Consumers less likely to re-locate

Observation:  People are simply less inclined to make a cross-country move during times of economic hardship, and that tendency has been clarified by recently released census data and this recent story from the New York Times.  (Click to here to read it.) 

Implications:   Beyond it’s implications for the housing, moving companies and related industries, this story is a reminder of just how critical it is to know your current customers, and serve their needs remarkably well. 

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

Consumers increasingly tap water to save money on restaurant bill

Observation:  Over the past few years, more folks have been ordering water instead of their favorite soft drink when dining out of home, according to this story from today’s Marketing Daily.

Implications:   A good share of this decline probably has to do with the consumer’s desire to save money, but that’s not the only issue here.  Because the decline was underway prior to the recession, there are other issues contributing to the drop.  Does your favorite restaurant offer healthful alternatives to soda that are sugar- or caffeine-free? 

If you’re a restaurant owner or marketer, are their ways you can help refreshments find their way back on to the diner’s tab?  Have you asked them—conducting some simple research—to find out what they’d like to sip along with their entrée order, or what price they think would be reasonable?

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

Banking industry prepares for a showdown

Earlier this month, I mentioned the changing landscape of banking… and specifically, how some banks are adding fees to services that were once free (see “Is your bank worth $5 a month?” from 10/14/11). 

According to this story from the Washington Post (click to link), banks like Chase and Wells Fargo are abandoning test programs to see if their customers would tolerate a fee for debit card services.  Meanwhile, a Facebook movement called “Bank Transfer Day” is gaining momentum on Facebook, and the Credit Union industry is planning to pounce on the opportunity, according to this article from today’s Marketing Daily.  (If you haven’t heard about the movement, you can read this background story from ABC News.  The date is set for November 5.)

Implications:   That large banks suffered a backlash from the great recession is not news.  What might be newsworthy is the idea that the backlash continues, even after so much time has gone by.  (Remember, the recession technically ended around June, 2009.)  The additional fees that Bank of America has applied may have stoked a fire that might have otherwise not erupted.   

So, if the pendulum has swung away from Goliath and toward David in the banking industry, are you seeing similar trends in your category?  Is smaller better?  Does your local company hold a customer-attentiveness advantage over a larger rival?  Good questions to ask at a time like this.

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

The science of shopping is changing

Add-on sales were once the name of the game; get people into your store, and then get them to make spontaneous purchases… beyond the item they came in to buy.  But with fewer people looking at shopping as an entertainment alternative, those up-sells are increasingly difficult to create.  That’s the premise of this recent story from Bloomberg, citing input from ShopperTrak.  Click here to see it.

Implications:   In a world where people are doing less casual shopping—and purchasing with greater intention—what can you do to make your store, dealership or lobby a primary destination?  Does your messaging compel the audience to consider you first?  Have you talked with your selling staff about working harder to include accessories, maintenance and other complimentary purchases to the core product or service?  Is your in-store experience so positively memorable that people will make you an exception to the rule as they do less "traditional" shopping?

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

It's time to amplify the optimism

I’m going to be out of the office and “off the grid” tomorrow, but I wanted to end the week with some positive news before I go.  First of all, the stock market had a good start this morning (the Dow exceeds 12,000 at this writing), because of progress with the European debt crisis.  Click here to see the CNBC version of that story… or here’s another example from the New York Times.

Even more important than a one-day improvement in stocks, there was news today that the U.S. economy—more accurately, the GDP—grew by 2.5% in the third quarter.  That relieves some fears that we might have been falling back into recession… as it represents faster-than-expected economic growth.  Click here to see the Wall Street Journal version of that story… or here’s another example of the coverage in an article from the New York Times.

Implications:   Walk through your store, office, lobby or dealership with a smile today.  Big enough that people stop and ask you, “What are you smiling so big about?”  Then, just tell them it was nice to have some great economic news today.  We hear way too much of the negative stuff… and that makes it even more important to draw attention to the positive news; even if that good news only lasts a few days at a time, and even if something nasty drowns-out the positivity next week.

Negativity can be self-perpetuating… either for a person, or for a company.  Amplify the optimistic at every opportunity!

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

A potpourri of stats about the holiday shopping season

Colleague and friend Kim Peek recently shared this post from the blog by HubSpot (click to link).  If you have an insatiable appetite for statistics and holiday retailing, you’ll love it!

