Elm Street Economics consumer trends blog

Bank loyalty higher than thought, according to survey

2012-01-27T09:46:00.000-06:00

Observation: A survey conducted by TD Bank indicates that more people are loyal to their bank than wide-spread negative press might lead one to believe. That’s according to a story in today’s Marketing Daily (click here to see it).

Implications: This is positive news for people in the financial industry… but I bet the satisfaction level varies widely from one institution to another, depending on the extent to which a bank nurtures their relationship and refines their service to customers.

Like many consumers, my wife and I are satisfied with our primary bank due to the fact that we seldom come into contact with it, directly. With direct deposit, automated bill pay and online services, it is rare that we actually talk with a human or walk into a bank branch.

If the relationship that your company, product or service has with consumers is similarly automated, in what ways might you maintain an element of contact or communication with customers that is truly valued and appreciated?

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

Coupon use remains strong

2012-01-27T09:32:00.003-06:00

Observation: An article from yesterday’s Supermarket News indicates that consumers redeemed an estimated $4.6 billion in packaged goods coupons last year, up 12.2% from 2010. The story, citing data from Valassis, explains that 27% of coupons required multiple product purchases (up 2% from 2010), and had an average face value of $1.54. Click here to see the full story.

Implications: The difference between a fad and a trend is much like the difference between a wave and a tide; one comes and goes quickly, and the other stays for a longer period of time.

It would seem that coupons have found favor not just as a quickly-fading fad, but that they will be an attractive incentive to consumers for a longer period of time. More evidence that consumers continue to reconcile their purchasing behaviors, and adapt to the new realities that exist in the wake of the Great Recession.

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

Some good news for the end of the week

2012-01-27T08:47:00.000-06:00

Observation: This morning’s Commerce Department report indicates the economy grew at an annual rate of 2.8% during the final quarter of 2011, for a net expansion of 1.7% in 2011. Click here for more details, provided by a Washington Post story released earlier this hour.

Implications: It’s always fun to end the week with a little good news, and this is that. But any business owner, marketer or manager should enjoy this story, and then remember that the most important economic indicators come not from Washington or Wall Street, but from the consumers they serve on a daily basis. In this age of reconciliation, most people are more focused on their household (micro) economy than the station of the national or global (macro) economy.

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

Seniors that just won’t quit

2012-01-24T07:32:00.001-06:00

Observation: One of our favorite ESE topics is Generational Economics… which is to consider how consumer behaviors and purchasing priorities evolve as we move through life. In today’s USA Today, there’s a story about a man who left retirement to re-join the workforce. While the article focuses primarily on just one individual, there are scores of people who have come out of retirement, literally, due to both an uncertain economy and sheer boredom. Click here to see the story.

Implications: As more seniors continue to work, they continue to commute, dress for success, and grabbing lunch with a colleague. They’re eager to be entertained or relax after work, and looking forward to having some fun this weekend.

Does anything in that lifestyle sound like a sales opportunity for your business?

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

Walgreen’s morphs the niche they are in

2012-01-23T09:55:00.001-06:00

Observation: It is an interesting time to watch the nation’s largest drug store. First, in a gutsy revolt against the healthcare system, the chain recently announced they would no longer accept prescription orders reimbursed by insurance-giant Express Scripts. According to a recent video from supermarket expert Phil Lempert (click here to see that footage), that move could represent as many as 80 million prescriptions. But that was a hit Walgreen’s was apparently willing to take, in defiance of the prescription management company’s effort to shrink the store’s profit margin on medications.

Another story—this one from Forbes—suggests that Walgreen’s is moving toward a business model that is much more consumer-centric, with product offerings that include a widely expanded beauty products, select groceries (including “wellness” organic foods), wine and cheese shops, and even coffee shops. Click here to see that story.

Implications: This is just my opinion, but I see this move as Walgreen’s decision to not let Express Scripts define the business they are in… and take control over that decision for themselves.

What business are you in? Is the answer to that question decided by a landlord, vendor or supplier? Or is it defined by you and your customers?

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

With growing fuel prices, shrinking modes of transportation

2012-01-23T09:17:00.000-06:00

Observation: Today’s Marketing Daily features a story about the increasing number of people who are adding a motorcycle or scooter to their family’s transportation fleet. This is a trend driven less by recreation than hedging the household budget against the price of gas. (To sift through all of our postings about The Fuel Economy, click here.) This story gives hope to cycle shops that were having a hard time replacing their now-aging profile of baby boomer customers. (To see the full MD story, click here.)

Related to today’s story, the North American International Auto Show was held in Detroit earlier this month, and there was no shortage of news about the futuristic cars of tomorrow. Again, much of the pitch was related toward higher fuel costs in the years ahead. Several stories—this one from the New York Times—explained that alternative fuel and hybrid cars are showing up in droves at this year’s auto show, even though consumers are not lining-up to buy them. Click here to see that story.

Another recent story in USA Today explains that cars have grown in sheer size over the past several decades… and logic suggests the pendulum will swing the other way sooner rather than later. Click here to see that story.

Implications: If you’re an auto dealer or motorcycle manufacturer, this issue could have an important impact on your company, products and services. But what if you sell furniture or any other large, lumpy object? All of a sudden, will more customers be in need of delivery, absent the truck, van or SUV that allows them to bring that merchandise home on their own?

What of real estate? If fuel stands to influence the way we drive, it certainly could influence where we live. Rather than the suburbs or even x-urban homes which have grown so swiftly over the last several decades, might we see a renewed migration toward the city?

What about the business you’re in?

I offer not answers, but questions to consider… as the long-term effects of more expensive fuel is likely to be felt in a variety of ways.

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

There are older cars in the American driveway

2012-01-18T11:11:00.004-06:00

Observation: A recent story from USA Today indicates that the average age of vehicles owned by consumers in the U.S. is 10.8 years. However, that number is based on data ending July 1, 2011, and does not reflect a very strong finish to the 2011 sales year for car dealers. Click here to see the full story.

