Cyber Monday sales increase

Observation:  As if trying to out-perform the record in-store retail sales of Black Friday (see immediately below), Cyber Monday followed with even more remarkable sales increases.  By some accounts—like this one from USA Today—sales were up as much as a projected 18%.  Click here to see the story.

Implications:   Some analysts are pointing to this year’s holiday sales as evidence that the economy has stabilized and consumers have grown wildly more confident.  Others are suggesting that sales might taper-off now that consumers have taken advantage of the most advertised discounts of the year.  Only time will tell which group is closer to reality.

If you’re a business owner, marketer or manager, the best bet is to not wait for the analysts results... but work to improve your own.  How can you add value to the gift giving (or receiving) experience?  Which distinctions have been most important to your holiday buyers so far?  Are you emphasizing those unique value propositions in your messaging to other buyers?

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

Consumers unleash their pent-up demand to chase Black Friday deals

Observation:  By almost all accounts, Black Friday weekend was a record breaker, with more than $52 billion spent by more than 220 million shoppers.  For more details, read this account from today’s Marketing Daily (click to link).

Here's another retail wrap-up, this time from today's New York Times.

Implications:   I will admit that I was among the people who were less than excited about the Thanksgiving Day debut of all those Black Friday deals.  But apparently, the masses responded by shopping on Thanksgiving Day in sufficient numbers as to give the move a consumer stamp of approval. 

Black Friday weekend was, in effect, extended by a half-day (or full day, depending on the retailer).  It will be interesting to see what the total holiday season numbers look like at the end of the year… and whether the retailing of Thanksgiving Day actually helped grow revenue, or simply moved the money to an earlier date.

Regardless of how one feels about shopping on Thanksgiving, it is good to see that consumers are seemingly prepared to spend this holiday season.  That’s a sign we can be thankful for.

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

In a more connected world, we are no longer separated by six degrees

Observation:  The number is closer to 4.74 degrees, according to a study from the University of Milan and scientists at Facebook.  The report was covered in today’s New York Times (click to link). 

Implications:   The power of a referral may be stronger than any of us had realized.  Are your customers so thrilled that they’re telling people about their experience with your company, product or service?

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

Where groceries are concerned, browsing is making a comeback

Observation:  Many consumers might still be carrying a shopping list when they arrive at the supermarket, but some shoppers are starting to deviate from their plan, according to this recent story from Supermarket News (click to link).

Implications:   Humans can be spontaneous creatures… so it was only a matter of time before we started considering products again which were not on our recession-inspired shopping lists.

Are customers adding-on to their carefully-crafted shopping lists when it comes to your product or service?

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

Online shopping impacts on-lot test drives

Observation:  A story from the Detroit News suggests that online buyers are taking fewer test drives before buying a car.  See the piece by clicking here.

Implications:    We’ve been long studying how, when consumers conduct extensive Internet research, it can have the affect of compressing the face time a dealership or retailer might get with that consumer.  This article seems to suggest that web research could even eliminate their opportunity to sell… or up-sell.

How is online buying—or research—impacting the face time you used to get with your customers?

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

Census offers supplemental report for "near poverty"

Observation:  Over the weekend, the New York Times offered a story about new census data that considers the use of non-monetary aid (such as food stamps and other government programs) in calculating the real poverty rate.  Click here to see the article.

Implications:   I’m not sure what the value of these new representations are, except to help determine whether various government programs are helping people out of poverty in the very literal sense of the term.  My hunch is that, if you’re earning less than you used to or not making enough to fund your idea of the American dream, you are unlikely to be comforted by some agency’s definition of poverty.

In a story about the dumb bell economy last week (click to link), I suggested that lots of people are moving closer to their respective extremes, whether that is wealth or poverty.  At the very least, this NY Times story seems to reinforce the principle.

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

UPDATE: Moving Black Friday to Thanksgiving could make some retailers… late to the party

Observation:  Much has been written in recent weeks about the retailers who plan to open and offer their “Black Friday” specials a day early, on Thanksgiving Day.  There’s been a bit of pushback for companies who will ask their employees to sacrifice a family holiday for the chance to help the company rack-up a few more holiday dollars (click here for a sample posting on the topic).