 

Implications:   One of the stats that caught my eye was the notion that 40% of consumers will start their holiday shopping in November (aka, “Tomorrow”).  The time for smart messaging is right now!  Another:  57.7% of consumers say they’d like to receive a gift card this season.  After several years of stagnant performance or even decline, it looks like gift cards could make a comeback this year (that’s the highest anticipated demand on record, according to the post.

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

Will there be a price war? Should you join it?

This week, a local CBS TV station ran a comparison-shopping story in which they bought the same toys at both a local Target store and a Toys R Us store just a few blocks away.  Who won is not important (unless you’re one of those stores), but you can see the story by clicking here, if you like.

Another story--from yesterday’s Marketing Daily--also dives into the price-point issue, as it explains the new price guarantee tactic that has been launched by Wal-Mart for the 2011 holiday season.   (Click here to see that story.)

Implications:   This raises the important question about whether a company should join a price war if such a conflict should erupt.  The answer is, “Maybe.”  Consider joining the price war… if you know you can win it and still harvest overall profits that help keep you in business.  But if you are in no position to take on the big discounters, it can be a wiser strategy to carefully tune-in to what your customers want most, and make sure you’re delivering on those core benefits.

How does your company distinguish itself and the value proposition it offers?  In what ways might you shift the conversation to value, not just in terms of cost, but in the way your product, service or company adds value to the consumer’s family, household, and life? 

If you cannot win on price alone… change battlefields.

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

Net result: Netflix should have listened more closely to their consumers

There have been plenty of post-operative comments on last summer’s price increase and fall-out from their recent attempt to split their online and mail-in services.  But now, the impact can be clearly understood:  Netflix reported 800,000 fewer customers this quarter than they had last quarter, according to a story in today’s New York Times.  Click here to read it.

Implications:   Several paragraphs into this story, the Times report indicates that Netflix’ chief executive assumed the service split “had been presented to a focus group,” but also indicated that he “did not recall what those focus groups had said about the plan,” according to the article.

Perhaps that provides a good lesson for anyone in business, when it comes to research:  Don’t just do the focus group or take the survey.  Take it seriously.

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

Are banks lending money more freely where you live?

In spite of what we’ve been hearing for years with regard to tight credit markets, a story in today’s DealBook explains that many banks have returned to a more aggressive posture when it comes to lending money (especially where well-qualified consumers and businesses are concerned.)  Click here to see the story.

Implications:   The DealBook story seems to indicate that the recovery is still moving forward.  Are you seeing more big-ticket purchases in your market?  If not “exploding,” have categories like automotive, home furnishings and home improvements at least stabilized?  If you sell big-ticket items, are you seeing more people investigate the purchase… and qualify for financing?

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

Self-regulation deal gives cell customers a warning before surprise charges are issued

Today’s New York Times explains how wireless companies will send a message to customers who are about to use more minutes than their plan includes, thus helping them avoid penalties and fees associated with going beyond their plan limits.  Click here to see the story.

Implications:   This doesn’t just help the wireless industry avoid government-imposed regulation… it’s simply a good idea.  Consumers don’t like surprise expenses.

Do your company’s billing practices ever catch consumers off-guard?  Is there anything you could do (or is there a way you could better communicate) to help your customers avoid bill shock?  I’m thinking about what you could learn from the wireless industry’s recent experience… if you render automotive service/repairs, health care or other categories where the invoice can sometimes be an unpleasant surprise. 

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

When online connections go from lifeline to leash

An interesting story in yesterday’s New York Times explains how many customers who’d like to fire their bank end up staying… because it’s too complicated or inconvenient to switch around the various automatic payments and deposits that are a part of their account.  Click here to see the story.

Implications:   We often refer to this as a complexity cost... because burden of changing providers is greater than staying with one you’re not happy with.   But the danger of this scenario is relative, and quite subjective; at any time, the consumer (or lots of consumers) could say, “Okay, enough is enough,” and devote a Saturday to tracking down each of those online/automatic relationships, and severing the account.

If you’re the bank, how do you make people stick with you… because they want to?!  Or, if you’re a competitor, how could you make switching easier… and become the destination for unhappy customers?  (Think in terms of the “15 minutes could save you 15%” campaign from Geico, or Progressive’s “We’ll give you our price, and the rates of all our competitors.”) 

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

The psychology of fast food

A friend sent me this recent story from Psychology Today, explaining the psychological—and some physiological—reasons that consumers gravitate to the Golden Arches.  Click here to see the story.

