UPDATE: Never anger a reporter. (And we’re all reporters.)

Observation:   Here in the Twin Cities, one of the biggest business news stories of the day is the announcement that Best Buy is closing fifty stores and cutting jobs at its corporate headquarters (see the Star Tribune story by clicking here).

The coverage inspired me to review some of the material I’ve posted about the retailer, including a post about a nasty review in Forbes (see “Never anger a reporter,” 1/5/12).  But when looking for that original Forbes story, I stumbled across a follow-up that I had not seen until now, published by Forbes on January 9 (see “The People vs Best Buy, round two” by clicking here). 

Implications:  Let me start by saying that my heart goes out to anyone who is losing a job in this restructuring… may you swiftly find a new, fulfilling place to apply your trade and prosper.  Nobody likes to see job loss.

But there are two reasons I revisited this story and feature it again here.  First, in reading the follow-up story in Forbes—“The People vs Best Buy, round 2”—one discovers just how powerful the fallout can be from negative publicity.  In the digital age, consumers have infinite ways to pile on, and add their own two-cents about a shopping experience.  The original Forbes article was forwarded via email, LinkedIn and other means with stunning frequency.  That speaks to the viral nature of the consumer community.

Secondly, the Star Tribune story explains that Best Buy lost $1.7 billion in their fourth quarter, compared to a profit of $651 million for the same period in the prior year.  In other words, the further we moved away from the recession, the worse things got for Best Buy’s bottom line.   That issue dramatizes just how selective an economic downturn or upswing can be:  Like the recession, the ongoing economic recovery will not be an equal-opportunity event.

How is your recovery progressing?

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

The car comes first when it comes to paying bills

Observation:   An Associated Press story in today’s Minneapolis Star Tribune suggests consumers have re-prioritized the bills they pay.  The article is based on a study from TransUnion, and explains that while consumers used to pay their mortgage first, then the car loan and credit card bills… the vehicle loan has now taken the pole position over the mortgage payment.  Click here to see the story.

Implications:   There are lots of things going on in this story, in the form of lessons learned and adjustments made during the Great Recession.  First, the labor market placed a premium on transportation:  If you had a job, you needed reliable transportation to fulfill it.  If you were looking for a job, you desperately needed transportation to find it.  Even at risk of foreclosure, the car payment had to come first, because it is so directly connected to employment and thus, future prospects.

But coverage about the mortgage meltdown shed light on the whole foreclosure process, and trained many people that the “grace period” on a home loan might be more forgiving than a car loan.  The repossession process on a vehicle moves much more quickly than the foreclosure process on a home.

More than anything, this story does a great job of illustrating “Reconciliation,” the idea that after 19 months of recession—and the 32 months of recovery that have happened since—consumers have adjusted their financial behaviors to reflect their new collection of economic realities.  That’s a very personal process… and might look quite different from one home to another.

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

Cause marketing meets common sense

Observation:   Today’s Springwise newsletter includes an overview of a project called “Cause.It.”  The effort is basically an app that brings a fresh approach to Cause Marketing.  Instead of (or in addition to) simply making donations to various charities, Cause.It is an app that allows the business to reward volunteers with discounts.  In doing so, giving is potentially more personal and fulfilling for the volunteer, and cause marketing dollars become more measurable for the sponsor.

Implications:   The app is very smart, but the principle is even smarter.  Instead of (or in addition to) giving money, free product, or other in-kind donations to an organization, this article suggests that you reward the people who fuel accomplishment.  What’s not to love?

The next time your approached by a worthwhile non-profit organization, you might ask whether—instead of or in addition to giving to the group—it might make sense to create a similar plan.  If you’re offering special discounts to folks who help clean up a park, walk or run in a charitable race, or volunteer to read aloud at an area school or library…  consider the goodwill that might be generated with this focused group of consumers.

This is the kind of smart marketing that stands a chance of building a bond with a new group of constituents.  It suggests that your company respects and appreciates the effort involved with volunteerism… and respects a cause that is close to the consumer’s heart. 

