New data out indicates consumers are much less willing to give brands’ second chances. In fact, according to Blis, just over half (55%) of consumers say they have a ‘one strike and out’ rule for brands.
Researchers with the Unlocking the New Consumer Hierarchy of Needs report believe this signals an overall change for many consumers – a change that is leading many to be more rational with their purchases rather than emotional. That, because about one-third of shoppers say they’ll switch to cheaper brands if the quality remains high, and that is even if they’ve been loyal to a more expensive brand in the past.
“The retail landscape over the past decade has been turned on its head and the retailers who are thriving have adapted to these changes quickly. They understand that what was true of pre-2008 consumers is no longer so and have thrown out the old retail playbook,” says Gil Larsen, VP Americas at Blis. “For those able to navigate the new rules, there are a number of positive takeaways. Not least the fact that, while they research and compare on larger financial investments, these new consumers are spontaneous when it comes to lower cost, in-the-moment buys. Almost three quarters (83%) spend up to $50 per week this way, while the remaining 17% admit to spending $50+ on ad hoc items. This represents a significant amount of revenue on the table for brands that get it right.”
The good news is that although consumers are less likely to forgive mistakes, they are open to the power of suggestion. About two-thirds (69%) say they’re swayed by discounts and coupons all the way through the purchase process.
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