Implications: As the economic recovery gains momentum (or, as the slow pace of the recovery at least demonstrates that it has the stamina to continue), consumers are likely to act on the pent-up demand that has been caused by deferring big-ticket purchases.

Throughout the recession, many consumers tried to “stretch their buying cycle.” In effect, someone who was used to trading vehicles every three years would try hold onto their car for four; someone who was accustomed to buying a new vehicle every four or five years may have waited for five or six.

As consumers come back to the dealership, are you ready to serve them… really? Have you considered how your consumer’s purchase priorities might have changed since the last time they went car shopping? How do their new realities—with regard to gas prices and shifting household incomes—impact the criteria by which they will decide? To what degree are you seeing the influence of Internet shopping—both tethered and mobile—as the consumer does research in advance (or in the middle) of their car shopping adventure?

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

Political projection 2012: A year of angst for elected officials

2012-01-18T10:42:00.002-06:00

Observation: Consistent followers of this site know that I try to avoid the topic of partisan politics. But a collection of recent stories makes the topic difficult to ignore, as the collective coverage of voter satisfaction is an interesting case study for consumer sentiment and corresponding behavior.

In today’s Washington Post, there was a story about the sharp divide between those who think the Obama administration is doing a good job (click to link). Earlier this week, the same newspaper ran a story with the headline that only “84% of Americans disapprove of the job Congress is doing” (click here to see that Washington Post story).

Last month, both the Washington Post and the New York Times ran stories about the high person incomes of members of Congress, relative to the constituents they represent. Click here to see the Post story, and if you prefer the New York Times version, click here.

Also last month, USA Today ran a story about the general disenchantment of voters—from both parties—and the significant number of people who no longer consider themselves a member of the party they were aligned with in 2008. Fully 2.5 million voters have left the Democratic and Republican parties since the last general election. Click here to see that article.

Implications: An election year is seldom a cordial, polite thing to witness. But with the apparent discontent of voters with regard to both the White House and Congress, as well as the candidate-driven rhetoric that is only likely to escalate as the 2012 campaign moves forward… this year is likely to be particularly messy.

Will voters (aka consumers) be impacted by it? Or will they simply begin to ignore it in greater numbers? Is the move away from their political party driven by anger with the policies or ideology of that party, or the tactics their party has employed to further those platforms? Could we be seeing a period when, politically, "the party is over?"

Based on the feedback I’ve heard—in the press and from informal interviews we’ve been doing all over the country over the past year—voters are focused on things like jobs, economic stability, deficit reduction, and income equality. It will be interesting to see which (or whether any) candidate connects with those themes successfully.

Does your company, product or service represent an escape from all of the election noise? Does your messaging communicate that you understand the challenges your customers face right now, and you have ways to help?

Many consumers are focused less on the macro economy of the U.S. these days, because they realize they have little control over it (even at the voting booth). But they have taken matters into their own hands, managing their micro-economy (their household finances) much differently than they did just a few years ago.

Are you in touch with those realities? Does your company, product or service resonate with their new priorities? Have you explained how… to the consumer you serve?

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

Insights about how and why to do consumer research

2012-01-18T09:02:00.002-06:00

Observation: Today’s Marketing Daily featured a story about consumer research, and was based on research from Cintas. Among the findings: How people feel about being asked for their opinion, the tendency of people to do business with those who ask their opinion, and which channels of contact are preferred for research initiatives. Click her to see the story.

Implications: The author of the MD story chose an unfortunate headline—even if he was only being facetious—but the article does a good job of reminding us that people appreciate being asked for input if they believe that input will be appreciated, rewarded, and acted upon.

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

UPDATE: The competition (or collaborator) within

2012-01-17T08:42:00.002-06:00

Observation: Adding to the story I posted yesterday (see immediately below), two more items have come to my attention on the topic of wireless and smartphone ubiquity.

First, a recent story from Online Media Daily—citing research from Motricity—estimates that roughly 38% of consumers (or nearly four in ten) made a purchase from their mobile device to purchase a gift during the most recent holiday season. Click here to see that article.

Today’s release from Research Brief seems to build on that momentum. It refers to a survey of TechBargains.com users (a group the authors admit does not necessarily represent an accurate sample of consumers) which indicates that 79% of respondents used their phone to research products, 77% to compare prices, and 73% to browse stores. Click here to see that story.

Finally, and perhaps most eye-opening, I was alerted to this study by the Centers for Disease Control, which suggests that nearly one in three homes in the U.S. (31.6%) are now wireless-only. Additionally, even in homes where both a landline and mobile phone exist, 1 in 6 Americans received all or almost all of their calls on a wifeless telephone. These estimates help illustrate just how ubiquitous and reliant U.S. consumers have become on their mobile devices. Click here to see the CDC/National Health Interview Statistics page, where you can download a PDF copy of the report.

Implications: It would be dangerous to think of the web as someplace your consumers visit only while they’re at home or sitting at a desk. Increasingly, it is a tool that they will navigate from a small-screen device, as they physically move through all the aspects of their day.

If your website is not optimized for mobile devices, those devices become your competition. But if your site IS responsive to smartphones and touchpads, those devices become another channel through which your customers can explore and adore your company, product or service. (That's why I adjusted today's updated headline from the one I used yesterday!)

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

The competition within

2012-01-16T10:14:00.003-06:00

Observation: I’ve written about consumers who do wireless price-checks on several prior occasions (see this example, “Smart phone as shopping tools,” from March, 2011), and it seems like that trend is growing. A recent release from BIG Research indicates that more than 40% of consumers who own a smartphone have done a price-check before going ahead with a purchase, and then decided to move along and purchase from another physical location. Click here to see the full release.

Implications: Just because a consumer is in the store doesn’t mean they’re “in the bag.” It might be time to review the entire customer experience of arriving, considering, and purchasing the product or service you sell. What kinds of in-store courtesies or experiences might elevate their visit to a point where comparisons become difficult (or even impossible)? What kinds of incentives might make them jump to purchase… faster than you can Google from your handheld device? The competition isn't just across town; it is increasingly found in the pocket or purse of your customer.

