Today's customers are offered a wider range than in the past
Each new year represents a fresh start, whose resolutions provide a recurring opportunity to transform our lives for the better, whether it be better health, relationships, finances, or whatever else we deem most important. Thus they can be created new opportunities also for companies, but changing needs and priorities can also lead to new risks. What, then, can be done to appeal to consumers at this critical time of the year, when people are rethinking their goals and charting a new course for the months ahead?
To better understand how today's consumers think about their New Year's resolutions, we surveyed a diverse group of 500 adults from across the United States in the last week of 2022. We found that two out of three planned to make at least one New Year's resolution. significant purchase for 2023 and most indicated they have more than one in mind.
We have found that the most common type of purpose is related to health, with 58% of respondents wanting to exercise more in the new year, 55% eat healthier and 54% lose weight.
The second most common type is that financial, with 42% of respondents deciding to save more and 41% hoping to pay off debt or spend less by buying fewer non-essential items, more low-cost and non-branded products, less impulse buying, more research before making expensive purchases and finding cheaper alternatives for common expenses (like walking, or using a fitness app instead of paying for a gym membership, or cooking instead of eating out).
Finally, 21% of our respondents cited self-improvement goals, such as learning a new skill, devote more time to hobbies and organize yourself better, while a number relatively fewer people made social or work-related resolutions: only 18% of the respondents planned to spend more time with friends or family, 12% to spend less time on social media, another 12% aimed to improve their work-life balance and 8% decided to improve their performance at work.
It's clear that today's customers prioritize a wide variety of goals. However, despite this variety, our data has identified several strategies that can help any business navigate changing customer priorities and leverage the New Year's mindset.
Help your customers build healthy habits.
I'm looking to buy things that help me reach my goal faster and reinforce the habits I'm changing
People know that achieving their goals will not be easy. While 60% of respondents were moderately to extremely optimistic about their chances of success, more than half still indicated that they are looking for products that help them turn their goals into long-term habits. It is therefore a great time for companies to highlight how their products can help people achieve this goal.
For example, on its homepage, grocery chain Sprouts invited viewers to “Make 2023 a biological year” with a link to a list of its top organic products, while Target's homepage featured the “Fresh Start ” which offered easy access to “Everything you need to focus on your well-being”. Our participants also expressed particular interest in habit-tracking apps like Google Fit, which tracks health parameters; Stopwatch, which tracks meals; SPAVE, for expenses and savings; or general habit-building apps like Strides. Regardless of your industry, your customers are looking for ways to build healthier habits. Finding ways to highlight how your product or company can help them track their progress and achieve their goals is key to keeping your brand front and center.
Reach new customers.
I think I will be more open to new products and brands that I DO NOT currently use. I think in 2023, I will intentionally look for different brands and products
In most cases, it can be difficult to overcome people's resistance to change and convince them to try a new brand. But the "fresh start" mentality associated with a new year can often counteract this hesitation. In fact, the 80% of our participants said they would try a new brand in 2023 if they thought it could help them achieve their goals. The start of a new year is therefore a great time to grow your customer base by reaching people who may never have considered your products, perhaps with a special promotion for the new year or with free samples of your most popular articles. This is also an especially important time for smaller, lesser-known brands, as many of our respondents said they wanted to switch to off-brand products as one of their resolutions.
Introduce new products.
I want to be more open to trying new things… I hope to find new products, [instead of being stuck with] products that don't work the way I want them to.
Just as the New Year can be a great opportunity to attract new customers, it's also the perfect time to encourage existing ones to try a new product or shopping experience. Territorial Seeds Company, for example, emailed its customers in early January to introduce a new line of flower seeds. Women's businesswear brand MM LaFleur has launched a new line of clothes its co-founders think will define style in 2023. You don't need to make drastic changes to your core offerings, but our research shows that highlighting and promoting new options in the period around New Years can give good results. So consider launching a new product, releasing a new feature, or even just rearranging the layout of your store. Your customers are particularly open to trying new things right now, so give them the sense of “newness” they seek!
Promote consumer loyalty.
I think that in the new year I will no longer be loyal to brands, because non-branded products are usually just as good, but cheaper.
Of course, the flip side of being more willing to try your brand or products is that they may also be more willing to abandon them to switch to those of a competitor. Even if they're not particularly dissatisfied with your company, the same "fresh start" mentality that might help you attract new customers might also make your current ones look for new options. For this reason, while on the one hand it is always important maintain strong relationships with loyal customerson the other hand it is even more important at this time of year.
This means doing everything possible to build strong personal relationships with your customers. After all, it's harder to abandon a brand if you feel personally connected to it. For example, in the weeks leading up to New Year's, pet retailer Chewy sends out handwritten greeting cards to all of its major customers. While many large retailers send out non-personalized cards, Chewy's handwritten, personalized notes help the brand stand out and foster a sense of real connection with them.
