Inflation and high costs have greatly affected consumer shopping behavior, leading to a rise in the use of digital tools that compare prices and apply coupons. In particular, Gen Z shoppers have shown greater adoption rates of digital tools compared to older generations. This article delves into how a new generation of shoppers is using digital tools to save money, reduce impulse buys, and improve their financial wellness.
Traditional couponing methods, such as cutting out coupons from newspapers, have become less popular as digital price comparison tools and digital coupon tracking take their place. Consumers are turning to these tools more than ever in response to inflation. According to Gartner, more than 30 percent of consumers use digital price comparison and coupon tracking tools, and younger generations are more likely to increase their usage of digital tools than older generations. Nearly half of Gen Z and millennial consumers use digital tools to track coupons.
Intentional spending involves making informed and conscious purchasing decisions that prioritize expenses, remain mindful of one’s financial situation and values, and reduce impulse buying. It’s a crucial practice that can positively impact both finances and the planet’s sustainability. With technology, shoppers can wait and make their purchases at the right price and time based on their financial situation.
Karma, an artificial intelligence-based shopping assistant, for example, helps shoppers plan their purchases and make informed decisions based on their financial needs and values. The platform is seeing an increase of 78 percent in “saved items,” indicating more planned shopping patterns. By prioritizing intentional spending, consumers can prevent impulse buying and overspending, save money, and improve their financial well-being.
Reduce Carbon Footprint
Intentional spending improves both financial wellness while also benefiting the planet’s sustainability. Prioritizing environmentally conscious products and practices while making informed purchasing decisions can reduce consumers’ carbon footprints and support sustainable initiatives. The trend of investing in high-quality, long-lasting products that are sustainably made and support the circular economy is boosting a consumer shift toward luxury. Consumers now purchase fewer items or walk away with fewer goods for the same amount of money.
The second-hand luxury items market continues to grow. To aid in making more sustainable choices, digital tools like price comparison apps enable shoppers to get luxury items at a discount and provide eco-friendly product trackers for informed purchasing decisions. Additionally, reducing impulse buying and avoiding fast fashion helps to reduce waste and limit the environmental impact of consumption.
Digital tools can create a positive impact on both finances and the world. Prioritizing spending and making informed decisions that align with personal values is key. AI-based shopping assistants can help consumers to start practicing intentional spending today to achieve financial wellness and sustainability. The e-commerce and retail industry must pivot to accommodate changes in consumer shopping habits, including discounting and associated tools in their strategies, to achieve consumer loyalty and market success.
Jonathan Friedman is the co-founder and CEO of Karma, a next-generation shopping assistant that helps more than 4 million members shop and pay better across platforms and devices.