When recession looms and inflation spikes, customers can be slightly anxious about spending. Here’s how to ensure your target audiences that you have a must-have product or service.
Consumers might not be putting the brakes on their spending. However, they’re certainly letting up on the gas.
According to Deloitte’s most recent State of the US Customer report, around 75% of buyers remain concerned about prices. This is nine fewer percentage points than seven months prior. Nevertheless, it’s still a reason for company leaders to take notice. And with 47% of people worried about their savings, consumers could quickly tighten their purse strings.
There’s a shiny silver lining, though: As long as your product is needed, you can expect sales. Think about what happened in 2020. Shoppers didn’t stop purchasing items they considered “must-haves,” including home gym tech, machines, and accessories. This caused a lasting trend that’s pushed the expected CAGR of the fitness equipment market to 5.2% until 2028.
So what does this mean for your product or service lineup? You need to make sure that you are providing something that seems necessary to target users. “Seems” is the operative word. Were Pelotons necessary during pandemic shutdowns? Not from Maslow’s hierarchy of needs perspective. But don’t tell that to the customers who pushed the brand toward the billion-dollar revenue mark.
