- Shoppers became budgeteers out of necessity to keep up with the cost of living crisis
- 74% of consumers concerned about the rising cost of everyday items in 2023
- Value Hackers try to reduce spend without compromising quality and are getting crafty to make this happen
- Businesses need to step up incentives and innovate around affordability
LONDON, UK – Value hacker consumers are finding clever ways to maximise their budgets to afford top quality purchases and outsmart the system, says a Euromonitor expert.
Herbert Yum, Research Manager at Euromonitor International, said value hackers were consumers that had adopted new financial and lifestyle tricks to make the most of their income.
“Inflation has instilled a new financial mindset but consumers won’t skimp on what they really want. Instead, they hunt for the best deals. And that extends beyond the price tag. Value Hackers find clever ways to maximise their budgets without sacrificing quality.
“Businesses need to step up incentives, innovate around affordability and cater to cost-conscious needs,” explained Yum.
Shoppers will look for novel ways to stretch their wallets
Yum said price hikes left consumers struggling to cover their expenses in 2023. Nearly 3 in 4 consumers expressed concern about the rising cost of everyday items. Some 74% of consumers were concerned about the cost of everyday items and 44% wanted to save more money in 2023.
“People were forced to make sharp cutbacks and trade down to cheaper options. They became budgeteers out of necessity to keep up with the cost of living. Even as inflation decelerates, the residual effects still impede their purchasing power. Shoppers will look for novel ways to stretch their wallets.”
Yum added that value hackers try to reduce spend without compromising quality and they are getting crafty to make this happen.
“These consumers actively look for dupes or knockoffs, pay with credit card or rewards points, switch to premium private label brands and participate in free activities.
“Deinfluencers have also become popular on social media where people expose products they believe are overhyped or overpriced and businesses need to watch out for this.”
Companies need to offer additional incentives and balance cost with quality
Yum said businesses should explore affordable options outside of traditional markdowns. Companies are become increasingly aware of this with 53% of professionals confirming that escalating promotional initiatives will be a strategic priority in the coming months
“Bundle-and-save deals allow shoppers to purchase multiple products at a discount. Subscribe-and-save plans take a similar approach with automatic replenishment. Private label lines can deliver comparable quality at a lower rate. Referral bonuses or early-bird rates also entice shoppers while putting cash back in their pockets.
“Price is one component. There are other factors to consider. Loyalty programmes could let consumers earn points to put towards future purchases. All-in-one complimentary services like cleanings, repairs or warranties also serve as an added benefit. Find and offer extra perks that matter to your audience.
“Communication is critical. If shoppers don’t understand your value proposition, they will switch to a competitor or find alternatives like dupes. Promote the right information to influence their decisions. Education falls under this umbrella, too. Share tips and tricks on ways to save or teach your customers about versatile ways to use your products,” said Yum.
For further information see Euromonitor’s Global Consumer Trends here.