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Tag: consumers

  • 3 Behaviors to Expect from Consumers During the 2025 Holiday Shopping Season

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    The 2025 holiday shopping season is approaching, punctuating the end of a year filled with economic uncertainty. As a result, businesses should be preparing for a consumer landscape shaped by equal parts optimism and caution.

    Findings from several recently published studies indicate that shoppers are expected to be highly intentional, balancing value and convenience as they navigate economic pressures. Understanding these behavioral shifts will be key for businesses aiming to capture attention and loyalty in a competitive and fickle marketplace.

    According to Adobe’s online shopping forecast, published in October, the 2025 holiday season is expected to produce slower but still record-breaking growth in e-commerce. The deceleration is attributed to ongoing economic uncertainty, inflation, and tighter consumer budgets. Ryder’s 2025 e-commerce consumer study, published in September, echoes these findings, reporting that 44 percent of shoppers plan to reduce 2025 holiday spending compared to 2024. 

    That said, however, 28 percent of consumers said they don’t plan to make any changes in spending, even if that means purchasing fewer items, and 10 percent plan to make more purchases, even if that means spending more. To capture the attention of cautious spenders, focus on offering clear value and flexible purchasing options.

    Holiday purchasing decisions are being driven by a mix of cost-saving factors

    Free shipping remains the most powerful motivator for shoppers, according to Ryder’s study, with 76 percent of respondents reporting it as more likely than any other factor to influence their 2025 holiday purchasing decisions. The second most likely factor to influence consumers’ holiday purchasing decisions was sales and discounts (64 percent), followed by free returns (31 percent), emphasizing the importance of transparent, customer-friendly return policies for brands aiming to win over cautious holiday shoppers. Notably, 94 percent of respondents selected at least one of these as a top-three factor in their holiday purchase decisions. 

    Another anticipated trend from Adobe’s holiday shopping forecast is the dominance of mobile commerce, which is being forecast to account for a record 56.1 percent of all online spending. Similarly, 50 percent of respondents in Ryder’s consumer study said they plan to conduct 2025 holiday shopping using mobile apps; however, additional findings suggest 2025 holiday shopping activity will be well spread across channels. Ryder’s study revealed that 74 percent of online shoppers also plan to shop in physical retail stores, along with 73 percent on e-commerce marketplaces, 70 percent on store/brand websites, and 23 percent on social media marketplaces. 

    Maintaining a seamless omnichannel presence appeals to shoppers because it allows them to move effortlessly between online, mobile, and in-store experiences—whichever they happen to be embracing at any given moment. They want to be able to enjoy consistency in branding, pricing, and customer service as they browse, check inventory, redeem promotions, and complete purchases, wherever it’s most convenient. This flexibility builds trust, saves time, and makes the shopping journey feel easy and enjoyable, which ultimately increases satisfaction, loyalty, and conversion rates across every channel.

    The 2025 holiday season is bringing in a tide of consumers that are more discerning, digitally fluent, and value-driven than ever. While shoppers continue to prize deals, free shipping, and flexible payment options, they’re also blending digital convenience with the tactile experience offered by in-store shopping. The brands and retailers that will earn their attention and business will be those that anticipate these hybrid behaviors, aligning promotions, fulfillment, and customer engagement across all channels. Combining operational agility with authentic connection will position businesses to not only meet consumers’ expectations unique to the holiday season, but also strengthen loyalty well into the year ahead.

    The opinions expressed here by Inc.com columnists are their own, not those of Inc.com.

    The final deadline for the 2026 Inc. Regionals Awards is Friday, December 12, at 11:59 p.m. PT. Apply now.

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    Steve Sensing

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  • Trump’s FCC is officially moving to make it easier for internet companies to charge hidden fees

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    The Republican-led FCC has voted on and approved a proposal that would make it harder for consumers to receive itemized bills with accurate information from their ISPs, . This proposal revises previous “unnecessary” requirements on the grounds “may confuse customers.”

    These changes would minimize the benefit of the so-called “nutrition labels” which are otherwise known as Broadband Facts labels. You’ve likely run into these simple itemized labels when shopping for a broadband plan. They tell consumers exactly what we are paying for, even if it may “confuse” our fragile little minds.

    The FCC passed a notice of proposed rulemaking (NPRM) on October 28 that would significantly scale back the Broadband Facts label. ISPs have been required to publish these labels since April, 2024. All Republican commission members voted to approve the change, while the lone Democrat dissented.

    As previously noted, this is technically just an NPRM. So it’s not a done deal just yet. There will be a final vote in the near future, but it’s expected to pass given the political makeup of the commission.

    Once passed, ISPs will no longer be required to read these labels over the phone to customers, make them available in account portals or give a complete accounting of fees to customers. The FCC previously stated that these transparency requirements are “unduly burdensome and provide minimal benefit to consumers.” I happen to think that knowing what I’m shelling $100 out for each month to be of maximal benefit. Maybe that’s just me.

    These labels were initially proposed all the way back in 2016, before being implemented by the Biden administration in 2024. They offer a breakdown of every little thing that goes into a bill for a service plan, including many “hidden fees” that ISPs don’t include in advertised plan prices.

    It’s worth noting that the labels will technically still exist, they will just be harder to find and won’t be all that useful. Raza Panjwani, senior policy counsel at New America’s Open Technology Institute, refers to this as a political “two-step.” He told CNET that the modus operandi here is to make the labels “less useful” and then say “Oh, look, it’s not that useful. We should get rid of it.”

    Anna Gomez, the only Democrat on the commission, called the proposal “one of the most anti-consumer items I have seen” and expressed extreme displeasure with the results of the vote. “What adds insult to injury is that the FCC does not even explain why this proposal is necessary,” she said. “Make it make sense.”

    Despite claims to the contrary by Brendan Carr and the current FCC, consumers actually like these labels. A 2024 study of nearly 5,000 broadband customers .

    As an aside, Americans pay a lot for internet service throughout the world. We pay around twice as much as customers in Europe and most of Asia.

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    Lawrence Bonk

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  • Federal tax credit for electric vehicles expires, but some state incentives remain

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    The expiration of the $7,500 federal tax credit for electric vehicles, initially passed by Democrats during the Biden administration, leaves consumers looking for other ways to save on their next purchase.Experts say the tax credit previously helped make electric vehicles more affordable, increasing interest in them. Aaron Bragman, the Detroit Bureau Chief at Cars.com, said automakers are now offering electric vehicles that are both profitable for them and affordable for consumers. Bragman noted, “The tax credit has been good for just about everybody. It’s really kind of fostered this whole nascent industry of electric vehicles. It’s gotten people a lot more familiar with them and how they work. It’s helped to build out the infrastructure, the charging infrastructure in the United States, because there’s demand for it. People want the fast charging infrastructure throughout the country, even that has really been starting to accelerate.”There may still be separate incentives available at state and local levels. “The affordable EV isn’t necessarily going away, and there are still some incentives out there,” Bragman said. “It just takes some research and some partnering with your local dealership to find out what those might be where you are.”Car companies such as Ford, Nissan, and Kia are offering deals on electric vehicles, and Tesla has recently changed its referral program to boost incentives for consumers.Keep watching for the latest from the Washington News Bureau:

    WASHINGTON —

    The expiration of the $7,500 federal tax credit for electric vehicles, initially passed by Democrats during the Biden administration, leaves consumers looking for other ways to save on their next purchase.

    Experts say the tax credit previously helped make electric vehicles more affordable, increasing interest in them.

    Aaron Bragman, the Detroit Bureau Chief at Cars.com, said automakers are now offering electric vehicles that are both profitable for them and affordable for consumers.

    Bragman noted, “The tax credit has been good for just about everybody. It’s really kind of fostered this whole nascent industry of electric vehicles. It’s gotten people a lot more familiar with them and how they work. It’s helped to build out the infrastructure, the charging infrastructure in the United States, because there’s demand for it. People want the fast charging infrastructure throughout the country, even that has really been starting to accelerate.”

    There may still be separate incentives available at state and local levels.

    “The affordable EV isn’t necessarily going away, and there are still some incentives out there,” Bragman said. “It just takes some research and some partnering with your local dealership to find out what those might be where you are.”

    Car companies such as Ford, Nissan, and Kia are offering deals on electric vehicles, and Tesla has recently changed its referral program to boost incentives for consumers.

