Economic development organizations and investment companies can measure consumer confidence without solely relying on survey data. Location intelligence, built on human mobility patterns, can easily provide organizations with insights into consumer behavior.
Consumer behavior and confidence often go hand-in-hand, and are measured by what is commonly referred to as the Consumer Confidence Index. In surveying a significant portion of the population residing in any given country, one is able to gauge the degree of confidence felt about a country’s economy. Most companies know that when consumers are confident about the economy, they are more likely to feel better about spending their money. However, when consumer confidence is lower, they are more likely to save their money. This index gives companies meaningful insights into the direction and state of the economy.
A quick example of this is The University of Michigan’s consumer sentiment index, which dropped more than 13% from July to August of 2021. This is a concerning plunge that is only beaten by the 19% drop in April of 2020 that was spurred by the beginning of the COVID pandemic. A large part of this could be due to the uncertainty around the Delta variant and the potential impact this will have on the economy. This is in stark contrast with Bloomberg’s Consumer Board which reported optimistic increases in consumer confidence earlier this year. It’s important that businesses consider the possible implications of the Delta variant and growing consumer prices due to global staff and product shortages and act now to increase consumer confidence.
Investment companies, market research firms and economic development organizations (EDOs) can use insights from location intelligence to help better understand consumer confidence and prepare themselves for potential future highs and lows. Here is how brands can keep ahead of the curve and measure consumer confidence.