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

Some consumers seek-out David among the online Goliaths

2012-01-16T09:39:00.001-06:00

Observation: A story in today’s New York Times suggests that some consumers are looking at the big e-commerce sites as the digital equivalent of Walmart... and opting to search for smaller “mom and pop” sites when it comes to online shopping. Click here to see the story.

Implications: The temptation for many small businesses is to try make their website look as big and sophisticated as that of their big-box retail competition. But make sure you’re talking with your target consumer to see if that’s really what they expect of you. In reality, they might want a digital relationship that is a bit more personal or intimate; an online version of the in-store experience you offer. I’m not saying that either version is right or wrong. I’m saying the best source on that topic is the people you’re selling to.

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

Angst is evident and growing between haves, have-nots

2012-01-16T09:28:00.001-06:00

Observation: A recent story from the New York Times over the weekend explains how class tension is growing. Click here to see the story.

Implications: I’m wondering whether this “class tension” will be long-term, or if it is simply the result of an increasingly heated political climate… and media coverage of the Occupy Wall Street movement that would have coincided with the time frame of this story.

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

Stressed, but coping

2012-01-11T21:01:00.006-06:00

Observation: An interesting story in today’s USA Today suggests that consumers are stressed, but dealing with it. In fact, an on-going study indicates that people feel their stress levels have fallen for the first time in five years. Click here to see the full story.

Implications: The story does not conclusively explain why people seem more “at ease” with the stress they are under, except to hint that the economy seems to be getting a bit stronger, employment prospects seem to be increasing…

And last but not least, people have been under pressure for long enough that they’re getting used to it. (Reconciliation strikes again. Click here to see all of the stories we’ve offered on that topic.)

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

Because income fuels consumption, here are some employment issues worth considering

2012-01-11T12:22:00.003-06:00

Observation: Today’s USA Today features an enlightening story about job prospects for 2012, including which categories and regions are most likely to hire. Click here to see the story.

Implications: I’m getting excited about the prospects for job growth in a lot of categories… and in regions that include those hardest hit by the real estate meltdown.

As these employment levels rise, are you monitoring the progress in your own market? Timing is no less critical in a recovery than it was when we were headed into the recession back in 2007 and 2008. Are you poised to speak with consumers who are seeing their spending power return?

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

Home furnishings industry regains footing... and opportunities

2012-01-10T08:14:00.001-06:00

Observation: A recent story in the High Point Enterprise suggests that 2011 was a year of stabilization for the home furnishings industry. While it may not be what one could call a robust recovery, 2011 saw increases in orders, shipments and employment, and that trend seems to have momentum going forward. Click here to see the story. HPE is a publication serving the home furnishings industry.

Implications: Just a few years ago, it seemed like many people were buying and selling houses they same way they would trade-in their car every few years. But that cycle was snapped, for many consumers, by the real estate meltdown. Upside-down in their property, in terms of equity, a lot of folks have come to accept that they won’t be moving into a new-and-improved McMansion anytime soon.

So, like many business categories, the home furnishings industry finds its customer base in a state of reconciliation. In effect, once people accept that a new Dream Home is not in the cards, many begin taking steps to make the house they are in the home of their dreams. From home improvements to home furnishings and accessories, they’ll be looking for ways to be happy with their current home. Are you speaking to this new benefit… sought by so many consumers?

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

Emotion vs. Logic: Does your customer buy based on one, the other, or both?

2012-01-09T07:26:00.000-06:00

Observation: One marketing cliché suggests that consumers buy with emotion, and then rationalize that purchase with logic. But today’s IPSOS newsletter includes an important perspective on that old aphorism. Click here to see it.

Implications: The opposite of emotion is not logic, and the opposite of logic is not emotion. Just because people love your product or service doesn’t mean it is irrational.

Also important… just because a consumer might be loyal to your product or service does not mean they love it. It could be that they just don’t want to shop for an alternative because they are completely un-interested in the category or loathe the idea of shopping in the category. They choose a product by default, sometimes, as a means to avoid the complexity of shopping at all.

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

A little good news to end the week: Unemployment drops again

2012-01-06T08:09:00.000-06:00

Observation: This morning, the labor department announced that 200,000 jobs were added to the U.S. economy in December. Click here to see the story as reported by the Washington Post a few moments ago.

Implications: One of the goals of this blog is to amplify the optimism when good news is available. This seemed like a high point on which to end the week.

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

QR codes should have a reason for being

2012-01-06T08:07:00.001-06:00

Observation: According to a story in today’s Marketing Daily, while many consumers have experimented with scanning a QR code with their smartphone, few have actually used the links to any substantial benefit. Click here to see the story.

Implications: Like any other messaging that can be used in the marketing process, there should be a purpose for any use of a QR Code, beyond simple novelty.

The Quick Response codes you’ve seen on store signs, product packages and even clothing have the capacity to connecting the real world to the virtual world… and along the way, increase consumer-product engagement, deliver meaningful (helpful) product information, or even an “act now” incentive.

Have you incorporated QR codes into your advertising or in-store promotions? What has been your most compelling and successful use of the tactic? Do your codes link to something that is intended to serve your company… or your consumer?

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

A new life stage term: Emerging adulthood

2012-01-05T12:37:00.000-06:00

Observation: During years of both advertiser analysis and in-field workshops for media companies and marketers, I’ve referred to a set of fluid life stages which help organizations anticipate consumer behaviors of the people in those groups. Life stages make you think beyond simple age-based demographics, and focus more on the experiences that are shaping behavior during those years. Generally speaking, the main life stages we cover are Teens (12-17), Age of Acquisition (18-34), Age of Upgrades (35-49), Age of Increased Equity (45-59), New Age Seniors (60-69), and Matures (70+).

But in the newsletter I received yesterday, Iconoculture has a new, thought-provoking life stage for all of us to consider. It is a subset of the Age of Acquisition that they call “Emerging Adulthood” (18-25). Click here to see the story.

Implications: The economy, the labor market, and willing Boomer parents have colluded to create a population of young adults who are more likely to live with mom and dad for a longer period of time, rather than striking out to create their own household.

