Inflation makes customers think twice before they decide to open their wallets. And although they are still buying, their behavior has changed. In the eCommerce sector, we observe an inflation-induced loyalty recession that puts marketers in a paradoxical situation: they must increase their effectiveness without increasing the costs of operations. There is a way out of this—the lean way.
Customer behavior has changed
Many recent studies and surveys show inflation-induced customer behavior changes. Among them, the most significant for eCommerce are:
Inflation hasn’t stopped consumers from buying—yet!
In the early months of 2022, amid record inflation, US consumers continued to open their wallets. As McKinsey observes, US inflation grew to nearly 8.5% in March 2022, with May 2021 to March 2022 period showing the highest inflation in a decade. Yet, US consumers spent 18% more in March 20… Read More