What are consumers telling us now ?
01/03/10 09:41 AM Filed in: #CPG
I
don't think that there is any doubt that the past
decade was really hard on America and American
consumers. According to the Washington Post there
was zero job growth during from 2000 through
2009. The recession has hit consumers really hard
and as a result consumers have changed the way
they shop and consume products. It's no longer
about wants; it more about needs.
So some may be asking why the movie and vacation industries seem to be doing so well ? The answer to that is that consumers want to get away from the pressures of life and will spend money to take a week away from their nine to fives, bills, and commutes. They could escape via Jet Blue to the sun or they could spend 2 hours watching Avatar, either way it clearly shows that American consumers are stressed.
People who have held onto their jobs so far don't take it for granted that they'll continue to do so. In NBC News/Wall Street Journal polling:
33% of employed respondents rated themselves as "very satisfied" with their "current job security
34% were "somewhat satisfied."
14% percent said they're "somewhat dissatisfied" on that score
18% said they're "very dissatisfied."
The recession has caused a seismic shift in the consumer culture, converting die-hard spenders into savers. A growing number of people, either smarting from a job loss or spooked by the financial crises of others, are scrambling to get out of debt, establish emergency funds, and add to their retirement and savings accounts. This means less money to spend on things they want and even younger generations are making good with older clothes and less trips to the mall.
Now some marketers may shrug this off and say "it's only temporary" but that is a dangerous point of view. Our economy is in the middle of a fundamental change from a labor based economy to a knowledge based economy. More jobs are going to be eliminated but new jobs are also going to be created as well. One aspect has changed forever though: and that is that American consumers are in no mood to "be sold" and their wallets are going to remain closed.
If you don't believe, like I do, that social media can save your brand you still need a presence on social media to listen to what people are saying and allowing them to give you feedback. Consumers expect you to be there when they want to complain or ask a question.
As for the rest of marketing you need to think about solving consumers problems with your brand. You also need to be careful about defining what value is to consumers today. The reality is that you don't define value, consumers do.
Finally you need to align marketing around consumer touch points and measure each one continually. Give customer service people the authority to offer customers something of value if they are unhappy with your product. Respond in Internet time not on your time.
So some may be asking why the movie and vacation industries seem to be doing so well ? The answer to that is that consumers want to get away from the pressures of life and will spend money to take a week away from their nine to fives, bills, and commutes. They could escape via Jet Blue to the sun or they could spend 2 hours watching Avatar, either way it clearly shows that American consumers are stressed.
People who have held onto their jobs so far don't take it for granted that they'll continue to do so. In NBC News/Wall Street Journal polling:
33% of employed respondents rated themselves as "very satisfied" with their "current job security
34% were "somewhat satisfied."
14% percent said they're "somewhat dissatisfied" on that score
18% said they're "very dissatisfied."
The recession has caused a seismic shift in the consumer culture, converting die-hard spenders into savers. A growing number of people, either smarting from a job loss or spooked by the financial crises of others, are scrambling to get out of debt, establish emergency funds, and add to their retirement and savings accounts. This means less money to spend on things they want and even younger generations are making good with older clothes and less trips to the mall.
Now some marketers may shrug this off and say "it's only temporary" but that is a dangerous point of view. Our economy is in the middle of a fundamental change from a labor based economy to a knowledge based economy. More jobs are going to be eliminated but new jobs are also going to be created as well. One aspect has changed forever though: and that is that American consumers are in no mood to "be sold" and their wallets are going to remain closed.
If you don't believe, like I do, that social media can save your brand you still need a presence on social media to listen to what people are saying and allowing them to give you feedback. Consumers expect you to be there when they want to complain or ask a question.
As for the rest of marketing you need to think about solving consumers problems with your brand. You also need to be careful about defining what value is to consumers today. The reality is that you don't define value, consumers do.
Finally you need to align marketing around consumer touch points and measure each one continually. Give customer service people the authority to offer customers something of value if they are unhappy with your product. Respond in Internet time not on your time.
