Here’s Where Consumers Will Splurge in 2022

consumerswillsplurge

After nearly two years of restrictions and uncertainty, you can almost hear the collective sigh of relief and the sound of cash registers ringing up sales. Do we know where consumers will splurge in 2022? Yes – thanks to the 2022 Consumer Culture Report from 5Wpr.

Consumers Will Splurge

Consumers miss dining out. And this year, 37% will return to this favorite activity. Consumers in the 25-​to-​54 age group listed dining out as one of the top three areas of extra spending for 2022. Health and wellness products and activities made the list of top three spending areas for 16-​to-​24-​year-​olds and those who are 55 and older. The electronics and technology category also scored as a top spending category for consumers of all ages.

Favorite Shopping Locations

Consumers have also had enough of staying home. Yes, they’ve grown accustomed to purchasing regularly used products online – ranging from groceries to household goods like cleaning supplies. But 52% of consumers “now prefer to find new products in-​store rather than online.” When asked why they prefer a physical shopping environment, consumers told researchers:

  • They like the in-​store experience (47%).
  • Shopping is an activity to be enjoyed with friends and family members (21%).
  • They believe in-​person sales staff possesses expertise (23%).

Consumers will be shopping and dining in-​person in 2022, but they aren’t throwing all caution to the wind. Nearly all, 84%, of consumers want to see or hear messaging about what stores and service providers are doing to keep them safe. Specifically, while 33% of consumers plan to spend disposable income on dining out this year, they want options, such as the ability to enjoy a meal on a heated patio. If your restaurant clients haven’t been communicating all the available options to consumers, they should adjust their marketing immediately.

If your clients have invested in omnichannel selling, these trends shouldn't worry them. Consumers will continue to buy online. But their expectations were set during the pandemic. At least 61% of consumers want same-​day shipping when they place an online order. How much will they pay for this convenience? Survey results shows 16-​to-​24 year-​olds will pay up to $8.83, while 55+ consumers expect to pay $3.74. The average for all consumers comes in at $6.78.

But before a consumer places an order and confronts delivery or shipping costs, they’ve had to find their way to your client’s site. And these days, the online marketplace poses more challenges. Your clients should know that 34% of consumers start their online search at Amazon, while only 28% go directly to a local retailer’s site. Another 23% turn to Google, according to RSR Research’s 2022 eCommerce report.

To ensure they get at least some of the local shopping business, 55% of retailers list their products on their own sites as well as Amazon’s. One reason they are turning to this strategy is because, despite the huge sums marketers are paying for SEO and paid search, the results have not been what they hoped. In fact, 57% of “winners” and 71% of other retailers say they spend slightly too much on SEO/​SEM. Another 32% of “winners” claim to be spending “far too much” on this marketing effort.

With so many other content streams vying for consumer attention, your clients must improve the shopping experience for prospects who land on their site. This year, your clients should be looking into getting a consumer from the landing page to placing an order in as few clicks as possible. Common improvements will range from personalizing offers to automating “relevant product descriptions” to improving the product discovery process.

How Your Clients Can Win

Consumers are ready to splurge online and in-​store this year. A fantastic in-​location experience will draw return visits, so remind your clients to promote what makes them unique. Your clients will likely continue to use search marketing to move up on the search engine results pages, but as analysts point out, “it’s what happens after the next click that really matters most.” Work with your clients to optimize their e‑commerce sites. To learn more about the customers your clients are targeting, check out the AudienceSCAN profiles at AdMall by SalesFuel.

Photo by Tim Douglas from Pexels

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.