The Cost-of-Living Crisis: Has Marketing Changed?

Posted on
September 26, 2022

It is impossible to avoid articles and content online about the cost-of-living crisis. With UK inflation set to peak at 13.1% as of Q4 2022, it is clear that consumers across the country will need to tighten their belts when it comes to all forms of spending. In fact, as many as 57% (26 million people) in the UK will be spending less on non-essential items for the foreseeable future.  

Shopping habits have changed for most people across all product categories. Only 4% of consumers say they will stay loyal to an existing preferred brand even if a cheaper option is available. This marks the need for businesses of all sizes to amend the approach they are taking to marketing efforts if they want to come out on top in the most trying of times. The reality is that consumers will likely still need to spend money on gifts and some smaller luxury items, but it will be a decision that is based more on financials and value add than it was previously.

With it clear that consumer spending will be dropping, we have pulled together our top tips for how businesses can adapt their marketing strategy to maintain a steady flow of consumers whilst protecting their bank balances.

  1. More testing needs to be done when dealing with paid Google and social ads to justify spend.

If you use paid advertising as part of your digital marketing strategy, you will know that it can be a costly exercise if not executed perfectly. Spending on social ads has dropped by 28% in the UK alone, representing that budgets are getting smaller. We think that paid advertising still needs to be a part of your marketing plan as the world of eCommerce is more saturated than ever before. Instead, there is no room for additional testing that eats into the ad spend budget. Companies need to understand their consumer's online habits and competitors’ activity more deeply than ever before.

  1. The needs and wants of target consumers as of 2022 need to be fully understood.

The last couple of years have been turbulent for people worldwide, with the UK no exception. This means that consumers will have changed in ways that marketing departments need to understand. Understanding current buying habits, lifestyle influences, and upcoming pressures are essential in knowing how to resonate successfully with consumers. 

It would help if you also took the time to understand the top-level industry insights representing how entire markets behave. Some of the most important statistics that we think you should be considering are:

  • 61% of consumers say they would still pay more for an ethical product
  • 37% of shoppers still expect to visit physical stores less often
  • The main areas of consumers cutting spending are: Eating out (52.56%), Clothing (41.54%) and Holidays and Days Out (41.54%)

  1. Consumers are spending less so product propositions need to be stronger.

Trends show that although for most people, the cost will be the deciding factor, there is still a chance to secure custom with a solid call to action. Selling points and propositions must be relevant to life as we know it in 2022 and give the consumer a compelling reason for parting with hard-earned money. Clever copywriting can also be made SEO-friendly to support your wider eCommerce goals simultaneously. This combination of marketing functions will also help you save money in-house.

  1. Understanding new search term trends is essential.

As well as being clever with your copy, search terms have changed and are now reflective of the new decision factor people hold as important to them. Understanding how people are looking for a product will mean you can update your website and socials to be seen as relevant. Whether promoting the price of something or adding more context to a relevant USP, consumers will want to see that brands understand the pressures they are facing.

  1. Straight to the point messaging works best as consumers don’t want uncertainty that mimics the wider world.

Life seems stressful enough for most people, so the last thing you want is your product messaging to be seen as just another annoyance to deal with. Whereas before storytelling and building up to a sales pitch was essential, people now want to make quick decisions. Consumers are working harder and therefore have less spare time. Marketing departments need to take things back to basics in some senses. This will also offer a way to streamline spending, offering more chances of a higher return on investment.

  1. Building a community online is a brilliant way to ensure consumers will stay loyal to your brand. 

Digital marketing has always been focused on creating an army of engaged consumers, but this is now something companies MUST get right to stand a chance at securing limited spending. With things changing quickly in the world around us, people are looking for stability that brands can provide. Whether it’s a weekly routine to social posting or a recurring promotion in line with payday, anything that can create structure and enhance consumer happiness will surely result in improved brand loyalty.

  1. Companies need to understand what marketing spend is realistically needed to compete in tough times. 

Whilst it may be tempting for some companies to strip back their marketing budgets, this will negatively affect more comprehensive sales. We believe that a balance dynamic organic and paid efforts need to be balanced to help businesses maintain a steady flow of revenue coming in. Have you heard of the saying more is more? Well, we think that applies perfectly to digital marketing, as the more time and money you put into your campaigns, the better they will work for you. Don’t cut funds in areas of your company that do bring in qualified leads and interested consumers.

How can Kopa Marketing help your small business?

Our company was created to support the small companies in Wales that our founders, Osian, and Dylan, grew up around. We, therefore, understand more than most marketing agencies the importance of spending wisely and putting the groundwork to reap more significant rewards.

We can also help you by:

  • Streamlining all social, SEO, and paid advertising tasks under one agency.
  • Bringing our extensive paid advertising skills to your own business, which we guarantee will bring results.
  • Sharing our own experience of small business success stories with your business.
  • Acting as a seamless extension of your digital marketing teams if you do not want to commit to full-time in-house support.

To find out more, please call 0114 212 3034‬, email info@kopamarketing.com or fill out our online enquiry form.  ‬

Posted on
September 26, 2022
in
Marketing
category

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