Forecast suggests consumers will indulge—a little—during the holidays

A forecast from Deloitte offers some optimism about the 2011 holiday shopping season.  See the overview that was published by Marketing Daily this week by clicking here.

Implications:   I’m always entertained by the idea—as explained in this story—that smartphones and touchpad computers have become “needs,” since neither product even existed ten years ago.  (But the Deloitte representative was right… many of us consider these items absolute necessities these days!) 

Small indulgences and self-gifting:  Two important sales opportunities to be watching for this holiday season.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Health insurance costs rise sharply

If health insurance is taking a bigger bite out of your paycheck, you’re not alone.  A story in today’s New York Times indicates that policy prices have jumped 9% in the past year according to research from the Kaiser Family Foundation.  Click here to see the story.

Implications:   As I sat in the waiting room before a doctor’s appointment this week, a lady at the front desk was sharply criticizing her bill.  It was a private conversation that I did not want to overhear, but both the volume and the demeanor of the exchange made it impossible to be unaware of.  “All they did was take my blood pressure and do a med check, and I didn’t even see the doctor,” she complained.  (Her only contact on the visit was with a nurse.)  “How can that possibly be worth (more than $175?)”  The woman went on to explain that she did not have insurance, so it would be an out-of-pocket expense. 

I felt sorry for the both the frustrated customer and the office manager trying to explain the charges.  (Even the clinic employee was having a hard time justifying the cost, which amounted to a rate of more than $1,000 per hour.)  With both unemployment rates and health insurance costs at such high levels, we can expect this conversation to be repeated in waiting rooms across the U.S., and often. 

There are two learning points that I took away from this experience and the Time article.  The first one is for the healthcare and insurance industries:  Some of you haven’t done a great job of communicating the value you provide for the dollars you receive, and some of your patients are losing their patience.  Those consumers are likely to start scrutinizing healthcare charges more closely.

Secondly—and this is for folks outside the healthcare field—we can expect consumers to take more health issues into their own hands.  From fitness to nutrition, consumers will be looking for ways to avoid healthcare (and insurance) costs.  Is there any aspect of the business you are in that could constitute “an ounce of prevention?”  Think health-conscious menus at restaurants, any product or service that involves getting some exercise, or packaged goods that involve portion control.  Communicating any healthful attribute your product or service has might be just what the doctor, or… patient, ordered.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Is stability the best that U.S. real estate market can hope for?

I dislike this over-used cliché as much as anyone, but there was an important story on CBS News last night, which suggested that the current real estate market might represent “a new normal.”  In the feature—which ran as the lead story in the broadcast—Yale economist Robert Shiller challenges the conventional wisdom of those who are waiting for a real estate recovery.  Click here to see the story, or watch the video immediately below (commercial pre-roll required).

Implications:   Of course, this is not just a story about new housing starts and existing home sales; this issue impacts the home furnishings, home improvement and mortgage industries, directly, and virtually all other retail categories at least indirectly.

Frankly, I liked one of the messages sent by this story:  It’s time to stop waiting to see what happens, and get back to the business of doing business.  If the housing market recovers, great… consider that a bonus.  Meanwhile, the smart money is on regaining a focus on who your ideal consumers are, understanding their needs, and communicating how you can satisfy those needs—at least the most important ones—better than your competitors.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Manufacturing and jobs vs. the economy

Recently, the New York Times published a video story about the Marvin Window and Door factory in Warroad, Minnesota.  The story caught my eye because the town is not far from where I grew up in the extreme north central U.S., but it is also a testament to the convictions of a privately held company—and its employees—during rough economic times.  Click here to see the story, or watch the video immediately below.

Implications:  Susan Marvin, the company’s president, sums this story up well.  “You can sustain the business operating like we are and wait for it to improve.  Or, we can say that’s just plain not good enough and we’re going to do something about it.”  The quote is a teaser, but we can assume it means finding new ways to sell and satisfy customers… or finding new customers to satisfy and sell.  Perhaps Marvin will find new markets for their product line, or new product lines for their facilities to manufacture.