Well, today’s Marketing Daily suggests that more than half of us have started shopping already.  Click here to see the story, which is based on data from BIGResearch that was done for the National Retail Federation.

Implications:    With consumers sticking to their methodical ways when it comes to spending, it only makes sense that they’d try to avoid cramming so much expense into a few short weeks of holiday shopping.  The earlier start to the season helps consumers spread-out the cost of the holidays… and use less credit along the way.  Think of it as a Do-It-Yourself layaway plan that the consumer is using to make gift giving more manageable.

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

The impact of those who aren’t leaving the nest… on Mom, Dad, and the economy

Observation:   It turns out that when college grads return home instead of striking off on their own, it’s not just Mom and Dad’s bottom line that feels the effect.  Stalled starts are impacting the overall economy, according to this summary from today’s New York Times (click to link).

Implications:   When it comes to college grads who are returning home, or other adult offspring that never left, or boomerangs who’ve returned to the safety net of their parents after a job loss… what kinds of marketing opportunities might surface? 

From apparel that helps provide confidence for the job interview to the furniture store that can provide smaller furnishings for a more crowded house, or even the bank that can provide a plan to stash-away savings for the day when a son or daughter ultimately moves out on their own…

There are still opportunities in a world where folks don’t move away from home as early as they used to.  The opportunities just look different.  One example:  The new "age of acquisition" consumer might not be 18-34, but instead, the baby boomer, as they increasingly fund the needs of their adult children.  An example of those expenditures is found in this story from Engage:  Boomers (click to link).

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

The dumb bell economy

Observation:  During a small business workshop last week sponsored by Cox Media Group of Jacksonville, I referred to our current state as, “The dumb bell economy.”   The term helps illustrate an environment where there seems to be a lot of people on one side who are affluent, and a lot of people on the other end of the spectrum who feel like they have entered poverty, and fewer people remaining in the center… or middle class.

A story in today’s New York Times seems to support this illustration.  Click here to see it.

Implications:    I’ve spoken about the chasm between the “haves” and the “have nots” on many occasions before.  While the dumb bell graphic perhaps over-emphasizes the two extremes of affluence and poverty, it does help make the point.  The middle class has flattened by many accounts.

How have your customers changed over the past few years?  Are they closer to affluence, or living a little leaner than they used to?  Or do they remain in the middle, but feeling a little bit lonely?

Many retailers are, in fact, seeing a shift in their customer profile.  For more insights into these changing tides, see another story from the New York Times, which explains that while some customers are looking up to the stock market to see how they should be feeling… others are looking down to the cost of a gallon of gas.  Click here to see that article.

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

While debit card fees have fallen (for now), many banks look to other revenue (fee) alternatives

Observation:  A recent story from the New York Times explains that while the debit-card fee battle may be finished for now, the relationship modifications between banks and consumers may be far from over.  Click here to see the story.

Implications:    I’m not convinced that consumer’s reaction to debit card fee increases was about the expense of it… or simply the shock of it.  Would consumers have tolerated a charge of $2 per month now, and slight increases every year or two until the bank reached an amount they could be happy with?  If they had marketed the reasons behind the change a little bit better, would more customers have been upset but accepting?

Some of these other new fees will give us clues about what might work, as consumers either protest or begrudgingly accept them.

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

UPDATE: Black Friday backlash

After posting the backlash story a few moments ago (immediately below), I found another take on this issue from Marketing Daily.  Click here to read it.

- Mike

How will consumers react to retailers that cross the line on Black Friday?

Observation:  More and more retailers are planning to open on Thanksgiving itself, rather than opening their doors ridiculously early on Black Friday.  And by some accounts, the move is not all that popular with many consumers; for example, see this story from the New York Times (click to link).

Implications:    I was entertained by the gentleman from Best Buy—quoted in the article—trying to sound as if the store was an unwilling victim of the trend toward being open on Thanksgiving. 

