Tue, 06 Dec 2022 11:29:18 GMT
As the cost-of-living crisis continues to dominate headlines, new research from dentsu UK&I carried out by B2B International urges brands to ‘Read the Room’ by revealing how consumers are responding to the UK’s current economic conditions.
Surveying 2000 people about the financial products they hold, their spending and attitudes towards finance, ‘Read the Room’ identifies seven core groups in the UK to help brands understand how uncertainty is impacting consumers in different ways and what this means for them.
1. Keeping heads above water (20%) are struggling to make ends meet and are extremely anxious about their finances. They are facing tough choices and cutting back on grocery spending due to escalating costs for heating and rent.
2. Anxious debtors (22%) are very worried about their finances despite being in a relatively strong position in terms of household income. They often use buy now, pay later methods of spending and don’t prioritise savings or investment. Their housing situation may not be stable, and they don’t feel well-off, despite how it may look outwardly.
3. Budget to retire (11%) feel they are struggling and either are, or will be reliant on state pension. They are starting to cut-back on spending. However, most have savings and many no longer have a mortgage.
4. Ambitious for future (17%) are working full-time, and their good level of income allows them to save. They feel relatively stable, and some are confident that the UK economy will improve over the next 12 months.
5. Comfortable & unaffected (8%) are retired or close to retirement. They are able to save a considerable amount each month across multiple financial products. They own their home and have plenty of savings, so feel cushioned from economic uncertainty.
6. Comfortable retirement (14%) have enough income to cover their bills and still spend a considerable portion on non-essential purchases. They aren’t worried about their finances or the impact the economy will have on them.
7. Secure optimists (8%) feel secure and protected from the current economic uncertainty. They are often older and have paid off their mortgage which gives them a stable foundation to weather change. Their budget primarily goes towards non-essential purchases, rather than putting it into savings.
‘Read the Room’ is designed to help marketers and brands gain fast consumer insights and adapt marketing plans in response to changing conditions. It sets out key steps brands can take to support customers across these segments, from strategies grounded in targeted, temporary support and financial wellbeing, to rewards and discreet purchasing for consumers’ less impacted by the cost-of-living crisis.
For many advertisers, brand building against the backdrop of current economic conditions will require investment and a shift in strategy. To help with this, dentsu's Read the Room offers a fresh playbook to guide them through these unique and changing times. It combines the new research findings with recently released industry data from Carat’s Brand EQ study, underlining the correlation between a brand’s emotional intelligence and success, and dentsu’s Finance DNA research which explores key themes shaping the next decade for the finance and payments sector.
More from Read the Room is available to download here.
Read the full report here.view more - Trends and Insightdentsu X, Tue, 06 Dec 2022 11:29:18 GMT