SUPER-FAST TURNAROUND QUALITATIVE RESEARCH
THE EXAM QUESTION

We already know a lot about the cost-cutting strategies that consumers use when finances get tough. People trade down to cheaper products, delay bigger purchases, reduce discretionary spending and look for more deals, vouchers etc.

However, we don’t understand the flip-side well enough. Why do people protect spend in certain areas? What is it about products, services and experiences that make them non-negotiable for consumers?

THE ANSWER

BE A HEALTH NON-NEGOTIABLE– Sacrificing your own health & wellbeing, or that of your loved ones is not an option (and the definition of health & wellbeing is incredibly broad).

TOP UP HAPPINESS – Happiness needs regular top-ups. As always, the feeling of being able to treat ourselves now and again is crucial (and the pandemic has sharpened this need as so many of our usual avenues for treating were closed off).

HELP AVOID WASTE – Waste is increasingly hard to justify in times of economic stress. It’s not just about food waste – it’s also a longer-term view about buying to last and buying what’s needed.

MAKE THE MOST OF NOW – The pandemic has taught us that we never know what might happen – living for now has risen rapidly up the consumer agenda. Products and services that help consumers ‘seize the day’ will be highly valued

THE APPROACH

We asked 40 consumers to talk to us about the ONE thing they absolutely refuse to give up or cut back on (even if finances got tough) and why it was more vital than anything else

SO WHAT?

Brands tend to worry about when they might be “for the chop” in terms of consumer spending. Reframe the discussion in your organisation around playing to your strengths, not worrying about your vulnerabilities and devise a comms strategy that highlights the right benefit to ensure that you’re in a protected spend area

Your brand can avoid consumer spending cuts if it:

IS A HEALTH NON-NEGOTIABLE

  • Sacrificing your own health & wellbeing, or that of your loved ones, is not an option
  • Spend that protects your health is protected
  • Health takes the broadest possible definition – physical, mental and emotional
  • As a result, this encompasses the broadest possible range of products, including food, exercise aids, sleep and mental health
Alice
I will try very hard not to cut back on good quality food, the children’s physical and educational development is too important
Gisella
I won’t give up my gym membership! It’s £70 a month but it has all the right equipment and keeps me motivated to stay healthy
Michael
It’s my weekly pub quiz, on a Wednesday. It’s the only time I’m not working or with the kids and it’s important as a bit of true relaxation
Your brand can avoid consumer spending cuts if it:

TOPS UP HAPPINESS

  • Happiness needs regular top-ups. As always, the feeling of being able to treat ourselves now and again is crucial
  • The pandemic has only served to sharpen this need as so many of our usual avenues for treating were closed off (and we’re still feeling the effects of that today)
  • The definition of treat varies widely – it need not be restricted to certain products or categories
  • However, it does need to feel affordable and accessible, and the need for affordability will intensify as household budgets come under pressure
STEVE
Red wine – it doesn’t cost a huge amount more to get something good and it’s a regular treat I need and deserve
ELISABETH
I won’t stop buying really good quality meat or the foody treats I love, that would be sacrificing joy
VICKY
It sounds shallow but clothes – I just love them so something new every now and again gives me a little boost
Your brand can avoid consumer spending cuts if it:

HELPS AVOID WASTE

  • Waste is increasingly hard to justify in times of economic stress, and environmental concerns only seek to heighten the desire to consume wisely
  • Waste comes in many forms – throwing away unused products (like food waste) is the obvious one
  • However, waste is also being examined in the longer-term context – buying trusted or quality products to last and avoiding spend in the first place if it’s not truly needed or wanted
  • Price premiums that help avoid waste are protected
ELLEN
Some branded foods -
Hellman’s lighter than light mayonnaise, if I buy anything else I won’t eat it and chucking it away feels awful
MAX
I’d always still spend more on outdoor gear, clothing too, it lasts longer and I don’t want to replace it more often than I have to
DAVID
I pay more for premium tech brands. I’m sure sometimes the budget versions are fine but I want to guarantee quality and longevity
Your brand can avoid consumer spending cuts if it:

MAKES THE MOST OF NOW

  • The pandemic has taught us that we never know what might happen – living for now has risen rapidly up the consumer agenda
  • It’s now an accepted, mainstream belief that some things are too important to put off. This remains top of mind, despite financial worries
  • Holidays & trips, meals out with loved ones, yearned for luxuries and anti-aging products are being prioritized.
  • Communications which convey a sense of time dependency will motivate spend protection.
VICKY
Some things shouldn’t be put off. Holidays, days out - my children are growing up, I need to make memories with them right now, not later
TONY
I am curbing my spend in some areas but then some things you just have to make sure you do before it’s too late
LISA
Anti-aging skincare – if I don’t look after my skin now I can’t go back and undo that when money’s less tight

OUR KEY RECOMMENDATION

  • Reframe the discussion in your organisation around playing to your strengths, not worrying about your vulnerabilities
  • In which area is your brand strongest?
    IS A HEALTH NON-NEGOTIABLE
    TOPS UP HAPPINESS
    HELPS AVOID WASTE
    MAKES THE MOST OF NOW
  • Don’t wait to see which areas of spend in your sector may or may not be cut – market to the strengths you have that coincide with a clear consumer need