Navigating the Price Surge: Transforming Shopping Habits Amid Rising Costs
S1E2 Economic Waves: How Price Hikes Transform Shopping Trends
Delivering a great customer experience is a challenge every retailer faces. We’re surfacing valuable insights from real world industry data, slicing through measurable consumer insights based on 1st party research and research at the point of sale. Join us as we learn the impact of one data insight each issue! Stay sharp!
Understanding Consumer Behavior in an Inflationary Era
In an era marked by financial fluctuations and budgetary constraints, understanding consumer behavior has never been more critical. On this episode of the Retail Razor Data Blades, we uncover how rising prices are reshaping our shopping habits. Hosted by Ricardo Belmar with cohost Casey Golden, we examine consumer insights provided by Georgina Nelson, CEO of TruRating, based on survey data taken at the point-of-sale.
A Direct Line to Shoppers
TruRating aids retailers in capturing consumer opinions at the point of sale and has achieved nearly a billion responses. With an innovative approach that includes posing single, rotating questions directly on POS pinpads, TruRating garners an impressive 80 percent response rate from shoppers. This seamless checkout experience is not only facilitating real-time feedback but also enhancing the decision-making process for retailers everywhere.
How Rising Costs Influence Consumer Behavior
Our conversation today centers on how the surge in prices is influencing shopper habits. According to Georgina, 81 percent of polled consumers across various markets are feeling the impact of rising living costs. The exploration of consumer behavioral changes reveals some intriguing insights:
Reduced Driving: Due to increasing fuel costs, 63 percent of consumers report driving less.
Cooking More at Home: 60 percent of respondents are choosing to dine in, reducing their frequency of eating out.
Shopping with a Plan: An astonishing 74 percent are now using shopping lists, a strategic shift that generally results in a 15 percent decrease in spending.
These behaviors indicate a shift toward more disciplined spending, affecting how and where consumers shop.
Opportunity Amid Upswing in Caution
In a landscape where every expense is scrutinized, retailers find themselves at a unique crossroads. Casey explains the potential upsides for retailers as consumers become more selective and exploratory in their shopping patterns. Retailers now have the opportunity to charm new customers and build loyal followings through exceptional service and targeted marketing.
Georgina points out the potential benefits of focusing on customer insights and enhancing in-store experiences. Training store cashiers as brand ambassadors can drive significant returns, with practices such as personal recommendations and fostering customer connection translating into increased spending.
Creating a Lasting Impression
Continuing from these insights, Casey emphasized the importance of maintaining a brand's top-of-mind status with consumers who remain steadfast in their support. Understanding what draws these loyal customers to your brand and utilizing deeper analytics to cater to their needs can propel a retailer above the economic fray.
Conclusion: Embrace the Challenge and Transform
Our conversation in this episode underscores the importance of adapting to changing consumer habits amid economic pressure. By transforming challenges into opportunities, retailers can cultivate a loyal clientele that spans economic cycles.
We invite you to incorporate these insights into your retail strategy! If you're enjoying our discussions and would like more updates and insights, subscribe to our newsletter, tune into our podcasts, and consider giving us a five-star rating and review on Apple Podcasts and Goodpods. Follow us on LinkedIn, Threads, Bluesky, and Instagram for the latest updates and highlights from the show.
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Follow along with a full episode transcript available below:
Full Episode Transcript
S1E2 Navigating the Price Surge: Shifting Shopping Habits
Show Intro
[00:00:00]
Ricardo Belmar: Welcome to our new Retail Razor Show, Data Blades, our new standalone Retail Razor Show, where we talk real world numbers and slice through measurable consumer insights based on research at the point of sale.
And bringing us that slicing and dicing of data is Georgina Nelson, CEO of TruRating.
Casey Golden: TruRating helps retailers hear directly from validated shoppers daily, and recently had a major milestone of half a billion responses. Retailers using TruRating average an 80 percent response rate on questions asked, made possible by asking a single rotating question directly on the POS pinpad, making it a seamless part of the shopper's checkout experience.
Ricardo Belmar: TruRating also works with their retail partners to develop consumer insights reports by running questions on an industry topic or theme. These anonymous responses are linked to metrics such as [00:01:00] basket size and repeat visits to produce industry changing insights like the ones Georgina will share with us today and raise our data blades.
I'm your host, Ricardo Belmar.