Also rewards programsa can be an effective strategy for increasing customer loyalty. It's not just about financially incentivizing them to come back. Research shows that rewards programs can help strengthen customers' relationship with a brand, and in many cases, consumers may value experiential rewards more than material ones. So instead of just offering discounts or promotions, consider including experiences like movie tickets or access to exclusive content to help them feel a stronger connection to your brand. Expedia, for example, is offering members special deals on a “Best Travel 2023” list, giving its loyal customers exclusive access to discounts on these select vacation spots.
Help clients reach their financial goals.
I'll use coupons, watch sales, and not make impulse buys. I will follow a strict list of only basic necessities
Especially in the face of rising inflation and the looming economic recession, many of our respondents said they wanted to save more, spend less and pay off debt to meet their financial goals for the new year. One of them explained: “I will spend less. I will buy less at the supermarket and what I save will go to finance the principal on my mortgage”.
To attract customers increasingly aware of financial responsibility, you can think of offering promotions, discounts, coupons and flexible payment options. Home improvement retailer Everything Kitchens, for example, held a New Year's Eve sale inviting customers to "start your resolution!" With its discounted products, Bose has run a similar promotion offering "new discounts to get you in the new year," and many gyms are using creative payment structures like advance sales and group deals to attract new members. You may also consider targeted advertising campaigns, partnerships with other brands, or even teaming up with social media influencers like The Deal Guy to make sure your promotions reach as many people as possible.
Prioritize value.
I will focus very much on the real value of everything I buy. I will likely buy fewer things that aren't absolutely necessary and only spend on products that offer me value
Despite heightened price sensitivity, today's consumers aren't necessarily looking for budget options. Conversely, our research found that people are willing to spend on products and brands that they offer real value and help them achieve their goals. “I think if these products can help me achieve my goals, I would be more than willing to buy them,” explained one respondent. “If, after using them, I find that they help me stay on course to achieve my goals, I will continue to buy them.” In fact, 75% of our respondents said they expect to spend more to reach their health goals: many of them plan to buy exercise equipment, join the gym or opt for healthier foods and more expensive at the supermarket. As one participant complained, “unfortunately, eating healthy costs more. Buying healthier products and foods costs more than junk food”. To balance these conflicting goals, many participants planned to spend more on products that promote a healthy lifestyle or appear to be a "good deal" while reducing spending on products such as junk food or luxury items.
What can brands do to prove that they are valuable to an increasingly value-conscious clientele? Investing in quality is always important, but retailers can also find ways to add further value to their existing products and communicate this to customers. For example, skincare brand One Skin invited its customers to attend a free webinar where a health coach shared her experience on how fitness affects skin health and longevity, while Supplement brand Vital Proteins has emailed its subscribers a list of New Year's recipes highlighting different ways to use its products. Content like this can be a great way to provide some added value to customers and remind them why your core products are worth paying for.
Help your customers do good.
I will try to buy more green products. I will try to reduce my plastic consumption, so I will be looking more for items made with recyclable and reused packaging
Finally, the New Year is a time when people are often especially focused not only on their own improvement, but also about having a positive impact in the world. So consider taking proactive steps to show your support for the causes that matter most to you and your clients. This can mean donating to a local charity, launching a social initiative or even something tactical like switching to greener packaging. For example, as part of Patagonia's Worn Wear initiative to reduce consumption and landfill, the clothing brand offers a double purchase voucher during the first month of the year to anyone returning used products. While the majority of respondents to our survey didn't make any real resolutions about sponsoring companies that support issues they care about, many indicated that they hope to champion these issues themselves, so the companies that help them in this sense they will probably be particularly successful in attracting customers at this time.
All over the world, the New Year is a time of optimism, hope and change. But the resolutions we make on the first day of January aren't just about our lives. They also influence our purchasing decisions, which in turn present opportunities and risks for companies. To succeed in the new year, retailers need to understand how changing consumer mindsets can impact their business – and make their resolutions to anticipate their customers' evolving needs while delivering the value today's shoppers are looking for. .
Ayalla Ruvio is an associate professor of marketing at Michigan State University's Eli Broad College of Business and director of the Master of Science in Marketing Research (MSMR).
Forrest V. Morgeson is a researcher at the Broad College of Business at Michigan State University, (former) research director of the American Customer Satisfaction Index (ACSI), and co-author of The Reign of the Customer: Customer-Centric Approaches to Improving Customer Satisfaction.
April Clobes he is President/CEO of the Michigan State University Federal Credit Union (MSUFCU) and of the Reseda Group.
