With rising inflation in already unstable macroeconomic post-pandemic conditions, consumer behaviors and habits are changing faster than ever.
Marketers who want to maintain relevance in an ever-shifting economy need to prove they’re agile, well-informed and forward-thinking. They need to understand changing consumer sentiments and address them appropriately.
The “Read the Room” survey does just that.
It reveals key segments among Australian consumers, and shows how they’re dealing with economic challenges and increasing cost of living.
The survey is based on feedback from 2,052 Australians, providing Dentsu with quantifiable insight into different consumer groups’ ability to cope with economic turmoil.
Dentsu categorized the key consumer segments as follows: the Rich & Ready, the Bet Hedgers, the Wealthy & Unwise, the Suffering & Scared and those Living for Today.
Members of each segment respond differently to Reserve Bank of Australia’s announcements that arrive on the first Tuesday of the month.
When the Reserve Bank of Australia makes a change that impacts every Australian, such as raising interest rates, each of the segments “Read the Room” identified will react to it in a specific way based on their financial status. Marketers and brands need to show understanding and sympathy for their audiences if they’re to stay relevant in the current circumstances.
“Inflation, rising interest rates and stagnant wages are having a direct impact on the standard of living for everyday Australians,” said David Halter, chief strategy & growth officer at Dentsu ANZ.
Halter went on to highlight the importance of the first Tuesday each month as the nation awaits the next Reserve Bank of Australia’s announcements with bated breath.
“The first Tuesday of every month is shaping up to be a critical time for consumers, with many consumers using the RBA rate announcement to carefully plan their budgets and this is when brands should also be thinking about their marketing,” Halter continued.
Ultimately, Dentsu’s “Read the Room” should assist marketers in responding to changing conditions by providing them with insight into consumer behaviors and expectations.
“Knowing which category your consumers are in is the first step for any marketer navigating the current economic conditions. Brands must be asking themselves critical questions to turn these consumer insights into opportunities,” Halter added.
“Read the Room” has a lot of potential for marketers, not just in identifying consumer segments, but also in making sense of the latest news.
The bank’s announcements are often excessively bleak, but not necessarily reflective of real-world conditions and consumers’ spending power. It’s up to marketers to find the middle ground.