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Consumers Seek Value, Convenience, and Personalized Experiences
Amidst financial pressures, consumers are turning to brands and retailers for value, convenience, and personalized deals and experiences. The latest CPG + Grocery Consumer Report by RRD reveals that a staggering 88% of consumers are frustrated with rising prices. This report delves into the impact of inflation and increasing costs of everyday essentials on consumer behavior. Through a survey of over 1,800 consumers and 254 grocery, drug, and mass professionals, along with insights from RRD’s industry experts, the report uncovers key trends and provides strategies for marketers to stay competitive and relevant in this challenging landscape.
Key Highlights from the Report
Consumer Concerns and Strategies
Rising prices are a source of frustration for consumers across all income levels, particularly in grocery shopping. Essential items like food and beverages are causing frustration for 86% of shoppers. This concern extends to health-related items (78%) and household goods (75%). Even affluent households are feeling the pinch, with 79% expressing displeasure at escalating costs. To address these challenges, RRD’s experts recommend focusing on personalized promotions and relevant discounts to support and retain shoppers.
Maximizing Budgets with Smart Shopping
Consumers are adapting their grocery shopping strategies to make their budgets go further. Sales are a major driver, with 41% of shoppers stocking up during promotional periods. Other tactics include buying fewer items (37%), opting for less expensive brands (37%), or choosing private-label store brands (35%). Coupons and discounts remain crucial for saving money, with 34% of consumers only buying products on sale or with a coupon. Additionally, 32% of shoppers are sticking to strict shopping lists to avoid impulse purchases.
Factors Influencing Buying Decisions
Price is not the only factor influencing consumer choices. Convenience and proximity are key considerations, with 68% of shoppers, especially baby boomers (76%), preferring stores close to home. Shopping experience also matters, as 32% of consumers, including Gen Z (39%), millennials (37%), and parents (38%), are willing to go out of their way for stores that offer an enjoyable and unique shopping experience.
Retailers face the challenge of balancing convenience with experience, requiring investments in loyalty programs and personalized offers based on real data. By aligning with proven strategies, brands can better meet the needs of value-driven shoppers.
Consumer Expectations from Brands
Consumers seek retailers that understand their preferences and offer relevant deals (59%). Personalized discounts and rewards that make them feel valued are appreciated by 55% of shoppers. Tailored recommendations are also well-received, with 52% enjoying product suggestions based on their interests. Personalization plays a crucial role in building loyalty, as 47% of consumers feel a stronger connection to brands that offer customized messages and offers.
Local products and advertisements are gaining importance, with 57% of shoppers favoring stores with locally sourced goods and 56% wanting more ads featuring local items. When choosing where to shop, consumers prioritize good deals, quality products, special offers, and data privacy.
Anticipating Consumer Trends for 2025
Understanding these consumer and industry trends can guide strategies to enhance shopper engagement in 2025. For more insights and expert recommendations tailored to the CPG and grocery sectors, you can access the full report.