What “the new frugality” looks like, beyond the cliché

By now, some statements used to describe consumer behavior have been so over-used that they have become cliché. For example, “This is the new normal.” (Does anyone know what happened to the “old” normal? Was there one?) Another one of my favorites: “This new frugality could stick around for a while.”

To me, either statement is too general. I want to know more about the how and why of frugality. That’s why I appreciated the Research Brief report this morning, from Media Post.

In what could be considered an update to last week’s story about “Name brands versus un-brands” (Elm Street consumer trends, 2/19/10), the Harris Poll cited in the story estimates that 63% of adults have started using some generic products, and another 12% have considered doing so.

But the article goes on to explain how many people have taken—or are considering—other specific cost-cutting measures… like cancelling their land-line phone service, reducing their number of visits to a hairdresser, other cost-cutting measures, or reducing the number of stops at the specialty coffee shop. The findings come from a January Harris Poll study, and also shed some light on generational differences when it comes to how consumers are cutting back.

Implications: I’ve said this before, but I’ll say it again. Just a few years ago, it seemed like money was no object for a lot of families. Driven by a comparatively robust economy and the relative wealth of a two-income household, many U.S. families could afford to spend on lots of different things. The Great Recession has reminded people that money is indeed an object, and it has caused families to re-consider purchases that were once nearly thoughtless.

In a world where there is more contemplation, discussion and deliberation, how are you equipping the consumer to move forward with this purchase? How are you helping the customer that is more prudent and judicious to find in favor of moving forward with the purchase?

If your marketing materials look like they did in 2006, you might be missing the mark when it comes to the current consumer mindset. (For more, see “Apples and Oranges,” Elm Street consumer trends 2/4/10.)

Mike Anderson