Although consumer confidence reached its highest level in two years in March, consumers remain sensitive to price increases and continue to adjust their spending accordingly. “Loud Budgeting,” the term made famous by TikTok user Lukas Batter in 2023, is a trend that has taken hold for 2024. It means taking pride in saving money and declining unnecessary purchases. Loud budgeting is more about prioritizing your purchases and feeling good about how you spend your money.
Characteristics of Fiscally Cautious Consumers
Inflation and rising prices have caused consumers to become more fiscally cautious, reducing and/or prioritizing spending in a number of ways. “Loud budgeting” is part of that, meaning consumers are proud of saving money and being smart with their purchases. These fiscally cautious consumers are carefully choosing where to cut back and where to spend a little more, according to a 2023 SalesFuel survey of online adult consumers in the U.S:1
- 47% are eating at home more often vs. eating out.
- 23% plan to buy more store brands this year.
- 18% plan to spend more when shopping for special occasions.
Fiscally cautious consumers are found across a wide range of household incomes, from low to high: 1
While more consumers aged 65 and up are budget conscious, consumers across all age groups are looking to get the most value for their dollars. 1
Geographically, 40% of fiscally cautious consumers live in the suburbs, with 39% in urban areas, and 21% in rural areas or small towns. 1
Fiscally Cautious Consumers Respond to Ads Across Print & Digital Channels
In the past 12 months, fiscally cautious consumers have responded to advertising across both print and digital channels: 1
- Ads or offers in the mailbox: 56%
- Emailed ad or newsletter: 51%
- Streaming TV ad: 51%
- Online ad: 47%
- Pre-roll video ad: 47%
3 Tips To Engage and Activate the Cost-Conscious Consumer
Marketers who understand that fiscally cautious consumers can be found across all ranges of incomes, age groups, geographic areas, and media preferences can be prepared to target and engage them more effectively. Here are three tips to consider as you develop your marketing strategy:
Tip #1: Consumers are looking for value. Deliver advertising messages that appeal to their cost-conscious mindset. How does your product or service add value, convenience or otherwise enhance buyers’ lives to make it worth spending their money?
Tip #2: Offer free samples or special discounts so customers feel like they are winning when they make a purchase.
Tip #3: Be more strategic and targeted with personalized deals and discounts aimed at relieving some consumer pain points and keeping loyal customers from straying.
- Develop a loyalty program and reward shoppers who sign up with special discounts and offers.
- Try a coupon to entice a shopper to trade up in size or price point.
When advertising campaign messaging is personalized to your customer or prospect, they are 68% more likely to engage with your message.2 –Lob State of Direct Mail Consumer Insights 2023
How Mspark Can Help
Mspark’s data analysis and targeting capabilities are the foundation of custom-crafted advertising campaigns designed to help brands, restaurants, retailers, grocers, and service providers drive results for your business.
Comprehensive Data Analysis & Targeting
Our team brings together as many types of data as possible, both predictive data and client data, to create an insightful view of your ideal target customer and target them with the most effective messaging across print and digital channels, wherever they are in the buying process. Learn more about data analysis and targeting.
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Mspark partners with clients to create customized advertising campaigns utilizing the most effective print and digital channels to ensure you reach your target audience wherever they are in their buying journey.
Did you know?
Digital advertising + mail can increase response rates up to 450% and increase conversion rates up to 28%.3 — US Modern Postcard, Direct Mail Statistics 2023
Including a direct mail piece in your marketing mix can increase web traffic as much as 50%.4 –Direct Mail Research: — 2023 Direct Mail Marketing Benchmark Report – SeQuel Response, sequeldm.com
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Sources: 2023 AudienceSCAN, SalesFuel Inc.1; Lob State of Direct Mail Consumer Insights 20232; US Modern Postcard, Direct Mail Statistics 20233; Direct Mail Research: 2023 Direct Mail Marketing Benchmark Report – SeQuel Response, sequeldm.com4