Each month our team identifies Basis Technologies’ top verticals and shares the trending news stories and important stats with you!
- Shoppers may think they prefer purchasing items in-store but the data proves otherwise. According to a survey, 82% of U.S. consumers state they purchase items in-store compared to only 73% who bought online. Still, while total retail sales (including ecommerce) will increase by 9% over the next 5 years, ecommerce sales alone will increase by 38% over that same time. Therefore, consumers may make larger purchases online over the next few years, but we can also anticipate a large shift in purchase preferences towards digital to make up that 38% growth. Brands and retailers should focus more of their overall media strategy on digital ahead of this shift in consumption. Media plans focusing heavily on search and other digital platforms should be utilized throughout the entire purchase journey and seamlessly guide the consumers to the site to complete their purchase. Source: Kantar Profiles/Mintel/U.S. Census Bureau
- U.S. shoppers are extremely frustrated with the delays and supply shortages impacting the retail industry. 47% of shoppers say their online orders are taking too long due to the shipping delays and 44% say they are unable to buy what they want because of the inventory shortages. As consumers lose patience, brands and retailers must shift their overall media strategies to accommodate for the current market. First, brands/retailers must stay vigilant of their inventory and only promote available products to not lead to further confusion while also promoting quick shipping options. Using digital media will allow for quick transitions of creatives. Second, as consumers become frustrated with product shortages, brands and retailers must understand that shoppers will turn to competitors to purchase lookalike products. Challenger brands should use this opportunity to promote why their available products are just as good as, if not better than, their sold-out competition. Source: Kantar Profiles/Mintel
- With inflation hitting a record breaking 8% in March, Americans are once again hyper-focusing on their financial situation. Consumers are facing a slew of financial stressors with managing living expenses (27%), saving enough for the future (19%) and managing debt (19%) being the top concerns. While inflation is hurting all of America’s wallets and bank accounts, data shows that it is those with higher income who are most aware of its effects. 42% of all adults in the U.S. state concern about inflation, but when looking at the HHI $200K+ segment, 54% of those people state concern which is likely due to financial literacy and awareness of the issue. Financial institutions should take the opportunity to teach those uninformed of inflation about its impact, and connect with those already worried consumers, by promoting money management features available online and in their apps. Source: CivicScience/eMarketer/Mintel
- As high school seniors make their final selections and juniors begin their application process for colleges, potential college students are considering a multitude of factors such as cost, distance, culture, amenities, and degree programs. While these factors weigh differently on each student’s decision, new polls indicate that schools with higher perceived resources are more likely to rank as students’ first and second choices despite the cost. Colleges and Universities should take advantage of this perception by highlighting the breadth of their academic offerings, facilities, activities, and advising capabilities. Using high impact media will better allow for the full scope of these offerings to reach the target audience. Source: Art & Science Group
- Consumer comfort with entertainment activities and travel is finally passing pre-omicron levels. While comfort is still greater in more spacious and controllable settings (66% in a museum vs 52% at a concert), comfort in all categories is at an all-time pandemic high. More consumers will be looking for opportunities to test out this newfound comfort after feeling limited for so long. Brands in these spaces should actively target consumers with like interests to remind them of what they have been missing and entice them into their newly expanded comfort zone. Source: Morning Consult
- The cost of healthcare is overwhelming many Americans. According to a recent study, 51% of U.S. adults have delayed or cancelled a routine healthcare appointment (i.e., doctor visit, dental appointment, mental health services, vision checkup) in the last year due to the high out of pocket costs. For the same reason, 29% of U.S. adults have chosen to not take a prescription medication in the last year. As consumers are making the tough decision to focus their income on other priorities, their health is likely suffering. Healthcare practitioners and pharma brands will need to focus their brand strategies on getting consumers back in the doctors’ office for their routine visits and getting on track with their prescription medications. Healthcare systems and pharma brands may consider promoting payment plan options, coupons/rebates, or lower cost alternatives. Source: Kaiser Family Foundation/eMarketer