    Keep watching for the latest from the Washington News Bureau:

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  • Americans are feeling a lot worse about the state of the economy

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    (CNN) — American consumers are downbeat about the economy, according to preliminary results of a monthly survey conducted by the University of Michigan.

    The index measuring consumer sentiment fell unexpectedly this month to 55.4 from 58.2 in August as inflation is on the rise and job prospects are worsening. September’s reading also represents a 21% decline compared to a year ago, well before President Donald Trump took office and raised tariffs on practically everything the country imports.

    In addition to inflation and the labor market, tariffs also remain a concern for consumers, Joanne Hsu, the survey’s director, noted.

    “Trade policy remains highly salient to consumers, with about 60% of consumers providing unprompted comments about tariffs during interviews,” Hsu, said in a statement, noting that the same thing happened in the previous month.

    Economists polled by FactSet had been anticipating a minor improvement in consumer sentiment from August. Despite sentiment that’s near historic lows in a survey that goes back to the early 1950s, consumers are still feeling slightly better about the economy now compared to April and May during Trump’s initial rollout of so-called “reciprocal” tariffs, according to prior readings.

    The survey also spotlights what appears to be an increasingly bifurcated economy between income classes, where higher-income Americans continue to spend relatively freely and are feeling more optimistic about the state of the economy, while lower and middle-income Americans are cutting back and are more worried.

    Whiffs of stagflation

    While the economy is nowhere close to where it was in the 1970s and 1980s, when the nation’s annual inflation rate and unemployment rate both hit double-digit levels, recent employment and inflation data have led to mounting concerns of stagflation – when the economy slows significantly while inflation accelerates.

    Consumer prices rose 0.4% last month, bringing the annual inflation rate to 2.9%, according to Consumer Price Index data released Thursday. Meanwhile, there’s a laundry list of recent data pointing to a weakening labor market.

    For example, first-time applications for unemployment benefits surged last week to their highest level in four years. Also for the first time in four years, there are more people looking for work than there are jobs available for them.

    To top it off, the August employment report showed employers hired just 22,000 new workers and the unemployment rate rose to 4.3%, the highest level since 2021. The labor force snapshot also revealed that the US economy lost 13,000 workers in June, marking the first month since 2020 when employers laid off more workers than they hired.

    “Economic sentiment declined more than expected in September largely because Americans are fearful of losing their jobs,” Heather Long, chief economist at Navy Federal Credit Union, said in a statement on Friday.

    This string of data has essentially guaranteed the Federal Reserve will cut interest rates at its monetary policy meeting next week after having held rates steady for close to a year. Traders are also now betting on cuts at the subsequent two meetings this year, which has helped push stocks to record highs.

    This story has been updated with additional developments and context.

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    Elisabeth Buchwald and CNN

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  • Celebrate American workers — not union bosses — on Labor Day

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    As we say goodbye to the summer season by celebrating Labor Day, most Americans are eager to recognize the ingenuity and determination of rank-and-file workers.

    But not union bosses, who hijack the holiday every year to argue for more government-granted coercive powers. Instead of focusing on the workers they claim to represent, union officials wield political clout to protect and expand their privileged positions.

    This is because today’s unions are built on the government-authorized ability to compel workers into their ranks. In the 24 states without right-to-work laws, union chiefs can legally extort private sector workers to “pay up or be fired.” Even when union membership is voluntary, workers must accept the union bargaining collectively for their wages and working conditions.

    NATION’S 2 LARGEST TEACHERS UNIONS FUNNELED NEARLY $50M TO LEFT-WING GROUPS, WATCHDOG REPORT SAYS

    It doesn’t matter that you, as an individual employee, may not want the union’s so-called representation or a one-size-fits-all contract; union bureaucrats can forcibly take your dues money, then use it to buy political influence or advocate causes you oppose.

    Workers do still have some limited rights guaranteed under federal law, such as the right to have union dues not pay for political activities (CWA v. Beck, 1988) or the right of public employees not to be forced to pay any money to a government union (Janus v. AFSCME, 2018). But, union political operatives are using their influence — bought with workers’ dues money collected under duress — to try to push through a legislative agenda that upends these rights.

    For example, the Protecting the Right to Work Act (PRO Act), Big Labor’s top legislative priority in Congress, would repeal all current 26 state Right to Work laws by federal fiat. Even though Right to Work laws don’t stop a single worker from joining a union or paying dues voluntarily, they’ve made it their signature move to end this protection for good.

    Why? Because union bosses want to strip rank-and-file workers of their choice. This becomes all the more obvious as you examine the PRO Act’s other provisions, which codify several suspect or downright illegal tactics union enforcers already use to get around workers’ rights.

    One such tactic is the controversial “card check” method of organizing a union, which avoids the traditional secret ballot that lets workers have the final say. Instead, this process lets organizers submit union cards collected in person from workers, often using pressure or intimidation tactics. The AFL-CIO even admitted in its own organizing handbook that such cards don’t reflect workers’ actual wishes.

    To protect existing unions from decertification (secret-ballot votes to remove an incumbent union), the PRO Act codifies another common Big Labor tactic. Through union-filed blocking charges — unproven allegations against the company of unfair practices — union officials can unilaterally block decertification votes for months or more.

    In multiple cases, such tactics were used to block decertification votes from occurring even though 100% of workers signed the decertification petition. Workers can literally be unanimously opposed to the union, yet union officials can manipulate their special legal powers to trap workers against their will.

    It’s the latest sign that today’s union officials have fully rejected the warnings of some early union officials who wanted to build their organizations without coercing workers into their ranks. 

    CLICK HERE FOR MORE FOX NEWS OPINION

    Take Samuel Gompers, the founder of the American Federation of Labor (now the AFL-CIO). In a 1924 speech to union delegates he forcefully rejected the coercion today’s union bosses rely on: “I want to urge devotion to the fundamentals of human liberty — the principles of voluntarism. No lasting gain has ever come from compulsion.” 

    Gompers understood, as do the 8 in 10 Americans who oppose forced union dues and affiliation, that when union affiliation and financial support are voluntary, union officials must prove their worth to individual workers. But today, union bosses increasingly reject this ideal, and undermine the liberty of those they claim to “represent.”

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    So this Labor Day, remember that truly being “pro-worker” means rejecting the propaganda from union bosses and respecting a worker’s right to choose whether they want to join a union.

    After all, it’s Labor Day, not Union Day.

    Mark Mix is the president of the National Right to Work Committee and National Right to Work Foundation.

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  • Fed Chair Powell Signals Fed May Cut Rates Soon Even As Inflation Risks Remain – KXL

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    JACKSON HOLE, Wyo. (AP) — Federal Reserve Chair Jerome Powell on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.

    In a high-profile speech closely watched at the White House and on Wall Street, Powell said that there are risks of both rising unemployment and stubbornly higher inflation.

    Yet he suggested that with hiring sluggish, the job market could weaken further.

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    Grant McHill

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  • Walmart and Target earnings pull back the curtain on an America struggling with high inflation

    Walmart and Target earnings pull back the curtain on an America struggling with high inflation

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    Economists have been looking for cracks in U.S. consumer spending for years now amid persistent inflation and higher interest rates, but until recently, Americans have defied the odds at every turn. Despite consistent recession forecasts and dismal consumer sentiment numbers caused by the soaring cost of living, Americans managed to continue spending at record levels until recently. But in April, retail sales growth stopped completely. And now, major retailers’ earnings reports have revealed some stark warning signs about the health of the American consumer.

    First, to be clear, Walmart won the day. The retail giant topped Wall Street’s earnings and revenue forecasts in the first quarter, reporting adjusted earnings per share of $0.60, compared with the expected $0.52, and revenue of $161.5 billion, surpassing the forecasted $159.5 billion. E-commerce offerings and spending from high-income customers helped buoy the results. But the company also witnessed a key spending pattern that typically occurs when consumers are feeling financial strain: a shift from spending on wants to needs. 

    As Walmart CFO John D. Rainey explained on an earnings call with analysts on May 16: “Many consumer pocketbooks are still stretched, and we see the effect of that in our business mix as they’re spending more of their paychecks on nondiscretionary categories and less on general merchandise.”

    Walmart said it has increased the number of price cuts, or “rollbacks,” that it offers on key items to boost sales, partly because, as Rainey repeated on the call, “wallets have been stretched.” When asked why he declined to raise Walmart’s forward earnings guidance by Morgan Stanley analyst Simeon Gutman, Rainey also gave a telling response, emphasizing his uncertainty around consumer spending.