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

A variety of retailers make adjustments to their pricing strategies

Observation:   An article in today’s New York Times sheds light on the reasons behind pricing shake-ups at stores like JC Penney, Stein Mart and more.  Click here to see the story.

Implications:   Early in the story, this NY Times story righteously focuses on the new sense of control that consumers have over the way business is done.  (Unfortunately, the piece quickly devolves into speculation by pundits about whether the new pricing strategies of various stores will work.  Pundits won’t decide.  Consumers will.)  In an age where competitive shopping can be done before arriving at Store #1, the game has changed.

Of course, there are other ways to attract consumers, beyond price.  (Quality, selection, service, to name a few.)  But the essence of this story is about control:  What customers want and whether you’re delivering it.

Have you sat down for a heart-to-heart with your best customers lately?

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

Automotive recovery shifts into higher gear

Observation:   A recent story from Automotive News indicates that the car-buying public has moved from “need-based buying (replacing an older car when it becomes unreliable) to “want-based buying” (buying a car because they feel like it).  Click here to see the story.

Implications:   While everyone knows what is meant by the term, “The Great Recession,” few people feel like we ever had the chance to celebrate a “Great Recovery.”  That’s because the turnaround has been very gradual, allowing no great announcement of good tidings.   

But that having been said, the recession lasted (only) 19 months, and at this writing, the recovery has lasted 32 months.  The wariness has, for many people, worn off.  While gradual, the recovery has turned out to be somewhat reliable for many Americans… and they’re ready to get their lives underway again.  That is what we mean when this site references the term, "Reconciliation" (see our other postings on the topic by clicking here).

How are things in your category?  Have consumers begun to return?  Are they coming back so gradually that you’ve failed to notice?  Have they returned to the category, but not your company?  The mindset of many consumers is shifting to the good; has your messaging kept pace?

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

Letting younger consumers drive: GM prepares for a generational shift

Observation:   A recent story in the New York Times explains how General Motors is adjusting to the needs and preferences of Millennials (people who were born between 1981 and 2000).  The lives of people in this group are not as culturally tied to the automobile as previous generations, the story explains, and GM is trying hard to regain relevance.  Click here to see the story.

Implications:   We’ve posted dozens of stories at this blog under the label of Generational Economics; the term we use for how consumer priorities changes as they move through different life stages.  But clearly, this decade’s “18-34 year-old” is not buying the same way that an 18-34 may have in during the 1960s, 70s or 80s.  And that’s not just true for automotive; it is a reality check for restaurants, supermarkets and furniture stores, too.

Is your company, product or service seeing a change in the way young adults buy?  Indeed, is your category changing in a way that response to shifting consumer preferences?

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

Restaurant-quality food, but not from a restaurant

Observation:   A story from Supermarket News this week illustrates just how far grocery stores have crossed the line and moved into restaurant territory with their ready-to-eat offerings.  Click here to see the story.

Implications:   Kowalski’s supermarket—featured in this story—is a great example of how to think beyond the competitors in your category… and considering other categories you can compete with. 

(On a personal note, it’s fun to see this company doing so well, as they used to be one of my favorite clients when I worked with a media company here in the Twin Cities prior to joining CSS.)

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

Prices for fuel-efficient used vehicles are on the rise

Observation:   A press release from Kelly Blue Book this week explains that the price for hybrids, compacts, and sub-compact cars are surging in response to rising fuel costs.  Click here to see it.

Implications:   Rising gas prices will hurt some categories, but help others.  (If you sell fuel-efficient cars, of course, you will be helped.) 

How will changes in The Fuel Economy impact your company?  Will it harm some of your product lines and help others?  How will you message when higher prices at the pump are forefront in your customers’ minds?

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

What retail has in store for the future

Observation:   Earlier this morning, Research Brief published a story summarizing a recent whitepaper from Nielsen, which focuses on emerging trends and likely adjustments that will impact retail over the next four years.  Click here to see the story.

Implications:   A number of these trends are worth thinking about...  including the polarization of store sizes between small “grab-and-go” locations to one-stop convenience of mega stores, as well as the increasing pursuit of experiences that will guide select consumer decisions.

