Americans to Prioritise Brand Over Price Despite Cost-of-Living Crisis

Americans to Prioritise Brand Over Price Despite Cost-of-Living Crisis

Despite being hit by inflation, a majority of Americans are waiting for Black Friday and Cyber Monday (BFCM) to buy certain products. According to a survey released by LoyaltyLion, a data-driven loyalty and engagement platform, 69 percent of consumers in America will wait for BFCM to make purchases. Surprisingly, shopping decisions of Americans will not be influenced by merely price. As much as 68 percent of consumers stated that they will give value to brands they trust more than the price.

Though Americans have been severely hit by price rise, 48 percent will prefer to shop for brands that align with their values. Talking about factors that encourage them to make a purchase:

  • Free Shipping: 85 percent of respondents said free shipping matters more than the best price.
  • Free Returns: 74 percent said free returns.

Despite squeezed household budget, consumers won’t decide only on price during BFCM. Having said that, 48 percent American consumers said that will get bored of hearing about BFCM as it goes on for too long.

Consumers want more for less, but also want to make sure the brands they buy from align with their values. Treat customers well now, during this difficult time, and they’ll become your advocates, and the key to driving more sustainable growth all year round.

Charlie Casey, CEO, LoyaltyLion

Consumers in Crisis

Out of the most affected Americans:

  • BFCM Buys: 67 percent claimed that they will make purchases during BFCM which they would have not made otherwise.
  • Trusted Brands: In fact, even the most affected Americans are most likely to give importance to brand they trust. As much as 72 percent said that they are likely to shop from brands they trust.
  • Brands With Principles: 53 percent said that they will prioritise brands whose principles are similar to their values.

“Won’t Be Dictated By Price And Deals Alone”

Commenting on the survey, Charlie Casey, CEO of LoyaltyLion, said, “The cost of living crisis is now front and center for many American consumers, significantly impacting shopping behaviors. Our research shows there will be a huge appetite for BFCM this year – consumers worried about rising costs are already thinking ahead about how to take advantage of the popular shopping period. However, this doesn’t mean they’re willing to let go of their values, and despite the worst squeeze on incomes in years, our findings reveal that consumers will be looking for brands they can really trust – they won’t be dictated to by price and deals alone.”

“Right now, consumers are more concerned about when they make purchases, and from whom. In the face of financial worries, consumers increasingly need to feel they can trust the brands they spend money with. Consumers want more for less, but also want to make sure the brands they buy from align with their values. Treat customers well now, during this difficult time, and they’ll become your advocates, and the key to driving more sustainable growth all year round,” added Casey.

Key Findings

  • Discounts: 79 percent of Americans consumers are waiting to get discounts during BFCM 2022.
  • Loyalty: 67 percent are likely to join loyalty program in case of good BFCM experience.
  • Referrals: 76 percent said they can also make a referral after the end of Black Friday And Cyber Monday.
  • Early Birds: 80 percent said early access to sales will motivate them to make purchases.
  • New Brands: 53 percent of consumers in America are open to trying new brands during the season.

BFCM Sales: Marketing Channels

LoyaltyLion’s research also asked respondents about the marketing channels used by brands to communicate during the sales. The top marketing medium on the list is email followed by social media. Sixty eight percent of consumers wanted to be connected through email while 43 percent said social media is best.

As much as 21 percent of respondents said communication can be held through advertisements on Instagram. However, four percent of consumers didn’t want to receive any messages related to BFCM sales. Sixty seven percent of Americans claimed that they will likely make purchases from brands that send personalised promotional messages.