    “I think we’d all agree that we’re in far from a certain environment around the consumer. The health of the consumer is something we read about every single day, and given that we’re one quarter into the year, we just want to be patient,” the CFO said.

    It wasn’t just Walmart that brought up concerns about the health of the consumer in its first quarter earnings report. Target saw its net sales drop 3.1% from a year ago to $24.5 billion in the first few months of 2024, and missed earnings estimates, with diluted earnings per share coming in at $2.03, compared with the forecasted $2.05. Inflation-weary shoppers turned toward necessities during the quarter, according to Target, leading to the sales and earnings dip.

    In a follow-up call with reporters, chairman and CEO Brian Cornell said that Target shoppers’ “biggest challenges” are “inflation in food and household essentials,” Yahoo Finance reported. Cornell even added that there has been a “strain on the consumer wallet” in an echo of Walmart CFO John Rainey’s comments.

    Target saw a comparable store sales decline of 4.8% in its physical stores in the first quarter as shoppers looked for cheaper options, and only a slight rise in comparable online sales. In a move to prevent further sales declines, the company unveiled a plan to slash prices on nearly 5,000 everyday items like groceries and diapers. 

    But on Target’s earnings call with analysts Wednesday, chief growth officer Christina Hennington noted that she is paying close attention to consumers’ ongoing financial strain to determine the correct path for the company, signaling that price cuts might not be enough to reignite growth.

    “The sustained level of elevated prices has had a meaningful impact on budgets and savings for many families,” Hennington said. “Currently one in three Americans has maxed out or is nearing the limit on at least one of their credit cards. For these reasons and more, we remain cautious in our near-term growth outlook.”

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    Will Daniel

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  • Merriam-Webster’s word of the year 2023 is ‘authentic.’ Here’s how corporate America hacked the consumer cult of authenticity

    Merriam-Webster’s word of the year 2023 is ‘authentic.’ Here’s how corporate America hacked the consumer cult of authenticity

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    “Mass advertising can help build brands,” longtime Starbucks CEO Howard Schultz once prophesized, “but authenticity is what makes them last.” As corporate cheerleading goes, this is an enduring fable. Authenticity has become a central moral framework in society–the subtle yet pervasive value that animates and adjudicates our media, culture, and politics. Merriam-Webster recently announced that “authentic” was its 2023 word of the year, thanks to a surge in online search queries.

    Consumers have long sought authenticity, as it gets stamped on a range of goods and experiences made attractive largely because they appear to lack marketplace motives. The mom-and-pop diner; the vinyl record shop–the local and uncommercialized. Think dive bars, farmers markets, and indie cinemas.

    Studies find that consumers rate independent, family-run outposts more authentic than chains–and even shrug off hygiene code violations if a hole-in-the-wall seems sufficiently off the beaten path. Authenticity also beckons tourists, pointing toward paths less traveled such as Cuba, Bhutan, or Burning Man.

    A quest for the unique

    Scholarly articles about authenticity more than doubled in the 2010s and leading pollster John Zogby found that it topped the list of Americans’ cultural yearnings.

    “You have aspirational positioning from every brand out there to want to make their offering feel bespoke and handcrafted and unique,” one marketing COO quips. “The fact of the matter is that there’s tens of thousands of others of that [product] pumping out every single week.”

    That quest for authenticity is, in short, a quest for uniqueness amidst homogenous mass production. Today’s consumers seek what one philosopher-critic called “aura”–a singular product relative to the readily replicable. Social theorist Andreas Reckwitz diagnoses consumers as in thrall to “singularities”–distinctive objects, spaces, and experiences that fulfill cultural desires rather than functional needs that assembly lines once simply satisfied.

    Franchising, in particular, embodies McWorld alienation as corporations implement formulaic operations that erode local character: nondescript office parks, suburban tract homes, and casual dining chains. Most can’t preserve nuance at the massive scale that profit demands.

    The more sameness is offered, the more consumers go searching for something real to grab onto and discover themselves within. Call this the identity politics of the shopping cart.

    A manufactured ideal

    As a concept, authenticity hatched in response to 18th– and 19th-century industrialization. Humanity’s relationship with machines became disenchanted, not just at work–where efficiency, automation, and quantity dominated values–but also with this logic spilling into consumer experiences.

    Although authenticity cannot be found in Victorian-era vocabulary about merchandise, by 1908 Coca-Cola was already pitching itself as “genuine”–part of manufacturers’ efforts to persuade that their brand was more natural and traditional than fellow factory-line products filling home shelves. This rhetoric intensified in recent years.

    Take Starbucks, which has long tried to reproduce the “aura” of that cute, little indie coffee shop in your neighborhood–some 55,000 times over. Its brand guidebook reportedly mandates five ideals that had to apply to every design choice: handcrafted; artistic; sophisticated; human; and enduring. These seek to convince you that this Starbucks is truly unique and special, unlike the (same) one a block away.

    Hence, the interiors’ aesthetic accentuation–earth hues, wicker baskets, curvy motifs, stained woods, unfinished metals–all to contrast the prepackaged synthetics that envelop fast food. Hence, too, the customer’s name read aloud rather than an automated receipt number–simulating rituals of familiarity and tradition.

    Starbucks doesn’t become globally ubiquitous if it can’t fake authenticity in this fashion, even if being globally ubiquitous inherently invalidates that.

    The authenticity ideal is artisanal craft, romantically conjuring premodern labor untainted by massive machinery. Goods that are “handmade” in “small-batch” as opposed to cash-grab; shelves that are curated, not commercialized.

    Origin stories also authenticate, seeking to make a company genealogically trustworthy by emphasizing a point or person of provenance. Think Ben & Jerry’s here, or the naïve moral authenticity of any amateur startup tinkering in a garage for love rather than money.

    Research suggests that a company’s founding intent matters a great deal to consumers: If seen as “self-transcendent” (i.e., for society or community) rather than for “self-enhancement” (wealth or status), the brand scans authentic. Greed, for lack of a better word, isn’t good at conveying that.

    Authenticity also explains a recent swing toward vintage aesthetics–campaigns, slogans, and logos from yesteryear dusted off and trotted out, from Pizza Hut’s red roof icon to Miller Lite’s throwback font: “Brands want to say, ‘We’re still that same company with humble roots,’” one brand strategist explained. “So [they] reverse-engineer that value to an audience that may not be privy to a backstory.”

    This, then, is the ultimate contrivance: For a century,  corporations have tried to sell us they have a “soul.” As one advertising creative director rhapsodizes, “Brands have to have a voice; they have to have character; they have to have morals.”

    To that end, Dunkin’ Donuts shortened the name on its (11,000-plus) outlets to just “Dunkin’” to “highlight how the brand was now on a first-name basis with fans,” even giving away “handmade friendship bracelets” to commemorate the copyright registry.

    To be sure, there is something understandable, yet lamentable, in that notion. You can’t be friends with an LLC, yet anthropomorphism remains the central delusion of branding. Authenticity is, after all, a nostalgic reflex. We yearn for it most in times of rapid change. Much as industrialization generated a longing for agrarian simplicity a century ago, today’s high-tech landscape–one of AI chatbots and digital deepfakes–generates much the same wistfulness for a world being lost.

    Michael Serazio is an associate professor of communication at Boston College and the author of, most recently, The Authenticity Industries: Keeping it ‘Real’ in Media, Culture & Politics.

    More must-read commentary published by Fortune:

    • Economic pessimists’ bet on a 2023 recession failed. Why are they doubling down in 2024?
    • COVID-19 v. Flu: A ‘much more serious threat,’ new study into long-term risks concludes
    • Access to modern stoves could be a game-changer for Africa’s economic development–and help cut the equivalent of the carbon dioxide emitted by the world’s planes and ships
    • The U.S.-led digital trade world order is under attack–by the U.S.

    The opinions expressed in Fortune.com commentary pieces are solely the views of their authors and do not necessarily reflect the opinions and beliefs of Fortune.

    Subscribe to the new Fortune CEO Weekly Europe newsletter to get corner office insights on the biggest business stories in Europe. Sign up for free.

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    Michael Serazio

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  • More brands will be using web3 to capture market share in 2024 | Opinion

    More brands will be using web3 to capture market share in 2024 | Opinion

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    Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

    Consumer retail spending is rising, with shoppers spending almost $10 billion in online Black Friday sales this year. Clearly, demand for great products has not waned despite inflation, and so competition for consumer attention is on the rise. There is an unexpected beneficiary to this tug-of-war between brands for consumer dollars—web3. In 2024, we’re likely to see growing numbers of brands and companies leveraging web3 to strengthen the bond between their brand and customers.

