Cautious Customers: Rising costs and global uncertainties are turning consumers into more discerning spenders.
If there’s one thing you can predict at the moment, it’s just how unpredictable the world seems to be. In light of some of the most turbulent economic conditions we’ve seen for some time, not to mention global uncertainty surrounding changes to tariffs coming from the United States, the prevailing opinion seems to be that no-one knows what tomorrow will bring.
As the UK’s cost-of-living crisis continues to shape both the economy and people’s buying behaviours, an ever more turbulent political & economic environment brings with it increasing instability. In today’s business climate, it’s more important than ever for brands to have a key understanding of how their customers ‘think’ - and for businesses to truly understand what’s driving their customers’ actions. To fully grasp how customers are interacting with brands, businesses must understand the emotional drivers behind their behaviours.
With this in mind, every few months, Maru UK run a detailed Cost-of-Living survey, to keep an eye on how consumer opinion of the crisis may be changing, and look in depth at people’s emotional response and how this translates to real world behaviour, so that we can help businesses predict consumer actions in the months to come.
‘Push and Pull’ consumers
When we look at the start of 2025, the key takeaway has been one of ‘Push and Pull’. When asked how they felt about the next three months, UK consumers most frequently used mixed words like “Excited”, “Motivated”, “Anxious”, “Stressed”, and “Optimistic”. This mix of excitement and apprehension revealed a push/pull dynamic, shaping consumer behaviour, with many customers desiring stability & security with their finances, especially as the world around them gets less predictable, but while also seeking out a degree of spending that delivers a lifestyle that allows for enjoyment, socialising, new experiences, and hope for the future.
This push and pull dynamic between the want to tighten our belts and experience new things can be seen elsewhere in the research, with many people reporting they’re unwilling to forgo life’s smaller pleasures even as prices continue to rise. When it comes to their free time and personal spending, 58% of consumers still want to treat themselves, despite the need to cut costs elsewhere to allow for it.
Non essential purchases remain a priority for many with 2 in 3 respondents saying it was likely they would update their wardrobe in the next three months and with 75% said they were likely to spend money on socialising with friends and family.
The continued rise in costs, something we’re unlikely to see the back of as the United States’ tariffs take their effect, are also doing little to dampen consumers’ desires for new experiences such as travel. Only 28% of Brits in our research indicated that they were ‘unlikely’ to book a holiday in the next three months, showing that for many, the importance of socialising, adventure, relaxing, and indulging in a sense of escapism remains a spending priority.
How can brands better tap into this dynamic?
As consumers become more strategic about their spending, their interactions with brands are evolving, and understanding these shifts in consumer behaviour is crucial for businesses hoping to win customer loyalty in 2025 and beyond. Our cost-of-living data offers some valuable insight into how customers may be responding differently to products, services and marketing messages in today’s more uncertain landscape.
Just as consumers told us they are trying to find the ‘sweet spot’ between security and comfort, so too does a company’s branding and marketing messages need to tread this fine line – and push the message of ‘small luxuries’ that a consumer can enjoy while not putting themselves in financial peril.
When we looked at the buying behaviour around specific items such as soft furnishings, the factors that consumers now prioritise came out as ones of ‘Comfort’, ‘Quality’, and ‘Value For Money’ — with factors like ‘Sustainability’ and ‘Style’ now trailing behind in importance when it comes to making a purchase decision. Again, this reflects the increased significance that consumers are placing on finding the perfect intersection between quality, comfort and affordability and it’s only by tapping into this message that businesses may find a point that best resonates with today’s consumers.
While people are tightening their belts, consumers’ continued demand for spending on socialising, travel, and personal well-being highlights an enduring attachment to growth, new experiences and joy. For many brands, this may mean marketing messages, deals, offers, or pricing strategies that have to strike a balance between these two competing messages and highlight the ‘good value’ of their products or services whilst also playing up the element of adventure, escape and of lifestyle propositions that offer an increased quality of life and well-being.
Ultimately, businesses will need to respond to these shifting dynamics in a way that reflects the specific value proposition of their products or services. This may well be different for every business and industry sector. In financial services, for example, customers’ desire for financial security may drive demand for products with fixed interest rates. In the travel sector, a preference for frequent but smaller trips may reflect tightening budgets. Meanwhile, sectors like retail and hospitality may benefit from offering more regular, affordable indulgences rather than focusing solely on high-ticket items.
Understanding your customers’ emotions
As UK consumers adapt their behaviour in response to rising costs and global uncertainty, brands must evolve alongside them. By understanding both the rational and emotional drivers shaping consumer decisions, businesses can craft more effective communication strategies, develop more appealing products and services, and ultimately build stronger, more lasting customer relationships.
In this environment, those brands that invest in truly understanding and responding to their customers’ emotions will inspire the greatest trust and loyalty. Consumers are feeling increasing financial pressures and are looking to tighten their belts wherever possible; however our research shows there is still an opportunity to connect with consumers, but only if a business can align its brand values with consumers desire to feel better about themselves and their lives.
This is where Maru’s customer experience expertise comes in. As diligent advocates for customer needs in a demanding world, the team at Maru have spent the last 25 years combining expert market research consultancy with a comprehensive research toolkit to bring companies closer than ever to their customers’ needs.
If you’d like to discuss any of this in more detail, please get in touch.