11th Nov 2022 2 mins read
The Consumer Price Index (CPI) provides a measure of Irish price changes for goods and services purchased by consumers in Ireland, and yesterday it was revealed that it rose by 9.2% between October 2021 and October 2022, having risen by a further 1.6% in the month between September 2022 and October 20221.
We conducted a survey of our own with our ProMotion Rewards app users, and some of the responses revealed the state of our economy and how it is affecting the everyday consumer, and their wallets.2 When we asked people in the ProMotion Rewards app, “How has inflation affected you?”, some of the responses included the following:
“Cost of living is unaffordable, doing my weekly shop has become a massive struggle having to up our budget every month which has left us with a lot less to live on”.
“We have seen a massive increase in our grocery spend each week, so much so that I am consciously making a once-a-week trip to pick up a bulk-buy of reduced meat to stock up my fridge to offset the other increase(s)”.
“Personally, I find the worry having a toll on my mental health. I’m thinking of money all of the time and what use each penny can have”.
“Fifty euros worth of food now doesn't even take up a quarter of the trolley.”
“Our shopping is gone up. I’m being conscious of the cost of butter and milk when I use them. Butter gone from €2.19 to €3.39 and milk from €1.49 to €2.29, which when you go through 2L milk a day is scary. I’m really conscious of driving and using my electricity and heat too”.
“Price of groceries and energy bills have increased. 1 income household and wages haven't increased at all so feeling stretched at end of month.”
Consumers are engaging in value-seeking behaviours and clearly have lost a lot of confidence in how they spend and what they can rely on in terms of price. While the inflation and cost of living crisis is not going to be solved overnight, it’s important to understand what consumers are feeling, in order to meet them where they are at when it comes to messaging, offers and value creation.
It’s important for brand managers to think strategically in this current crisis to keep customers happy, maintain positive brand reputation, and in turn maintain brand loyalty. My suggestion for brands approaching this festive season would be to be and to communicate Honesty, Humility and Agility.
I’ll continue to share the results of internal research conducted with our app users over the coming weeks, so stay tuned for more. Without taking the “sell, sell, sell” approach myself, I’d like to highlight the fact that at ProMotion Rewards, we are helping brands reach consumers directly, reaching the right people, at the right time, with the right message and value offering. Through our data-enabled consumer engagement platform, we use purchase data from physical and digital receipts to enhance efficiency of promotional spend, as well as to perform qualitative analysis to discover what drives specific behaviours in a given target audience.
Keeping your finger on the pulse of consumer sentiment throughout this difficult economic period will help keep your brand agile. Understanding where consumers are struggling will allow you to connect through honest and humble messaging, and ultimately, help your brand to survive and thrive through the downturn.
We are always looking for talented people to join us on our mission to change consumer intelligence, for good.
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