    The latest developments in web3 give consumer brands a powerful tool to enhance their membership and loyalty programs. In return for their loyalty, customers can now own their interaction with brands as an NFT, creating powerful incentives for customers to engage with brands they value.

    When a company creates a brand incentive program and customers fulfill elements of it—like reaching a spend threshold or interacting on social media—the customers can now be granted ownership of the rewards they earned thanks to web3 technology. Using non-fungible tokens (NFTs) recorded on a public blockchain, points, and status tiers become ownable assets, making them much more compelling as incentive mechanisms.

    Customer rewards can be owned and transferred just like any other real-world asset. Ownership of the rewards confers a wide range of potential benefits (discounts, experiences, and so forth) to the owner. This new generation of loyalty mechanism is similar to the dog-eared punch card hiding in your wallet—buy nine coffees, get the tenth one free—but these digital asset NFTs are harder to lose, easier to value, and much easier to transfer.

    Most existing loyalty program rewards are non-transferable or challenging to value and sell. But what if a customer could give their top-tier airline status to a friend, rent it out, or even sell it outright on the open market? Enabling ownership and transferability of a consumer’s interaction with a business brings completely new dynamics. Now, the consumer has more incentive to earn those rewards, which benefits both the consumer and the brand.

    Brands can easily enable this use case via NFTs that live on public blockchains, which makes it easy to transfer digital assets wallet-to-wallet or through marketplaces. Customers can bring their own web3 wallet, or brands can provide one integrated with the membership app or account. Furthermore, brands need not cede all control by enabling this ownership model. Using smart contract technology to power these NFTs, brands can choose the level of exclusivity or transferability of these assets, retain control over their redemption value as earned fees, and track when these assets change hands. Brands can also choose to hide the use of NFTs or blockchain completely, allowing for a familiar but more powerful experience powered by web3 “under the hood.” Web3 provides a best-of-both-worlds scenario, enabling the aspects of ownership that increase consumer incentives while allowing brands to curate the experience and collect additional data.

    Brands that don’t sell directly to their customers can face additional challenges when engaging with and understanding their buyers. With web3 technology, though, a company—let’s say an apparel company—can close the loop to gain insights into who is buying their products. Perhaps it involves the customer downloading an app or scanning a QR code through their web3 wallet; the company can then incentivize buyers to provide proof of purchase to earn an NFT and gain additional rewards. Companies can better reach their customers and, by delivering satisfying web3-based incentives, encourage consumers to sign up for a membership account with an embedded web3 wallet.

    Alternatively, if a consumer already has their own wallet, then web3 tech offers the ability for brands to market to new, qualified customers. Since wallet contents are publicly visible (though pseudonymous), a big box home improvement store is able to identify wallets that contain a loyalty reward from a major competitor. The big box store could then target the wallet owners with promotional offers and incentivize the customers to shop with them instead.

    As a bonus, web3 technology can also facilitate brand partnerships by programming the interactions between web3-powered loyalty programs. A coffee business could partner with a brand—say, an apparel business—with similar customer demographics. Using a smart contract to govern the interaction, a customer of the coffee chain could easily exchange their rewards for discounts at the apparel chain. The two brands can jointly engage with customers, doubling the benefits for consumers; this also expands the audiences for the companies and helps them to get a fuller understanding of the profiles and interests of their customers. With the advent of new cross-chain protocols that provide easy interoperability, the two brands could even use different blockchains.

    Web3-powered membership and loyalty programs enable consumers to take ownership of their investment of time and money, creating additional incentives for them to engage. Meanwhile, forward-thinking companies can connect with their customers in creative new ways, easily form new partnerships, and ultimately increase profits via a customer base that is literally invested in the brand. Adopting web3 can be daunting for any company, but the rewards are immense.

    Audentes Fortuna Iuvat. Fortune favors the bold.

    Frank Wang

    Frank Wang is the director of platform sales at BitGo, an institutional digital asset financial services company that provides clients with security, custody, and liquidity solutions. Frank works with BitGo’s exchange, fintech, and enterprise clients, focusing on enabling blockchain adoption for consumer-facing technology platforms like payments and loyalty programs. Prior to joining BitGo in early 2022, Frank spent 19 years at various finance and technology companies. Frank graduated from the University of Pennsylvania with a B.A.S. in Systems Engineering and a B.A. in Economics and East Asian Studies.


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  • How to Make High-Priced Products Accessible to Working-Class Families | Entrepreneur

    How to Make High-Priced Products Accessible to Working-Class Families | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    There are times when products are inherently expensive. Homes are a classic example. So are vehicles. In those cases, the constant human needs for shelter and transportation have created natural solutions in the form of mortgages and auto loans.

    But what about companies outside of staple product niches? Here are three examples of how companies with high-priced products designed for larger consumer markets can make them accessible to working-class families.

    Leasing expensive equipment to customers

    Leasing is a classic business model. It involves renting an asset under a contractual agreement at a certain price for a set amount of time.

    When leasing comes up, it’s usually referencing major assets such as a house or car. However, it’s completely possible to lease a wide variety of additional products.

    Related: 5 Major Leasing Deal Points to Know Before Signing a Lease

    One example of this is solar panels. NerdWallet reports that the average solar panel installation can cost as much as $35,000. The renewable source of energy can save money over time, but its barrier to entry is inhibitive and has made solar power inaccessible to lower-income homeowners for over a decade.

    Some companies aim to combat this by leasing solar panel systems to homeowners. The end result is lower energy bills that ideally cover both the leased equipment and reduce the original cost of energy for the home.

    This approach to solar panel installation saves consumers tens of thousands of dollars in up-front fees. This makes it possible for homeowners to tap into the long-term savings of solar power without breaking the bank in the process. The same model is easy to reproduce for any brand that has a solid product and enough capital or investors to front the cash for equipment.

    Related: How to Invest In Real Estate Amid High Interest Rates and Inflation

    Offering interest-free payments

    Interest is a major detracting factor that makes larger purchases unappealing. For example, if an individual purchases a car in New York and takes out a five-year $25,000 auto loan at 5% interest, they’ll end up paying over $2,600 more in interest.

    Broken down over 60 months, this is nearly $45 per month in interest alone. To a working-class family, this is a legitimate cost that they must factor into their financial plans.

    Savvy companies that sell big-ticket items have caught onto the toll that interest payments take on their customers. Some have opted to offer interest-free payments as an alternative.

    Home Depot, for instance, regularly offers its customers coupons for 12-month and even 24-month interest-free financing. The Home Depot credit card also provides a round-the-clock six-month interest-free financing option. That means a customer can hold a balance with the company for that entire period (whether it’s six, 12 or 24 months). As long as they pay off the total before the payment period ends, they won’t pay a penny in interest.

    This model assumes a certain degree of risk on the part of the company. However, when managed well, the interest-free financing model more than makes up for the risks in the amount of larger purchases it encourages from those customers with limited up-front funding.

    Breaking things into smaller bundles and á la carte pricing

    Sometimes, a grouped product selection can push something out of reach of working-class family budgets. When this is the case, splitting a product up into multiple components can help reduce the financial barrier to entry.

    The exorbitant cost of cable television is a good example of this issue. Cable provider Spectrum has found a solution to the problem of its excessively priced full television packages by offering its Spectrum TV Choice bundle.

    This allows users to choose from a variety of channels to fill up a smaller quota of total channels. They can change their selection once a month, making the arrangement sustainable and accessible.

    Not all products come in individual pieces. Whenever that is the case, though, companies should consider innovative ways to repackage the individual components to make them accessible to customers without losing their collective value.

    Related: How Businesses Can Empower Consumers to Make Sustainable Choices

    Making high-priced products accessible to everyday consumers

    The middle class in America is able to make larger purchases. But they cannot do so with the same laissez-faire attitude as those with ample wealth and disposable income.

    Companies that want to market higher-priced products to middle-class consumers must be willing to find unique and innovative ways to help them make a purchase. From leasing and financing options to á la carte and “buffet style” offerings, consider how you can make your brand’s big-ticket items accessible to your target audience.

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    Rashan Dixon

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  • RBI directive impact: Paytm recalibrates loan distribution biz strategy

    RBI directive impact: Paytm recalibrates loan distribution biz strategy

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    One97 Communications Limited (OCL), which owns Paytm, on Wednesday, said that it is consciously pruning its loan disbursals below ₹50,000. At the same time, this fintech major has decided to expand its credit distribution business so as to enhance focus on higher ticket loans for consumers and merchants.