Does that make this an unattractive market to reach for? On the contrary, this life stage is often composed of people who are stashing-away cash until they can do it big. In the meantime, they’re living in a place with low or no rent, so more of their income could be considered discretionary. To be sure, some folks in this life stage and living arrangement could be examples of a “failure to launch.” But this group also includes people who are fueling-up… so that when they leave, they can reach for the sky.

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

Never anger a reporter (and we are all reporters)

2012-01-05T09:05:00.000-06:00

Observation: Yesterday, I engaged one of my colleagues in an email conversation about the recent negative press surrounding Best Buy. The conversation was sparked by this story from Forbes (click to link), which focused not only on Best Buy’s reported failure to deliver some online purchases on time during the holiday season… but also the experience of the article’s author during a recent visit to a bricks-and-mortar store.

This morning’s edition of the Research Brief newsletter offers a more widely-researched set of issues that can cause customers to become disenchanted with a service provider, whether that provider is an online entity or a physical store. Click here to see the online version of that brief.

Implications: These articles inspire thought about what to do when a customer service mechanism breaks down. First, have a team of folks fix it as immediately as possible. At the same time, take immediate ownership of the problem, and acknowledge it to those customers who are affected… in a manner that demonstrates transparency and accountability, rather than simply appropriating blame or making excuses.

If you take nothing else away from the Forbes piece, let it inspire these two pieces of cautionary advice:

1) Make sure your site includes inventory controls that help you avoid failing to deliver online purchases within a reasonable time, and

2) Never offend a reporter during his or her shopping experience. (And by the way, in an age of blogging, Facebook and Twitter, we are all reporters.)

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

Research is not a game, but this gaming device is delivering research

2012-01-04T09:35:00.002-06:00

Observation: A story in today’s Springwise newsletter explains how Microsoft’s Kinect device is being used for in-store research about how consumers interact with products on the shelf. Click here to see the story at Springwise.com. To watch a video demonstration of the process on Vimeo, click use the player below.

Shopperception: tracking real world conversions like web analytics from Administrator Agile Route on Vimeo.

Implications: As technology evolves, expect the way you can observe and serve customers to continue evolving!

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

Consumer trends for food and packaged goods

2012-01-04T08:48:00.001-06:00

Observation: Today’s Marketing Daily shares insights from the Hartman Group related to consumer packaged goods. Among the notable trends they offer: 44% of adult eating happens alone (contrary to the visuals in a lot of CPG advertising). And roughly 11% of CPG products are consumed within an hour of purchase… meaning many items are purchased and consumed spontaneously (they call it compulsively) or as a just-in-time meal or snack solution. Click here to see the full Marketing Daily story, or to request a download of the complete report from Hartman Group, click here.

Implications: This report helps illustrate both the spontaneous nature of today’s food shopper, and the incredible velocity at which consumers seem to be living.

For years now, we’ve been talking about how today’s food consumer is different from those of years past; today’s shopper is less likely to back the station wagon up to the supermarket and load it up with groceries for the month… and more likely to stop in on Thursday just to find a meal to serve that night when she/he gets home.

For many consumers, the supermarket is increasingly being treated like a pantry, where one stops in for what they need in the near term or to solve an immediate meal incident.

What kinds of changes are you seeing in the way people buy in your category? Has your company, product or service adjusted to those shifts? Has your messaging?

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

Consumer to remain cautious for the foreseeable future

2012-01-03T12:44:00.002-06:00

Observation: The premise of Elm Street Economics is to avoid the collective noise that tends to come out of Wall Street or Washington, and refocus on what your consumers are trying to tell you. To that end, a great story from yesterday’s New York Times takes a consumer-point-of-view in helping us understand the current situation faced by many folks, and the behaviors we might therefore anticipate. Click here to see the full story.

Implications: This story seems to suggest that consumers are not going to single-handedly pull us into a robust recovery, at least not in the next few months. They remain cautious and careful; reconciled to spending in a way that matches their current financial realities.

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

Trade-in value: It's not just for cars anymore

2012-01-03T08:18:00.001-06:00

Observation: Back in October, we shared a posting about “Re-commerce,” where more consumers are trying to sell something they own before buying the replacement for that item (i.e., listing a couch on Craig’s List before spending the money for a new sofa). Click here to see that Elm Street consumer trends story from October 4, which was based on an article from Trendwatching.com.

In today’s Marketing Daily, there is another story of interest to this trend. It suggests that more women are considering resale value before they buy a product (and we’re talking about everything from clothing to electronics, no just cars). Click here to see that story.

76% of the women surveyed indicate that they participate in a site where consumers buy or sell from each other.

Implications: Should your company consider adding a trade-in policy for the products you sell? Should it at least start thinking about the long-term resale value of the products you offer, and talking about those attributes with customers?

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

2012: A year of (continuing) empowerment?

2012-01-02T16:42:00.003-06:00

Observation: Because the intent of this site is to share consumer trends, I typically avoid offering forecasts or predictions. I consider myself a trend watcher, not a futurist. But that having been said, one collection of trends—when considered as a whole—seems to have gained enough momentum that I could safely suggest we’ll see more of it and in more variations than ever before: Consumer Control.

Holiday spending through online and mobile site channels out-performed all other sales growth, and by a significant margin. Digital devices helped consumers find the best deals, while reducing the time required to shop for those items.

Reconciliation—changing one’s household financial management—is another example of taking (or regaining) control. For more on the topic, see “The reconciliation of 2011,” posted 1/2/12 (earlier today). Over the past two or three years, many consumers have paid-down some of their consumer debt over the past few years and reduced their overall spending so as to enjoy more discretionary income (discretion = control).

A recent New York Times article suggests that younger women are leaving the ranks of the unemployed… to re-enter the classroom (click here to see that story). Lots of people are setting-up shop at Me, Incorporated; starting their own company or working as independent contractors after having difficulty finding a good job in their career field. Either of these alternatives are good examples of consumers asserting greater control, in this case, in the way they buy into the job market (or lack of one).