Casey Golden: And I'm your cohost, Casey Golden.
Georgina Nelson - How Rising Prices Are Impacting Shopping Habits
Casey Golden: Welcome Georgina.
Georgina Nelson: Thank you so much for having me.
Casey Golden: So today's Retail Razor Data Blade segment is how rising prices are impacting shopper habits. Georgina, give us the data.
Georgina Nelson: Well, last time we chatted, we discussed how over 81 percent of consumers who we polled across our markets, and that was over 170,000 shoppers, had been noticing , the pinch on the cost of living. So 81 percent were noticing, but then we thought, how is that actually impacting behavior? Now, what changes are people making in light of that and how is that affecting retailers?
So we asked whether people were driving less or more as a result. And we found that 63 percent of consumers in the U. S. [00:02:00] said they were driving less because of the rising gas prices. We also found out that 60 percent were cooking more at home, so eating out less, and 74 percent were using a list. When they went shopping which is a big increase on the previous times, which we've asked that and academic research shows that generally consumers spend 15 percent less when they have a list, it's that that discipline and keeping to it.
Casey Golden: Interesting.
Georgina Nelson: Yes. , so it, it's really become clear to us that. There's, when it comes down to discretionary spend, big ticket items, consumers are definitely being more careful. They're shopping around more, they're making less frequent trips. When they're going by public transport, and that means that the retailers who are in urban areas where, where there's a great public transport network aren't at such a disadvantage.
Casey Golden: So Georgina, I know retailers and consumers alike [00:03:00] have been feeling the burden of inflation for quite a few months now. I'm certainly shopping around more and being a lot more considerate about where I choose to spend my hard earned dollars. Is it pretty much all doom and gloom until inflation winds down, or is there some upside here for retailers?
Georgina Nelson: I think that's a definite upside. When you think of that consumer shopping around, that opens a whole world of opportunity. You've got new consumers coming through your door and you've got a chance to, to woo and turn them. And so, this is a great, yeah, a great opportunity to win new loyalty with incredible customer experience, targeted marketing and comms and Yeah, and build that loyalty fan base.
Casey Golden: And I think there's something to say when in any type of recession or inflation or any type of point when the economy is taking that pinch, [00:04:00] those consumers that continue to shop with you, they're really top of mind as the brand is really top of mind for them. I mean, it's, it's. Pretty important as you go into like a different economy to see where those customers end up fleshing out overall, I would assume.
Georgina Nelson: yeah. Yeah a hundred percent and I think It's around understanding, what makes that, that customer loyal? What are they, what are they affiliating with your brand? What products are they purchasing and really getting into that deeper level of, of customer insight and analytics. I think, as we look to how a lot of our retailers are fighting the inflation , and the pinch on wallet spend, it's really focusing down on, as I said, that element of customer experience, but training, the, the store cashier to actually be a brand ambassador. How can they promote recommendations? How can they promote upsell [00:05:00] and even simple things we found that, like, such as asking a customer their name in some of these, fashion environments, etc.
When that consultative sale really helps, we've seen that drive average basket spend by over 30%.
Ricardo Belmar: Wow.
Georgina Nelson: Likewise, if a customer makes a, if, if a cashier makes a recommendation. So, all these. All these simple things which a retailer can, can take and train the teams and then see the, see the impact down at a store level are key.
Ricardo Belmar: Well, it all comes back to that experience, doesn't it?
Well, there we have another edition of the Retail Razor Data Blades.
Casey Golden: I'm listening for the cool segment music right now.
Show Close
Casey Golden: If you enjoyed our show, please consider giving us a five star rating and review on Apple podcasts and Goodpods. Remember to smash that subscribe button in your favorite podcast player and tune in on YouTube, so you don't miss a minute. I'm your cohost, Casey [00:06:00] Golden.
Ricardo Belmar: Please share your feedback with us on Twitter at Casey C Golden, Ricardo underscore Belmar, and at RetailRazor, or find us on LinkedIn, Threads, and Instagram. For the best highlights from each episode shipped straight to your inbox, subscribe to our Substack newsletter for full episode transcripts and bonus content.
I'm your host, Ricardo Belmar.
Casey Golden: Thanks for joining us.
Ricardo Belmar: Until next time, keep cutting through the clutter and stay sharp.
This is the Retail Razor Data Blades.