We are now just a few weeks short of that fateful month two years ago when we all learned about the “Novel Coronavirus”. Nobody could have anticipated just what the events of December 2019 would mean for the world.
Since then, our everyday conversations have become littered with all kinds of new terminology – “snap lockdown”, “self-isolation”, “iso”, “social distancing”, “the jab”, “covid” and if you’re here in Australia, “the Rona”.
Today, we are going to discuss another new phrase that financial analysts believe will make waves in Australia; “Revenge Spending”.
We are talking about Post-COVID Revenge Spending, and as a business owner, you may finally have something to look forward to!
In this article:
- What is Revenge Spending?
- What does it mean for your business?
- How to capitalise on this trend
Emerging From The Darkness
As vaccination rates reach their goals and cities begin to reopen, it almost feels like many of us are emerging from a dark cave, weary and adjusting our eyes to the bright light!
But as we begin to brave the big bad world again, just what will we do to celebrate and embrace this “new kind of normal”?
The world is beginning to rejoice as we collectively wave goodbye to Netflix and working at home in our tracksuit. Hello, Caribbean cruises, festivals and shopping sprees!
Hello, REVENGE SPENDING.
What is Revenge Spending?
Financial analysts have predicted that retail and services will see a boom as the world opens back up. Although many businesses have struggled and just as many have closed their doors, others have pivoted to grow and expand their products and services. Others still have seen unprecedented demand for their existing product range.
Despite job losses and economic downturns, many people have seen their financial position improve. Unable to travel and socialise, and faced with so much financial uncertainty, a lot of the population has turned their focus toward paying down debts and building their savings.
Working from home has meant reduced expenses for public transport, petrol and work lunches too. In fact, it is estimated that Australians have saved over $140 billion since the health crisis began.
When people have been through some very dark times, it is basic psychology that they find themselves needing to “cut loose”. More often than not, this translates to “splurge”. A frenzy of spending that occurs following a traumatic experience is referred to as “Revenge Spending”.
Some experts have even predicted that people will spend on items they feel they were “robbed” of during the pandemic.
What Does Post-COVID Revenge Spending Mean For Your Business?
A recent survey by Shopper Media has indicated that 2 out of 3 shoppers have tried new brands in the last 12 months and that 62% prefer to support local businesses.
Interestingly, 9 out of 10 consumers are confused about what brands they want to buy! It seems that brand loyalty is evolving into a thing of the past as businesses battle to be seen in the digital space.
Although shops are reopening and we are excited to dine out again, indications are that uncertainty may lead to hesitancy and a continued preference to shop from home online.
If you are an eCommerce retailer, now is your time to shine!
Don’t Get Lost In The Crowd
With this flurry of spending just on the horizon, now is the time to prepare your business. Now is the time to be seen!
If the predictions are to be believed, restaurants, bars and cafes will enjoy a Christmas season like no other. Beauty salons, hairdressers, gyms and event venues will be flooded with people eagerly wanting some much overdue pampering. Retailers, both online and in-store, will experience unprecedented Christmas spending.
To truly harness the benefits of revenge spending, your brand must be seen, remembered and searched for.
Don’t waste this opportunity. Take a quick audit of your business marketing. If you were your customer, would you be able to find and remember you?
Polish Your Website and Scrub Up on Your Digital Marketing
In anticipation of forthcoming revenge spending, you should review the functionality and visibility of your website. Ensure that you offer an easy and warm customer experience across all touchpoints.
Consider your digital advertising, SEO and social media. Do you have the ability to dominate search engines and the magic formula that stops people from scrolling in their tracks?
Brisbane Digital have all your bases covered and are your best ally when it comes to preparing for the revenge spending onslaught. Don’t get left in the wake of your competition who took the opportunity to prepare. Call us today to make sure that your brand is out in front.