The shopper journey has undergone a significant transformation in recent times, largely driven by the impact of inflation on consumers’ purchasing power. Inflation has created an environment where people have less discretionary income, forcing them to be more discerning and deliberate in their buying decisions. As a result, the shopper journey has become more rational and researched, leading to a shift in touchpoints along the path to purchase. In this blog post, we will explore how inflation has influenced the shopper journey and the changing nature of touchpoints.
The Evolution of the Shopper Journey:
In the pre-inflation era, consumers had a greater ability to make impulsive and discretionary purchases; however, rising prices and stagnant incomes have necessitated a more cautious approach to shopping. Between August 2022 and April 2023, Explorer’s Shopper Activation Framework (SAF) demonstrated that the shopper journey has transitioned from an emotional and spontaneous process to a rational and researched one. The more rational ‘Deal Hunters’ shopper segment rose by 10%, while more emotional segments such as ‘Impulse Shoppers’ and ‘Social & Health Conscious Pioneers’ decreased across this time period.
The Impact of Inflation on Discretionary Spending:
Inflation erodes the purchasing power of consumers, particularly in discretionary spending categories. As a result, people are becoming more selective about where they allocate their limited resources. They carefully evaluate the value and necessity of each purchase, leading to a shift in touchpoints along the shopper journey. Inflation heightens the importance of price comparison for consumers. They actively seek touchpoints that enable them to compare prices across different retailers or online platforms. Price comparison websites and browser extensions serve as indispensable resources, helping consumers find the best deals and make cost-effective choices.
Research Becomes Paramount:
The proliferation of digital platforms has revolutionized the way consumers research and gather information. Websites, online marketplaces, and search engines have become invaluable touchpoints. Shopper Activation Framework (SAF) revealed a 25% increase in the ‘Informed Spend’ trip motivator – those trips where the shopper is highly involved in researching prior to purchase. Unsurprisingly, we see that consumers are investing more time in researching their options. Consumers turn to digital resources to compare prices, read product reviews, and access detailed specifications. They seek out unbiased information to make informed choices based on their specific needs.
Emphasis on Value and Longevity:
With tighter budgets, consumers are increasingly prioritizing value for money and longevity when making purchases. The Brand Name Buyers shopper segment increased by 10% between August 2022 and April 2023, further underscoring that shoppers are looking for products they can depend on. While it’s important to save where possible, a sizable proportion (25%) are looking to brands as they seek out products that offer durability, quality, and functionality. Furthermore, loyalty tracking in SAF continues to show growth among the ‘Loyalist’ proportion of shoppers, demonstrating that more than ever, shoppers are more rational and decided in their choices – they can’t afford to try something new and not have it deliver so they’re sticking to their tried-and-true products and brands.
In-Store Experiences and Assurances:
The split between shopping in-store and online has remained consistent between the two periods, and while digital touchpoints dominate, physical stores still play a crucial role in the shopper journey. Consumers may visit brick-and-mortar locations to engage in a tactile experience with products, seek expert assistance, or access special in-store promotions. Retailers can leverage these touchpoints by ensuring knowledgeable staff, clear pricing, and a seamless omnichannel experience.
Conclusion:
Adapting shopper touchpoints along the path to purchase is essential to meet the evolving needs of consumers in an inflationary environment. With shoppers becoming more rational, less emotional, and highly focused on value, businesses must leverage digital resources such as websites, social media influencers, online reviews, and price comparison tools. Additionally, retailers should also optimize physical touchpoints, providing in-store experiences and assurances that enhance the overall shopping journey. By aligning touchpoints with consumers’ changing behaviors and leveraging the resources they rely on, businesses can thrive in this new era of rational consumerism.
Want to understand more specifically how touchpoints have shifted for your category? Contact Explorer today for a complimentary presentation of the Shopper Activation Framework specific to your category or banner.