While the efforts have been somewhat less visible with the onset of winter weather in northern parts of the U.S., the Occupy Wall Street movement might be yet another example of consumers trying to assert greater control… over a system that they perceive to be broken or a financial landscape that they do not see as fair and equitable. One might even argue that the roots of this empowerment reach all the way back to the Arab Spring of 2011, when thousands of people decided to wrestle control over their destiny away from a dictator or regime, from Tunisia through Egypt, Libya and beyond. (If people on the other side of the world are prepared to protest even under a hail of gunfire, setting up a pup tent in a park just doesn’t seem all that difficult.)

Implications: Once consumers have had a taste of control, it is unlikely they’ll decide they want less of it… unless relinquishing that control results in a major convenience gained or a major stress lost.

How is your company, product or service sharing control over the purchase experience with the customers who buy it? Do you offer a digital channel for them to do research or even buy through? How about mobile? How can you offer appreciated choices/control that your competitors do not or cannot?

Certainly, this is not the first time I've written on the topic of Consumer Control; indeed, more than 100 stories in the Elm Street Economics consumer trends blog contain a reference to the issue (click here to see the category). But 2012 stands to be a year where Consumer Control becomes more and more conspicuous, to more and more companies and categories.

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

Political discontent

2012-01-02T13:12:00.001-06:00

Observation: Before you read this, note that I’m focusing on the political race purely for its’ consumer trend value, not because I want to talk politics.

A seemingly constant stream of different GOP candidates have taken their turn at “leading in the polls,” including everyone from Michele Bachmann to Rick Perry, and then from Herman Cain to Newt Gingrich. At this writing, this week’s initial primary in Iowa now seems to be somewhat of a toss-up between Mitt Romney, Ron Paul, and most recent surge candidate Rick Santorum.

Now—politics aside—think about that. Without considering the platform of any candidate or any scandal that might surround their candidacy, think simply about the churn of the race. It is as if voters (aka Consumers) are finding favor with a fresh face, and then holding that candidate up for greater scrutiny, until scratches or dents are found, and they decide to move onto the next option.

We seem to be living through a season of political discontent… where the electorate is searching for a candidate they can live with (sometimes, by trial and error, it seems). And it might be worth noting that the person they’re comfortable with today may not be the candidate they’ll prefer tomorrow, next week or next month. The winner will be that candidate who peaks at just the right time… as voters arrive at their caucuses or walk into a voting booth.

Implications: How long does your company, product or service have to establish itself as contender? (How long is the buying cycle or consideration process for the products or services you sell?) How could your messaging be time to make sure that you’re a strong contender when it matters most… when the consumer is ready to buy or commit?

As many campaign managers could tell you this year, being an incumbent might not necessarily be an advantage. Have you talked with your constituents (aka “Best Customers”), lately, to see if you’re really earning their continued business? (The alternative would be consumers who buy from an under-performing provider simply because it’s easier than shopping around… for the moment.)

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

The reconciliation of 2011

2012-01-02T12:27:00.001-06:00

Observation: While on vacation over the holidays, I had time to think about how we could define “the year in consumers.” The word that kept coming to mind was reconciliation.

Consumers spent much of 2007 through 2010 in various states of shock, fear and denial. While a robust recovery still escapes the U.S. economy, a modest one is underway, and the economic temperature has at least stabilized. People have had the chance to get used to this new set of economic realities, and manage their household finances accordingly. In other words, by 2011, many people had reconciled their budget with the new financial landscape.

Implications: Reconciliation means balancing the checking account… making sure your money is accounted for and you know where you stand. Part of this process means defining one’s spending habits as either needs or wants, and prioritizing accordingly. (By the way, not everything the consumer classifies as a need is truly a need… and many of their wants could, at one time, have been defined as a need!)

Consumers have reconsidered how they define value. That makes it a good time for companies to reconsider their value proposition! Have you taken a good look, lately, at the value proposition of your company, products or services? Has your marketing strategy been altered to keep-up with the way consumers now contemplate spending money in your category?

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

2012 Trends from Trendwatching.com

2011-12-20T13:00:00.000-06:00

Observation: Trendwatching.com published a solid summary of things they’re watching for 2012… and it’s a great way to end the year if you are an avid trend watcher. Click here to see it.

Implications: Think of the tumultuous time we have come through from 2007 through 2011. May the opportunities and challenges we have conquered inspire your progress in 2012, as we move into a New Year with eyes wide open… and focused on consumers and consumer trends that can help you prosper.

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

Consumer technology played a significant role in 2011 holiday shopping season

2011-12-20T10:26:00.001-06:00

Observation: An analysis by Ipsos illustrates just how much people used their mobile devices and online shopping to solve their holiday needs. Click here to see the press release.

Implications: Reports like this help remind us that people always appreciate the opportunity to save not just money… but time.

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

Can you hear me now? More talk about mobile phone regulation.

2011-12-19T12:28:00.000-06:00

Observation: A recent story from the New York Times explains how talk of tighter rules about using mobile phones while driving is picking up speed. Click here to see the story.

Implications: With cell phones and smart phones so ubiquitous now, it will be interesting to see if regulators have any luck putting this toothpaste back in the tube.

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

Worthwhile consumer trends from Brand Keys

2011-12-16T11:51:00.001-06:00

Observation: We see a barrage of trends and forecasts this time of year, and it’s difficult to sift through them all. But there are several that are worth sharing, including a two-part series from Brand Keys. The set is called “Twelve for Twelve,” a dozen items they offer in two separate Forbes articles. Click here to see their first six forecasts, and when you’re ready, click here to read the second set of six items.

Implications: Very often, a trend watcher can veer off the road and become a futurist… sometimes without solid basis. But these forecasts are based on watching recent changes in consumer behavior and evolving consumer trends. I thought this was a powerful set (or two) of trend and implication ideas… which could smartly influence the way a company is run, or the way a marketing message is designed.

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

Ads offering cars as a gift idea seem to miss the mark. (Or do they?)

2011-12-16T11:44:00.000-06:00

Observation: According to a recent story from Marketing Daily, few consumers are wooed by those campaigns that suggest a vehicle would make a great Christmas gift. Click here to see the story.