As much chatter as there is about negative customer reaction, it will be interesting to see how consumers actually respond to the Thanksgiving opening this season… as the financial result will almost certainly influence similar strategies in the future.

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

Frugality is not just “in fashion” anymore; for many consumers, it has become an operating system

Observation:  Trendwatching.com is usually a reliable source of consumer trend observations, but this week, they’ve outdone themselves.  In a body of work titled “Dealer-Chic,” the publication explains how and why consumers have evolved their strategies to improve “the art of the deal,” using everything from increased business acumen to the latest technology.  Click here to read the series.

Implications:    To say that consumers expect lower prices on the goods they buy would be over-simplifying the issue.  It’s not just a sale they’re after.  This set of articles suggests (again) that people want more experiences… whether that means an enhanced purchasing process or a way of enjoying the product/service after the purchase.  They’re looking for value-added.  And they’ve become enchanted with the process of finding that deal, using smart phones to comparison shop and their social networking to learn/share information with others.

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

Some gift items could be in shorter supply this year

Observation:  A few months ago—just as merchandisers were having to firm-up their holiday inventory planning—consumer confidence was in a tizzy… so many buyers were conservative in their planning for the upcoming gift season.  That’s according to an article in today’s Marketing Daily (click here to see it).  

Implications:    Those with abundant inventory (or swift access to it) may have an advantage in satisfying consumers this holiday season.  Is your relationship with vendors sturdy enough that you can get your hands on additional shipments of hot items between now and Christmas?  Does your website offer drop-shipping alternatives?  Is your sales team ready to suggest alternate gift ideas for those items which might be in short supply?

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

What if your website could be named dot-anything

Observation:  A story in today’s Marketing Daily explains how some marketers are opposing a move by ICANN to allow almost any domain extension (instead of .com, .org, .gov, .biz, etc.)  Click here to see the article.

Implications:    This is a story to watch if your company operates a website (and doesn’t everyone?).  You may want to buy some additional domain names to protect your brand… or, to seize opportunities that don’t exist under the existing Internet naming convention. 

A few commercial groups might succeed in stalling this progression, but I personally believe that, ultimately, it is likely to happen.  If there is one place where big business or government is going to have a hard time deciding what people can or cannot do, it’s the world wide web.

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

It’s not a website and a retail store, it’s one relationship with multiple channels

Observation:  Today’s Marketing Daily featured an interesting story about Macy’s today, and specifically, how the retailer is enjoying some success BOTH with their bricks-and-mortar stores and their online presence.  Click here to see it.

Implications:    While some small business owners consider their digital presence a whole different initiative from their physical location… it’s not.  The consumer just knows they love doing business with you.  In-person when the opportunity allows, or online when they don’t have time for a physical visit.

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

The voice of mom bloggers

Observation:  Today’s Research Brief explains how moms who blog are talking about much more than the playground or daycare.  The piece provides insights on political persuasion,  charitable giving and comparative financial power.  Click here to see the briefing.

Implications:    When you’re designing a marketing message these days, it’s critical to remember that you’re not just reaching YOUR audience… you could also be reaching your CUSTOMER’S audience.  The echo effect can be very beneficial after a great customer experience… or a loud indictment after a bad one.

What are your customers blogging (or micro-blogging on Facebook) about your company, product or service?

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

Wal-Mart heading deeper into healthcare

Observation:  A story from USA Today indicates that the world’s largest retailer will make an effort to become the country’s largest primary healthcare provider.  Click here to see that story.

Implications:    Wal-Mart has been a disruptive force for many retailers and service providers… and it doesn’t look like the local doctor will be immune from a similar advance.  It will be interesting to see whether—or to what degree—consumers will trust a discounter to be their healthcare provider.  And whether consumers will want to go shopping where there are likely to be more sick people hanging around!

If you’re a health care provider, do you (or does your clinic) provide a demonstrated value that makes you worth more than the coming Wal-Mart alternative?

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

Churn seen as a positive sign for the labor market

Observation:  A story in today’s New York Times suggests that recent hiring and workplace separations activity could be a good sign for the job market.  Click here to see the story.  The thinking behind the article is that many companies have been frozen by the economy for a long time, unwilling to either hire or fire employees.  But now, employers are beginning to take action where human resources are concerned… a sign that things are beginning to move.