Implications:   Humans are fascinating people.

Can you identify the reasons people shop with you?  What the most common traffic patterns are that lead-up to their arrival at your place of business?  How about the motives that most often spark their visit?

Those compelling points should be a part of your messaging strategy, if they’re not already.

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

The three styles of Search

Today’s Research Brief has a worthwhile story about the different ways people approach an online search:  For answers, education or inspiration.  Click here to see the story.

Implications:   It’s worthy to note that the different search preferences might not just belong to three different types of people; they could all apply to any one person depending on whether they are looking for a solution at work, entertainment at home, or a price quote at some store in between.

Likewise, when thinking about your target consumer, you might interact with a wide variety of needs, depending on the purchasing circumstance.  For example, a restaurant patron wants an entirely different ambiance for a business lunch than they might want later in the week during “date night.”  Someone might shop for a personal-use commuter car using different criteria than when that same consumer is shopping for a first vehicle for their teenage son or daughter.

That’s why knowing your customer is not enough.  It’s important to break your target consumers into sub-targets and target segments, and then understand the different benefits being sought, depending on either what they’re shopping for, when they’re shopping, or both.

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

Macy’s takes online interaction into the store with QR codes

A recent story from Online Media Daily asks the question, “Are QR codes worth it?” for both the retailer and the consumer.  It’s worthwhile question, and you can read that story by clicking here.

Implications:   Of course, QR codes are just another tool.  And like any piece of equipment, whether it’s effective depends on how you’re planning to use it.  Can consumers “shoot” your QR code to find a landing page with important information about your products, a map to your location, or a coupon that represents value?

One of the stronger uses I’ve seen lately is the way Macy’s has placed QR codes not just in their advertising, but in their stores.  When consumers see the signs—strategically placed throughout each store—they can scan the QR code to hear from designers and celebrities.  It’s like having a virtual sales person point-out the strongest attributes of the featured product.

If you’d like to see the visual explanation, here’s the one Macy’s offered on YouTube (very similar to the television campaign they’ve been running this month to tout this new “service.”)   Note how they emphasize simplicity, and not technology!

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

Wins and losses among automotive manufacturers

A very good story in today’s Marketing Daily cites Experian data in looking at the recent history of automotive sales.  Click here to see the story.

Implications:   Research is invaluable in anticipating what consumers will or will not respond to… but the most important data often shows up based on how people voted with their wallets.

How are your sales different from last month?  Last year?  Five years ago?  I’m not asking simply, “Are your numbers up or down.”  I’m asking you to consider 1) When you have gained customers, where did they come from?  Are they new to the market or did you take them from a competitor?  2) When you have lost customers, where did they go?  Did they simply leave the market, or did they go to a competitor?  3) Are your target customers buying for the same reasons today that they bought five years ago?

Sales figures can behave like a trail of breadcrumbs… reminding you to never wander too far from what works best.  Not just in automotive... but in any sales-driven company.

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

Is your bank worth $5 a month?

As new banking regulations were rolled out in the wake of the financial meltdown, there have been a variety of consequences on both banks and consumers.  Specifically, I’m referring to the Durbin amendment to the Frank-Dodd Act, which places limits on the fees a bank can charge to businesses who handle card-based transactions.  In response to losing that revenue, last month Bank of America announced that it would begin charging customers $5 per month to use their BofA debit card for purchases.

Unless you’ve been out of the country over the past month, you’ve heard coverage about the consumer backlash to this move.  But the question I have is, “Will other banks follow?” 

Two recent stories have offered clarity on this issue.  One was published in today’s Marketing Daily (click here to see it).  And the other—even better—is an article and video conversation on the matter from MSN Money (click the image below or this text to be taken to that version).

Implications:   Perhaps the better question is:  “Can the banking industry re-train consumers who’ve been getting this service for free to now pay a fee for the convenience of using plastic?”  We’re used to having things work the other way around!  For example, long-distance phone calls used to be really expensive… but in the wireless age (as part of one's monthly contract), "free" has become the new expectation. 

The MSN story is wise to point out that $5 is cheap for the convenience of using a debit card for purchases… unless numerous other sources are offering that service for free.  It will be interesting to see how other banks respond.  (No doubt, they are studying the BofA fallout closely, to see when/whether it subsides.)