But you have to love how they project an air of control, rather than begin victims.  And that’s an attitude that trickles down right through the ranks of their employees.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Thought leadership: Are they media, marketers, or both?

This morning’s New York Times illustrates how the line between media company and marketing has become more blurred, as leading fashion magazines start acting as a direct conduit in the retail relationship.  Click here to see the story.

Implications:  The theme to these campaigns might be something we think of as “Thought Leadership.”  Consumers seek the counsel of fashion magazines to determine what’s in style; it is only a natural next step to click on the magazine’s website to commence the retail transaction of that style.  The consumer came to the media seeking information, and product was tucked conveniently into the equation.

Lets turn the tables and put the same principle be to work for your business.  Does your company provide information to its customers?  What kind?  How valuable is that information?  Does your messaging (marketing) include the kind of counsel or guidance which could be grown into your own Thought Leadership campaign?  Does your existing website—or could a new blog—provide the kind of intelligence that makes purchasing in your category easier?  Just as magazines have placed product close to the coverage, could you insert a knowledge campaign conveniently close to the products you sell?

We live in an age where media can be divided into three different types:  Paid (where you spend money to advertise), Owned (your company’s website, blog, publication or social media presence), and Earned (those actions on the part of your company which are covered by the press as public relations).  Thought Leadership can help you maximize all three types of advertising.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Independents vs. Chains: Consumer insights as to who wins what

A broad-brush story in today’s Marketing Daily points to the differences between chain restaurants and independent cafes… from the viewpoint of the consumer.  Click here to see the story.

Implications:  Of course, this story doesn’t provide an actionable plan for any chain or independent restaurant, but it gives some great pointers as to questions you might ask in local research of your own.  There are plenty of independent restaurant owners who would love to have the resources of a big chain operation, but there are also an abundant number of franchise restaurateurs who would love to have the local menu and flexibility of an independent café. 

The truth is, you both have advantages worth talking about.  The key is to focus on your strengths… as seen by the consumers you serve.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The consumer as Information Technology manager

A story in today’s New York Times suggests that more companies are allowing their employees to drive the decision about the computing devices they will use.  When it comes to smartphones, tablets and laptops, decisions are increasingly being driven more by consumers and less by the I.T. department.  Click here to see the story. 

Implications:  In the company I worked for before CSS, I met resistance when bringing my personal laptop into the building hoping to connect to the company’s server and email system.  Of course, the concern was security, and that my personal machine might contaminate the network with a virus.  In reality—because I so frequently upgraded my own equipment—they created a situation where my personal technology was better than theirs… and I had to “dumb-myself-down” to work at my workplace computer.  And it made the after-hours work I often provided more difficult to deliver.

Today, consumer technology rivals that of many sophisticated companies… first because overhauling the I.T. capabilities of a business is very expensive and takes time.  But also because consumer technology is changing so fast. 

Once upon a time, companies had to wonder whether their employees had better technology than the business.  Now, businesses must figure out how to manage the needs of customers who are well equipped, too.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Consumers grow more cautious on economy, jobs

Two stories related to consumer confidence caught my eye this morning.  The first cited research from Bankrate that appeared in today’s Marketing Daily; it suggests that consumers have cut-back over the past sixty days in response to news about the economy (click here to see that story).  The second story appeared in today’s New York Times, and focused on fears about the job market (click here to see that story).

Implications:  The debt ceiling debacle of August added new worry to a period of concerns about a second recession for many consumers.  Are you sensing that politicians on both sides of the aisle are more loyal to their political party than the nation’s economic priorities?  I don’t think I’m alone on that one.

Consumers can be expected to focus on their own, personal—and household—micro-economy for the foreseeable future.  Make sure the product or service you’re selling is presented in terms of how it will make the household more productive, cost-efficient, or enjoyable (part of hiding from the recession continues to mean spending more time at home).  Or, present your more indulgent products/services as a way of getting away from it all. 