    This comes days after the Reserve Bank of India (RBI) increased the risk weights — the capital that banks need to set aside for every loan disbursed — for banks and NBFCs by 25-125 per cent on retail loans.

    “On the back of recent macro development and regulatory guidance, in consultation with lending partners, in line with its continued focus on driving a healthy portfolio, the company has recalibrated the portfolio origination of less than ₹50,000, which is prominently the postpaid loan product and will now be a smaller part of its loan distribution business going forward”, Paytm said in a statement, alluding to RBI’s recent directive.

    Merchant loans, which are given to MSME as business loans, will continue to be a focus for Paytm. As these loans are given for business purposes to small merchants, they don’t get impacted by the recent regulatory guidance.

    A Paytm spokesperson said, “As the lending distribution business is maturing, we see newer opportunities of expansion to offer high-value personal and merchant loans. We will continue to focus on originating the high portfolio quality for our lending partners, along with strict adherence to risk and compliance. We have seen great scale and acceptance for our loan distribution business, so we believe this expansion will further aid us to grow the business.”

     Paytm continues to add banks and NBFCs as its lending partners for its loan distribution business. 

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  • Why Can’t We Resist Black Friday? A Behavioral Economist Explains. | Entrepreneur

    Why Can’t We Resist Black Friday? A Behavioral Economist Explains. | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Imagine you put on an old coat you haven’t worn in a while and, to your surprise, you find a crumpled $20 bill in your pocket. How good does it feel? Do you go up half a notch on a one-to-ten mood scale, or maybe a full-notch?

    Let’s imagine a different scenario. You’re doing the laundry, take out a just-washed pair of pants, and discover you forgot a $20 bill in the pocket — which has been completely ruined. What does that do to your mood on a one-to-ten scale?

    If you’re like most people, you feel much worse about losing $20 than about gaining $20. That tendency is called loss aversion, one among many dangerous judgment errors that behavioral scientists call cognitive biases. The mental blindspot called loss aversion is one of the most fundamental insights of a field of behavioral science called prospect theory in the last few decades.

    Loss aversion is one of the three key reasons why our minds get sucked — and suckered — into Black Friday and Cyber Monday sales. Retailers know that our intuitive reaction is to avoid losses, with research showing this drive might be up to twice as powerful as the desire to make gains. By offering short-term sales, available only on Black Friday or Cyber Monday, they tap into our deep intuition to protect ourselves from the loss of the opportunity represented by the sale.

    Similarly, loss aversion helps explain why so many marketing techniques involve trial periods and free returns. Retailers know that once you buy something, you’ll be averse to losing it.

    In a classic research study illustrating this tendency, participants were divided into two groups: one was given a chocolate bar and the other a mug. Then, they were offered the chance to trade what they had for the other object. Of the students given the mug first, only 11% chose to trade it for the chocolate bar, and only 10% of the students who got the chocolate first exchanged it for the mug.

    We want whatever we have and are reluctant to lose it — such as an opportunity to buy something at a lower price during a short time period during Black Friday or Cyber Monday sales. In fact, behavioral scientists have a special term for people putting excessive value and being reluctant to give up whatever they have: the endowment effect, a specific form of loss aversion.

    Let’s imagine a different scenario. It’s Cyber Monday, and you decided to check out the deals on an e-commerce website. You feel confident you’ll only get one or two of the best deals. But once you visit the website, you’re hooked. All those deals look great. The discounted prices are too good to pass up. So you end up taking advantage of a bunch of deals and purchase much more than you intended to in the first place.

    Why did that happen? Why couldn’t you control yourself? It’s due to a cognitive bias called the restraint bias. We substantially overestimate the extent to which we can restrain our impulses. In other words, we have less self-control and weaker willpower than we like to think we do.

    Related: Online Scams Are More Sophisticated Than Ever. Here’s How to Shop Safely on Black Friday and Cyber Monday, According to a Cyber Intelligence Expert.

    That’s why so many people overeat at buffet restaurants. If we had good self-control, buffet restaurants would be great: We could get whatever we want at a cheaper price than ordinary restaurants. Yet the problem is that we overestimate our ability to control our impulsive desire to take more food, and loss aversion causes us to try to avoid losing the opportunity to take the wide variety of food available at buffets.

    Black Friday and Cyber Monday are the shopping equivalent of buffet restaurants. So many tempting deals around, with loss aversion driving us to not want to lose out, all resulting in shopping much more than we wanted.

    The final key psychological reason why you get sucked into Black Friday and Cyber Monday sales explains why you’re reading articles like this one. Here’s the thing: The abundance of news stories, advertisements and social media posts around Black Friday and Cyber Monday makes it seem like everyone is thinking about sales on those days and looking for good deals.

    As a consequence, our minds drive us to jump on the bandwagon of getting into Black Friday and Cyber Monday sales, a tendency that scientists call the bandwagon effect. When we perceive other people aligning around something, we are predisposed to join them. After all, they wouldn’t be doing it if it wasn’t a good idea, right?

    Loss aversion, restraint bias, and the bandwagon effect are mental blindspots that impact decision-making in all life areas, ranging from the future of work to mental fitness. Fortunately, recent research has shown effective and pragmatic strategies to defeat these dangerous judgment errors, such as by using decision aids to constrain our shopping choices.

    A useful strategy for Black Friday and Cyber Monday involves deciding in advance the purchases you’d like to make if they are on sale and buying them online instead of in the store. For example, you might decide to buy a certain laptop if it’s more than 20% off or a specific big-screen TV if it’s 30% off. Save the website pages of the laptop or TV that you want to buy, and then visit them on Black Friday and Cyber Monday to see if they’re on sale. If they’re not, be disciplined, and don’t buy something else, as you’re likely to get stuck buying much more than you wanted, and some deals are actually too good to be true. Instead, wait for the Christmas sale.

    If you’re an entrepreneur who sells products, consider whether you can take advantage of loss aversion, restraint bias, and bandwagon effect among your customers, whether on Black Friday and Cyber Monday or throughout the year. Alternatively, consider sharing this article with your employees to help them make smart decisions this holiday shopping season.

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    Gleb Tsipursky

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  • California Implements New Cryptocurrency Laws to Combat Bitcoin ATM Scams

    California Implements New Cryptocurrency Laws to Combat Bitcoin ATM Scams

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    Bitcoin (BTC) ATMs have become both convenient and worrying, with scammers taking advantage of unsuspecting victims. Authorities in the US and other jurisdictions are now waging a war against crypto-ATM-based scams.

    California takes a stance on new cryptocurrency laws

    The state of California has introduced rules for cryptocurrency transactions. Senate Bill 401, signed by Governor Gavin Newsom, means you can only make $1,000 worth of cryptocurrency transactions at ATMs each day, and starting in 2025, the maximum they can charge you is $5, or 15% of the transaction. Whichever is higher.

    Initially, some Bitcoin ATMs allowed up to $50,000 in transactions with fees ranging between 12% and 25% above the value of the digital asset. These changes are intended to protect people from scams and high fees, explained Sen. Monique Lemon, one of the co-authors.

    Scammers taking advantage of the convenience of Bitcoin ATMs have been a growing concern, with the Federal Trade Commission reporting that more than 46,000 people have lost more than $1 billion to cryptocurrency scams since 2021. New transaction limits give victims more time to spot scams before loss of money. But Charles Bell of the Blockchain Advocacy Coalition worries that these rules could hurt the cryptocurrency industry and small businesses.



    You may also like:

    Explore Australia’s rapid rise in the global cryptocurrency ATM scene

    FBI Alerts About Bitcoin ATM and QR Code Scams

    The Federal Bureau of Investigation (FBI) has raised the alarm about fraudulent schemes exploiting ATMs for cryptocurrencies and quick response (QR) codes for payments. These schemes take various forms, including online impersonation, romance scams, and lottery fraud, all using cryptocurrency ATMs and QR codes as tools.

    QR codes, which smartphone cameras can scan, simplify cryptocurrency payments. However, criminals are now using it to trick victims into paying money. Victims are often asked to withdraw money from their accounts and use a QR code provided by scammers to complete transactions at physical cryptocurrency ATMs.

