Inflation doesn't affect everyone equally, but it's affecting even the most financially resilient.
Today, faced with an inflationary economy, the uncertainty of war and an unprecedented market, the emotional, aka irrational, part of people’s decision-making is driving a lot of their behavior, making it more challenging than ever for marketers to get ahead of the game. The American consumer is overwhelmingly facing what we call a narrative of loss. If a consumer loses a dollar, it’s going to take two dollars to make them feel even. Not winning, just even.
People are looking for emotional support as much as they need price support.
They want a narrative that reframes familiar prices into “gain stories” instead of “loss stories.” Consumers are still looking for pleasure, gratification, and bigger picture payoffs, even in the face of difficult economic conditions. And people’s attitudes about the future – are they optimistic or pessimistic – seem to have an overwhelming impact on how much psychological pain and price sensitivity they are experiencing.
When the world feels as uncertain as it does today, people crave something solid to offer a sense of stability and relative calm. Brands don’t just have permission to address uncertainty and loss, there is an expectation that this is part of their role.
We’ve come up with seven different approaches to help brands navigate these powerful dynamics and help their customers navigate this emotionally and psychologically stressful time.
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