Living With Inflation: My Perspective
I don’t need to read headlines to know we’re living through an inflation spike—I feel it every time I fill up my car, shop for groceries, or talk with friends about budgeting. From speaking with customers and partners, I see that most people list inflation as a top worry, and many are cutting their spending more than ever before. Nobody expects this to go away anytime soon; people are bracing themselves for at least another half-year of higher prices.
I’ve realized now more than ever that we, as brand leaders, can’t rely on quick fixes or only trimming costs. What matters is building our brands for the tough long run.
What Consumers Are Really Doing—And Why That Matters
– Shrinkflation Backlash
Who hasn’t noticed their favorite snack bar get smaller or that cereal box become lighter while the price stays the same? I remember when Toblerone changed the shape of its chocolate bars a few years back—people didn’t just complain, they voiced outrage online. It’s a reminder: consumers are sharp, and they won’t forget when they feel a brand tricks them.
– Why Feeling Wins Over Price
Even if wallets are tight, I’ve seen people reach for the brands that make them *feel* good. Take Dove and its “real beauty” campaign. Sure, it costs a bit more, but when a brand builds confidence or offers a little joy, shoppers are willing to pay.
– Different Choices Across Categories
Here’s something I find fascinating: despite travel getting more expensive, demand is still high. People are skipping gadgets but saving up to see new places or spend time together. It challenges my assumption that all discretionary spending drops in a crisis—it doesn’t.
My Playbook: Three Brand Priorities for Inflation
1. Transparency
I make it a point to be upfront. That means explaining (in plain language) any cost increases or changes, and absolutely avoiding sneaky tricks like shrinkflation. My rule: surprise is never good for trust.
2. Emotional Value
It’s never just about the product. I try to reframe what we offer as a small escape, a genuine treat, or something that adds meaning—no matter how small. Also, showing the positive impact our brand has on the wider world turns customers into fans.
3. Personalization
I obsess over customer data because it lets us offer tailored bundles and loyalty perks. This individual approach keeps fans coming back, even when they’re spending less overall.
How do I check if it’s working? By tracking not only sales, but brand trust, loyalty (NPS), and how people talk about our values and actions online.
Five Tactics I’d Recommend Any Brand Try
1. Audit Your Product Line for Risk
Find items most vulnerable to people trading down or away from. Focus your value story there, or run limited price promos if you need to.
2. Offer Real Value, Not Just Higher Prices
Rather than raising prices everywhere, I create premium options (like larger, better-value packs) so customers see a reason to spend more.
3. Show the Real Face of the Brand
I believe in bringing customers “behind the curtain”—sharing supply chain stories and explaining tough decisions. Transparency builds allies, not just buyers.
4. Get Smarter With Channels
Especially now, I focus on cost-effective digital channels, but I keep some budget for the high-trust places where our brand reputation matters most.
5. Empower Your True Fans to Speak Up
Real stories from real customers are always more powerful than branded ads, especially when they focus on emotion and fairness.
Keeping Score—The Right Way
I’m constantly balancing the numbers (market share, cost per acquisition, price sensitivity) with what people *feel* about us. The most important lesson: it’s not just the hard metrics—I regularly ask myself, “Is our emotional brand equity rising or falling?”
If you remember anything, let it be this: inflation isn’t just a hurdle for the finance team—it’s a wakeup call to rethink how we build and maintain trust. The brands that outlast tough times are those that stay honest, nurture emotional connections, and meet people where they are. That’s been my north star—and I believe it will set you apart well into the future.