What is consumer confidence?

How is consumer confidence measured?

Consumer confidence is measured by GfK via regular surveying, conducted monthly. The survey typically consists of around 2000 adults, who are quizzed on their opinions about their individual financial situation and their major spending plans, as well as the much broader economy as a whole.

Once the results are collected, GfK collates the results and determines the composite index of consumer confidence. It is measured on a numerical scale, with scores above 0 showing a generally optimistic outlook on the economy, and scores below 0 indicating a lack of confidence in their financial situation.

Why does it matter?

Consumer confidence surveys have been carried out in the UK since 1974 and have long provided a genuine insight into the economic position of the nation from the perspective of its residents.

They offer a look at potential turning points in the economy, helping businesses make informed decisions on things like marketing and pricing. The most successful companies across the globe are those who consider the consumer confidence of the customer base and adapt to suit their needs and cater to their wallets.

These surveys also highlight issues in the economy throughout history, helping the government identify what may be causing economic struggles across the nation. With this information, members of parliament have the opportunity to change the direction of the economy, stimulating growth and boosting the public’s confidence with new strategies and solutions.

How can consumer confidence surveys benefit you?

If you own an organisation, it’s worth keeping an eye on the consumer confidence index and considering the results when shaping your business approach. In difficult financial times, it’s important to find solutions that appeal to your consumers and offer them a service that benefits their day-to-day life. An excellent way to separate yourself from competitors and engage customers is with customer loyalty products.

Ello Group specialises in creating bespoke customer loyalty solutions for companies that offer experience-based rewards to loyal, returning customers, adding value to your products and services. We’re talking dining rewards, entertainment benefits and more. So during those times when customer confidence is low, give customers a reason to have faith in your organisation with a new business strategy.