June 23, 2022

How Do Your Personal Spending Habits Match Consumers’ in 2022?

By Matthew Tilley

Summary:

• After years of upheaval, buying habits are a complex amalgamation of old habits, new imperatives, mixed emotions and competing forces.

• To connect with people, you need to dig into the nuances across demographics and generations.

• In this interactive post, learn how your sentiments and buying habits compare to those of your customers.

We surveyed nearly 2,000 people on how the priorities and preferences driving their spending behaviors are evolving. We also surveyed 268 home retailer and service providers about their biggest advertising challenges and priorities for 2022. (If you missed it, read the full report here for some fascinating insights into a range of topics, including why social media advertising shouldn’t always be your top priority.)

In this blog, we’re going to use this research to show you how your buying habits stack up to your customers — to help you understand the people you’re selling to in new ways.

We’ll be focusing on three key areas:

  1. The most popular financial concerns
  2. Common money-saving moves
  3. Shopping in-store vs. spending online

 Let’s dive in.

How optimistic do you feel about the next six months?

How typical are your spending priorities? For an industry tasked with understanding the people we sell to, it can be a difficult question to answer as a marketer.

How optimistic do you feel about the next six months?

Most consumers in our 2022 Retail TrendWatch report feel optimistic about the next six months — particularly millennials, millennial parents and affluent shoppers. Click the other options for what others said.

That’s understandable! Twenty-nine percent of respondents to our survey note a mixture of optimism and pessimism about the next six months. Click the other options to see what others said.

Interesting — only about a fifth of consumers we surveyed feel the same. Baby boomers are the generational demographic that feel the most pessimistic. Click the other options to find out what others said.

What are your financial concerns this year?

We’ve weathered an enormous amount of economic uncertainty over the last two years — but that anxiety doesn’t manifest in uniform ways.

Financial concerns in 2022 span a wide variety of topics across different demographics and backgrounds. According to advertisers, the biggest challenge home retail consumers face is rising prices (56%), followed by lengthy delays to receive products (46%).

The more marketers and brands understand the differing economic anxieties across audience segments, the better they can tailor their messaging and marketing activities to stay top of mind across the whole buying journey.

What about you? What are your financial concerns this year? And how do your priorities compare to different consumer groups? (And remember — click multiple options to get the full picture).

What are your financial concerns this year?

What are you doing to save money this year?

Financial anxieties are only one half of the equation. The thing really driving changes in behavior is what people do about it.

People are divided in the best ways to make their dollars stretch further. Forty-eight percent will notice and collect relevant advertising when they’re in-market to make a purchase for their home, while others will reallocate their spend across different categories.

What are you going to do to save money this year? Do they match your others plans? How could your marketing efforts adapt to the new buying habits of your audience? (Don’t forget to click multiple options to get the full picture).

What are you doing to save money this year?

Where do you plan to spend your money?

After a period of radically reduced choice, people are rethinking how they allocate their budget between offline and online destinations.

There are a multitude of disruptive forces still at play, influencing people at check out: continued economic uncertainty, the rising cost of living, and ongoing supply chain limitations for brands.

Due to product shortages in particular, 47% are switching stores or buying products different from what they planned.

The key for advertisers to connect with people is to stay top of mind in purchasing moments — wherever they happen. What are your online and in-store spending intentions? How do they compare to your core audience? (Make sure to click around to get the full picture.).

How will you spend in-store compared to previous months?

Younger shoppers will see you there. There’s a clear appetite for brick and mortar for 45% of Gen Z, 42% of millennials and 46% of millennial parents and 45% of parents overall.

Just like over half of baby boomers (55%), you’ll continue shopping in-store as much as you always have done.

You’re part of a rare group — just 18% of people are planning to spend less in-store in the coming months. Everyone else will either continue or increase their current spending in stores.

How will you spend with online retailers compared to previous months?

 

There’s a diverse mix at play — along with flashing the cash in-store, Gen Z and parents are the most likely to increase their online spending, at 43% and 39%, respectively.

You’re among the 46% of people planning to keep digital spending steady — along with sticking to their online habits, baby boomers lead the pack here at 55%.

Almost a quarter of people are planning to spend less online — significantly more than shoppers cutting in-store spending.

Elevate your strategy with empathy

It’s all too easy for marketers to think academically about shopping behaviors. But it’s important to take a step back and put yourself in other’s shoes. If you can understand how your own plans going forward align or differ, you can understand your audience better.

This ability to empathize will come in handy as the retail landscape continues to shift around us. Fifty percent of people agree they’re more likely to purchase from a retailer that reaches out to them at the right time when they have a need for a product or service.

If you can see how people are spending — and where they’re holding back — you can better plan your strategies around their behaviors.

This is a necessity at a time when loyalty is taking a backseat to changing lifestyles. If you give people a compelling reason to stay top of mind in the right moment, you can turn industry change into real competitive advantage.

If you want to know more about how consumers are buying differently this year — and how to make your marketing stand out to the right people — we’ve got you covered.

First, to see how you can help buyers navigate challenges like price increases and tighter budgets, read “Marketing Advice for Inflationary Times.

Alternatively, to dig deeper into an audience segment poised to spend this year, read “3 Ways to Connect With Millennial Parents in 2022.”

Matthew Tilley is executive director of marketing for Vericast and leads content marketing for the company. He has more than 20 years of experience in digital advertising and consumer promotions to develop, communicate and distribute ideas to make modern marketers more effective. 

Stay In The Know

Subscribe to get our insights and news straight to your inbox