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

UPDATE: Occupy Wall Street

This week’s Iconowatch, the newsletter from Iconoculture, builds on a topic we mentioned earlier this week about the recent Occupy Wall Street demonstrations [see "Preoccupied with Wall Street"].  This article notes that Millennials make up a large percentage of the Occupy movement.  Click here to see it.

Implications:   Another particularly thought-provoking observation from this article was the idea that many commentators are referring to the Occupy movement as (I paraphrase) “more of a street party than an meaningful demonstration.” 

Didn’t they say something like that about many of the demonstrations that happened in the 60s and 70s?  It will be interesting to see if the movement fades into autumn, or whether it will grow into a voice that influences the outcome of next year’s election.


[Editor's note:  Another worthwhile story about Occupy Wall street was published the following day (10/13/11) in the New York Times, explaining the "share of voice" these protests have begun to receive in various news media, as the movement fans-out across the U.S.  Click here to see that story.]

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

UPDATE: More observations about older consumers

Okay, it seems like this week there has been an inordinate amount of coverage regarding older Americans.  I shared some of it in a story Monday about how food shopping habits change after retirement (see that post from 10/10/11), and another story about the way Grandparents are helping their children and grandchildren in the aftermath of the recession (see “Grandparents” by clicking here).

Today’s Research Brief adds to that perspective, including insights about the amount of wealth controlled by consumers over 50, and how life expectancies (and health) are expected to grow longer, globally.  Click here to see it.

Implications:   The more things change, the more things change.  As adults not only live longer, but stay active and live in good health longer, how will the composition of your customer base (and the needs of those customers) change, over time?

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

New Coke for the video age: Netflix un-changes its formula

Today’s New York Times contained a blog post that nicely summarizes the about-face taken by the Netflix after trying to spin-off its traditional DVD rental business.  Click here to see the story.

Implications:   In recent days, some of my colleagues and I have pondered the limitations of research.  Specifically, we reflected on the iPod, iPhone and iPad, and how so much of that innovation originated on the gut feeling and intuition of Steve Jobs and the company he created.  Many of those innovations come in spite of research, as much as they are born because of research.  A century ago, Henry Ford is credited with saying, “If I had asked people what they wanted, they’d have told me ‘a faster horse’.”

Research has its limitations, but so does running a business without sufficient research, as learned the hard way by Netflix in recent weeks.  (Or, I supposed you could say that research has now been done… in a manner more expensive than simply canvasing their customers and prospects.)

Is your company moving too fast?  Too slow?  Have you asked your customers?  Or, are you safe in contemplating a new product or service launch that is so good... your customers might not have even realized they might want it?

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

Another holiday forecast; this one calling for “precision” purchasing

Consulting firm Accenture published a forecast for the 2011 holiday shopping season.  You can read highlights from their report by clicking here. 

Implications:   This study is important because it goes beyond the “what,” to ask “why?”  Consumers are citing less discretionary income, less money in savings, and an increase in living expenses as reasons they will shop—but with caution—this gift-giving season.

How will your respond to these attitudes toward holiday spending?  If the consumer is going to be more careful, that means they’re going to do more research in advance.  If you haven’t already, now is a great time to re-evaluate your website and make sure it provides maximum assistance to the research-hungry consumer with minimum effort and time invested.

Also, ask yourself whether your fourth quarter messaging appeals to the things that are most important to your target consumer.  It’s important to be high on the shopper’s consideration list, especially when they’re doing lots of research in advance.  (When the consumer is shopping for the products or services you sell, it’s important to be very high on their consideration list; they will probably buy before they make it to store #6 or 7.)

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

Grandparents increasingly lend help to their adult family

Earlier today, I wrote a posting about how changes in the definition of retirement might alter the way we behave after leaving a primary career/job.  (I say it that way because now, many retirees will be taking a fresh job/career path after initial retirement.)  [See “The Changing Definition of Retirement” by clicking here.]

Another story from Phil Lempert and the Food Marketing institute today discusses how today’s grandparents are helping their adult children manage… including helping out financially, providing alternate daycare, and more.  Click here to see that story.

Implications:   Boomers re-defined each of the life stages as they moved through their teen-age and adult years.  We should not be surprised that they are changing the definition of grandparenthood, too. 

In what ways can you cater to this important consumer group?  Are your “family” offers inclusive of the grandparent who is frequently bringing the children to your store, restaurant or theme park?  Is your company offering products or services that might make the grandparent’s efforts a bit easier?

