plagued by inflation and staffing shortages has not lowered consumers’ expectations for top-notch service. Fifty-two percent, in fact, expect a better experience from their favourite brands as a result of the current economic climate.
The good news is these same consumers are clear about what they believe makes an improved experience.
Consumers also expect brands to use their data to offer more relevant customer services, with over 60% reporting they expect companies to react instantly with the most up-to-date information when transferring across departments. Bolstering trust can also be an opportunity for loyalty; 76% of consumers say that companies that provide data security will encourage their loyalty.
Disconnected experiences spark frustration for consumers
On the flip side of the coin, consumers were also willing to report what made for a poor experience.
When added together, frustrating experiences create negative brand perceptions – and possibly, a future customer lost. According to 52% of consumers, poor quality service is the primary reason that prevents them from making a repeat purchase.
Real-time data drives exceptional customer experiences
Research shows that personalised customer experiences are no longer ‘nice to have,’ they are essential to competing in a changing economy.
Real-time data offers a path for companies that want to compete in this new economy and deliver the personalised experiences consumers expect. When pulled together into a single source of truth, real-time data offers rich and actionable insights that can help deliver intelligent and connected customer experiences.
“Companies that want to increase customer loyalty must leverage real-time, intelligent, and automated technology solutions that support seamless connected experiences and personalised journeys,” continued McLarty. “Businesses must be capable of both understanding and acting on their data. This will mean the difference between thriving or surviving as businesses navigate challenges in 2023.”