How is the cost of living crisis shaping customer behaviour?

As the cost of living rises, customers are more price-conscious than ever. Here’s how VoCoVo can help you to keep them happy. 

Article by Olivia Robinson | 10th October 2022

The cost of living is spiralling, and ordinary people are struggling to make ends meet. As long as the crisis lasts, value for money will be all that matters to your customers. By increasing efficiency and cutting waste, we can help you to keep down costs. Here’s how. 

Customers have less money in their pockets

The UK is facing its worst cost of living crisis since the 1980s. Russia’s invasion of Ukraine and supply chain issues caused by COVID have led to the price of everyday goods rising abruptly:

  • Inflation reached a 40 year high in April 2022
  • 91% of UK households experienced an increase in the cost of living in July 2022
  • Real household income (income adjusted for inflation) is set to fall by 1.5% this year and 2.25% next year. 

The crisis is largely due to a sudden jump in energy prices, but consumer goods have also been affected. The Consumer Price Index was over 10% higher in July 2022 than it was 12 months earlier. Grocery prices have increased even more, rising 11.6% in the same month. This means that the average weekly shop is set to increase by over £10, adding up to an annual increase of £533. 

Value for money is the number one priority 

Unsurprisingly, higher prices have had a significant effect on customer behaviour. While safety and convenience took priority during the pandemic, value for money is now the only thing on the minds of most shoppers:

  • A quarter of consumers are buying more own brand products. Many of these purchases are being made at Lidl and Aldi, where sales have increased 9.5% and 7.9% respectively
  • 42% of consumers are using loyalty schemes to save money 
  • Customers are shopping more frequently but buying less per visit. This suggests that people are only buying what they need in order to reduce waste. Smaller shops could also be a sign that customers are choosing to walk rather than drive as a way to save money on petrol. 

Greater efficiency means lower prices

Higher prices don’t happen in isolation. Supply chain issues have caused suppliers to charge more for stock, leaving you no choice but to pass these costs on to the customer. 

While we can’t bring down inventory costs, we can help you to save money in other areas. This allows you to offset higher costs, keeping your prices steady and your customers happy. 

The key to this is greater efficiency. Our system allows colleagues to communicate instantly from anywhere in store, saving you money at every turn: 

  • Headsets allow colleagues to check stock and find information without crossing the store. This cuts unnecessary walking by 1.4km per shift, translating into a financial saving of over £440 a week. 
  • Headsets are hands-free, so colleagues can perform manual tasks while they talk. This multitasking can improve daily task efficiency by 105 minutes, saving you £111 a week.  
  • Two way customer call points can be placed on customer service desks during busy periods. You can unman these areas without the risk of missing a customer, saving an average of £594 a week. 

Find out more about saving money with VoCoVo

These are just a few of the savings that you can make with VoCoVo. Overall, you can expect to save around £90,000 a year. These savings can be passed on to your customers, helping you to retain their business at a difficult time. 

Talk to our team to arrange a demonstration:

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