In the years ahead, what you do will not distinguish you from the competition; it is how you do it and how you add value to the consumer’s life—how you do it—that matters.

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

Price still an important thing, but it’s not the only thing at drug and grocery

Observation:   That’s according to this story from Drug Store News, citing research from SymphonyIRI (click to link).

Implications:   “Value” isn’t always about price.  Consider, instead, how the product or service you sell—or the way you sell it—adds value to the consumer’s life.  I’m banking on more and more digital interaction (especially mobile), concern about The Fuel Economy, and increasing Time Sensitivity as issues that drive consumer trends in the next few years. 

What are you anticipating?

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

The risks of research: Asking too much of your customers

Observation:   A recent story in the New York Times suggests that the frequency with which companies are asking customers for feedback could be approaching a point of no response; the consumer does not have time to answer every questionnaire she is invited to fill-out.  Click here to read the story.

Implications:   Few things are more precious to a company than the input of its customers.  Their feedback tells you what you’re doing right, what you could do better, and it might even reveal services or products you could provide that you haven’t even thought of yet.

Keep in touch with your customers, but don’t take their attention for granted.  With each survey you write and every question you ask, scrutinize whether you are likely to harvest information that is actually useful.  The response of your consumer is not something to take for granted.  And you don’t want to burn them out with pointless research that presents nothing more than patronizing answers to softball questions.

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

UPDATE: Another casualty of the digital age

Observation:   Last week, I posted an article noting the end of the printed edition Encyclopaedia Britannica.  Over the weekend, a story in the Los Angeles Times pointed to another casualty of the Internet age:  The printed business card.  Click here to see the story.

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

Practically happy: Home improvement trends toward simplicity, effectiveness, togetherness

Observation:  A recent story from USA Today suggests that when people can’t flip their home (at least not with the frequency we saw leading-up to the mortgage meltdown), they’re making their current house their dream home with simple but meaningful home improvements.  Click here to see the story.

Implications:   If you’re in real estate, home building, home improvement or even home furnishings, this story has important implications for you.  This story might suggest that home improvement is being driven less by aesthetics and more by the desire to facilitate the functionality of the home, and the increased time families are spending together.

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

Furniture sales on the rise (again) in February

Observation:   A story in Crain’s New York yesterday indicated that sales in the home furnishings category are really taking-off nicely.  Click here to see the story.

Implications:   In recent Audience DNA research workshops, I’ve encouraged marketing professionals to stop thinking about “Adults 25-54” or “Women 18-49” as their target audience.   People don’t buy furniture just because they’re a particular age.  Their purchases are often influenced by the length of residence in their current home, and the extent to which they plan to stay there.

The foreclosure crisis created a whole new segment of renters; when someone moves from a house to an apartment, the McMansion-sized furniture often won’t fit.  Families who fall into this group often have up to a year to plan, however, so they sell the old stuff on Craigslist and save up some cash to outfit their new dwelling.

There’s a growing number of folks who are not victims of the real estate meltdown… but beneficiaries of it.  They’re swooping in to upgrade to a new home while there are still lots of great deals on houses out there.  New house = new furniture. 

As much press as was given to foreclosures, there is an even larger number of people who purchased their home at the peak of the real estate bubble are now up-side-down.  They’re not at risk of foreclosure, but they are unlikely to flip their current house and move into a new dream home anytime soon.  So they’re doing things to make this house the home of their dreams.  Alas, new home furnishings and home improvements can be a part of their plan.

Finally, folks who’ve been in their current home for eight to ten years or more are simply eager to do an upgrade.  Their current home furnishings look dated or worn, so they’re likely to welcome any new ideas that give their house a fresh new look and greater functionality.

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

The dumb bell economy hits the food aisle

Observation:   This morning’s newsletter from Phil Lempert explains that food retailers have their own version of the “haves” and “have-nots” landscape.  He divides consumer sentiment into the two groups of pessimistic and optimistic.  The latter group is feeling better about the economy, more likely to try new products and experiences, and indulge a little more freely.  Pessimists might be more likely to change retail channels frequently (going from grocery stores to club, discount and dollar stores), clipping coupons more religiously, and taking extreme measures to maintain a frugal lifestyle.  Click here to see the story.

