Inflation's Uneven Impact Across Age Groups

[00:00:06] Welcome to our new Retail Razor Show, Data Plades. Our new standalone Retail Razor Show where we talk real-world numbers and slice through measurable consumer insights based on research at the point of sale. And bringing us to slicing and dicing of data is Georgina Nelson, CEO of TrueRating.

[00:00:23] TrueRating helps retailers hear directly from validated shoppers daily and recently hit a major milestone of half a billion responses. Retailers using TrueRating averaged an 80% response rate on questions asked, made possible by asking a single rotating question directly on the POS pin pad, making it a seamless part of the shopper's checkout experience.

[00:00:48] TrueRating also works with their retail partners to develop consumer insights reports by running questions on an industry topic or theme. These anonymous responses are linked to metrics such as basket size and repeat visits to produce industry changing insights like the ones Georgina will share with us today and raise our data blades. I'm your host, Ricardo Belmar. And I'm your co-host, Kasey Golden. Welcome, Georgina. Thank you so much for having me.

[00:01:14] So today's Retail Razor Data Blades segment is inflation doesn't impact everyone the same way. Georgina, tell us more. So yeah, we've done some consumer insight research over the past few months to really try and understand how all these macroeconomic trends are influencing consumers and their shopping behavior and habits.

[00:01:35] We sampled over 170,000 consumers across our key markets in the UK, North America and Australia. And I think in terms of the nugget I wanted to shout about today was just really, I guess not surprising me, the number of people who are noticing the impact on rising cost of living. And that was a whopping 81% of consumers registered that change.

[00:02:04] But where I think it gets interesting, and as you say, Ricardo, slicing and dicing that data is looking at the differences across demographics and age range. So when we looked at seniors, we found that 89% had been noticing the rising cost of living. But take that, flip that up and look at those under 30 and only 75%.

[00:02:27] And so when you actually think about how the cost of living is impacting different demographics, I think it's really focused on the rising cost of food, food bills, keeping your house warm. And yeah, and fuel, etc. And so many of us, including me, did a few stints living with mom and dad in my 20s. And so those household bills aren't impacting us as much.

[00:02:54] And I think that's really the key lesson is that it's not a generic, homogenous, sweep all impact. We have to really look at slicing and dicing that data and getting very granular insights about how these trends are impacting different groups. So, Georgina, we so often hear retailers being tempted to chase the newest and youngest demographic because they believe that's where the staying power is and the greater lifetime customer value might come from.

[00:03:21] But from the data you're telling us, it seems to tell us really that retailers need to both tailor their messaging and their targeting to uniquely speak to each of those demographics to get the best conversion just based on how current economic conditions are impacting them differently. So how would you say retailers should react to this data? Yeah, I very much agree. I think it needs to be a nuanced approach. And primarily to survive these times, retailers need to really invest in understanding their consumers.

[00:03:51] And as we saw through the pandemic, how quickly these consumers are changing and keeping abreast of that. And so that means nuanced and targeted messaging to different consumer groups. But also I think it's down to a store level, taking a very granular approach. Each store, as I always say, is a snowflake and they have their own clientele, their own customer mix.

[00:04:17] And so being able to get customer insight down to that store and granular level and really understanding that that mix up helps you have targeted and nuanced strategies depending on that store.

[00:04:30] So if you do need to make a price increase, it might be an idea to look across the whole of North America, for example, and understand your base and share that distribution across different states and vary that price increase depending on the customer base, for example.

[00:04:48] So I definitely think that those retailers who are on the front foot with understanding their customers and being able to react really quickly to sentiment and changes in behavior are those who are going to have the competitive advantage as we muddle through these times. That's great, Georgina. Thank you so much for joining us today on Retail Razor's Data Blades. Thank you. It's been a pleasure.

[00:05:12] If you enjoyed our show, please consider giving us a five-star rating and review on Apple Podcasts and Good Pods. Remember to smash that subscribe button in your favorite podcast player and tune in on YouTube so you don't miss a minute. I'm your co-host, Kasey Golden. Please share your feedback with us on Twitter at KCCGolden, Ricardo underscore Belmar, and at Retail Razor, or find us on LinkedIn, Threads, and Instagram.

[00:05:36] For the best highlights from each episode shipped straight to your inbox, subscribe to our Substack newsletter for full episode transcripts and bonus content. I'm your host, Ricardo Belmar. Thanks for joining us. Until next time, keep cutting through the clutter and stay sharp. This is the Retail Razor Data Blades.