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

Pre-occupied with Wall Street

If you’re feeling like your income has lost some of its spending power since the beginning of the recession, you’re not alone.  A story from the New York Times this morning explains that incomes have fallen since the recession is widely held to have ended, due largely to the persistently high unemployment rate.  (Click here to see that story.) 

This issue, combined with pervasive coverage about gridlock in Washington, extreme compensation for many of the country’s CEOs, and higher food and fuel prices, has led to outright economic frustration.  

Yesterday, there was a story in the New York Times about the group Occupy Wall Street and several variations of the movement that have sprouted-up around the country.  Click here to see that story.

Implications:   The NY Times story acknowledges that the “Occupy” movement started very small, but hints that uprisings also started small in places like Tunisia and Egypt this spring, and throughout much of Europe over the summer.  I’m nowhere near ready to watch for a citizen-led uprising here in the U.S.  But smart government officials—and businesses—are noticing this period of discontent.

It might be more important than ever to communicate the logic of your business to your customers.  If there is a price increase, why is it justified?  If you’re a public company and paying dramatic bonuses, what is the logic?  More often now, consumers are not just re-thinking the dollars they spend; they are more closely scrutinizing the very companies they spend with.  If you’re running a fundamentally sound and fair business (which I assume to be the case)… transparency is your friend.

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

Will the changing definition of retirement alter food shopping?

That was the question posed by FMI’s Facts, Figures and the Future, and as published in today’s newsletter from Phil Lempert.  Click here to see it.

Implications:   Of course, the question is rhetorical, and the answer (for many consumers) is “yes.”  But not all of the changes in planned retirement behavior have to do with the recession.   Many of the changes have more to do with the fact that we’re going to live longer.

In 1950, when someone was getting old enough to retire, the common fear was often, “Oh no!  What if I die?”  In 2011, with lifespans for many folks reaching into their 80’s, 90’s and beyond, the more common concern is likely, “Oh no!  What if I live?!”  Once upon a time, a nest egg had to last five or ten years.  Today, it might have to last thirty or more.

That’s why people will likely look for ways to be re-hired after they’re retired.  A small income to supplement their nestegg (investments, social security, etc.) is a no brainer.  And their spending is likely to be adjusted, also, to reflect their evolving financial situation.

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

We interrupt all this negativity for a little more good news

While many experts were focused on stock market gyrations and gloomy headlines about the world economy and Washington gridlock, consumers spent much of September shopping.  That is, except those who were going back to work.

Today’s Marketing Daily is among the sources that reported stronger-than-expected sales for retailers in September.  You can read that story by clicking here.   Even better than that news is this:  The number of new jobs created in September was better than forecast.  (I refer to that news as “better” because higher employment affects more than just one month.)  See the Washington Post version of that story by clicking here.

Implications:   … and I’ve said it a thousand times.  If you focus only on the news out from Pennsylvania Avenue and Wall Street, you’ll drive yourself crazy.  Focus, instead, on that micro-economy that exists between your company and its consumers. 

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

UPDATE: Revenue projections for the holidays

Yesterday, I offered a post about the increase in temporary holiday hires of some major retailers (see the story immediately below).  Today’s Marketing Daily offers a story to support that anticipated growth, citing projections from the National Retail Federation.  Click here to see the story.

Implications:   The projections are nice to hear, but revenue growth is unlikely to be spread evenly among holiday retailers.  Those who do the best job of connecting (communicating) with their target consumers and satisfying the benefits they seek are going to have a much different holiday season than those who do not.

How are you preparing?

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

Stores hiring in anticipation of the holidays

Many retailers expect the holiday season of 2011 to be a bit of a paradox; in spite of clues that the economy is still teetering, they think that shopping activity could enjoy an uptick.  That’s according to a story in today’s New York Times.  So, there is likely to be a slight increase in the numbers of temporary retail workers hired for the holidays… or at least hiring at levels that were similar to last year.  Click here to see the story.

Implications:   Instead of having turbulent economic news cause people to avoid shopping for the holidays, is this the year that people indulge because they’re fatigued by the turbulent news?  What do you anticipate in your local market?  Are you planning to add staff or services to satisfy any additional traffic your company might enjoy?