Implications:   I’ve written pretty extensively about the Dumb Bell Economy, and you can review those past stories by clicking here.  This Phil Lempert piece does a good job of reminding us that—just as was the case with the recession—the economic recovery is a very personal thing, and might look drastically different from one household to the next.

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

A by-product of bank stress tests: Stressful PR?

Observation:   A story from today’s New York Times explains how banks fared during the most recent round of Federal Reserve stress tests.  This systemic scrutiny was created after the banking collapse of the Great Recession, as a way to determine whether major banks were solid enough to survive another dramatic economic downturn or other difficult events.  According to the NY Times article, 15 of 19 major banks are in strong condition.  Click here to see the story.

Implications:   Think about this.  When you see a headline that indicates, “15 of 19 banks are solid,” I can’t be the only person who’s first thought is:  Who flunked?  Who’s in trouble?  Who are the four kids that had to stay after school?! 

Stories like this remind us that, just a few years ago, we were hearing many institutions described as, “too big to fail.”  And it might represent an opportunity for smaller, more local/regional institutions to present a more human side to the financial industry.

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

A dramatic sign of our digital times

Observation:   If you want to know just how wired we have become, you can look it up in an encyclopedia… but soon, the only up-to-date version of that information source will be online.  Encyclopaedia Britannica has announced that it will discontinue its printed version, according to this story from the New York Times (click to link).

Implications:   The company has been publishing these impressive volumes for 244 years.  Wisely, they’ve also been publishing on the web for many years, and seem to be focused on staying current with mobile devices.   What remains to be seen is whether their business model can prosper in a world where information has become so eager to be free, through sources like Wikipedia and a seemingly infinite list of other web resources.

Once upon a time, buying air travel used to be a complicated ordeal, often requiring the intervention of a travel agent to interpret the numerous options and seemingly foreign language of the airlines.  That process was ultimately simplified, and information once controlled by experts was released to the general public; we can now shop for and purchase plane tickets from the miniature screen of our smartphones.  (For that matter, I find the best time to plan my travel is when I’m sitting at 30,000 feet using GoGo.)

What information does your business control?  Could your business actually grow if you figured out a way to relinquish that control to the consumer?  Could your company suffer is someone else figures it out first?

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

Snack attacks represent opportunity for restaurants

Observation:   Today’s Marketing Daily includes a story about the rise in snacking frequency, and the role that restaurants can (and could) play in that mini-meal category.  Click here to see the story.

Implications:   It seems that things like the dollar menu at fast food restaurants or the pastry display at your nearest coffee shop are serving to facilitate more frequent eating occasions of smaller servings.  This report indicates that snacking occasions have increased; I’m going to keep my eyes open for a report that illustrates whether formal dining occasions have declined.   

Meals used to be an appointment, happening at breakfast time, lunch time, and dinner time… and you better not be late!  These days, though, it seems like many folks have become less meal-time focused, and more likely to graze throughout the day.  (I wonder if this might be a by-product of time poverty.)

If you own or operate a restaurant, the fear here could be that your average ticket revenue might fall.  But in a glass-half-full perspective, realize that this might be a chance to get more people in the door to sample your restaurant, and become comfortable with the idea of returning later for their major meals.

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

This time, it’s different: Wells Fargo to end free checking (for some)

Observation:   Last week, a report from the Associated Press explained that Wells Fargo will roll-out a $7 monthly fee for checking accounts that were previously free… unless customers maintain a $1,500 minimum balance, or direct deposit at least $500 per month.  Click here to see the story as it appeared in Crain’s New York.

The fees will roll-out gradually beginning in May, and beginning with six states, according to this story from KSTP News in Minneapolis. 

Eventually, the rate will be in place in each of the 39 states that Wells Fargo serves.

Implications:   So why has Wells Fargo avoided the outcry of unfairness that was cast on Bank of America a few months back when they tried the same move?  I suspect it’s because Wells Fargo did a better job of explaining that the move would not affect customers across-the-board, but that it would impact folks who don’t do much business with the bank anyway.  It seems to me that Wells Fargo is thinning the customer herd.

