Audience habits are changing as people seek to navigate rising costs. We have entered a period of significant flux. Medialab is determined to help our clients and partners stay on the right side of this flux, understanding and responding to changing behaviours as people seek to get more for their money.
A first step is our bespoke survey with partners YouGov, and report ‘Navigating the Big Squeeze’.
Clear differences are emerging in the impact of the cost-of-living crisis*:
16% of people have already taken Significant Steps to reduce their outgoings. They are likelier to be female, have children and pets in the household, receive benefits, and have less than £125 monthly personal discretionary income. Support is key. Many will seek to manage credit card balances and loans. 1 in 4 will draw down on their savings. 39% are concerned about their credit score. Many will cut out all non-essential spending.
35% have taken Some Steps to reduce outgoings. The most nationally representative group. Key for this group is helping them stay within budget. 24% are already saving for an emergency fund. They will seek out higher-rate savings accounts to make this stretch. Over 30% will cut back on subscriptions and over 40% on bigger purchases. But offering them lower-cost options may help to keep them on board.
34% are Planning/Considering reductions to their outgoings. They have fewer young dependents than the other groups and are likelier to have higher levels of savings to buffer them. 75% expect to continue with larger household purchases. 35% are saving for their next vacation – they are motivated to save for the future, for retirement, or even to fund a new education course to sign-up for. Likeliest of the groups to have voted Lib Dem in the last election.
A mere 7% feel Confident they can manage through the crisis. More male and more insulated. They will continue to save, make bigger purchases and continue subscriptions. They are likelier to be engaged with the news, and less likely to feel overwhelmed. They own ISAs, Pensions, Premium Bonds and Stocks and Shares and many will continue with bigger household purchases.
This phenomenal period of change to our habits and buying patterns presents an important opportunity to retain and appeal to customers. In order to understand and track that change, we will also be sharing a follow-up survey and report in November to understand how these audience habits have shifted over that time.
If you would like us to talk you through the full ‘Navigating the Big Squeeze’ report, please get in touch with our Integration Director, Nick Parker, at nick.parker@mlold.lucidgraphics.co.uk
*8% of the survey sample didn’t know or preferred not to say which group they fit in.
