IPA study: What brands must do for their customers in the cost of living crisis

Household costs are rocketing as energy costs spiral and the prices of essential products keep increasing – new research from the IPA suggests that consumer demands on brands are changing: here’s what you need to know.

Why it matters

In serious, costly times, in which people are aware that cost increases are being passed onto consumers, light entertainment matters less than maintaining fair prices, absorbing costs on value ranges.

The data

Based on an Opinium poll of 2,000 UK-based respondents, commissioned by advertising agency trade body the IPA, the most commonly cited ways in which brands could help consumers through the cost of living crisis are to:

• Keep prices fair (57%)
• Freeze price on value-range products or services (36%)
• Offer more value for money promotions (33%)
• Reward existing customers’ loyalty (30%)
• Increase the number of promotions they offer (28%)

The least popular actions, meanwhile:

• Entertain and make customers laugh/smile (5%)
• Engage directly with customers to develop new solutions and ideas (8%)
• Offer affordable customer finance (10%)

Some demographic differences

Women were slightly more likely than men to express a preference for fair prices (62% versus 52%), as were older (55+) respondents at 72%. Older respondents were also much less likely to mention entertainment at just 2%.

Key quote

“The cost of living crisis is a serious issue especially for those at the older end of the spectrum, so it is understandable that consumers aren’t looking to brands to provide the fun but to provide help where it hits hardest – their finances” – Paul Bainsfair, director general, IPA.

Sourced from the IPA