In the story, one critic complain that the bank is being unfair to folks who are unemployed or on low fixed incomes, but I’m not sure they’re being any less fair than any business that expects to be paid for products received or services rendered.  (Most companies target consumers with incomes.)  Another critic warns that Wells Fargo will lose much more in the way of customers who walk away than from the income these new fees will generate.  I’m betting the folks at Wells Fargo have calculated that trade-off, and are at peace with their decision.

Many companies focus on customers they wish they could have.  But have you thought about those customers that could actually be costing you more than they are likely to be worth, in terms of economic return?  

In the face of rising energy and commodity costs, is it likely that you will have to raise prices on some products or services in the next few months or years?  What can you learn from the way that Wells Fargo has introduced—essentially—a price hike?

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

Use of mass transit on the rise

Observation:   Today’s USA Today includes a story about the increased use of mass transit in 2011, attributable to high gas prices (people leaving their cars at home) and an improving economy (more people commuting to work).  Click here to see the full story.

Implications:   America’s collective consciousness of higher gasoline prices is becoming evident.  If the price of gas up to or beyond $4.15 per gallon—roughly the price when folks were freaking-out back in 2008—we will have seen the influence of The Fuel Economy on vehicle preferences and other consumer spending. 

But how will higher gas prices affect you?  Can you position your product or service as something that should still be attractive when budgets have again grown tighter?  Have you been talking to your on-floor sales staff about up-selling customers… as a means of helping them accomplish more tasks on a single shopping trip?  Do you sell a bulky product that one might need help getting home (free delivery) because of their inclination to use mass transit? 

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

Targeting the mass affluent

Observation:   A story from yesterday’s New York Times explains how some financial institutions have turned their attention to consumers who seem to be doing well, but may not fit the description of super-rich.  Click here to see the story.

Implications:   In our on-location “Consumer DNA” workshops, we often use qualitative research to demonstrate that there are far more “emerging investors” available to most business communities than there are “blue chip investors.”  The latter group is composed of people with at least a six figure income who pay for the counsel of a financial planner, accountant or stock broker; the former group—the emerging set—is composed of people with an above-average income but who are NOT receiving the guidance of a paid professional.

Everyone wants to sell stuff to rich people.  But opportunities exist when you reach for the folks who are not quite rich, but might be on their way.

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

Defining moments for the consumer

Observation:   An interview with BDO’s Stephen Wyss suggests that consumers have moved to a mindset of moderation, and that more men are doing more shopping.  See the story at Marketing Daily’s website. 

Implications:   What Mr. Wyss describes as a “defining moment” for the consumer matches up very nicely with what I’ve referred to as Reconciliation; people have taken into account that they have a different set of financial realities than they did in 2006.  But they’re not freaking out about it… they’re coping, adjusting, and making things work.

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

How tech savvy is your city?

Observation:   Today’s Marketing Daily offers a story about the how varied the pace of new technology adoption might be from one city to the next.  The article focuses on Apple, primarily, but touches on the idea that people are faster to embrace technology in some places than others.  Click here to see the story.

Implications: How is the pace where you live?  And does your online or mobile presence match the acumen of the consumers you sell to?  That’s a highly worthwhile thing to research among your most important customers.

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

A good number to end the week with: 227,000

Observation:   The jobless report published today indicates 227,000 jobs added to the U.S. economy last month, which was better than expected.  Click here to read the Washington Post version of the complete story.

Implications: More jobs = more consumers with paychecks.  It is always nice to end a week on a positive note; in times like these, it's important to amplify the optimistic.

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

European economies likely to impact automakers

Observation:   A recent story from Detroit News suggests that the economic downturn impacting Europe will have a negative affect on automakers.  Click here to see the story.

Implications:  Speaking relatively, the U.S. economy and consumer confidence is out-performing many other parts of the world.  That might entice manufacturers to offer incentives in the U.S. market, hoping that sales lift here might compensate for softness elsewhere.

Do you find global economics having a local impact on your business?

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

Consumers showing their age, report says

Observation:   Today’s Research Brief suggests that younger consumers are less likely to satisfy their service and repair needs through the conventional auto dealership service department.  Click here to see the story.

