A Mulesoft survey of 5,000 consumers across the globe reveals critical changes to consumer spending amid inflation and economic uncertainty. The findings highlight current sentiment on spending and what it will take to earn consumer loyalty in 2023. Retail, travel, hospitality, media and entertainment are most at risk as consumers rethink spending
Consumers are thinking more critically about where they will spend their money in 2023. 81% saying they will reassess their budget over the next 12 months as they seek more personalised experiences
Retailers are most at risk
- The majority of consumers (79%) say they will reassess their spending with retail brands over the coming year.
- Travel and hospitality and media and entertainment also face the potential for lowered spend. 78% and 70% of consumers, respectively, reporting reassessment plans in those sectors.
Personalised, real-time experiences drive loyalty
An economy plagued by inflation and staffing shortages hasn’t lowered consumers’ expectations for top-notch service. 52% expect a better experience from their favourite brands as a result of the current economic climate.
The good news is these same consumers are clear about what they believe makes an improved experience.
Consumers also expect brands to use their data to offer more relevant customer services. More than 60% report they expect companies to react instantly with the most up-to-date information when transferring across departments. Bolstering trust can also be an opportunity for loyalty. 76% of consumers say that companies that provide data security will encourage their loyalty.
Disconnected experiences spark frustration for consumers
On the flip side of the coin, consumers were also willing to report what made for a poor experience. Consumers say their biggest frustrations when dealing with companies are when their experience is disconnected (40%). Being asked questions that they’ve answered before (35%) and being offered products that aren’t relevant to them (33%).
When added together, frustrating experiences create negative brand perceptions — and possibly, a future customer loss. According to 52% of consumers, poor quality service is the primary reason that prevents them from making repeat purchases.
Real-time data drives exceptional customer experiences
Research shows personalised customer experiences are no longer ‘nice to have,’ they are essential to competing in a changing economy. Real-time data offers a path for companies that want to compete in this new economy. These companies also want to deliver the personalised experiences consumers expect. When pulled together into a single source of truth, real-time data offers rich and actionable insights that can help deliver intelligent and connected customer experiences.
Consumers also expect brands to use their data to offer more relevant customer services. More than 60% reported they expect companies to react instantly with the most up-to-date information when being transferred across departments. “Companies that want to increase customer loyalty must leverage real-time, intelligent, and automated technology solutions that support seamless connected experiences and personalized journeys,” says Matt McLarty, Global Field CTO & VP of the Digital Transformation Office, MuleSoft, “Businesses must be capable of both understanding and acting on their data. This will mean the difference between thriving or surviving as businesses navigate challenges in 2023,” continued McLarty.
Bolstering trust can also be an opportunity for loyalty. 76% of consumers say that companies that provide data security will encourage their loyalty
Research Methodology
Salesforce conducted this global survey in partnership with Survey Monkey in December 2022. The total sample size was 5,038 adults: UK (1,015 adults), U.S. (1,008 adults), Canada (1,006 adults), Australia (1,005 adults), and Singapore (1,002 adults). The figures are representative of adult populations (aged 18+).
Enterprise Times: What this means for business
Not surprisingly, this new research from MuleSoft reveals that the economic turmoil is causing consumers to become fussier than ever. 81% say they’re reassessing their budget as they become more sensitive to the need to get value for their money. Furthermore, more than half of consumers say they now expect a better experience from their favourite brands. This spells trouble for brands that fail to address rising customer expectations for seamless and more personalised experiences. Many retailers risk losing wallet share, if they don’t plan for personalisation and user experience in their digital real estate. Previous research from Mulesoft has indicated that business demand for automation has surged over the last few years. Retailers wanting to implement personalisation and tailored user experience must automate data collecting tools and APIs to enable that seamless customer engagement.
Many of these findings also align with the recent CX trends report from Zendesk that also showed that organisations must break down the silos between and within functions.