Implications: What the study does not adequately acknowledge is that Lexus is not after “most consumers” when they run a commercial suggesting their upscale cars would make a great gift idea. They’re targeting folks for whom the idea does not seem over-the-top.

Personally, I don’t see myself buying anyone a car for Christmas. But in this case, I’m not the target.

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

More signs of inflation seen at the supermarket

2011-12-16T09:07:00.002-06:00

Observation: According to this morning’s newsletter from Phil Lempert, select grocery categories have marked some notable price increases. Click here to see the story.

Implications: Cost savings was one of the things that drove many consumers to dine at home more often during the recession. If prices continue to climb, it will be interesting to watch whether the practice becomes less attractive. (Could restaurants benefit?)

This is an important category to watch because food prices influence the amount of income that is left for other more discretionary purchases.

s fun to watch all the forecasts this time of year… and try decide which will come to fruition and which will not. If the holiday season finds you with a few minutes to think about it… you might ask, “How are my customers different this year than they were two or three years ago? Are they same people, or am I selling to a different pool of prospects? Do these people have the same needs that they used to have?”

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

Small business trends from Amex Open Forum

2011-12-13T10:07:00.001-06:00

Observation: Open Forum is a service to small business operators from American Express. Here are a few of their seasonal trend offerings… most having to do with the relationship between small business, technology and consumers. (Click to link.)

Implications: It’s fun to watch all the forecasts this time of year… and try decide which will come to fruition and which will not. If the holiday season finds you with a few minutes to think about it, you might ask, “How are my customers different this year than they were two or three years ago? Are they same people, or am I selling to a different pool of prospects? Do these people have the same needs that they used to have?”

Decide how your customers are changing… as those are the trends that will impact your company the most.

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

UPDATE: 2012 food trends to watch

2011-12-12T07:26:00.003-06:00

Here is an overview of the food trends we posted earlier today (see immediately below) from Phil Lempert, conveniently contained in a single one-page overview, courtesy of the Food Marketing Institute (click to link).

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

Supermarket trends 6 – 10 from Phil Lempert

2011-12-12T06:38:00.002-06:00

Observation: To follow-up on my previous posting (see immediately below), here is the second set of trends about the packaged goods and grocery store industry from Phil Lempert, the Supermarket Guru.

Again, click on any headline to get the long form of his forecast or trend observation:

Trend #6: Ethnic flavors grow in popularity (Consumers are enticed by new forms of product trial and experiences.)

Trend #7: Men’s role in the family continues to expand (It’s not just about being a breadwinner anymore.)

Trend #8: Extreme cooking to save cash (Preparing lots of food for little money, and saving even more with a “leftovers” strategy.)

Trend #9: How sweet it isn’t (With more attention given to the harm of processed foods and added sugars, more consumers will push back to the basics of food.)

Trend #10: Sensory considerations—beyond taste—of food (One example is how a chip company abandoned their new bio-degradable bag because it was too noisy!)

Implications: It’s fun to hear insights from a grocery industry insider… and to wonder how similar changes in consumer behavior might affect industries well beyond the supermarket.

I’ll repeat the question: “In your business… what’s next?” Chances are, the best answers will come from the consumers you serve.

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

Supermarket trends 1 – 5 from Phil Lempert

2011-12-12T06:28:00.004-06:00

Observation: We have arrived in the season why posting for a consumer trends blog becomes easier—at least for a couple of weeks—because so many prognosticators are publishing their forecasts for the next year. So here we go, with our first set of predictions and trends from the outside.

I’ll start with the grocery and packaged goods industry, thanks to Phil Lempert’s Supermarket Guru website. Here’s what Phil thinks we’ll see, according to his first five trend postings about 2012 (click on any headline to get the long form of his forecast or trend observation):

#1: Higher food prices (Commodity prices will rise in response to global supply and demand issues).

#2: Online while in-the-aisle (Apps and websites make us feel like we’re never shopping alone.)

#3: Continued Baby Boomer influence (Why would we stop now?)

#4: Increased focus on how food gets to market (Consumers will more closely watch the steps between the farm and the fork.)

#5: The end of the checkout lane (Self-service check-outs will become too easy to not use, thanks to RFID tags and other technology.)

Implications: It’s fun to hear insights from a grocery industry insider… and to wonder how similar changes in consumer behavior might affect industries well beyond the supermarket.

In your business… what’s next?

I’ll provide the next batch of Phil’s trends in a subsequent posting. (There are five more to go.)

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

Restaurant trends for 2012: Importing new tastes and ideas

2011-12-11T09:43:00.007-06:00

Observation: A recent Marketing Daily story featured insights from Mintel that point to more international flavors and styles coming to the restaurant business next year. Click here to see the story.

Implications: This MD piece cites many reasons why the out-of-home dining industry will reach across the pond for new ideas. But one motivation that I did not see mentioned in the piece is that the U.S. palate, like its population, has simply become more diverse.

With a broadening tapestry of race and ethnicity, it only makes sense that our menus would expand, too.

Has your company embraced new ideas from beyond our shores? Has it recognized the changing composition of the U.S. population?

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

Amazon incentives designed to get customers to walk out of retail stores empty-handed

2011-12-10T10:02:00.003-06:00

Observation: Colleague and friend Kim Peek passed along this story from All Things Digital. It seems that, beginning today, a promotion from Amazon is designed to train consumers to treat retail stores like showrooms… where they browse in a bricks-and-mortar store, but then go online to make the purchase. Click here to see the story.

Implications: Salesmanship training is bound to make a comeback, as retailers urge their store personnel to close the sale now… by offering helpful purchasing tips and value-added services that encourage the consumer to purchase on-the-spot.

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

Deals and free shipping spark online spending for holidays

2011-12-10T08:35:00.002-06:00

Observation: USA Today recently published a story that explores why e-commerce has gained traction this year. Click here to see the story.

Implications: There are two things consumers really like to save: Time and Money. If your company, product or service can satisfy those wishes, great. If not, then instead of placing focus on what they like to save… focus on what they like to savor.

