Do consumers prefer "small favors"? Four keys to help you master the era of cost-effectiveness

Amid economic uncertainty, consumers prefer “small favors.” This article provides four strategies to teach brands how to take advantage of this trend, build emotional connections, and increase customer loyalty. It is recommended for marketers and brand managers to read.

Recently, there has been a trend of little treats on TikTok, mainly among Generation Z and millennials. Little treats literally means "small reward", or more locally, "small favors". Due to economic, political and future uncertainties, consumer demands have changed, and people are more inclined to spend on items that can satisfy emotional value, even if it's just a cup of iced coffee on the way to the office.

Snack companies have seized on this trend by creating “little luxuries”, which is worth learning for all consumer brands, because this marketing method not only attracts attention and increases revenue, but also builds emotional connections with customers.

The key to marketing is to make your "small gifts" economical, use your "small gifts" to give back to specific groups, and then use continuous "small gifts" to cultivate these customer relationships and deepen their brand loyalty. The following four suggestions can help brands do this successfully.

1. Discount promotion is still the most direct way

“Little treats” also have the potential to be “big winners” because consumers remain price-sensitive. In a recent survey, 42% of Gen Z buyers said they are tightening their budgets, and the latest retail sales show that all consumers are cutting back. To take advantage of the “little treats” culture, you can offer free or deeply discounted products to consumers to create impulse purchases, which will attract buyers’ attention, make them more willing to buy, and win goodwill for your brand.

2. Targeted low prices

While everyone loves a little discount, it’s when your little treats make customers feel special that they’ll really wow. One way to do this is to offer small discounts to high-stress groups like healthcare workers, first responders, teachers, and even students. For example, beauty brand Tarte offered a 40% discount to teachers. The generous offer led to a “viral” video posted by Tarte on TikTok, which received more than 28,000 views and nearly 600 comments.

Tarte emphasizes in its promotion that teachers work hard and deserve encouragement. Focusing on the teacher group makes the discount more personalized, which has won the brand a large number of teacher fans. When we search "Tarte Teacher" on TikTok, you will see dozens of teachers expressing their love for Tarte.

3. Providing services at critical moments

As the old saying goes, "Good steel is used when it is sharp", and the same is true for little treats marketing. Providing services to consumers at critical moments is enough to be impressive. For students, it is final exam week, for teachers, it is back to school time, and for first responders, it is the holidays. Giving them positive feedback at the most important time for these groups can make your services and brand stand out.

A great example of a service that recognizes the value of breaks and encourages customers to take them is Peacock, a streaming service that offers 50% off subscriptions for students and states in its ad: “Your study break awaits you.”

Students are already under a lot of pressure from studying and want to take a break, and Peacock's operation gives them an opportunity to follow their own ideas. And Peacock understands that students have limited budgets, which makes this gift more meaningful - when students are able to pay for a full-price subscription, they are likely to remember this half-price gift.

4. Allow time to grow

By giving your customers a little lighthearted treat when they need it, your little treats can win their hearts. The next step is to continue to foster that love through ongoing treats and ongoing support for their community. A great example of this is the fast food chain SONIC, which lets teachers join the SONIC Rewards program and verify their eligibility for offers.

Once SONIC knows which customers are teachers, it sends them regular in-app notifications at key moments, offering additional free goods, such as free French fries. This year-round strategy of treating teachers well has paid off. When the company announced in May 2022 that it would reward teachers with special offers, daily account sign-ups for its teacher rewards program increased by 900%.

Since then, SONIC has continued to implement the program and plans to continue to expand it. While not every popular trend is worth trying, the core of the "small treat" culture is to recognize the customer's feelings in that moment and reward them. It is worth emulating.

Author: Molly Gabris; Source public account: Morketing (ID: 1083455)