    Once the victim makes the payment, the cryptocurrency is transferred to the scammer’s wallet, making recovery nearly impossible due to the decentralized nature of cryptocurrencies. The FBI offers several tips to protect against these schemes, focusing on caution, verification, and avoiding cryptocurrency ATM transactions that promise anonymity using only a phone number or email.



    You may also like:

    Bitbuy is partnering with Canada’s largest Bitcoin ATM provider

    Cryptocurrency regulation efforts in California

    The passage of Senate Bill 401 in California is part of a broader effort to regulate the cryptocurrency industry while protecting consumers. Another law, scheduled to take effect in July 2025, will require digital financial asset companies to obtain licenses from the California Department of Financial Protection and Innovation. This represents a clear shift towards tightening government regulation and oversight in the world of digital finance.

    Gavin Newsom’s decision to sign these bills into law demonstrates California’s commitment to strengthening the cryptocurrency industry and protecting its citizens. Balancing innovation and security remains a challenge, especially in a rapidly evolving digital landscape.

    Bitcoin Depot’s historic debut on the NASDAQ

    In July, Bitcoin Depot, a leading bitcoin ATM operator, went public on the Nasdaq. This milestone comes after Bitcoin Depot merged with GSR II Meteora, a blank check company.

    The move to go public demonstrates the growing legitimacy and acceptance of cryptocurrencies in major financial markets.

    Authorities vs. illegal crypto ATMs

    The UK Financial Conduct Authority (FCA) is taking a strong stance against illegal cryptocurrency ATM operators. Using its power under money laundering regulations, the Financial Conduct Authority (FCA) has carried out raids on cryptocurrency ATMs suspected of illegal activities across England.

    The measures, which follow previous operations in east London and Leeds, are part of the Financial Conduct Authority’s (FCA) efforts to crack down on unregulated cryptocurrency operations. This highlights global pressure for stronger cryptocurrency regulation, mirroring steps taken in California. The balance between innovation and security remains a fundamental concern for regulatory bodies around the world.



    Read more:

    McLennan County Bitcoin ATM Lawsuit Resolved

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    Editorial Team

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  • Consumer spending climbs again as Americans show confidence in the economy

    Consumer spending climbs again as Americans show confidence in the economy

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    The numbers: Consumer spending rose 0.5% in June in a sign of confidence in the economy as inflation eased again and the U.S. continued to grow.

    Analysts polled by the Wall Street Journal had forecast a 0.5% increase.

    Incomes advanced 0.3% in June, the government said Friday.

    Consumer spending is the main engine of the U.S. economy. Households increased spending by a 1.6% annual pace in the second quarter running from April to June. Outlays have risen seven months in a row.

    Key details: Americans bought more trucks last month and spent more on financial advice. They also increased spending on housing, gas utilities and recreation.

    The U.S. savings rate, meanwhile, slipped to 4.3% from a 13-month high of 4.6%. Savings had fallen late last year to the lowest level since 2005.

    The so-called PCE price index, the Federal Reserve’s favorite inflation barometer, rose a modest 0.2% in June. And the rate of inflation rose at the slowest pace since September 2021.

    Big picture: A strong jobs market marked by low unemployment and rising wages have given Americans the confidence to spend more than enough to keep the economy growing. Services such as dining out, travel and recreation have especially benefited.

    Most economists predict spending will slow, however, as rising interest rates take a bigger bite out of the economy. Whether that’s enough to eventually tip the U.S. into recession is far from clear.

    Looking ahead: “Slower inflation and growing real incomes have provided some breathing room, encouraging consumers to spend on travel and recreational activities,” said senior economist Kayla Bruun of Morning Consult.

    “Momentum may begin to fade as summer splurges dry up, however,” she added. “Morning Consult’s data suggests consumers are growing increasingly price sensitive across a broad range of categories.” 

    Market reaction: The Dow Jones Industrial Average
    DJIA,
    +0.54%
    and S&P 500
    SPX,
    +0.87%
    were set to open higher in Friday trades.

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  • A breakfast-cereal giant’s grumbles about prices could be music to the Fed’s ears

    A breakfast-cereal giant’s grumbles about prices could be music to the Fed’s ears

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    General Mills the megamanufacturer behind your morning Cheerios, reported a drop in earnings that might make it question whether continuing to raise prices is worth it. 

    General Mills
    GIS,
    +0.52%
    CEO Jeff Harmening acknowledged during the company’s fourth-fiscal-quarter earnings call this week that consumers responded to higher prices by making fewer purchases. “As you look at the last 12 weeks, it’s pretty clear that elasticity — volume elasticities have increased,” which may suggest consumer demand is more sensitive to price increases than it had been previously.

    In business and economics, price elasticity refers to the degree to which individuals, consumers or producers change their demand or the amount supplied in response to price or income changes.

    “ ‘Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside.’ ”


    — Richard Moody, Regions Financial Corp.

    The manufacturer of the Häagen-Dazs, Pillsbury and Betty Crocker product lineups, as well as its famed breakfast cereals, felt the impact of this phenomenon as it reported a decline in profits and sales volume for its fourth quarter. 

    Read: General Mills’ stock slides 5% as sales fall short. North American retailers are reducing inventory.

    Richard Moody, chief economist at Regions Financial Corp., said higher prices are posing an issue for companies more broadly. “Companies have been raising prices pretty aggressively. We’re seeing that trend definitely subside. Sellers of goods just don’t have as much pricing power as they had for most of last year and the prior year,” Moody told MarketWatch.

    This could be music to the ears of Federal Reserve officials, who are trying to get inflation back down to their 2% target.

    St. Louis Fed President James Bullard, during the early days of the fight against inflation in 2022, said inflation would return to the Fed’s target once companies find out that raising prices is harmful to their bottom lines.

    In an interview last May with Fox Business Network he observed that “a lot of CEOs have come on TV and said, ‘Oh, I have lots of pricing power, and I can do whatever I want and make a lot of money … but I think some of them are going to get punched in the face here with the fact that consumers have to react.”

    Context: Fed-preferred PCE gauge shows lowest U.S. inflation rate since April 2021, but stickiness at core hints at persistent price pressure

    Also see: U.S. consumer sentiment climbs to 4-month high on slower inflation and end of debt-ceiling fight

    Though General Mills’ drop in earnings might not be the punch in the face Bullard warned of, its recent quarterly update could be a sign that continuing to raise prices is now looking harmful to financial results.

    A statement from the company attributed the drop in earnings to a trend among retailers toward lower inventory levels. During the pandemic, grocery stores stocked up on Nature Valley snack bars and CoCo Puffs due to concerns about supply-chain complications. General Mills says retailers are holding less inventory now, so there is less on the shelves for consumers to purchase.

    CEO Harmening said the majority of General Mills’ price increases are in the marketplace already. Though conditions can change, “we feel good about what we see right now with our pricing and the inflationary environment that we see,” he said, a possible indication that the company might back off of flexing price muscle. 

    Other economists were uncertain about reading too much into lower earnings for companies like General Mills.

    Will Compernolle, macro strategist at FHN Financial, said he detected a bit of a culture change due to grocery-store inflation over the past two years. “People are buying less stuff to eat at home. And that is, you know, a kind of mysterious trend in the sense that this is always considered a necessity,” he said.

    As pandemic-era stay-at-home recommendations and other public health measures were eased, there’s been “a temporary surge in food-services spending” as people have chosen to go out to restaurants rather than cook at home, he said. 

    He said it is unclear how companies like General Mills will respond to consumer spending. In order to determine demand, they will have to see what “the new normal looks like when the dust settles” and ask whether “people going to go back to their old composition of food at home versus food away.” 

    Read: Shopping at Kroger can be up to four times cheaper than eating out, CEO says

    Robert Frick, corporate economist with Navy Federal Credit Union, said he has observed “consumers are saving more and spending less, perhaps out of caution, as most believe a recession is either here or imminent.”

    Lower-income Americans have become particularly sensitive to price increases, Frick said. He shared his “hunch” that there is “kind of a drag on spending because lower-income Americans are being hurt so badly.”

    “It seems likely most of the effects of spending plateauing overall has to do with that lower third of Americans [having] really started to, you know, pinch their pennies and run up their debt, and they don’t want to run it up any more,” Frick said.

    Income and spending data released by the government on Friday showed people may have more money to spend but are not spending quite as much.

    U.S. consumer spending slowed in May, rising just 0.1%, compared with 0.6% growth in consumer spending in the prior month. Consumers saved 4.3% of their disposable income, an increase from April’s 3.4% savings rate. 