What parts of your purchase experience would be difficult to replicate online? Is it the atmosphere or ambience of your store? Is it immediate gratification or your convenient, face-to-face return policy? Could it be the friendliness or helpfulness of your staff? Or is it the simple service that makes a purchase more fun than clicking on, “Add to cart?”

If you don’t offer one or more of these kinds of value propositions to help distinguish your business from the typical online store, I really hope you have a fantastic website!

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

The impending shortage of resources

2011-12-09T17:12:00.000-06:00

Observation: I’ve written on more than a few occasions about the likely increase in prices for a wide variety of commodities (and products produced from them) due to the expanding economies of India, China and other countries. This weeks’ newsletter from McKinsey elaborates on that matter considerably. And you can see it by clicking here.

Implications: If price is your only proposition, the market is about to become more complicated. As the cost of goods increases over the next few years, price won’t be as compelling a story. NOW is a good time to start talking about the value you add to the consumer’s life, whether through experience, service, or other satisfaction.

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

Gift cards make a comeback

2011-12-09T16:10:00.001-06:00

Observation: Today’s Research Brief suggests that gift cards have made a comeback during the 2011 holiday season. Click here to see the story.

Implications: During the great recession, many companies reported a decline in gift card sales, presumably because consumers could buy what seemed like more for the money, when choosing apparel, appliances or home electronics that “seemed like more” than the face value of a similarly-priced card.

This year, however, it seems the utilitarian value of gift cards—letting people choose their own gift and then assuredly get something they really want or need—has come to the forefront of consideration.

Are your gift card sales up? It might be a good time to give them a higher profile as we approach the end of the holiday season, and people start grasping for great last-minute ideas.

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

Too much of a good thing: When consumers overdose on holiday cheer

2011-12-09T15:57:00.005-06:00

Observation: A recent story from Marketing Daily offered insights about how much is too much of a good thing, when it comes to the holiday cheer offered by retailers. Click here to see the story.

Implications: It’s easy to understand why retailers would pound so hard on the idea of holiday shopping… so much of their profit comes from the final sixty days of the year, they want to make sure they hit it out of the park. But it’s good to consider when you have gone overboard.

This Marketing Daily Q&A article inspires some important thought… but it might be a great idea to talk with your sales staff to see if they can sense when customers have had enough. Or, talk with your customers!

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

A post-recession mentality: Saving money, right to the end

2011-12-09T15:17:00.001-06:00

Observation: Today’s New York Times suggests that cremation services have risen in popularity… as one last strategy to save money. Click here to see the story.

Implications: This story is a good example of how families are examining their priorities, and considering the value behind all kinds of products and services.

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

New or used: Some consumers upgrade to older but nicer cars

2011-12-09T15:04:00.004-06:00

Observation: A story from today’s Marketing Daily suggests that more consumers are opting to buy a pre-owned vehicle with nicer features, rather than buying a more base-model new car. Click here to see the story.

Implications: In reconciling what value means in a post-recession economy, it appears that consumers are getting creating about how they can enjoy the finer things. Does your company, product or service appeal to that sentiment?

Does your marketing/messaging?

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

Another marketing technology to watch: Augmented Reality

2011-12-09T09:07:00.005-06:00

Observation: A blog post from Engage: Gen Y this morning explains that, just like QR codes, Augmented Reality apps are an emerging technology that hold the potential to help company/consumer interaction. Click here to see the story.

Implications: The author of the AR posting is wise to caution that, used purely for novelty, Augmented Reality apps are likely to be quickly dismissed by the consumer as interesting but unnecessary. So before you get in too deep—just like any other media or messaging tool—make sure your have relevant marketing strategy and logical tactics.

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

Shopping for apparel online gets one step closer to providing in-store service

2011-12-07T07:24:00.000-06:00

Observation: This morning’s newsletter from Springwise explains that up to 40% of online clothing purchases are returned… and the culprit is often a size issue. However, one online company is helping clothes buyers obtain a size and shape profile, using only their webcam and a compact disk. Click here to see the story.

Implications: It is both scary and exciting to see innovations like this happening all around us, and around the clock. But the best innovations aren’t as sophisticated as they are consumer-focused, and sometimes very simple.

Is your company innovating its products and services… or finding new ways to satisfy customers? Sometimes, there is a difference between the two.

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

It would appear that the line between restaurants and retail continues to blur

2011-12-06T06:40:00.001-06:00

Observation: A recent story from Marketing Daily suggests that as convenience stores expand their menu of grab-and-go offerings, consumers frequently skip the fast food restaurant in favor of the small stores. Click here to see the story.

Implications: I ‘ve said it before and I’ll say it again… it’s not enough to worry about competitors in your category; it is equally important to consider which categories you might compete with.

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

Mobile optimization is not enough… functionality matters, too

2011-12-06T06:29:00.000-06:00

Observation: Today’s Research Brief features research from Coremetrics suggesting that consumers increasingly expect desktop-computer-style functionality from their smartphone. Click here to see the story.

Implications: Oh how many businesses wish they could build a website or mobile strategy and call it, “done.” But the now that so many consumers have upgraded their phone to an Android or iPhone, they expect an upgraded experience on the other end of the line, too.

Granted, the share of overall sales that can be attributed to shopping on mobile devices is relatively small. But it wasn’t that long ago that one could have said the same thing about the Internet, 1.0.

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

Deciding where credit is due

2011-12-05T06:29:00.003-06:00

Observation: If it did anything at all, the Great Recession exposed flaws in the way both lenders and consumers decide how much debt they can handle. Well, it seems that one consortium is about to expand the scope of financial behaviors that are scrutinized in the act of building a credit report. Click here to see that story, which appeared in a recent issue of the New York Times.

Implications: It has been suggested that many consumers have been working to shore-up their financial affairs, and be more careful with credit. It would appear that lenders, too, will have better tools to gage their credit practices.

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

Auto industry to add back 30,000 jobs

2011-12-05T05:27:00.001-06:00

Observation: Over the next few years, it is projected that the automotive manufacturing industry will regain a significant number of workers that were shed during the recession of 2007-2009, according to this story from the Detroit Free Press (click to link).