Either way, it looks like we’re still in a period when it is critical to focus on the consumers you serve (the folks who live on Elm Street), rather than the news coming out of Pennsylvania Avenue or Wall Street.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

20% price difference can make shoppers with smartphones walk

L.E.K. research published by Research Brief this morning indicates that a 20% price swing could make someone change stores.  Click here to see the link.

Implications:  First, it would be smart to re-consider store displays… and strive to make the shopping experience compelling enough that the consumer is thinking about your goods and services, not their smartphone.  Second, make sure your competitive reconnaissance is focused on spotting differences of price or value that exceed 15%.  (By the time it hits 20%, the decision process is already slanted way against you.)

Finally, you might consider messaging that says, “Before you pull the trigger at one of our competitors, take a moment to visit our website (which is optimized for mobile).  Sometimes, a challenge is just an opportunity in disguise.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The bad news: It's easier for consumers to be influenced by bad news

Most of us have long suspected this to be true, but yesterday’s Research Brief provides some empirical evidence about the idea that it’s easier for consumer to be influenced by bad word-of-mouth than good.  The data comes from Cone Research, and focuses on opinions delivered/received online.  Click here to see the story.

Implications:   Among all the other issues that are changing in business these days, we are reminded that technology is not the lease.  Your business does not just reach and serve YOUR audience… it can reach THEIR audience (your customer’s FB, Twitter or blog followers). 

When focusing on matters of customer satisfaction in your place of business, remember that many consumers are packing cell phones (aka “cameras”), and can Tweet, Facebook, Youtube or Flickr… on-the-spot and at any given moment.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Poverty rate gives pause

Last night, the Washington Post released a special alert citing new Census data… and indicating that nearly 1 in 6 Americans now live below the poverty line.  Click here to see the story.

Note:  The New York Times also had a pretty strong story on the piece in this morning's edition.  Click here to see that version.

Implications:   Regardless of your current financial situation—and regardless of the neighborhood you live in—there is likely someone just down the street that is finding life a bit tougher in 2011 than it was, say, in 2006.  For some, it has been a dramatic change in lifestyle in just a short five years.

This report reveals just how widespread the effects of the recession have been, and why the impact of those years seem to linger.  This issue (and jobs) will serve as a focal point of the next election, future merchandising decisions, and overall public policy.  (Lower incomes mean lower tax collections, and more prudent decision-making by those in government, regardless of political persuasion.)

So, the questions become:  Do you target folks less impacted by the economy?  Or do you modify your offerings to serve those consumers who are operating on less income than they used to?  Or, is the answer a compromise that puts you somewhere in between?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: The Fuel Economy

A pair of stories in today’s Los Angeles Times explain why gas prices remain high in spite of various attempts to make them fall.  First, Americans are spending more than ever on petroleum; U.S. motorists will spend $491 billion on gasoline this year (click here to see that story).  But also, American oil companies are exporting more petroleum products than ever.  (Click here to see that story.)

Implications:   The law of supply and demand prevails.  With growing demand—both domestically and abroad—the available supply can be expected to rise in price.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Japan should depend less on nuclear power, according to new Prime Minister

The PM’s remarks are reported in today’s USA Today, and likely reflect a wide-spread sentiment on the part of Japanese citizens following the Fukushima nuclear disaster related to last spring’s earthquake and tsunami.  Click here to see the story.

Implications:   This is only a consumer trends story because it relates to previous postings about the nearly inevitable rise in petroleum, in response to the growing economies of India and China, as well as the (probable) increase in oil use by Japan.  [See this ESE posting from June 1, 2011.]  The cost of petroleum—and any product manufactured or shipped using it—is likely to gradually increase over the long term.

How will your company prepare customers for this likelihood?  Are your competitors thinking about this issue?  What kinds of efficiencies might make sense in the future (i.e., finding suppliers closer to home)?  Consider manufacturing that was shipped overseas; in a labor market that is seeing wages stagnant—or in some cases, falling—and the cost of shipping on the rise, at what point does domestic manufacturing become a more attractive proposition?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Auto insurance one of the casualties of economic distress

An alarming story in today’s USA Today indicates that one in seven drivers is going without auto insurance, in spite of laws in most states requiring it.  Click here to see the story.