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  • Inflation slows again, PCE shows, as the economy

    Inflation slows again, PCE shows, as the economy

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    The numbers: The cost of goods and services rose a scant 0.1% in March and the yearly rate of inflation slowed again in response to higher interest rates and a cooler economy.

    The increase in the so-called personal consumption expenditures index matched the Wall Street forecast. The PCE index is the Federal Reserve’s preferred inflation barometer.

    The…

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  • Dow skids 530 points, stocks close sharply lower after Fed raises rates, says cuts unlikely this year

    Dow skids 530 points, stocks close sharply lower after Fed raises rates, says cuts unlikely this year

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    U.S. stocks closed sharply lower on Wednesday, giving up earlier gains, after the Federal Reserve raises interest rates by 25 basis points as expected, but talked down the possibility of cuts to rates this year. The Dow Jones Industrial Average
    DJIA,
    -1.63%
    tumbled 531 points, or 1.6%, ending near 32,028, while the S&P 500 index
    SPX,
    -1.65%
    shed 1.7% and the Nasdaq Composite Index
    COMP,
    -1.60%
    closed down 1.6%, according to preliminary FactSet figures. Fed Chairman Jerome Powell said the U.S. banking system remained resilient after it and regulators rolled out liquidity measures to help shore up confidence in the banking system after the collapse of Silicon Valley Bank and Signature Bank earlier in March. Powell also said that tighter credit conditions for consumers, following the bank failures, would likely work like rate hikes in terms of lowering inflation. It will be a key area of focus for the Fed in the coming weeks and months, he said. The 10-year Treasury rate
    TMUBMUSD10Y,
    3.444%
    fell Wednesday to 3.46%, a sign that investors in the bond market think growth will be slower.

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  • You Have to Tap Into Your Customers’ Subconscious to Keep Them Coming Back

    You Have to Tap Into Your Customers’ Subconscious to Keep Them Coming Back

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    Opinions expressed by Entrepreneur contributors are their own.

    When your app or website was just a small seedling of an idea, you probably had big plans for how people would use it. As you built and tested it, you imagined your product becoming as integral to users’ days as brushing their teeth or checking their emails. That was the hope, at least. But making your product a recurring part of users’ lives is easier said than done.

    To understand why we must first look at the mechanics of human behavior. Per the Society for Personality and Social Psychology, about 40% of people’s daily actions aren’t tied to conscious decision-making. Instead, they’re automatically initiated by situational cues and other triggers. This isn’t necessarily a bad thing. Rather, it’s a way to compartmentalize the myriad decisions we have to make every minute, hour and day. By eating the same thing for breakfast every morning, for example, we free up our mental capacity for more important decisions.

    The question is: How can you make your product so inviting that users have no choice but to incorporate it into their subconscious routines? This is especially important today, as McKinsey & Company found that more consumers have switched brands in 2022 compared to 2021 and 2020. What’s more, 90% of them plan to continue doing so. Here are three tips for creating product usage habits in your users, so they are more inclined to stick with your brand:

    Related: 5 Ways to Set Good Habits That Actually Stick

    1. Dig into your product usage data

    No amount of self-study or controlled testing will teach you more about your user journey — the good, the bad and the ugly — than product usage data (i.e., the information users generate as they interact with your product). From geolocation to session length to tasks completed, these rich insights span numerous types of data and actions.

    For instance, when you open the Grubhub app, it’s not just logging your food order. It’s also looking at where you were when you opened the app, which features you explored versus which ones you bypassed, how long it took you to decide between chicken nuggets and a burger and how long it took for your order to be fulfilled and delivered.

    If that sounds like a lot of data, it’s because it is. But when segmented and analyzed, this treasure trove of information can help you tap into your product’s habit-forming potential. To that end, you should plot two key product usage data points: frequency (i.e., how often users repeat a specific behavior) and perceived utility (i.e., how useful and rewarding users perceive that behavior to be).

    Plotting these points is only step one, however. Next, you need to understand the bigger story behind the actions and what they tell you about the user journey. For example, imagine users are clicking a specific button at a higher frequency. Can you link those button clicks to higher retention among that group? That might tell you the button is a “sticky feature,” or a dependable engagement driver that encourages repeat uses. With that information, you can more easily identify and clear the friction points in your product to deliver greater value and encourage recurrent use.

    Related: Using Data Analytics Will Transform Your Business. Here’s How.

    2. Deploy user-centric reminders

    Unfortunately, developing products isn’t a “build it, and they will come” situation. If you want your product to become second nature to users, you need to develop a messaging strategy that taps into intrinsic motivators and helps users bust through inertia.

    Take 15Five, for example. The team management software platform allows employers to keep a pulse on their employees’ goals through weekly check-ins. Employees must log in to their accounts on a specific day to answer a series of questions and set goals for the upcoming week. But how does 15Five build and maintain engagement in its platform beyond the check-in? Well, mid-way through the week, it sends every employee an email reminding them of their goals.

    Because employees were the ones who set the goals, the reminder acts as an intrinsic motivator to provoke action toward goal completion or adjustment. The messaging that 15Five uses is effective because it’s inherently user-centric: Review your goals. Plus, even if employees don’t go into the app itself, the email nudges them to at least think about their goal progress.

    We know this kind of messaging works. Language-learning platform Duolingo, for example, prompts users via notifications to practice every day and continue their learning streaks. The company’s research shows that these reminders and streaks are highly motivating for users.

    Related: People Love Playing Games. Use These 4 Psychological Hacks to Keep Customers Coming Back for More.

    3. Use hooks to turn behaviors into habits

    Turning conscious behaviors into subconscious habits ultimately comes down to repeatedly linking your users’ problems to your solution. This methodology is what tech entrepreneur Nir Eyal calls the “hook model” in his book “Hooked.” The hook model is made up of a four-phase process with consecutive cycles:

    The first phase is the internal (e.g., users’ intentions or goals) or external (e.g., a “buy now” button) triggers that cue a particular behavior. The second is the completed in-app behavior or action in anticipation of a reward. The third phase is the variable reward, or the result of taking action that leaves users wanting more (e.g., connectedness or physical products). Fourth is the investment that sweetens the deal for future cycles through the hook model.

    When building hooks, you need to get to the heart of each phase in the cycle. For instance, when looking at internal triggers, ask yourself what users want and what pain points your product alleviates. In contrast, if you’re brainstorming external triggers, focus on what brings people to your specific product.

    When looking at actions, try not to overcomplicate things. Instead, look for the simplest action users might take if a reward is involved. Remember, if users don’t have sufficient motivation or ability to complete the action, they won’t. When it comes to the variable reward phase, ask yourself how you can fulfill the reward without veering into finite variability territory. The last thing you want is your experience to become so predictable or boring that users have no reason to return.

    Although variable rewards are about immediate gratification, investments are more focused on long-term rewards. Therefore, think about how much work users are willing to put into your product to enjoy those lasting rewards. Consider a product such as Pinterest, for example. A user might find satisfaction in an individual image on the platform, but that image alone isn’t what builds lasting engagement. Instead, the collection of images across all their Pinterest boards makes the platform more valuable and harder to leave. That’s the investment.

    Every business owner’s dream is to lead a company that’s indispensable to customers’ lives — but doing so requires more than just a good product. Habits are made, not born. So, follow these three tips and see how customers start to incorporate your offering into their routines.

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    Nick Chasinov

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  • Three Letters That Will Make Your Company More Successful

    Three Letters That Will Make Your Company More Successful

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    Opinions expressed by Entrepreneur contributors are their own.

    In September 2022, Patagonia founder Yvon Chouinard gave away his entire $3 billion company to ensure all of its profits would be used to combat climate change. The bold and generous decision represents a corporate shift toward environmental, social, and governance, better known as ESG.

    What is ESG? The term refers to increasingly important company standards in which decision-makers look not only at the company’s balance sheet but also its environmental, social, and governance policies.

    ESG advocates say this approach helps safeguard the planet, paves the way for more diversity in the workplace, and protects fair wages.

    But ESG also makes good business sense. According to PWC, 80% of consumers make sustainability-based purchase choices, while 83% of buyers believe companies should actively shape ESG best practices.

    Because consumers are using their dollars to support responsible businesses, business leaders consider implementing an ESG strategy. Here are five ways.

    1. Be intentional in pursuing ESG operations

    Lots of companies do good things without explicitly aiming to be ESG-focused. But deliberately choosing ESG processes offers a framework for your business’ legacy.

