Global pandemic consumers are value-focused, but brands must take account of nuances
Consumers globally are heavily focused on getting value for money at the moment with as many as 67% saying this has become more important since the pandemic started.
That’s according to research conducted for payments specialist Klarna among more than 4,000 consumers across Europe, the UK, the US and Australia.
But as well as value, “trust and choice” are also paramount, while the company also identified five shopper “tribes” and said that targeting these requires a “nuanced” approach.
So, as we’ve heard, value is key and is the number one priority. Second on the list comes promotions/deals (60%), a focus that also emphasises the value obsession of modern shoppers.
This is joined by a good reputation and trustworthiness (also 60%) and having a wide range of products available (58%) — perhaps fuelled, in part, by shortages on the shelves earlier in the year.
As many as 55% of respondents also said that an easy returns process (55%) and next or same-day delivery options (51%) have become more important this year — naturally coinciding with 49% doing more of their shopping online and 44% doing most or all of it online now.
The ability to pay flexibly has also grown in importance, according to 45% of respondents, with 42% actively preferring to shop from brands or retailers that offer flexible payment options, while 32% won’t shop with those that don’t.
But Klarna’s research also reveals subtle differences in the priorities and preferences of its five modern shopper tribes that it says alter the way brands and retailers should engage with them. These suggest retailers should “shift away from the popular demographic-based approach to marketing and consider passions and personality types instead”.
Its Clicks and cliques: understanding modern shoppers report has identified a busy Family Firsts group that sees online shopping as invaluable. These consumers are likely to be indifferent to who they buy from (30%), suggesting brands and retailers must work harder to keep them coming back. And 55% say they’re more open to trying new brands now than they have been previously — more than any other tribe.
Next come the Aspirational Achievers, a financially comfortable tribe that tends to shop around and will invest in premium products. But as many as 45% of them are loyal to a couple of brands and retailers that they love within each category that they shop. High-quality products are a must, with 57% expecting this from brands or retailers — more than any other tribe.
Meanwhile, the Here and Nows live “in the moment, spending what they earn on the things they want and often finding inspiration on social media”. Some 58% “still want to treat themselves to nice items, even though they’re going out less — more than any other tribe”. They’re also more likely to be influenced by TV ads (24%).
Savvy Fashionistas describes a group earning less than they’d like to, regularly seeking inspiration online and “looking for hacks to help them get the best products and deals”. They’re most likely to be drawn to firms offering promotions and deals (45%) and that have a wide range of products available (45%). They also seek flexible payment options (36%), which encourage them to shop regularly (33%) and buy more (35%).
And Conscious Consumers are “less focused on hitting life’s traditional milestones and living by the system”. They “seek fulfilment in pursuits like learning and discovery and shop as sustainably as they can”. This is actually the only tribe to rely more on brand or retailer websites for inspiration than family or friends, with 36% ranking them as a top source. Trustworthiness and a good reputation are more likely to encourage them to shop regularly with a brand or retailer — with 42% reporting this effect — more than any other tribe .
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