Top 5 Common Spending Triggers

Many companies employ good digital marketers to come up with marketing ploys targeted at human preys whom they know have low boundaries to accept their very own spending triggers and emotions.

Spending triggers subconsciously make many prey to temptation and spend money to replace and magnify an emotion they’re feeling – usually desperate, that resulted in a spur of the moment purchase.

They’ve been so successful at this such that the level amount of consumption is at a record high, with a plethora and flurry of news pouring to us daily in our inbox.

These are the top 5 common spending triggers:

1.) Buy Now Pay Later (BNPL)

A major disruptor over the past few years, the “Buy Now Pay Later” is here to stay to challenge the stereotypes traditional industry of debit and credit cards.

The entire business model for BNPL is built around the premise that these companies are helping consumers manage their cashflow and getting merchants more business from the increase in consumption, but also getting consumers to pay on time.

Unlike a credit card model which relies on consumers paying late beyond the given 30 days term so that they can charge exorbitant charges, the BNPL model relies on consumers paying not just on time but also in full so they will not run into a default. These companies will then charge their merchants a service fee charge in order to make money.

For consumers, this is a viable option that one can utilize and might just be the spending triggers that the business wants.

Local BNPL players such as Hoolah, Atome, OctiFi are some of the leading players in Singapore.

2.) Discounted Deals

Discounting has long been used as one of the effective strategies to incentivize consumers and prospects to make a purchase.

Digital marketers used discounts to get consumers to try their product and in turn get more leads and sales for future purchases.

Companies do this by offering discounts promo code that consumers can key in when they check-out. Some websites are even smart enough to include the amount of savings the consumers can save by purchasing at their website. This gives consumers a sense of satisfaction that they are actually saving when they are actually spending (I know how ridiculous this can sound).

This can be a win-win for both parties because while the company makes an upfront burn by incurring more costs, they can overtime track the amount of return customers as they become more familiar with the product and use them as part of their daily lives.

Local players such as Fave, Pelago, and the Entertainer are good for such deals.

3.) Stress Trigger

Stress spending is an impulsive behavior that makes one jittery and anxious when feeling stressed and one way to cope with the emotion is through reckless spending.

Studies show that most people reacts to stressful challenges with an increase in the hormone cortisol, which leads them to focus their attention toward the threat so that they can alleviate the pain.

These people used money as a form of medication so they can feel better at ease, especially if they have a low level of control of their emotions in check.

For instance, most stressed people would be desperate to rush down to grab a drink or two after office hours so they could finally destress after the long week. This would not only be bad for the pocket but also damage the liver in the long run, if one drinks excessively on frequent occasion.

4.) Fear of Missing Out (FOMO)

According to a study conducted on millennials, FOMO-fueled spending is on the rise and gaining momentum – thanks to the ubiquity of social media leading to millennials overspending to keep up with their peers.

Some companies added another feature in the form of scarcity to toy around with the emotions of buyers to show what it feels missing out on a good deal.

The threat of missing out on something is a powerful motivator in the human psychology, outweighing the prospect of an equivalent gain. For instance, you may not need to upgrade to the latest IPhone 12, but the fear of missing out being one of the first few among your social media friends might be enough for you to hit a buy right away.

5.) Extra Money

Additional income, which most working employees referred to as a bonus, is often a blessing.

It comes and goes as with the performance of the company which often correlates closely on the macroeconomic factors.

Most people will feel on top of the world when they receive additional income that they could spend on.

For some, they may even feel compelled to spend on things that they might not need and use that as an avenue to upgrade their lifestyle.

The problem comes when the season becomes dry and it left them feeling with a sense of helplessness trying to justify the lifestyle they have already upgraded.

Conclusion

Spending triggers happen to everyone at one time or another.

The key to avoid falling into the pit of spending triggers is to have a proper money management that you can rely on and allow you to fall back on.

Set yourself a realistic target and avoid social media as much as you can if you are one of those who have a low threshold tolerance of spending trigger.

With the convenience of online digital marketers reaching its consumers in this era, it’s even more important to be able to resist the many temptations and to protect yourself against the fallpit.