Cost-of-living consumer caution is making shoppers more considered, lengthening buying journeys and increasing the number of digital touchpoints within their buying journeys, the latest research from insights-led customer engagement platform MoEngage has revealed.
Original research of over 3,200 European shoppers by MoEngage in its 2023 Global Consumer Trends Report showed that, as cost-of-living pressures continue to put a squeeze on household budgets, now 59% of consumers will visit retailers’ digital platforms, across both websites and apps, up to five times before making a purchase, with a further 38% saying they will make more than five visits to e-commerce platforms before parting with their cash.
Last month, retail sales continued to remain slow, with revenues remaining down 3.9% year-on-year, with stubbornly high food inflation blamed for consumer caution and the ‘cutback economy’; however UK retail sales did improve by +5% in May compared to April.
And as consumers consider where and how they cut back, with KPMG data suggesting 55% of UK shoppers have pared back non-essential spending, this caution is manifesting itself in more methodical shopping behaviours and customers taking longer to evaluate purchasing decisions. A recent poll by Trustpilot, for example, found the average UK shoppers is taking 30 per cent longer to make a purchase than they did 12 months ago, while MoEngage’s research showed increased average screen times, with 58% spending up to 4 hours each day on devices.
Jason Smith, VP UK & Europe at MoEngage, commented: “Impulse shopping is out, and savvy shopping is firmly in, as consumers weigh up where they spend and how they can make their disposable incomes stretch further. And, while longer consideration phases in shoppers’ buying journeys mean retailers and brands have to work harder for each conversion, it is also presenting them with multiple opportunities to engage and reengage the customer. Using personalisation powered by customer-insight, retailers can better serve those shoppers on their path to purchase and win both spend and loyalty.”
To find out more about how shoppers buying behaviours are evolving, download the 2023 Global Consumer Trends Report.