Understanding consumer confidence What should be considered? How businesses should prepare?
Covid-19 has imposed an overwhelming stress on businesses across the board. Particularly small businesses have suffered unbearable setback due to a virtual halt because of this unprecedented pandemic. Consumer confidence is at its lowest, the term if you are not familiar with (much like myself) you would be soon. In laymen’s terms “consumer confidence” is just like it sounds. Consumer confidence is more or less an indicator of the state of economy.
How to define consumer confidence
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As Wikipedia defines “consumer confidence” projects the measure of optimism in economy. During this pandemic “consumer confidence” is a crucial aspect of business strategy especially when it entails enduring a suffering economy. One definition of consumer confidence is consumer’s feelings towards current and future market condition must be assessed.
Most recent study shows as of February 2022 consumer confidence stands at 111.05. For more information on consumer rating visit this link.
What is consumer confidence?
When I did a little research on “United States Economy” and “consumer confidence” it seemed rather evident United States Economy is profoundly influenced by consumer confidence. The temperature of the stock market fluctuates depending on how consumers and investors feel about economy and its stability. In a stable economy consumers are comfortable spending in great economy consumers are happy to be spending, buying and even splurging. If you look back on every major catastrophe in United States the level of anxiety about financial insecurities rise significantly. The strength of economy is directly correlated to how consumers feel about their financial security. As a laymen consumer confidence feeling an ease about spending, growth and the trajectory of an economy.
In this shaky economy entrepreneurs must do their research before diving back into reopening the business to consumers. If businesses are 100% open but consumers are apprehensive about spending or worse cannot afford spend businesses are loosing money just for staying open.
It’s undoubtedly crucial that economy gets back on track, it’s matter of surviving for everyone. Putting food on the table, healthcare, mortgage, bills in other words “way of life’ must resume. But opening businesses prematurely could have a devastating impact on lifespan their continuity.
We are still far from normalcy
Mid 2020 I was in Austin, one of my favorite cities in Texas and I must admit I almost didn’t recognize it. I was in Domain, Austin. In my previous visits I saw this place very crowded packed with thousands shoppers, restaurant goers, out of towners and more. I was astounded by the quietness and the empty venues. I was able to order food for takeout and call one of the hotels (which usually require reservations in advance) for a room to stay the night. Texas was one of the states which lifted the “stay at home” restriction before most states. But recent spike in “Covid-19” cases has started to become somewhat detrimental to the state economy and more importantly everyone’s safety.
Now even with the grim outlook some businesses may not have a choice but to reopen their doors. Outside the box thinking and creativity could certainly be powerful tools. Businesses do not survive without consumers, so giving them reasons and incentives to come back could be a great start. Due to the pandemic safety is a monumental concern which should be part of the reopening strategy. Give clients an incentive to come back, provide offers that are unconventional but effective. Depending on the type of business give clients something others cannot. Consumer confidence might be driving the economy but human factor cannot be overlooked.
As we eagerly waited to get through 2020 so far 2021 has not been that much better. But it will be. And better yet the world now has months of experience in dealing with drastic situations. As business owners that’s a great playbook.
As the pandemic continues to disrupt our lives the businesses still standing must prepare for a slow shopping trend from consumers. So it would be ideal to prepare accordingly. Offering deals that too good to pass up might be a way to go. After all if a deal grabs consumer’s attention it’s likely they will make the purchase.
Online shopping trending more than ever
In 2020 online shopping was the primary method of holiday and regular shopping. Online shopping not only is convenient it also allows social distancing which so far remains a great measure against spreading of Covid-19. Shop from Clubs of America , Gabriel and Co, Buckle&Seam and more. With unprecedented weather calamities consumer confidence would remain the ultimate focus for businesses.
Read how unemployment has been affecting Houston in 2020 due to Covid-19.
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