    Take a look at Patagonia. Chouinard decided to make sustainability central to the brand at the outset, mainly by focusing on renewable and recycled materials. Giving away the business to a climate-centered trust and non-profit organization is the capstone of that original purpose.

    Intentionally embracing ESG in your vision and policies means you’ll have a compass to consistently direct your projects, strategies, materials, and goals, which will build employee and buyer trust.

    Related: 3 Steps for Making a Positive Environmental, Social and Governance (ESG) Impact

    2. Move to electric vehicles

    Think about how you get your packages. Fleets of vehicles typically shuttle your stuff from the store or warehouse to your door. Other vehicles are responsible for transporting materials through the supply chain or getting workers to the office and other work events.

    All these vehicles on the road translate to a big chunk — 28% — of total greenhouse gas emissions. Using electric vehicles (EVs) is a simple way to reduce your carbon footprint, even when you can’t shift much else.

    Light-duty vehicles are the worst offenders and account for 59% of vehicle emissions. So, if it makes sense for your business, focus on switching out those vehicles first.

    Another bonus: EVs can function as mobile billboards for your business. Every time you or an employee takes a company-branded EV for a spin, the vehicle pulls extra weight by advertising for you. That’s significantly more visible — not to mention easier to scale and reassign — than your office building certified in Leadership in Energy and Environmental Design (LEED) but doesn’t have any customers who visit.

    Related: 3 Changes You Should Expect To See in Transportation in 2022

    3. Assess your supply chain

    The supply chain connects everything from your raw materials to distribution. ESG means taking ownership of as many links as possible and asking yourself what you can do to apply it at every point.

    Be transparent as you examine how inventory gets from Point A to Point B. Even though 81% of companies still need complete supply chain visibility, 75% of consumers consider transparency helpful in strengthening customer-business trust.

    When consumers feel like a business has violated that trust, they take action. In 2020, 38% of Americans boycotted at least one company. Communicate whatever you’re doing to keep your operations squeaky clean on your website, in your marketing emails, on your packaging, and anywhere else you can display your messages.

    4. Clean up your power

    Every business uses power to some degree, but the kind of energy you use can impact the environment. Because traditional fossil fuels like coal and petroleum contribute to global warming, companies are looking to transition to cleaner energy sources, such as solar and wind power.

    Yes, clean energy can be expensive. But the costs of green energy were already at record lows in 2019. In 2021, almost two-thirds of new renewable power added was less expensive than the cheapest coal-fired power plants in G20 countries.

    Government assistance can also cut the financial sting. Look into tax credits available through the Build Back Better bill. You may qualify at the local, state, and federal levels.

    5. Bring your employees into the fold

    Your team members are your best brand advocates. But they can’t share what they don’t know. Your first responsibility is to work on your culture so that people feel comfortable asking what you’re doing in different ESG areas. Start conversations about where you’re at and where you’d like to be.

    Then, get creative about how you can make ESG visible in ways that are practical for your business — even beyond the environmental space. At our company, to support diversity and gender equality within ESG, we partnered with an organization that features male and female drivers. We also intentionally ensure half of our leadership team consists of women, and we feature female employees on panels.

    Related: Why You Need to Build Sustainability Into Your Business Strategy

    Customers have moved past the days when a good product or service was enough. Now more than ever, the marketing axiom that consumers buy from brands they trust rings true. Your purpose and values count. Bringing ESG into your business meets people where they are and help you make a lasting difference.

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    Brendan P. Keegan

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  • Why Can’t We Resist Black Friday? A Behavioral Economist Explains.

    Why Can’t We Resist Black Friday? A Behavioral Economist Explains.

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    Opinions expressed by Entrepreneur contributors are their own.

    Imagine you put on an old coat you haven’t worn in a while and, to your surprise, you find a crumpled $20 bill in your pocket. How good does it feel? Do you go up half a notch on a one-to-ten mood scale, or maybe a full-notch?

    Let’s imagine a different scenario. You’re doing the laundry, take out a just-washed pair of pants, and discover you forgot a $20 bill in the pocket — which has been completely ruined. What does that do to your mood on a one-to-ten scale?

    If you’re like most people, you feel much worse about losing $20 than about gaining $20. That tendency is called loss aversion, one among many dangerous judgment errors that behavioral scientists call cognitive biases. The mental blindspot called loss aversion is one of the most fundamental insights of a field of behavioral science called prospect theory in the last few decades.

    Loss aversion is one of the three key reasons why our minds get sucked — and suckered — into Black Friday and Cyber Monday sales. Retailers know that our intuitive reaction is to avoid losses, with research showing this drive might be up to twice as powerful as the desire to make gains. By offering short-term sales, available only on Black Friday or Cyber Monday, they tap into our deep intuition to protect ourselves from the loss of the opportunity represented by the sale.

    Similarly, loss aversion helps explain why so many marketing techniques involve trial periods and free returns. Retailers know that once you buy something, you’ll be averse to losing it.

    In a classic research study illustrating this tendency, participants were divided into two groups: one was given a chocolate bar and the other a mug. Then, they were offered the chance to trade what they had for the other object. Of the students given the mug first, only 11% chose to trade it for the chocolate bar, and only 10% of the students who got the chocolate first exchanged it for the mug.

    We want whatever we have and are reluctant to lose it — such as an opportunity to buy something at a lower price during a short time period during Black Friday or Cyber Monday sales. In fact, behavioral scientists have a special term for people putting excessive value and being reluctant to give up whatever they have: the endowment effect, a specific form of loss aversion.

    Let’s imagine a different scenario. It’s Cyber Monday, and you decided to check out the deals on an e-commerce website. You feel confident you’ll only get one or two of the best deals. But once you visit the website, you’re hooked. All those deals look great. The discounted prices are too good to pass up. So you end up taking advantage of a bunch of deals and purchase much more than you intended to in the first place.

    Why did that happen? Why couldn’t you control yourself? It’s due to a cognitive bias called the restraint bias. We substantially overestimate the extent to which we can restrain our impulses. In other words, we have less self-control and weaker willpower than we like to think we do.

    Related: Online Scams Are More Sophisticated Than Ever. Here’s How to Shop Safely on Black Friday and Cyber Monday, According to a Cyber Intelligence Expert.

    That’s why so many people overeat at buffet restaurants. If we had good self-control, buffet restaurants would be great: We could get whatever we want at a cheaper price than ordinary restaurants. Yet the problem is that we overestimate our ability to control our impulsive desire to take more food, and loss aversion causes us to try to avoid losing the opportunity to take the wide variety of food available at buffets.

    Black Friday and Cyber Monday are the shopping equivalent of buffet restaurants. So many tempting deals around, with loss aversion driving us to not want to lose out, all resulting in shopping much more than we wanted.

    The final key psychological reason why you get sucked into Black Friday and Cyber Monday sales explains why you’re reading articles like this one. Here’s the thing: The abundance of news stories, advertisements and social media posts around Black Friday and Cyber Monday makes it seem like everyone is thinking about sales on those days and looking for good deals.

    As a consequence, our minds drive us to jump on the bandwagon of getting into Black Friday and Cyber Monday sales, a tendency that scientists call the bandwagon effect. When we perceive other people aligning around something, we are predisposed to join them. After all, they wouldn’t be doing it if it wasn’t a good idea, right?

    Loss aversion, restraint bias, and the bandwagon effect are mental blindspots that impact decision-making in all life areas, ranging from the future of work to mental fitness. Fortunately, recent research has shown effective and pragmatic strategies to defeat these dangerous judgment errors, such as by using decision aids to constrain our shopping choices.

    A useful strategy for Black Friday and Cyber Monday involves deciding in advance the purchases you’d like to make if they are on sale and buying them online instead of in the store. For example, you might decide to buy a certain laptop if it’s more than 20% off or a specific big-screen TV if it’s 30% off. Save the website pages of the laptop or TV that you want to buy, and then visit them on Black Friday and Cyber Monday to see if they’re on sale. If they’re not, be disciplined, and don’t buy something else, as you’re likely to get stuck buying much more than you wanted, and some deals are actually too good to be true. Instead, wait for the Christmas sale.

    If you’re an entrepreneur who sells products, consider whether you can take advantage of loss aversion, restraint bias, and bandwagon effect among your customers, whether on Black Friday and Cyber Monday or throughout the year. Alternatively, consider sharing this article with your employees to help them make smart decisions this holiday shopping season.

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    Gleb Tsipursky

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