2023 Trends & Predictions: What to Expect from Consumer Spending in the New Year
Valpak surveyed over 1,500 U.S. adults to understand their spending motivators and concerns going into the new year. Unsurprisingly, New Year’s resolutions around maintaining a healthy lifestyle with physical health goals (weight loss and fitness) featured prominently in survey results. The emphasis on healthy living, physical activity, healthy habits, overall self-care, and well-being has only been exacerbated by this year’s “viral jambalaya” of early flu season, RSV and COVID.
With record-breaking inflation gobbling up budgets, shoppers are clutching their pearls and their wallets, prioritizing purchases they need (good healthcare) vs. want (a new tech toy). Travel and entertainment buck the trend with a nationwide desire to leave lockdown life behind and experience the world again. Intentions to buy homes and cars are also high despite the economy with fingers crossed that bubbles burst and supply chains right themselves in the new year.
KEY FINDINGS
In 2023, consumers will:
- Prioritize self-care, travel and entertainment
- Reduce spending on other “unnecessary” items
- Purchase cars / homes if buying conditions improve
- Pay for professional help to reduce debt / save money
- Switch service providers based on customer service
- Buy what makes them feel comfortable and happy
- Travel, despite high costs and tight household budgets
Build your marketing strategy around these online survey result insights and make smarter advertising decisions that resonate with tomorrow’s consumers!
NEW YEAR’S RESOLUTIONS: NEW YEAR, NEW (& IMPROVED!) YOU
Losing weight, exercising, and healthy eating took their expected places as the top 2023 New Year’s resolutions. With soaring prices on everything from groceries to energy bills to tickets to Taylor Swift’s Eras tour… if you can get them, more than one-third of respondents (36%) also want to reduce debt and save money in the new year.
In the new year, I want to:
PRIORITIZING NEEDS ABOVE WANTS WHEN BUYING
“We all have to cut back somewhere. I will eat out a lot less, travel less and spend a lot less on entertainment. I just have to in order to make ends meet.”
Buying what you need (primary care) versus what you want (items on Amazon) can be a challenging impulse to control. Diamond’s are a girl’s best friend but that friend doesn’t put food on the table or pay the rent. Not all large purchases are frivolous or unavoidable though. Keeping a paid-off car running with routine maintenance is cheaper – until it isn’t. Living in a smaller home with a lower mortgage is great – until your family outgrows it. Many consumers have waited years to buy a car or home with detriment to quality of life. They are hopeful that availability and price will improve in the new year with 9% intending to buy a car and 5% to buy a home.
In the new year, I intend to:
GET MORE HOURS OF SLEEP, AND LET SOMEONE ELSE DO THE WORK
Traditionally, consumers often opt for do-it-for-me when it comes to auto maintenance (34%) and home improvements (23%). But there’s nothing like a recession to encourage learning new skill sets. Search YouTube and you’ll find DIY channels and videos on how to change your oil or build a deck or heck, build an entire house. It’s important to consider whether the money you save is worth the time or effort (or end product). Beyond cars and homes, consumers will be more proactive in protecting their assets in 2023, with 15% hiring professional help to manage their finances and taxes and 9% for legal advice.
In the new year, I intend to use a professional service for:
THE ITCH TO SWITCH │ WHAT WILL CONVINCE A CUSTOMER TO LEAVE?
Consumers are taking action; they will not sit idly by and deal with higher prices (55%) AND poor customer service (24%). They’ll just take their business elsewhere.
Certain providers, like banks and credit cards, are more complicated than others to move away from or switch. You trust your doctor and she accepts your insurance; there are 2 years left on your phone plan; nobody cuts your hair as well as your local hairstylist. When a business moves or shuts down, it’s easy for customers to switch. If not, advertising, word-of-mouth, and coupons can help them jump ship.
In the new year, I intend to switch:
HAPPINESS AND COMFORT COME IN A PURCHASING MOTION
Another need is (the need) to feel good about your buying choices. At the end of the day, how you feel about a purchase, whether smart or healthy or stylish, can make letting go of hard-earned cash that much easier. So why not kill two birds with one stone: get what you want and feel happy (58%), or useful (33%), or maybe even safe (36%) about buying it!
In the new year, I want to buy things that make me feel:
PLACES TO GO, PEOPLE TO SEE, WHERE AND HOW LONG (IS THE QUESTION)
“I’d like to do as much as possible, but with the price of everything going up, I might not be able to.”
When it comes to travel, U.S. consumers are willing to spend on what they want. More than half plan to take a vacation in the new year, ready to experience the outside world again. Of these vacationers, 75% plan to travel out of state and a whopping 23% will travel abroad, anxious to cross long-closed borders. Planning those bucket-list trips takes time and resources – 13% will use a travel agent or service for help.
Which of the following is in included in your travel plans?
PLACE A BET, ROLL A BALL, CLINK A FEW GLASSES BEFORE GOING TO A SPORTING EVENT
With all the social and online media and 24-hour news cycles, people want good entertainment of various kinds to help heal their souls and clear their minds. And just like with travel expenses, they are willing to pay for it, with going to the movies (45%), and attending a festival (32%) or concert (29%) being the most popular ways to relax and have fun.
In the new year, I plan to visit a ___ at least once:
MAKE THE MOST OUT OF YOUR YEAR WITH VALPAK
Understanding the priorities and desires of your target audience, their needs vs. wants, and what and how much they plan on spending is imperative in planning your marketing strategy. Despite higher prices in the stores and at the pump, people still want to travel, feel good and find a good deal. But they also want a fair price and a positive customer experience.
Whether shared direct mail, postcards, or social media ads, your local Valpak rep can help your business decide which channels are best for your needs and how to reach the right audience to get what you want out of advertising.
