Author: Annette Malave, SVP/Insights, RAB
The latest consumer confidence report for October just dropped. Not much changed from September, barely ticking down just one point to 94.6.
What is so interesting about this? It’s a total split between how people feel right now versus how they feel about the future.
What’s on a consumer’s mind? People are actually feeling a bit better about the current situation. Their view of today’s business conditions and the job market improved and is slightly upbeat. More people said jobs are “plentiful” for the first time since last December.
Here is the split. It is their perspective on the future that is an indication of some of the anxiety they are experiencing. People’s optimism about the next six months (covering their future income, business and job prospects) took a dip.
No surprises here. According to The Conference Boad Consumer Confidence Index, the top write-in responses by consumers were that prices and inflation are still high. That continues to be the main thing dragging down the mood.
When it came to specific demographic segments, for those who make less than $75,000 a year, confidence dropped while confidence improved for those earning more. Among age groups, 35-54-year-olds are feeling more confident, while their under 35 and over 55 cohorts are less confident.
As the holiday and big retail period quickly approaches, consumers will be thrifty and will look for many ways to save money. But these perspectives are not just limited to consumers, it is also common among small businesses.
The recently released Small Business Now report by Constant Contact uncovered that the top concerns for small businesses are rising costs and weak consumer spending. The positive news is that 72% of consumers return to small businesses every holiday season. And nine in 10 are likely to become repeat customers after the holiday purchase, according to Constant Contact.
It’s all about local. And the best local medium to get consumers to walk through a small business is broadcast radio – 58% of consumers who plan on shopping on Small Business Saturday tune in AM/FM radio, per MRI Simmons.
Whether you are reaching confident or anxious consumers, the data shows that everyone is aware of how they are spending their money. Retailers will want to focus their messaging to inform consumers of how shopping with them can help save money. Discounts, loyalty rewards and payment options are just some of the points retailers should include in their targeted messaging.
Based on MRI-Simmons’ Q4 Trending Topics data, 61% of adults who will buy products that are on sale – including store discounts, coupons digital savings apps and more, tune into broadcast radio. Retailers may want to consider offering alternative payment options such as BNPL (buy now, pay later), as 58% of adults who plan to pay for items via installments, also tune into radio.
Among growing consumer segments, specifically Black and Hispanic radio listeners, their plans are similar for spending. Thirty-six percent of Black radio listeners plan to buy products on sale versus 39% of Hispanic radio listeners. BNPL is not as top of mind as an option as only 19% of Blacks and Hispanics plan to use this as an option.
While it looks like people are planning to tighten their belts, the forecast for local small business is good. Small businesses are supported by their local community because those businesses mean so much to the residents. As the only local medium that is 100% focused on serving the needs of that community – sharing news, information and even sales deals – broadcast radio is the medium for small businesses to use. It is the trusted voice and the connection that can drive listeners – small business patrons – to their websites and brick-and-mortar locations.
This post was originally published on Radio Matters.