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

Trend site recognizes increasing tendency to trade-in and trade-up

Trendwatching.com is a consistently reliable source for trends across a wide scope of business categories.  And the October Trendwatching newsletter holds a series of stories having to do with our desire to trade-in.  Click here to see it.

Implications:   Re-commerce is nothing new; you’ve probably traded-in a car to buy a new one, or sold one house to buy another.  But this story does a good job of pointing-out how consumers are more inclined, lately, to trade-in where a variety of new categories are concerned, and using a variety of tools.  Many local pawn shops are well stocked, Craig’s List is quite populated with goods for sale, and companies advertising that they’d like to buy your unwanted gold and silver are plentiful.  

Is there a way that folks are trading-in as a means of trading-up to your product or service?  How might you facilitate that move?  And besides discounting the price of a new purchase, what other benefits does the consumer receive by trading in?  (Are you messaging about those benefits?)

At our house, I recently enrolled in a class I wanted to take.  But before I did it (it has to do with a hobby of mine), I decided to sell some power tools and sports equipment I hadn’t been using.  It wasn’t just that I didn’t want to take the tuition out of our household budget; I built the goal of de-cluttering into the process… not wanting to go further with one interest until I off-loaded some of the things that had to do with other activities.

Also, respect that this isn't just about consumers who want to turn their possessions into cash; they simply recognize that their property now has a value... if not to them, then perhaps someone else.  I've recently seen furniture store ads asking people to trade-in their mattress, which is then donated to a shelter for the homeless.  And I've seen a department store campaign that invites shoppers to trade in their winter coats; their old coat goes to charity, and the consumer receives the reward of a discount toward their new jacket purchase.  Again... can you apply this principle in your company, and do good as you do well?

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

Workforce gaps narrowed by rough economy

Recently, the New York Times published an article about how the labor market has been equalized a bit, in terms of gender equality, as an outcome of the recent recession.  Click here to see the story.

Implications:   It was about a year ago that I suggested—in response to another NY Times story—that the glass ceiling was eroding… as a byproduct of the labor market and recession.  [See “Are women still hitting the glass ceiling,” from October 1, 2010.]

At that time, logic held that companies were not just cutting jobs, but payroll; the higher your paycheck, the bigger target you had on your back.  It only holds that if men were paid more for various jobs, they were more attractive targets as companies tried to trim payroll.


What impact might this shift have at the consumer level?  Might his and her roles change a bit when it comes to the shared decision-making process?  

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

Relatively speaking, life insurance seems to be skipping a generation (so far)

In what might be seen as a values shift among younger consumers, fewer people under the age of 45 are buying life insurance, according to research from Mintel Comperemedia… and as quoted in today’s Marketing Daily.  Click here to see the story.

Implications:   Are you expecting sales to Generation X and Millennials to behave the same as when the Matures (pre-WWII) and Baby Boomers (post-WWII) defined the market?  Don’t count on it.  In addition to marrying later and having children later, many of these consumers are under the impression that they can wait until later in life to protect life’s treasures.

Are you seeing a similar shift in your line of business?

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

Daily deals: “Value” is not just “cheap”

Today’s New York Times held yet another article suggesting gloom and doom for the so-called “daily deal” coupon providers, such as Groupon, Living Social, and others.  Click here to see the full story.

Implications:   As I wrote back in April [see “Daily Deals go mainstream”], daily deals are not all bad.  It’s just that you have to have a plan that will yield lots of first-time trial, but in a way that you can retain those customers over time, and gradually build a relationship that allows you to sell your product or service at a reasonable margin.

Don’t think of daily deals as a win-or-lose ad campaign.  Ask whether you can convert those lowball consumers into consistent spenders over time.  Without thinking ahead, you’re setting yourself up for a campaign that succeeds… at your expense.

Don’t just focus on the daily deal.  What comes next?

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

Home improvement retailer rethinks the consumer

A story from today’s Marketing Daily offers a one-on-one with the SVP for marketing and advertising from Lowe’s.  Modifications in the company’s online presence and media messaging are a reflection of recent research, and discoveries about how the consumer is looking at home improvement.  Click here to see the story.

Implications:   If you’ve been considering how recent shifts in the economy and the real estate market might be impacting consumer attitudes, you’re not alone.  Some of America’s major retailers are watching the consumer more closely than ever.   

Are you selling to the same consumer you did five years ago?  Do they buy for the same reasons they used to?  What questions could you ask—and in what form—to find out what their latest hot buttons are?

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