Navigating Value-Driven Consumer Trends: A Guide for Retail Marketing

In the current economic environment where inflation continues to impact the cost of essentials—from groceries to utilities—understanding and responding to the value-driven consumer is more crucial than ever in retail marketing. According to April 2024 data from Prosper Insights & Analytics, consumer confidence across the U.S. has dipped slightly to 40.4%, a modest decrease from the previous month but still a noticeable improvement from April 2023’s 35.9%. Despite year-over-year improvement, it’s clear that the pressure of rising prices continues to reshape how consumers approach spending.1

Source: Prosper Insights & Analytics April 2024

In the rural markets Mspark serves, consumers feel the impact of rising prices more keenly, in large part because they rely more on personal vehicles and drive longer distances to reach their workplace, shopping, and other daily activities. The result is consumer confidence levels nearly 5% lower than those across the nation as a whole.1

Notably, there has been a significant reaction to price increases, with a marked increase in consumers nationwide opting for sales, store brands or generics, and the use of coupons. This behavior is even more prominent in rural markets, where consumers are more sensitive to price increases.

Source: Prosper Insights & Analytics April 2024

Q1 Foot Traffic in 2024 Picks Up Year-Over-Year—Led by the Discount & Dollar Store Segment

Retailers, especially within the Discount & Dollar Store segment, experienced a rise in foot traffic during the first quarter of 2024, marking 11.2% year-over-year growth. This is a clear indication that consumers are leaning towards value-driven purchases. Dollar General, Dollar Tree, Family Dollar, and Five Below have seen an impressive 91.6% of quarterly visits in this category, showcasing the dominance of discount stores in attracting budget-conscious shoppers.2

Source: Q1 2024 Retail & Dining Review

From grocery stores to superstores and dining, consumer patterns show a preference for locations offering value. Membership warehouse chains like Costco, BJ’s Wholesale Club, and Sam’s Club have seen notable foot traffic, driven by consumers’ desire to maximize their spending power.2

Source: Q1 2024 Retail & Dining Review

Similarly, the dining sector has observed a resurgence, with coffee chains and fast-casual restaurants experiencing the largest year-over-year visit increases, elevating the appeal of lower-cost dining options.2

Source: Q1 2024 Retail & Dining Review

How Mspark Can Add Value to Your Retail Marketing Strategy

In this landscape, Mspark stands out by leveraging comprehensive data analysis and targeted advertising campaigns designed to create retail marketing campaigns that resonate with the value-seeking consumer. By integrating predictive and client data, we offer a nuanced understanding of your ideal customer profiles and the most effective channels to engage them, whether they’re just beginning their buying journey or ready to make a purchase. Learn more about data analysis and targeting.

Our coordinated media strategy ensures your brand remains top of mind for consumers, expanding your reach and driving response rates. By combining the persuasive power of digital advertising with the tangible impact of direct mail, we’ve seen response rates soar by up to 450% and conversion rates increase by up to 28%.3 Including direct mail in your marketing mix can also amplify web traffic by as much 50%,4 amplifying your online presence and overall campaign performance. Learn more about the power of integrated marketing campaigns.

To see how Mspark can transform your retail marketing and advertising initiatives to meet the needs of value-driven consumers, explore our case studies and get in touch to craft a campaign that drives measurable results. Click “get started” below to be connected with an expert to plan your strategy.

Sources: Prosper Insights & Analytics 20241; Q1 2024 – Retail & Dining Review2; US Modern Postcard, Direct Mail Statistics 20233; 2023 Direct Mail Marketing Benchmark Report – SeQuel Response, sequeldm.com4