Implications:   This is proof that luxuries and extravagances aren’t the only thing being trimmed in the current economy. 

If you’re an insurance company, would an educational campaign make sense, whereby the consequences of driving without insurance could be explained?  Should you reach out to existing (insured) customers to suggest an upgrade in their protection against un-insured or under-insured drivers?  Might this be something that you could suggest to an insurance agency group, or local/regional/national trade association?  

Local/state governments, major trauma centers and even personal injury lawyers might consider a similar campaign… as each has a stake when it comes to deciding how injuries, property damages—or worse—might be paid for.

Meanwhile, I'm going to touch bases with my agent to make sure I'm protected against uninsured motorists.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Wild swings in stock markets less shocking than they used to be

Like many folks, I’ve grown tired of references to, “the new normal.”  But I’ll come close to using that descriptor in suggesting that for the stock market, the new normal may be abnormal.  That notion came to me this morning as I read this story in today’s New York Times, which reflects on the wild gyrations most investments are delivering right now… and asks whether something fundamental has changed in the way investment markets are working. Click here to see the story.

Implications:   Are your consumers less spooked—more conditioned—to the inflammatory headlines about the stock market, lately?  (Those shocking headlines are, after all, appearing very frequently.)  Are they sensing a chasm between their household economy and the greater, national or global economy?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The changing definition of retirement

Today’s New York Times carries an interesting piece on the now bi-partisan thinking that something—we’re not sure what, but something—needs to be done to reduce the cost of Medicare and Social Security.  Click here to see the story.

I raise the issue not for its political zest, but for its likely impact on consumer behavior. 

Implications:   Many people (including me) have been saying this for years, but it now seems more apparent that retirement will look different for future generations than it has over the past fifty years. 

It is likely that future retirees will have to be more self-reliant, in terms of having an income, paying for more of their own healthcare, and more.  How might that impact consumer’s investment decisions in their 20’s and 30’s?  How might this influence spending decisions for people in their 40’s and 50’s? 

Just as important, how does your company, product or service fit into this new "golden years" landscape.  Are you ready to serve customers who have deferred their retirement?  Are you ready to meet a LOT more people who consider themselves to be semi-retired, and perhaps never fully retired?  How will their needs be different than those of past customers age 65 and older?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Wal-Mart brings back lay-away

Another story from today’s Marketing Daily explains that the world’s largest retailer is returning to an old standby:  Offering lay-away.  Click here to see the story.

Implications:  According to the story, lay-away service was discontinued by Wal-Mart about five years ago.  Sears brought layaway back in 2008… after a twenty-year absence.

It’s an old idea that these retailers are hoping will appeal to consumers who still have an aversion to relying heavily on credit.  Are there any new (or old) ideas that could help you do the same?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Creating consumer confidence… at the local level

Ben Bernanke stopped here in Minneapolis yesterday to speak at an economics luncheon, and today’s New York Times shared an interesting perspective on his remarks:  That, as tough as things are, consumers think the situation is even worse than it really is.  Click here to see the story.

Implications:  Alas, the Federal Reserve chairman realizes who sets the tempo for the economic recovery… the consumer, of course.

We can debate all day long about whether the current sentiment of consumers is rational or not.  But here’s a better idea:  Ask what you can do to amplify the optimistic, encourage your customers to enjoy themselves as they escape reality by walking through your store, or deal with today’s realities by taking advantage of the products and services that you offer.

I’m not waiting for the government—either party—to create consumer confidence.  We’re going to have to do it ourselves.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

What women want: Less anxiety

Today’s Marketing Daily features a story about the stress facing American women these days.  The information comes from a study by Boston Consulting Group, and suggests that household finances have taken-over the #1 spot (from time sensitivity) on the list of things causing anxiety.  Click here to see the story.

Implications:  I don’t think we should assume that time sensitivity is no longer causing anxiety.  Concern about household finances is “in addition to,” not, “instead of” all the other stresses involved with running a household.

