A new report has revealed that Australians are growing increasingly budget-conscious, with seven out of 10 people stating Australians are becoming increasingly savvy shoppers. But while this ‘savvy’ attitude might be good for the customers’ wallet, it’s not always a great thing for businesses. 

In fact, according to the findings - outlined in flexigroup’s 2019 Spending and Saving Report - over half of consumers say they’ve chosen to delay certain important purchases because they couldn’t afford them. The report found 51% of respondents delayed necessary dental work because they couldn’t afford it, while 29% delayed undergoing a medical procedure. 

At the same time, the report revealed that Aussies are continually focused on managing their budget. More than half of consumers have a rough budget for saving, for example. And it’s not just the older generation who are good at saving their hard-earned dollars. In a reverse of the traditional stereotype, the survey found that younger generations are more frugal than older generations with almost half saving more than 20% of their net income.

It’s clear that Australians are getting better at holding onto their cash, and thinking more carefully about where they spend their money. So how can businesses cater to this new breed of savvy consumer, while still encouraging them to spend?

The importance of discounts

While holding a sale is clearly not a new concept to any business, it’s essential that brands understand how and why discounts and bargains can influence a sale from the savvy shopper.

The research revealed that Australian consumers love a bargain, with more than 90% of consumers seeking out a discount or special offer prior to making a purchase. Two in three consumers admitted to searching for discounts all the time, while more than half admit that seeking out discounts is almost like a full-time job. 

With this in mind, it might be important to think of sales as more than a one-time event, but almost an all-year-round opportunity. Many retailers and service providers offer discounts on certain products 24/7, especially on old stock or as a lead generation exercise for new customers.  

As the research shows, the majority of consumers are looking for a discount at all times, so if every item in your store is being sold at full price, you run the risk of losing out to your competitors. 

Savvy communication for the savvy shopper

It’s easy for a sale to be rejected out of hand if a consumer can’t see the value of whatever product or service you’re selling, especially if it’s one with a hefty price tag. 

In order to help make the importance of your offering clear, it’s essential that businesses can communicate the unique aspects of their product or service, and go into detail about the quality and workmanship behind it. Consider using illustrations, visual aids, or making comparisons between other important purchases in the customer’s life. 

Take sustainable fashion brand Reformation, for example. The brand’s website lists how many pounds and gallons of carbon dioxide, water and waste savings they’ve made through their sustainable practices on every single product page. Their consistent push for transparency means that savvy shoppers are happy to spend a little extra, and still consider the sale to be a good investment.

This is all part of helping customers make an informed decision, rather than a decision only based on dollar signs. Ultimately, the aim is to try and remove as many barriers as possible, especially when it comes to savvy shoppers’ fear of breaking their budget.

Flexible payment options

Accepting a wider range of purchasing options is another great way to attract sales from even the most budget-conscious of consumers. A wider selection of options can often make a sale easier for customers and remove the added pressure of worrying about whether the purchase can fit into their weekly or monthly budget. 

Buy now, pay later (BNPL), for example, is payment method that’s becoming popular in the retail space, and many service businesses are beginning to realise its benefits too. The 2019 Spending and Saving Report reveals about seven in eight people have a good understanding of BNPL, and almost 60% indicated they would use it to make a surprise or unexpected purchase, such as a new dishwasher or a health bill. 

This is good news for businesses offering products or services on the pricier end of the spectrum, and suggests that savvy shoppers consider BNPL to be a viable option when it comes to responsible shopping. 

In order to cater to the savvy shopper, businesses need to start thinking like one. They need to understand the importance of offering good value, high-quality products with flexible payment options available - preferably with a discount or two thrown in for good measure. If they can get it right, they’ll be rewarded with a loyal customer for years to come. 

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