Implications:    In our on-going effort to amplify the optimism, I was compelled to share this story. 

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

Changes to the family landscape (or “grand scape”)

Observation:  Neighborhoods for seniors that feature playgrounds intended for young children?  Computer labs and study areas where kids can do their homework?  Today’s Iconoculture newsletter included a link to some interesting thoughts about grandparent-led (or grandparent-assisted) households.  Click here to see it.

Implications:    Boomers have re-defined almost every life stage they’ve passed through… and it looks like their grand-parenting years will be just as different. 

Consider whether your company, products or services should adapt to changes in the way boomers interact with their adult offspring and grandchildren.  This could be a consumer group—and a set of behaviors and preferences—with tremendous potential.

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

It is no longer a recession… it’s a reconciliation

Observation:  This week, when I present an on-location workshop for a few-dozen business owners in Jacksonville, Florida, I’m going to ask people to stop calling it a recession. 

We could call this economic climate a lot of things, but for the time being, at least, it is not a recession.  It is a climate where people are still getting used to the effects of the recession that happened from December 2007 through June 2010.  But that recession is over; consumers simply continue to reconcile their post-downturn financial situation. 

They’re balancing their checking accounts, and re-working the monthly budget.  They’re deciding what’s important, and what they can live without. 

News flash:  Apparently, a lot of them cannot live without spending lots of money on designer coffee.

Implications:    It’s time to explain your value proposition.  And by that I mean, “How does your company, product, or service add value to the consumer’s life?”  Is that value worth the cash and inconvenience you’re asking the consumer to trade for your product or service?

There are still consumers spending plenty of cash out there.  As evidence, I give you Starbucks, which just reported their first $3 billion quarter, according to this story from Marketing Daily (click to link).  Gosh, if my grandmother—may she rest in peace—if my grandmother knew that I had ever spent $4 on a cup of coffee, kind and sweet as she was, she’d have smacked me up-side the head.  She could not have imagined how many people would lay down a five-dollar bill for a latte, expecting only a few coins in change.

Starbucks has explained a value proposition.  Part product, part experience, and part escape mechanism.  It’s a small indulgence that allows them to defy a rough economy.  They’re selling a lot more than coffee… and they’re charging a lot more than a quarter-a-cup.

People will spend more if you show them it’s worth it.  Have you offered a value proposition—a benefit, story or experience—that helps the consumer reconcile their investment in your company, your product, or your service?

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

Responding to the way (grocery) shoppers have changed

Observation:  Today’s newsletter from Phil Lempert (aka “the supermarket guru”) provides a solid posting about how consumers have changed over the past few years.  And it encourages retailers to consider how they can be more responsive to the current purchasing priorities of their customers.  Click here to read it.  (It’s a good read, even if you’re a customer-centric business other than grocery.)

Implications:    It’s that simple, isn’t it?  Recognize that your target customer may have changed, and even if they’re the same folks that you served five years ago, their decision-making process might be very different.  Prosperity will go to those businesses who recognize and respond to their customers’ changing needs.

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

UPDATE: Boomerang kids

Observation:  Earlier today, I posted a story about adult children living with their parents (see the posting immediately below).  Well, I happened across another CNN-Money story that suggests as many as 85% of college seniors planned to move back home after graduation.  Click here to see it.

Implications:   Smart companies will watch for ways to serve a multi-generational household, and the increasing number of consumers who are living in a non-traditional family environment.

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

Return-to-nesters (and never-left-er’s)

Observation:  Long-time friend and associate Rusty Winter in Jacksonville shared this story from CNN-Money, which explains that the trend of adult children moving back home to live with their parents is continuing.   Click here to see the story.

Implications:   The big take-away from this story, for me, was the thought that 150,000 fewer households are being formed in a year compared to the 1.2 million households that might form in a normally functioning economy.

