Becoming Essential: How Brands Can Thrive In The Vibecession
Ray Lansigan is the Head of Strategic Intelligence for Publicis Groupe, Digital Experience.
getty
In recent years, what's known as a 'vibecession' has become a defining characteristic of consumerism. Encapsulating the divergence between rational economic thinking and emotional behavior, this catchy term reflects a contemporary twist on the complex interplay between consumer sentiment and spending habits. For example, the phenomenon of 'girl math' has gained traction as shorthand for how consumers of all genders and ages rationalize their spending decisions.
Recent data shows a significant drop in consumer sentiment, and current trends like #deinfluencing and #NoBuy challenges further cement the reality that people want to spend less. For marketers, understanding these aspects of behavioral economics is crucial. If consumers are caught in rolling waves of spending anxiety, how can brands leverage behavioral economics to their advantage? The answer may lie in embracing essentialism.
Essentialism is a philosophical theory about how we as people interact with objects. Our brains are wired to seek out something's essence or inherent nature, and that extends to the products we buy. For brands, essentialism is an avenue for well-crafted storytelling that emphasizes the importance of focusing on what truly matters, choosing quality over quantity, and ensuring that time, energy and resources are dedicated to purchases and investments that deliver value over time. When done well, this approach can foster loyalty and establish brands as an essential part of their consumers' lives.
By identifying prevalent key consumer behaviors and the emotional connections that consumers seek with products and experiences, marketers can go beyond meeting their consumers' needs.
Many Gen Zers and Millennials treat the immediate, emotional ROI of spending as a form of self-care. Nearly 60% will make a purchase to soothe themselves after a bad day. But retail therapy isn't exclusive to younger generations. Baby Boomers exhibit similar behaviors when it comes to products and services related to wellness and longevity. Marketers who understand this mindset can effectively position their brands as partners in the pursuit of fulfillment and well-being.
Consumers are beginning to frame one-time purchases as cost-effective, long-term investments. For example, the popular salon chain DryBar's signature 'Blowout' service averages between $55 and $70 per visit. Depending on how regularly a consumer engages in this service, they may decide that the cost-per-daily use value of buying a hair tool worth hundreds of dollars is more financially sound. Brands can leverage this insight and encourage consumers to do the mental math of dividing a price tag into smaller dollar amounts tied to each use.
Customers need some form of psychological permission before they spend money on something. Offering initiatives like store credits or loyalty programs align with this need because people perceive them as "free money." Targeted campaigns that display points balances along with stacked discounts can bring consumers off the sidelines and into the purchase funnel.
Consumers' willingness to turn aspirational purchases into a reality has contributed to the growing popularity of buy now, pay later (BNPL) services. This form of credit allows people to take financing strategies once reserved for mortgages or phone plans and apply them to everyday purchases. In the context of economic uncertainty, BNPL is an effective lever for showing consumers that they can control a product's affordability by dividing the payments over time.
Existing customers are high-value targets, and brands can engage with them more effectively by using owned channels to transform transactions into experiences. For example, loyalty program points create a positive feedback loop of repeat purchases and increased brand affinity. In a 2024 Epsilon survey, 55% of respondents said they frequently sign up for these programs when given the chance, and 74% agreed they feel more loyal to a brand when their experience is positive.
In times of declining consumer sentiment and increasing uncertainty, marketers must align their strategies with consumer needs. Here are three key recommendations to essentialize your brand:
• Leverage Micro- And Nano-Influencers: With an audience that tends to max out at 100,000 followers, micro- and nano-influencers possess unique authority within their focus communities. Because authenticity is key, they get creative when highlighting a product's importance, utility and value. Engaging with influencers at this level can be a powerful method for conveying your brand's emotional ROI.
• Innovate For Affordability: With rising costs top of mind for consumers, make your product or service more accessible and palatable. Using BNPL platforms can help defray financial costs and overcome pricing barriers.
• Optimize Your CRM Program: Effective targeting minimizes waste and builds consumer loyalty. Through first-party data and direct channels like cart abandons, direct mail and site retargeting, you can focus on lower-funnel activity with existing customers. When paired with a strong value exchange and an intuitive UX, a tuned CRM program creates a virtuous cycle that benefits both your brand and the consumer.
By embracing essentialism and maximizing emotional ROI, brands can become indispensable to consumers. By fostering lasting engagement and loyalty, marketers can strengthen their brand's presence in the current economic climate while laying the groundwork for continued success in an ever-evolving marketplace.
