Latest UK ONS figures show that retail sales volumes increased by 0.3% over the last month, following an increase of 0.5% in April showing that UK shoppers are continuing to spend despite the rise in inflation.
However, with the interest rate announcement yesterday and other challenges looming this summer, companies shouldn’t sit on their laurels.
Current economic issues mean the UK public are being savvy and brand loyalty is definlty failing, recent Botify research data shows 59% of UK shoppers now place cost over whether they trust a brand.
Robert Rothschild, CMO of organic search platform, Botify doesn’t believe this should lead all UK retailers should start cutting all their prices. Instead, Robert maintains this is the time all retailers should be investing in share of voice to maintain marketing strategies and build longer term trust as retail figures look to rise over the summer. The same research showing that one in five UK consumers will hold trust in a brand forever, Robert believes this tactic will allow brands to ultimately see an improvement in longer-term profitability.
“When the heat rises, wallets feel the burn as people splurge. But, the reality remains: people are tightening their purse strings which means less disposable income to go on shopping. Retailers are feeling this pinch and marketing budgets are likely to be under risk as part of wider cost-cutting measures.”
“In the face of reduced sales and profit, businesses often opt to cut variable costs like marketing to meet wider business targets. However, throughout history, evidence shows that this approach may leave the brand at a disadvantage when the economy recovers.”
“When every pound matters, it is more important than ever to ensure you’re placing bets where you know they will have the greatest impact. There are more cost-effective tactics that can be focused on in order to retain, and even grow, brand authority. Organic search is one of these. Customers trust a strong search presence, 44.73% say they trust a brand more if it appears higher in results. So, if your budget is under the cosh, focus on the activities that will help you reap the rewards in years to come.”
Robert Rothschild, CMO at Botify