How can brands help people save?

The darkest time of the year has begun, and along with it, the heating season, affecting the budgets of every household. This season should be easier, as electricity and gas tariffs have decreased, and the saving skills acquired in previous seasons would come in handy. However, new expenses are already vying for these apparent savings, such as the increased Sadales tīkls’ tariffs or the rising Euribor rates. Therefore, the issue of making ends meet continues to be a sore point in society.

Decisions in economy and business are predominantly driven by numbers. But companies must be able to see beyond these numbers – the people, their values, and needs. Research shows that economic crises give rise to emotions associated with despair, disappointment, and incomprehension. Moreover, given the tumultuous events of the world, many of us are experiencing the most unpredictable times in our lives. 77% of consumers worldwide expect brands to support them in crisis situations. They believe that just as they care for their loved ones in difficult times, brands should take care of their customers. This is a great opportunity for brands to be authentic and attract new customers.

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Ways in which brands can help consumers save:

Predictability

To help people in uncertain and unpredictable times, a brand can provide stability. Retail brands globally "freeze" product prices to make purchase costs predictable for buyers. The supermarket Carrefour Argentina developed a "Courageous Prices" campaign, guaranteeing fixed prices for more than 3,000 products. The guaranteed prices were even engraved on metal price tags, symbolizing price stability. This year, a similar tactic was widespread in the UK, offered by almost all major retailers. Rimi, a local supermarket, also offered a similar "Fixed Prices" campaign for 6 months.

Image: Richard Walker/Asda

Carrefour in France has gone even further by developing a tool called Hopla, based on ChatGPT, to help shoppers make daily purchases within a set budget. The tool will suggest anti-waste solutions by recommending recipes based on the items placed in the shopping cart.

Empathy

To alleviate the emotional impact of the crisis on consumers, a brand can offer empathetic solutions. In the UK, the price of infant formula milk has risen by 45% over the past two years, making it unaffordable for some parents. While technically prices can be reduced, the law prohibits their communication. The law also forbids retailers from allowing the purchase of formula with loyalty points or gift cards. Therefore, the Iceland brand has taken on a Challenger role in supporting its customers. It has reduced the prices of its brand's products and received criticism from authorities for doing so. Iceland is taking a stand against this injustice and has called for a petition to allow the purchase of these products with loyalty points and gift cards.

Meanwhile, the retail brand Asda has devised a strategy to help feed children in England and Wales. They offer a meal for just £1 in their cafes 24/7.

Product Value

Price is not always the sole criterion when making a purchase. Brands have a limit to how far they can reduce prices because the "price war" strategy only works in the short term. Furthermore, it doesn't provide authenticity and customer loyalty to the brand. Nowadays, the value of the product is becoming increasingly important when making a purchase decision. By adding value to their product, brands can become unique and gain a stronger position in the competition.

For example, the retail chain Sainsbury's launched a campaign promoting the use of legumes in daily meals to replace meat, helping consumers save on costs. In this case, it's not just about beans at a favorable price but advice or a solution to the sore issue of costs. It's worth noting that this approach also incorporates sustainability aspects.

Another example would be Jamie Oliver's TV show and book "One-Pan Wonders," which includes recipes that require using and washing only one item of cookware (thus consuming less energy).

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Retailers and brands have the opportunity to highlight products that provide long-term value. People actively purchased air fryers that consume less energy on meal preparation compared to an oven. Similarly, when buying clothes, preference is given to low-temperature washing, which saves energy.

Emotional Connection

No matter how pragmatic decisions are, emotions still play a significant role even in challenging economic circumstances. Creating strong emotional bonds with consumers can help companies retain customers during crises. Starbucks brand consistently focuses on building connections with the community in its stores, providing a place for people to gather outside their homes and workplaces. Thus, Starbucks is present and becomes a part of people's lives, even in stressful times.

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In crisis situations, companies often reduce their investments in marketing. However, successful brands will be those that stand up to life's challenges with authentic solutions or values that improve the consumer's life in difficult circumstances.