Have you talked with your customers, lately?  What’s most on their minds?  How can you relieve some of that stress?  It might be in helping them buy more for the dollar.  Or, it might be a way they can spend time forgetting it all (i.e., a night our at your restaurant, a weekjend away at your resort, a few hours at your day spa, a few minutes at your coffee shop, or an evening relaxing on their new sofa, perhaps?). 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

How is your personal economy?

Today’s Research Brief cites a study from Citibank, and provides additional insight as to why it is so important to consider the condition of your local economy and actual customers, even as you worry about the state of the nation’s financial affairs.

According to the article, fully 72% of consumers believe the economy still has a way to go to reach bottom, but 60% of Americans remain somewhat or very optimistic about their own personal economic situation over the next 12 months.  Click here to see the story.

Implications:  Let me paraphrase what I think this research might suggest.  Consumers see the world around them crumbling, but many believe they are positioned to not suffer the consequences. 

At the very least, this research validates the idea that even a recession can be a very personal thing, and each of us are likely to experience and respond to it in our own way.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Recession 2.0?

A story in today’s New York Times offers some clarity to an issue that most of us have been thinking about over the past two months:  Whether the U.S. economy is heading into—or already in—another recessionary downturn.  Click here to see the story.

Implications:  If it turns out that the recession has returned, we at least have the advantage of realism, this time around.  (When the last recession hit, lots of people were shocked.  This time, they won’t be.) 

A major tenet of Elm Street Economics is that whether the nation as a whole is in recession, technically, matters less than current mood and financial state of the customers you serve.  Your customers decide whether they are in recession… not Washington or Wall Street.  Are the folks in your city or suburb adequately employed and their incomes are reasonably stable?  Or do the people in your trade area continue to feel the strain? 

One should not ignore the macro-economic issues facing our country.  But accept that there’s little you can do about that, and focus instead on the micro-economies (the households) you serve.  Measure your offer to meet the local climate, and adjust your messaging to suit the current mood.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

UPDATE: Touchpad computers

Earlier today, I offered a posting about touchpad computers mounted on shopping carts in China (see two postings below).  Moments ago, colleague and friend Brian Tomassetti shared another story with me that is worth passing along.  It is about Amazon’s entry into the tablet market, and the complete re-design of Amazon’s website in anticipation of explosive growth in the use of tablets going forward.  Click here to see the story, courtesy of ReadWriteWeb.

Implications:  Again… in what ways might emerging technology change the way people shop your category?  Amazon is thinking about it.  Should you be, too? 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Loads of ideas about integrating your store with your online presence (or vice versa)

Frequently, I will point to a specific article from Trendwatching.com if I think that it holds an idea that could be adapted by local companies like yours.  Today, I’m recommending that you read the whole Trendwatching.com newsletter, because it is focused on a digital “Retail Renaissance” that involves many bricks-and-mortar stores along with their online assets.

Click here to see the story, and browse for ideas you can emulate. 

Implications:  The future is coming.  You might as well be the one to design it.  (I guess that's my theme for today!)

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Touchpad computers become grocery cart dashboards

In today’s Springwise newsletter, one story featured a retail chain in China that is testing i-Pad-style computing devices attached to shopping carts.  Special offers and coupons are delivered in real time as one navigates the store.  Click here to see the story.

Implications:  We saw a similar device featured many years ago at the Food Marketing Institute’s exposition in Chicago (I think it was 2005).  In that case, one needed a USB jump drive to load software on their home computer… allowing the consumer to create a shopping list and retrieve coupons in similar fashion.  Now, technology has made all of that possible through the cloud.

In what ways might emerging technology change the way people shop your category?  Someone is thinking about it.  It might as well be you.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

PNC study: 20-somethings fearful about financial future

Today’s Marketing Daily includes a story about research from PNC Bank, indicating that adults in their twenties are uncertain about their economic outlook.  The article mentions that only 23% of this group considers themselves to be completely financially independent.  Click here to see the story.

