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Results reveal that consumer spending remains resilient in the face of getting mixed signals of a strong job market, interest rate rises, and persistent inflation
NEW YORK, May 2, 2023 /PRNewswire/ -- Consumers' planned budgets for shopping edged up slightly, according to the results of three surveys, each of more than 400 US consumers, fielded in August 2022, February 2023, and March 2023. In February, fourteen percent (14%) of respondents expected to budget more for shopping in 2023 – results in March reveal that 22% planned on increasing their budgets for shopping for summer. These results compare to a survey in August 2022, when 19% of respondents expected to budget more shopping in holiday at the end of 2022. The survey results are from the Optimove, a Customer-Led Marketing platform used by hundreds of leading global consumer brands.
Consumer planned budgets for shopping
more
same
less
August 2022: planned shopping budget
19 %
42 %
39 %
February 2023: planned shopping budget
14 %
47 %
39 %
March 2023: planned shopping budget
22 %
41 %
37 %
The surveys each compared planned shopping budgets for the upcoming year or season.
In addition, respondents' confidence in the economy has improved. In February, 21% of Optimove survey respondents also said they had more confidence in the economy for 2023. The positive feeling rose to 24% in the March survey. The data aligned with consumer confidence reported by The Conference Board, which showed its Consumer Confidence Index® increased slightly in March to 104.2 (1985=100), up from 103.4 in February.
Related is low U.S. unemployment at 3.6% at the end of February and at 3.5% at the end of March. In addition, the U.S. inflation index was 5.0% for the 12 months ended March, following 6.0% in the previous period, according to U.S. Labor Department data published April 12, 2023. The rate has been high since 2021, at 7%. Before 2021, inflation was held in check at around 1-2% since 2013.
In addition, the Federal Reserve "seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent" on March 22. These moves were made in the immediate aftermath of U.S. bank failures, including Silicon Valley Bank and Signature Bank, however, the Fed stated that "The U.S. banking system is sound and resilient."
According to Pini Yakuel, CEO of Optimove, "Consumer spending remains resilient in the face of mixed signals between the strong job market, interest rate rises, and inflation. In this environment, brands must create deeper personal relationships based on customer information and continue fostering trust. Our research consistently shows that 70% or more of consumers unsubscribe from a brand due to a breach of trust."
Optimove consumer survey data revealed that 73% will of consumers unsubscribe if they think a brand misused their personal information.
About the surveys:
The Optimove 2022 Consumer Holiday Retail Shopping Survey queried 514 U.S. consumers in August 2022. The Optimove 2023 Consumer Marketing Fatigue Survey surveyed 450 U.S. consumers fielded in January 2023. The Optimove 2023 Consumer Summer Shopping Survey surveyed 400 U.S. consumers. Respondents for each survey were ages 18-plus, 49% male/51% female (no respondents were non-binary or declined to answer), and household incomes were $75,000-plus.
About Optimove:
Optimove is the first Customer-Led Marketing Platform. Its solutions ensure that marketing always starts with the customer instead of a campaign or product. Customer-Led Marketing has been proven to deliver brands an average increase of 33% in customer lifetime value.
It is the only Customer-Led Marketing Platform powered by the combination of 1) rich historical, real-time, and predictive customer data, 2) AI-led multichannel journey orchestration, and 3) statistically credible multitouch attribution of every marketing action.
Optimove provides industry-specific and use-case solutions for hundreds of leading consumer brands including BetMGM, SodaStream, Pennsylvania Lottery, Papa John's, and Staples.
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SOURCE Optimove