Only about half of consumers — 52% — say they are financially secure, and insecure consumers are adapting their shopping behaviors, according to a Qualtrics XM Institute survey of 20,000 consumers across 14 countries.
Customers who view their interactions with a brand through a lens of financial anxiety also rate their experiences lower across multiple metrics. They report less satisfaction, trust, lower likelihood to recommend and likelihood to purchase more.
“They’re more risk-averse and less tolerant of friction,” Isabelle Zdatny, head of thought leadership at Qualtrics XM Institute, said in a prepared statement. “Because when you’re already stretched thin, you can’t afford the time, frustration, or cost of a purchase that doesn't work out.”
From persistent inflation to shifting tariff policies, consumers have faced much financial uncertainty in the past year. Though there are some signs that inflation is beginning to wane, consumers still don’t feel secure. In fact, in the U.S. most consumers believe the economy is undergoing a recession.
In this economic backdrop, consumers want reliability.
People simply don’t have the bandwidth to absorb mistakes, according to Zdatny.
Financially insecure consumers say the reasons they are most likely to choose a new brand is convenience, better product or service, recommendations from family and friends, followed by price, according to Qualtrics data. Financially insecure consumers are less motivated than the global average to switch brands for better prices by nearly 4 percentage points.
“Trust becomes even more important because they just want a reliable partner that's not going to add to their cognitive load,” Zdatny told CX Dive last month.
Research from Gartner backs that up.
Nearly 80% of consumers say, “when I trust a brand, I can spend less energy researching, comparing other options,” Kate Muhl, VP analyst at Gartner, told CX Dive last month. Two-thirds say, “when I buy from a brand that I trust, I don't worry that I missed out on a better option.”
“People really want to have those relationships,” Muhl said. “They're useful. It's useful to have a brand you trust.”
How a brand decides to price its products and services also impacts views of reliability and trust.
Consumers are wary of brands that use what they consider “unfair” pricing schemes, such as listing different prices by sales channel and shrinkflation, according to a Capgemini report released earlier this week. Such pricing strategies can build short-term profit but erode trust and long-term loyalty.
Capgemini found that 71% of consumers say they will switch if their current brand reduces pack size or product quality without clear communication.
