Picture this: It’s early 2020. The shelves are bare, and the word “unprecedented” is thrown around like confetti. You’re at the supermarket, your trolley filled with tinned beans and toilet roll—things you rarely thought twice about before. Yet here you are, spending more than usual on what you believe is essential.
We’ve all been there. When uncertainty strikes, our spending habits change, often in ways that surprise us. The truth is, much of our behaviour during tough times is rooted in psychology. Understanding these patterns can help businesses connect with customers and help individuals make sense of their own choices.
In this article, you will learn:
- The emotional triggers driving spending during uncertain times.
- How businesses can adapt to meet shifting customer priorities.
- Practical tips to align marketing strategies with value-conscious behaviour.
Let’s explore how psychology shapes the way we spend when the world feels unpredictable.
Understanding the Emotional Side of Spending
When times are uncertain, logic often takes a back seat to emotion. Fear, stress, and the need for control influence how people spend. To understand consumer behaviour, it’s essential to unpack the psychology behind their choices.
Fear and Uncertainty: The Driving Forces
In uncertain times, people naturally prioritise security. They avoid risks, focus on essentials, and spend cautiously. Fear of scarcity is a powerful motivator, often leading to panic-buying.
Example:
Think back to the start of the Covid pandemic. Shelves were cleared of toilet rolls and pasta because people feared they’d run out. Scarcity, real or perceived, can trigger an emotional response to stockpile.
The Role of Comfort Purchases
Fear and uncertainty often push people to tighten their belts, but they also drive the need for small comforts. Affordable luxuries, like treats or personal indulgences, offer a sense of control or a brief escape from reality. Historically, certain products have thrived during economic downturns for precisely this reason.
Take the “lipstick effect,” a term coined to describe how sales of cosmetics, especially lipsticks, often increase during recessions. The idea is simple: people forgo big-ticket luxuries but still seek affordable ways to lift their spirits. However, even this so-called recession-proof product wasn’t immune to the unique challenges of Covid.
With masks covering mouths, lipstick sales plummeted. People shifted spending to other “visible” indulgences like skincare, scented candles, or home comforts. The pandemic upended many assumptions about consumer behaviour, proving that emotional purchases adapt to circumstances.
Example:
During lockdowns, people who might once have bought a bold lipstick turned to expensive moisturisers or serums. The focus shifted from showing confidence outwardly to feeling good personally. A small luxury still provided comfort, but its form changed.
Lessons for Businesses
Recognising this behaviour shift helps businesses adapt their offerings. Affordable indulgences still matter, but their relevance depends on context. For instance:
- Skincare vs. Lipstick: Beauty brands that pivoted to highlight skincare rather than cosmetics saw greater success.
- Home Comforts: Cafés offering takeaway treats like premium hot chocolate tapped into the need for small joys.
- Adapted Promotions: Businesses that leaned into these shifts stayed connected to their audience and maintained sales.
Understanding how emotional spending evolves ensures your brand stays relevant, even when traditional patterns shift.
Shifts in Spending Priorities
Uncertain times make people reevaluate what matters most. When fear and financial strain set in, spending priorities change quickly. Understanding these shifts is vital for businesses to stay relevant.
Essentials Take Centre Stage
During challenging periods, people focus on necessities. Essentials like food, housing, and healthcare dominate spending. Discretionary purchases—things people can live without—are often put on hold.
Example:
During the early Covid lockdowns, supermarket sales soared as people prioritised groceries and household items. Meanwhile, industries like travel and luxury retail experienced sharp declines.
For businesses, this means framing products or services as essential can make them more appealing. For example, gyms promoting online classes during lockdowns positioned fitness as a “health essential” rather than a luxury.
Value Becomes King
When money feels tight, value-conscious behaviour kicks in. Shoppers hunt for discounts, compare prices, and weigh up the benefits of every purchase. This doesn’t always mean choosing the cheapest option. People are willing to pay if they see clear value.
Example:
A family on a budget might spend more on a brand they trust to deliver quality. Aldi and Lidl’s rise during the 2008 recession shows this. They offered quality products at lower prices, winning over cautious shoppers.
For businesses, showing value doesn’t always mean dropping prices. Instead, focus on how your product solves problems or offers long-term benefits.
The “Investment Purchase” Mentality
Spending shifts towards products that promise to save money or improve quality of life in the long run. This includes items like home improvement tools, fitness equipment, or durable goods.
Example:
During the pandemic, many people invested in home office furniture or fitness gear like Peloton bikes. These were seen as practical purchases with lasting value.
Businesses that highlight durability, multi-use benefits, or cost-saving features can tap into this mindset. For instance, an energy-efficient appliance isn’t just a product—it’s a long-term investment.