Implications:  I’ve heard similar groans coming from other categories.  Some furniture retailers and manufacturers indicate that younger consumers don’t want “rooms” full of furniture, but are more likely to buy piece-by-piece, and seek utilitarian furniture that serves more than one purpose.  Some banks have noticed a trend toward the automated customer; younger folks who automatically deposit their paychecks and then use a bill-pay system to cover their bills… making it very difficult to grow the number of highly coveted “services per household” that are a bank’s profit point.

How are younger consumers different from those you’ve served for years?  Are you responding?  Are they?

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

So far, consumer confidence resilient against gas prices

Observation:   According to the Conference Board’s report on consumer confidence release last week, people are feeling more secure about their financial situation in spite of higher fuel prices.  Click here to see the story as it appeared in USA Today.

Implications:   Consumer confidence is a great thing… and I think this report supports the idea that while prices might be rising—especially gas prices—nobody will be as “shocked” at the increase (at least not like we were during the 2008 energy price spike).  This time, I think it’s safe to say that most of us saw it coming.  Here’s hoping that resilience is strong in over the upcoming summer season, too.

In another interesting story—perhaps an opposing view—the New York Times published an article about the kind of conflict and crisis that could push gas to $5 per gallon or higher very quickly (click here to see that story).

No doubt:  The Fuel Economy remains a very critical component in the emerging recovery.

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

Showrooming: A name for the consumer’s practice of shopping in-store and then buying online

Observation:   A study from NPD was summarized in today’s Marketing Daily, and focuses on the consumer’s new tendency to shop in a variety of channels (small retail, big-box, department and warehouse stores), and then buy the item online.   Click here to see the story.

Implications:   This is a genie that’s going to be hard to put back in the bottle.  So the question becomes, what can you do about it?

Is there any incentive you can offer that encourages the consumer to buy “right then and there?”  Why not offer little notecards or notepads and pencils to consumers who might want to write down details of the product on your shelf… and make sure those note-taking tools have an incentive to check your site first?  (And your URL, of course.)

This all sounds very simple, doesn’t it?  And yet, not too long ago, my wife and I were shopping for a new set of appliances.  I wanted to get the dimensions for the microwave we were planning to install (I was working on the cabinetry), so I ran to our nearest Best Buy to check it out.  When I was going to shoot the price/information tag with my cell phone camera, the department manager came and ripped it out of the display and scolded, “You can’t do that!  It’s not allowed.”  So I went home, got online and checked the details at a competitor’s website (which I should thought to do in the first place).  We ended up buying at the competitor’s store (not just the microwave, but the whole kitchen suite).   Instead of preventing me from getting product and price information, the behavior of the Best Buy associate had the effect of sending me directly into the arms of a competitor.

People will go online for product and price information.  Instead of trying to block it, why not harness that power, and make sure they hit your site first?

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

The logic of food (and other) inflation

Observation:   This week, an article from Food, Nutrition and Science magazine explains the USDA forecast for higher food prices in the coming years.   (I found the story through a newsletter from Phil Lempert.)   Click here to see the full story.

Implications:   Greater demand from emerging economies will impact the world’s food supply, as will the use of corn and other crops for the production of bio-fuels.  You and I will compete (at the supermarket checkout) in the complex global auction that food commodities have become.

When (not if) food prices go up, then we’ll be spending more at the grocery store and restaurants.  When (not if) gas prices go up, we’ll be spending more on everything else.  Chances are good that you’ll have to raise prices in your own business—regardless of the goods or services you sell—within the next few years.  Have you begun having that conversation with your customers?  By that, I mean:  Are you doing a good job of reminding your most important clients how you deliver value to their lives?

And just as important, in a world whose real income is likely to be either constrained or contracted in the coming years (when adjusted for inflation), are you positioning yourself to compete for tighter discretionary dollars?

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

Your company flaws could make you more approachable

Observation:   Ever felt uncomfortable (or disinterested) at a cocktail party or meeting when talking to someone who pretended to be just a little too flawless?  Lots of people feel that way; enough that scratch-and-dent marketing strategies are the focus of this week’s Trendwatching.com newsletter and briefing.  Click here to see it.