But note that it’s not just kids moving in with parents.  In some cases, we’re hearing of parents moving in with their adult children, too.  Whether you sell groceries, home furnishings, home improvements or home electronics—or almost any other product or service—you would be wise to consider the challenges and opportunities presented by this emerging multi-generational household.    Is it possible that a “guest” is helping with the supermarket shopping?  Should home furnishings be smaller, in order to accommodate more seating per room?  Will home improvement projects be intended to help convert a family room into a bedroom, or a multi-function area? 

If an adult child lives there… are they paying rent or helping out in other ways, financially?  Do the economic efficiencies created by this living situation leave more money for the co-habitant to spend on things like automobiles, entertainment, or other indulgences?

More homes are occupied by more people;  ask yourself whether this trend presents an evolving sales opportunity for your company, products and services.

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

UPDATE: Amplify the optimism

Observation:  If you’ve followed this site for any length of time, you know that I like to pass along positive news when it becomes available.  A few moments ago, the Washington Post issued a release covering this week’s employment picture.  The unemployment rate fell to 9.0% nationwide, a better report than many pundits had expected.  Click here to see the story.

Implications:   The labor market varies widely from region to region, but even if slowly, the job outlook improved last month for the nation as a whole. 

The Great Recession began (officially) on December 1, 2007, and ended (officially) in June, 2009.  But many folks continue to feel its’ effects.  That means that on the first of next month, consumers will have spent four full years reading and hearing troublesome economic headlines.  With that thought as a backdrop, it is more important than ever to amplify any positive news available.   

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

Waiting in the wings: Energy’s influence over the next several years

Observation:  Over the past few years, I’ve written more than fifty postings that have something to do with a body of work we call The Fuel Economy (click here to review the topic).   The over-arching premise is that world energy prices, eventually, can be expected to rise due to expanding economies across the globe, which will almost certainly result in increased demand.  Today, I’m in receipt of a new McKinsey report that seems to parallel that line of thinking, and it’s a very worthwhile read if you run a business.  Click here to see it.

Implications:   Oil prices may have a direct impact on the consumer who frets about the cost of her/his commute.  But energy also impacts the price of anything that is grown, manufactured or shipped… from groceries to home furnishings, from clothing to building materials. 

Have you given any thought to how your business will position itself if or when the prices for your goods and services become more expensive?  How much of that higher cost will you be able to pass along to the consumer?  How much of a price increase will your customers tolerate?  Could higher prices in other business make you a contender in new categories of business that you’re not even thinking about now?

The best response to rising energy costs will come from those businesses who saw it coming years before it happened.

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

Small Business Saturday is November 26

Observation:  The founders of “Small Business Saturday” offer tips to help local companies excel this holiday season, in this recent story from Inc. magazine (click here to link).

Implications:   For the moment, many people are most closely scrutinizing the behavior of big business, and perhaps showing a tendency to sympathize with small, locally-owned companies.  If you’re among the latter, it might be a great time to showcase the number of local employees you have, as well as the local causes your company supports either through volunteerism, cash donations, or in-kind contributions.  Of course, your advertising should focus on a wise strategy (why people should buy from your business) along with effective tactics (why people should buy NOW).  But consider whether a part of your strategy should be to leverage your local nature in your marketing messages!

Favorable winds are only so if you put your ship in the water and sail.

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

Substantially priced homes in Atlanta begin moving

Observation:  Working in the market this morning, I noticed a story in the Atlanta Journal Constitution explaining how homes priced over one million dollars have enjoyed somewhat of a surge in sales recently.  Click here to see the story.

Implications:   This example reminds us how there is a growing chasm between the “haves” and the “have nots,” and that the more upscale market seems to be somewhat insulated from the slow paced recovery that many consumers are feeling. 

It might also be a reminder the recession was not equal for all regions, cities, categories or companies; likewise, the recovery is unlikely to be an equal opportunity event.  How is "the market" where you live?  Is your category recovering differently than other businesses in your area?  Is your company enjoying a recovery that is different from your competitors in the area?