Forbes Agency Council is an invitation-only community for executives in successful public relations, media strategy, creative and advertising agencies. Do I qualify?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hill
2 hours ago
- The Hill
Growing number of Americans say tipping culture is ‘out of control'
Tip screens are everywhere now, and many consumers are fed up. According to a new Bankrate survey, 41 percent of Americans say tipping culture has gotten out of control — up 6 percentage points from last year. Among Gen Xers and baby boomers, that share rises to 45 percent. 'The high cost of living is a headwind, and many people resent all of the tip creep that has occurred in recent years,' Bankrate senior industry analyst Ted Rossman said in a statement. Pre-entered tip screens have become a particular pain point, with nearly two in five respondents saying they find them annoying. That negativity coincides with a rise in digital tipping tech, now appearing everywhere from takeout counters to coffee shops — even self-checkout machines at the airport are asking for tips. New payment terminals have made it easier than ever for businesses to ask for tips — a potential boost for workers — but they also allow employers to funnel more money to their staff without footing the bill, Rossman said. 'It's essentially a way to raise prices without actually raising prices,' he said. Many of those surveyed, 41 percent, said businesses should pay their employees better rather than relying so much on tips. Still, only 16 percent of respondents said they'd be willing to pay higher prices if tipping were eliminated. Older generations are more likely to hold negative attitudes about tipping, but they're also more likely to tip, Bankrate found. More than 80 percent of Gen Xers and baby boomers said they always tip at sit-down restaurants compared to 61 percent of millennials and 43 percent of Gen Zers. The generational tipping gap showed up across other services too, with older generations far more likely than younger ones to always tip barbers and rideshare drivers. As for the size of the tip, about one-third (35 percent) of respondents said they typically tip at least 20 percent at sit-down restaurants, though only 16 percent of Gen Zers said so compared to 49 percent of baby boomers. Bankrate's survey shows fewer Americans always tip compared to the height of the pandemic in 2021, but the post-COVID tipping backlash has mostly leveled off. 'While more Americans are complaining about tipping, the frequency of tipping is stabilizing after declining steadily in recent years,' Rossman said. Here is a breakdown of how many people always tip for various services in 2025, according to Bankrate: Bankrate's latest tipping survey was based on a sample of 2,445 U.S. adults and conducted between April 29 and May 1.
Fast Company
7 hours ago
- Fast Company
Why Bumble and Tinder are suddenly scrambling to keep up with Hinge
When Spencer Rascoff took over as CEO at the struggling dating app giant Match Group in February, one of his first orders of business was to acquaint himself with all the services under his purview. Match, which owns and operates more that 45 dating apps, including Tinder, Hinge, OKCupid, and has seen its stock price drop more than 80% from its 2021 high amid growing fatigue with online dating and a generation shift away from apps. After explosive growth during the pandemic, Match's annual revenue has been flattening, in large part because growth at Tinder, its once-reliable cash cow, has stalled. Rascoff, the cofounder and former CEO of Zillow Group, is tasked with turning things around. Rascoff asked the leadership of Tinder and Hinge to each take three hours and present their apps to him. The Tinder team began by walking him through the app's financial results and business metrics. They then got to the product road map, and finally to the people and culture. The team behind Hinge—which grew revenue by 39% last year, providing a rare bright spot in the Match Group portfolio—took an entirely different approach. 'They started with consumer insights. This is where Gen Z is at. This is where Millennials are at. This is the zeitgeist of the world. This is what they want. This is how they date. This is how they think. This is how they connect,' Rascoff recalled in May, as he told the story to the audience at the JPMorgan Global Technology, Media, and Communications Conference. 'Only at the very end, did they actually share, briefly,revenue and financial metrics.' Rascoff's conclusion: 'If you want to understand why Hinge is winning and Tinder was losing, that's it. That's why.' A little more than a week later, Tinder CEO Faye Iosotaluno announced that she would step down in July, after less than two years in the role. Rascoff is taking the reins himself. Match shares rose 1.3% following the announcement.
Android Authority
8 hours ago
- Android Authority
Google's latest survey shows Gen Z is leading the charge toward a passwordless future
Calvin Wankhede / Android Authority TL;DR Google's latest scams survey highlights generational differences in security practices among US consumers. Despite the availability of easier and more advanced sign-in tools, most older users still rely on passwords and two-factor authentication. Gen Z and Millennial users are more inclined to use newer solutions like passkeys and social sign-ins. Although Google has been pushing users to switch from passwords and two-factor authentication (2FA) to passkeys for quite a while now, its latest scams survey reveals that a vast majority of users still rely on older sign-in methods to log into their online accounts. However, the data collected in partnership with Morning Consult highlights an interesting generational shift in security habits among US users. According to the survey, most older US users, including Generation X, Baby Boomers, and many Millennials, continue to use passwords and 2FA despite being familiar with newer tools like social sign-ins. Only about 30% of Gen X and Baby Boomers use social sign-ins daily, but things are not the same among the younger demographic. Gen Z and Millennial users reportedly rely more on advanced authentication tools like passkeys or social sign-ins, but this has made them less likely to update passwords regularly. While their poor password hygiene may seem problematic, Google maintains that their 'willingness to gravitate towards more modern sign in methods that are both safer and easier to use is a good thing.' The company even urges more users to adopt modern authentication solutions to secure their accounts, noting that passwords are difficult to maintain, more prone to phishing, and are often leaked through data breaches. The generational difference highlighted in the survey signals progress on that front, though it may be a while before passkeys and social sign-ins fully replace passwords and 2FA. Are you familiar with passkeys and social sign-ins? Have you made the switch, or are you still using passwords for your online accounts? Let us know in the comments. Got a tip? Talk to us! Email our staff at Email our staff at news@ . You can stay anonymous or get credit for the info, it's your choice.