Implications:   We’ve all had plenty of experiences with products or services that didn’t function according to plan… or companies that didn’t live up to our expectations.  When that happens, we don’t tend to focus on the problem, but on the way that problem was handled.  A company that denies underperformance tends to aggravate our frustration; a business that faces an issue head-on tends to mitigate it.

I dare say that everyone has been through this at one time or another.  So that makes “flawsome” a marketing strategy that many folks can relate to; they know companies, products and services are not perfect, so the ones that start a conversation on that premise—if done carefully and while still delivering value to the consumer—tend to strike a chord with consumers.  After all, the consumer wants the true benefit they anticipate when buying your product or service... not a too-good-to-be-true image or advertising campaign.

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

More workers lunching at home

Observation:   More workers are getting away from the office over lunch hour, and dining at home.  That’s according to this recent post from Food Manufacturing (click to link).

Implications:   I appreciate the way this story outlined a problem (for foodservice manufacturers and restaurant operators), but then also suggested some ways to entice consumers back into the restaurant and retain those you’re already serving.  It’s important that we focus on the things we can control (service, quality, menu options), rather than those things we can’t.

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

Almost 1 in 10 changed banks last year

Observation:   A recent story from USA Today suggests that 9.6% of consumers opened an account elsewhere in response to a rate increase from their current bank.  The article is based on a J.D. Power report, and you can see the full story by clicking here.

Implications:   Lots of banks are trying to figure out how to regain some of the revenue they lost during the banking reform era that walked lock-step with the Great Recession.  Many are taking flight to smaller institutions, but that begs the question: When will smaller banks be forced to make some of the very same moves?

This is an important study in marketing communication.  I’ve interviewed hundreds of consumers over the past few years, and a significant number—when prompted—admitted that an ATM card, online banking, and other services are well worth paying a few bucks for the value received.  The challenge, I’m guessing, is that too many banks simply imposed the fees, without properly explaining why they were necessary and why the relationship still represented a good value for the consumer.

Every company if faced with the need to raise prices at one time or another.  The importance of good listening is an important lessons to learn now, lest we (like the big banks) be forced to learn the hard way.

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

“Frustration Nation" leads a new list of consumer trends from Forbes

Observation:   Earlier this week, Forbes published an entertaining list—and maybe even an insightful one—of consumer trends.  It starts out with Frustration Nation (less confidence in institutions), Human Touch (the desire to interact when we transact), and Life on Pause (the feeling that careers or other life progress might be on hold).  Click here to see the full story.

Implications:   If nothing else, these lists give us pause to think about what’s going on in our own businesses.  This is a well-written briefing that lets you quickly decide whether the trends they cite are relevant to your company, product or service… and start asking how you might respond to one of many consumer sentiments.

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

After retirement, I plan to… work

Observation:   Last week, a couple of impressive numbers popped off the page when I glanced at a USA Today Snapshots box:   After they retire, 9% of surveyed workers plan to work full-time, and 44% said they plan to work part-time.

Implications:  We knew that the recent recession wreaked havoc on peoples’ retirement plans.  But these numbers illustrate how people have decided to cope.  And this might not just be the result of the hit people took to their retirement fund (or the thought that their home might not represent the nest egg it once was)… it could simply be a reflection of longer life expectancies.  After all, fifty years ago, life expectancy was much shorter; a retirement fund, therefore, did not have to last as long.  Today, with people typically living into their 80s, 90s, and beyond… that retirement account has to last much longer than a few years.  A little supplemental income might be important!

This trend impacts a lot of different companies in a lot of different ways.  People with jobs continue to spend on workplace apparel, invest in their commute (whether that be buying cars, automotive service or mass transit), and work-related tools (ranging from trade items to laptops and smartphones).  And earning a little extra money might leave these folks feeling as if they deserve a little more of a reward from time to time, whether that’s a night on the town, or more frequent vacations.

Are you paying attention to today’s retiree’s (aka “New Age Seniors”)?  They’re not living your grandparent’s retirement.

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