Implications:  Folks who started their adult life just before or during the Great Recession have been influenced deeply by its effects… perhaps more than others because the event happened during their formative years as consumers.

We can count on this generation’s “twenty-somethings” to be a bit more pragmatic and financially conservative than their counterparts from earlier generations.  Rather than just selling the sizzle, today’s 20-something adults are more likely to be won with logic.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

The impact of global supply and demand on local consumers

A Media Post blog titled Engage:  Affluent gives us another category to consider when it comes to the issue of global supply and demand.  Today’s posting suggests that couples in China are joining the world market for diamonds.  Click here to see the post.

Implications:  For quite some time now, I’ve been pointing-out the impact of expanding economies in China and India as forces that will put pressure on the worlds supply of oil, various food commodities and more.  But as the middle- and upper-income population grows, we’ll feel the effect in a lot of product categories.

Have you seen it in your product category?  Does it influence the price you can offer consumers?  Have you thought about ways of placing more focus on the experience or appeal of your product or service… and shifting to a focus on the way you enhance the consumer’s life?

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Stores should be looking for smart(phone) strategies

Today’s newsletter from Phil Lempert (the Supermarket Guru) insists that grocers should be thinking of ways to cater to a consumer who is doing product research, price comparisons and more via their smartphone.  Click here to see the story.

Implications:  It might be a good idea for any retailer—not just grocers—to notice just how many people are walking through their store(s) with a digital device in hand.  Optimizing your site for mobile is just the beginning.  Could you be using QR codes to drive traffic to other parts of the store?  Explaining value-added services to better compete with other shops on the consumer’s consideration list?  Or facilitating price comparisons (since they are nearly inevitable anyway)? 

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Financing for used vehicles approaching the level for new vehicle

A story in today’s Automotive Digest hints that the sums a consumer must finance to purchase a used car is approaching the cost of financing a new car.  Click here to see the story, which originated at SubPrime Auto Finance News.

Implications:  The cash for clunkers program took a lot of used vehicles out of the market during the Great Recession.  At the same time, folks seeking to sneak by with spending less for a vehicle also placed strong demand on used vehicle inventories across the U.S.  It seems that these and other market forces have colluded to make it more expensive to buy a used vehicle, a thought that could drive more buyers to the “new” side of the lot.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Jobs flat according to August employment report

According to the labor department and a story from today’s Washington Post, employment levels remained flat for the month of August.  The numbers arguably crept higher if you account for the Verizon strike involving 40,000+ workers, but that would still be considered beneath expectations.  Click here to see the story.

Implications:  Because job security is so central to everything the consumer does, we can expect jobs to be the lead story from now until November, 2012.  The methodical, more cautious consumer you’ve seen emerge these past few years will be hanging around for a while.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Grandparents 2.0

Just as they have redefined many aspects of their earlier life stages, Baby Boomers are redefining what it means to be a grandparent… according to a story from today’s Marketing Daily.  They (we!) are still feeling young, and spending more than ever on goods and services for grandkids.   Click here to see the story.

Implications:  With life expectancies far higher than they were just fifty or sixty years ago, we should not be surprised that grandparents look and feel younger than their predecessors from past generations.  They’re not just living longer; boomers are living healthy and staying active longer.  They’re in a position to help their adult children as they begin to raise their own families, whether that means buying toys… or helping with necessities from household essentials to daycare.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.

Daily deal fatigue

A story in today’s USA Today suggests that the novelty of daily deal emails and website has begun to wear.  Click here to see the story.

Implications:  The barriers to entry are very low for anyone who wants to start a site that offers coupons for cheap goods.  You likely offer coupons on your own website, and send out email blasts or text messages to a database of your own past customers.

It was only a matter of time until the space became very crowded.  It’s important to focus on ways that you can distinguish your offer from the thousands of others that are in the marketplace.  And make sure you’re targeting people who might be likely to repeat the purchase—and at better margins—after your introductory offer has been enjoyed.

Mike Anderson, for the Elm Street Economics consumer trends blog. A service of The Center for Sales Strategy, Inc.