Inflation has retreated from the four-decade high it reached last summer, but consumers continue to feel the impact as inflation is still higher than pre-pandemic levels. The prices of groceries and rent remain high. A recent Gallup poll reveals that 8/10 US adults will be a year of economic difficulty.
Despite concerns, and contrary to expected behavior, consumers continue to spend. They’re prioritizing value and searching for deals and discounts in response to higher prices and threats of a recession. Savvy shoppers are waiting for wallet-opening moments, like Macy’s Semi-Annual Sale, Nordstrom’s Anniversary Sale, and Sephora VIB, to make smart purchases.
As consumers look for deals, brand loyalty has waned. It’s a critical time for retailers to focus on loyalty strategies to reward customers for shopping with them. Offering rewards, discounts, and incentives can keep your customers coming back and prevent them from looking to the competition.
Rakuten President Kristen Gall recently shared her point-of-view on how inflation is changing consumer behavior with MediaPost, “Shoppers are just becoming smarter. They’re prioritizing deals, discounts, and rewards, so they can still shop while minimizing the impact it has on their wallets.” The article discusses:
- New ways to shoppers are looking to save amid high inflation
- The loyalty benefits of retail sales events
- The significant year-over-year growth of Rakuten’s own Big Give Week