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

Bank of America drops debit card fee

Observation:  Over the past few weeks, I’ve written on a couple of occasions about the banking industry’s effort to recoup revenues that were lost because of the new regulations that followed the financial meltdown of 2007-2009.  (See “Is your bank worth $5 a month” from 10/14, and “Banks prepare for a showdown” from 10/31.)  Well, a funny thing happened on my way to the airport this morning:  My smartphone flashed with a news release that gives the story a new twist.

According to a breaking news report from the Washington Post (released just moments ago), Bank of America will drop their policy of a $5 service fee for using the bank’s debit card services.  Click here to see the story.

Implications:   From banking to Netflix to New Coke.  Sometimes, the best way to prove the value of consumer research is to not do it... or not do it well.

Planning any changes?  Have you received input from your most valuable stakeholders? 


I wonder if these more customer-friendly positions will gain favor and forgiveness from consumers... or whether this will simply whet the appetite and aid the momentum of consumers (not just those behind Occupy Wall Street and similar groups).  Is the opportunity for smaller, local/regional banks and credit unions thwarted by this move... or simply dramatized by it?

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

UPDATE: Up-selling the consumer

Observation:  Yesterday, I offered a post explaining that more consumers are ordering tap water when out-of-home dining, thus reducing the average ticket for some restaurants (see “Tap water” from 10/31/11).

As an apparent counter-point to that mindset, an article in today’s Marketing Daily suggests that the recreation industry is successfully regaining their pre-recession revenue-per-customer by adding food sales to their entertainment customers.  Click here to see that story.

Implications:   In addition to serving as an additional revenue stream, having food service options on-site coaxes the consumer to staying at the theme park, casino or museum longer.  (And longer time spent creates more opportunity for money to be spent.) 

There is an interesting contrast between yesterday’s post and the research offered in this Marketing Daily story.  Yesterday, we were talking about consumers who were cutting-back by not ordering a soft drink or coffee with their restaurant meal.  Today, we’re talking about consumers who add a meal to their recreation venue experience.

Can your company, product or service pursue add-on sales that businesses in other categories are losing?  Do you focus on just individual products or services that you sell… or do you consider bundling to enhance the overall customers experience for the people you serve?  While some folks will skip the drink to save money on a meal, those same folks will often rebuke the idea of discipline… and add-on when it comes to an experiential indulgence.

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

Energy choices impacted by world events

Observation:  Two stories in the New York Times within the past month have me thinking about how world events can influence longer-term choices and consumer trends.  Last week, one article covered a renewable energy conference where experts considered the impact of the global economic strife on the alternative energies (click here to see that story).

Another article explained how life in Japan has changed since the Fukushima Daiichi nuclear power plant was destroyed.  Since that event, many of the nuclear reactors which generate the country’s power have been shut-down for inspection, leaving a country that is intensely reliant on electricity in somewhat of a quandary as winter approaches (click here to see that story).

Implications:   Environmentalists who seek to advance policies and practices that reduce greenhouse gases would be smart to consider the influence of economic issues on their cause.  Consumers are likely to “give until it hurts” where environmental protection is concerned, but then revert to their old ways if a new energy alternative becomes too costly or inconvenient.

Ironically, Japan gives us the example of what might happen in a situation where a population is over-reliant on any one energy source… an example that favors the cause of reduced energy use and creating a more diverse supply (beyond fossil fuels).

We have learned that lesson before, both during the oil embargo of 1976, and in the Northeast’s Halloween weekend snowstorm of 2011.

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

Extreme coupon users far from the majority

Observation:   Lots of people are using coupons, but not all of them are extreme coupon users.  That's according to this story from today’s Marketing Daily (click here to link).

  

Implications:   One fear that prevents some companies from delving into the realm of couponing is the image of the hoarding coupon extremists who will drain the store of inventory but never buy anything at the regular price.  According to this article, it sounds like those folks are in the extreme minority.

I enjoyed the way the research cited in this report (from Valassis, BIGInsights, NCH Marketing and various coupon bloggers) provided insights as to how people are using the money they saved by using coupons.  But beyond “gas, essentials, and paying debt,” I’d love to know how many folks used those savings as “found money,” permitting them to indulge in a treat at the next store they walked into.

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