Emotional Purchases Don’t Disappear
Despite prioritising essentials, people still find room for small emotional purchases. A sense of normality or a little luxury can be comforting during uncertainty. As mentioned earlier, products like skincare, premium food, or scented candles see spikes in tough times.
Example:
During the financial crisis of 2008, sales of nail polish increased. People skipped expensive salon visits but still indulged in small, feel-good purchases at home.
For businesses, promoting affordable indulgences can provide a key revenue stream. Highlighting how your product brings comfort, joy, or a touch of normalcy makes it more appealing.
Adapt and Stay Relevant
Understanding spending shifts isn’t just about survival—it’s about staying connected to your audience. Here’s how businesses can adapt:
- Reassess Your Offerings: Emphasise essentials or value-focused products in your marketing.
- Highlight Cost-Saving Features: Show how your product offers long-term benefits or convenience.
- Keep It Emotional: Position products as a way to bring comfort, joy, or relief.
These strategies ensure your business resonates with customers while respecting their shifting priorities.
Communicating Effectively During Uncertainty
In uncertain times, how you communicate with your audience matters as much as what you’re selling. Customers are looking for reassurance, clarity, and empathy. The right tone and approach can keep them engaged and loyal, even when spending slows.
Be Transparent and Honest
People value honesty, especially when trust feels fragile. If your business is facing challenges, share them openly. Likewise, be upfront about delays, changes, or limitations.
Example:
During Covid, a small bakery posted on social media that staff shortages might affect their opening hours. Customers appreciated the honesty and rallied to support them instead of getting frustrated.
Actionable Tip:
Regular updates, whether via email, social media, or your website, keep customers informed and show you care.
Focus on Empathy
Your audience is likely dealing with stress, whether it’s financial, emotional, or related to health. Acknowledge their struggles and show that you understand.
Example:
A fitness brand might recognise the difficulty of staying active during lockdowns. By offering free home workout videos, they position themselves as supportive rather than pushy.
Actionable Tip:
Avoid hard-sell language. Replace “Act fast—limited stock!” with softer phrasing like, “We’re here to help you stay stocked up.”
Offer Clear Solutions
People want products and services that solve real problems during uncertain times. Highlight how your offerings can make life easier, save money, or reduce stress.
Example:
A cleaning service promoting “disinfectant deep cleans” during the pandemic reassured families worried about safety. By solving a pressing concern, they remained essential.
Actionable Tip:
Use your marketing to answer the question, “How does this help me now?”
Stay Consistent in Your Messaging
Your tone, visuals, and key messages should remain steady across all channels. Consistency builds trust. If your social media posts are empathetic but your email campaigns are pushy, customers may feel confused or alienated.
Example:
A clothing brand that promoted comfortable loungewear during lockdowns kept its messaging uniform across Instagram ads, emails, and their website. Customers trusted the brand to understand their needs.
Actionable Tip:
Create a messaging guide for your team, outlining tone, language, and key phrases to ensure consistency.
Share Stories of Positivity
Uncertainty is overwhelming, and people crave uplifting stories. Share examples of how your business is helping customers or supporting the community.
Example:
A café spotlighted its “pay it forward” coffee initiative, where customers could buy a drink for NHS workers. The campaign built goodwill and increased engagement on social media.
Actionable Tip:
Showcase customer testimonials, charitable efforts, or even behind-the-scenes content to humanise your brand.
Use the Right Channels
Choose the communication platforms your audience already trusts and uses. For many, this might mean email or social media. Don’t overwhelm them with too much information; keep it relevant and easy to access.
Example:
A small retailer used Instagram Stories to share real-time updates on stock availability. Customers appreciated the immediacy and transparency.
Actionable Tip:
Experiment with formats like Q&A sessions, short videos, or polls to engage your audience directly.
Practical Steps to Improve Communication
- Review Your Tone: Does it align with your audience’s current concerns?
- Audit Your Channels: Are you providing updates where your customers are most active?
- Plan for Regular Updates: Even if there’s no big news, a reassuring presence builds loyalty.
By communicating with empathy, clarity, and consistency, you’ll not only maintain trust but also strengthen customer relationships during challenging times
Measuring Success and Making Adjustments
Effective communication and marketing strategies during uncertain times aren’t a “set and forget” process. Success comes from regularly evaluating what works, adapting quickly, and improving based on real data. This approach ensures your efforts remain relevant and impactful.
Start by Setting Clear Goals
Before measuring success, you need clear objectives. Are you aiming to maintain customer loyalty, boost sales, or increase engagement? Goals help you identify the metrics that matter most.
Example:
A small online retailer focused on email marketing during Covid. Their goal was to increase repeat purchases. By tracking email click-through rates and sales, they fine-tuned campaigns to focus on best-sellers.
Track the Right Metrics
Different marketing channels require different measurements. The key is to focus on meaningful results, not vanity metrics like “likes” or “followers” unless they contribute to your goals.
- Email Campaigns: Measure open rates, click-through rates, and conversion rates.
- Social Media: Track engagement (likes, shares, comments) and website traffic driven by posts.
- Sales Data: Look for trends in popular products, price points, or buying behaviours.
Example:
A café offering takeaway meals tracked which promotions brought the most orders. They noticed meal deals outperformed discounts, so they shifted their focus accordingly.
Use Customer Feedback
Metrics tell you what’s working, but customer feedback explains why. Surveys, reviews, and direct messages give insight into what your audience values and how you can improve.
Example:
A gym launched virtual classes but struggled with attendance. A quick survey revealed members wanted shorter sessions. After introducing 20-minute classes, participation surged.
Actionable Tip:
Add a feedback request to order confirmations or follow-up emails. Customers feel valued, and you gain valuable insights.
Test and Experiment
Marketing is never one-size-fits-all, especially in uncertain times. A/B testing (comparing two versions of a campaign) can reveal what resonates with your audience. Test everything from subject lines to imagery to offers.
Example:
A clothing brand tested two ads: one highlighting comfort, the other affordability. Comfort messaging led to higher engagement, prompting them to adjust their overall campaign.
Stay Flexible
What works today might not work tomorrow. External events, economic shifts, or customer habits can change quickly. Businesses that adapt fast stay ahead.
Example:
During the early days of Covid, a yoga studio promoted online memberships. As restrictions eased, they shifted back to in-person classes but kept virtual options for flexibility.
Actionable Tip:
Schedule regular reviews of your campaigns and customer feedback. Adjust your strategies as needed to stay relevant.
Practical Steps for Immediate Action
- Set measurable goals: Focus on clear outcomes like sales growth, increased engagement, or better retention.
- Track performance: Use tools like Google Analytics, email platforms, or social media insights.
- Act on feedback: Create opportunities for customers to share their thoughts.
- Experiment regularly: Run small tests and scale what works.
By keeping an eye on the numbers and staying connected to your audience, you’ll refine your strategies and maintain momentum, even in challenging times.
Building Lasting Customer Relationships
In uncertain times, your relationship with customers becomes more valuable than ever. Trust, loyalty, and engagement are not just nice-to-haves; they are the foundation for long-term success. By focusing on these connections, businesses can weather challenges and emerge stronger.
Focus on Customer Loyalty
Loyal customers are more likely to support your business when times are tough. Investing in their experience builds trust and keeps them coming back.
Example:
A local grocer introduced a loyalty programme during Covid, offering points for every purchase. Customers could redeem points for discounts or donate them to community food banks. The programme strengthened loyalty and built goodwill.
Actionable Tip:
Create a simple rewards system. It doesn’t need to be fancy—a discount after a certain number of purchases can work wonders.
Show You Care
People remember how businesses treat them during challenging periods. Acts of kindness or small gestures can make a big impact.
Example:
During the pandemic, a bookshop included handwritten thank-you notes in their online orders. Customers shared these notes on social media, boosting the shop’s visibility and reputation.
Actionable Tip:
Look for small ways to personalise interactions, like a thank-you email or adding a thoughtful freebie to orders.
Stay Engaged Through Content
Content marketing is an affordable way to keep customers connected to your brand. By sharing helpful, relevant, or entertaining content, you maintain visibility and build trust without constantly selling.
Example:
A home décor brand posted “DIY home improvement” videos during lockdown. These practical tutorials drove traffic to their website and boosted sales of featured products.
Actionable Tip:
Ask yourself: “What challenges are my customers facing, and how can I help?” Create content that solves problems or brings value.
Build a Community Around Your Brand
When customers feel part of a community, they become advocates for your business. Create opportunities for interaction and collaboration.
Example:
A café used its Instagram page to invite customers to share photos of their takeaway drinks. They featured the best posts each week, creating a sense of connection and loyalty.
Actionable Tip:
Engage with your audience on social media by responding to comments, asking questions, or starting challenges.
Consistently Deliver on Promises
Reliability builds trust. Whether it’s delivering on time, providing excellent customer service, or honouring guarantees, consistency reassures customers during uncertainty.
Example:
A subscription box company clearly communicated delays due to supply chain issues. They kept customers updated and offered small discounts for future orders, maintaining trust.
Actionable Tip:
If something goes wrong, address it quickly and transparently. Mistakes are forgivable when handled with honesty and care.
Steps to Strengthen Relationships Today
- Start a simple loyalty programme to reward returning customers.
- Personalise your interactions with thoughtful gestures or thank-you notes.
- Create helpful, engaging content that supports your customers’ current needs.
- Foster a sense of community through social media or customer features.
- Prioritise reliability by delivering on promises consistently.
By showing your customers they matter, you’ll create bonds that last far beyond challenging periods. Strong relationships don’t just help you survive—they set your business up to thrive
Sarah x