Implications: Just as consumers have been reconciling their spending to a new set of economic realities, companies and even entire industries have been reconciling their operating costs. The auto industry, among others, has succeeded in overhauling union contracts and other employment agreements… leading to lower employment costs.

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

Teens practice and appreciate good digital citizenship

2011-12-04T14:30:00.000-06:00

Observation: Absent dramatic regulation or oversight, teens still report a self-disciplined use of the web—and good manners, in general—among users of the Internet, mobile devices and social sites. That’s according to this recent Research Brief (click to link).

Implications: I wish that kind of discipline could be seen among grown-ups on the highways at drive time!

Young consumers are never really known a world where there wasn’t an Internet. They’ve grown up with it… and expect people who use it to do so responsibly. Does your company website violate any common-sense “good manners?” If it does, these young folks (and almost any consumer) are likely to call you out on it… or worse yet, just go away.

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

Signs of reconciliation continue... and that doesn't always mean "cutting back"

2011-12-03T14:14:00.000-06:00

Observation: A pair of recent stories from Marketing Daily serves as an illustration that while some people might be continuing their more pragmatic spending style, others have moved on. First, there was an article about lowering expectations at Tiffany’s… which sources loosely attribute to the Occupy Wall Street movement (I personally think that might be a stretch, but the idea of being more conservative is easy to believe). Click here to see that story.

Another posting explains how the use of private-label (aka store branded) credit cards is down. Click here to see that story. But not everyone is "cutting back."

Implications: Our description of the current consumer climate as “a period of reconciliation” seems to be more appropriate with each passing week… as families acclimate their spending behaviors to the new set of realities they have been dealt in the post-recession era.

That doesn't mean they've stopped spending. Some families might be deciding that things have calmed-down enough that they can get back to the task of living. This story from Marketing Daily suggests that some consumers are getting BACK to indulging on luxury brands, particularly where automotive is concerned. (Click to link.)

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

The ugly side of economic stress: Theft… and much of it is an inside job

2011-12-03T09:37:00.003-06:00

Observation: Among the newsletters I subscribe to is the Food Marketing Institute update, which led me to this ABC News story about retail shrinkage (and specifically, how it increases during the holidays). Click here to see the story, which ran Thanksgiving Week, and which reminds us that sometimes, shrinkage comes at the hands of people on the payroll.

Implications: The Elm Street Economics consumer trends blog is designed to aid small business owners, managers and marketers. I thought this story was an important operational issue to offer… even if it is among the less attractive of consumer behaviors.

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

Amplifying the optimism: Jobs report

2011-12-02T14:46:00.002-06:00

Observation: It’s always great to end a week with a positive note. The jobs report issued today suggests the labor market is continuing to stabilize. For more details, consider this version of the news release from the Washington Post (click to link).

Implications: As I’ve said before, consumers hear enough bad news; it is incumbent on us to amplify the good news that is available! Have a nice weekend.

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

Trends related to the workforce and education

2011-12-02T05:53:00.001-06:00

Observation: Last weekend, a story in the New York Times carried the misleading headline, The Dwindling Power of a College Degree. I wanted to share it before filing it away because as I read it, the article struck me as less a story about education than it was about shifting business fundamentals in America. The second half of the story points-out tectonic shifts which have impacted the art of making a dollar, including reduced regulations (which used to affect top earners), and declining labor unions (which used to hold sway over how low wages could go). It was an interesting read, with regard to advancing trends among earners (aka, consumers). Click here to read it.

Implications: As the story opines in its closing paragraphs, it would be difficult to imagine what the new financial world order will look like as the post-recession economy starts to normalize. But it would be reckless to not keep an eye on how things are changing… whether the chasm that defines the Dumb Bell Economy continues to grow, or whether the country resolves to equalize earning power and taxes in some way.

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

The world of extremes continues

2011-12-01T17:08:00.001-06:00

Observation: I’m waiting for a flight our of south Florida, and catching up on the week’s news. In a single edition of the New York Times this week there is a story about the surging stock market (the haves), and another story about the increase number of families who are taking advantage of free meals from their local school systems. (Click here for the story on stocks, and click here for the story on schools.)

Implications: The dumb bell theory continues. (See the Elm Street Trends posting from November 16.)

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

Dear Santa: Please give my child… lower expectations

2011-12-01T05:49:00.001-06:00

Observation: A recent story in the New Yorks Times explains how one Santa Claus school is teaching their graduate St. Nicks to reduce lofty expectations. To read this sign of the times, click here.

Implications: Yesterday, I offered a post about “reconciliation,” or setting ones current lifestyle and spending habits to the realities of changing home values, incomes and job security. A friend shared this story as an example of how that reconciliation, in many cases, is touching every member of the family.

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

A new term for what might feel like recession, but isn’t: Reconciliation

2011-12-01T05:30:00.000-06:00

Observation: During a recent Elm Street Economics workshop for small businesses, I played a video clip of perhaps a dozen consumer responses to this question: “Do you think that the economy is still in recession, or is it in recovery?” The majority of responses were both swift and firm: “Recession.”

Of course, most economists will tell you that, technically, we are no longer in a recession. But based on our interviews around the country, technically, people don’t care.

Probing a little deeper with our consumer panels, we ask how life has changed. “What’s different now in your household now, compared to the way it was before the recession?” What impressed me about the responses to this question is that people have to stop and think about how life used to be. But that only makes sense, as the recession technically started a full four years ago tomorrow, on December 1, 2007.

By the way… it is worth noting that the period since the recession ended (June, 2009) has lasted far longer (roughly 27 months) than the entire term of the recession itself (roughly 19 months).

We noticed another pattern in our consumer panels: Many people have accepted and adapted to the financial realities they now face.* Some participants explained that they now shop more carefully before making a major purchase, or that the kids are now expected to earn their own spending money. Some are more conservative about their use of credit, or they’ve reduced the frequency of their visits to a specialty coffee shop. Others are spending more on upkeep so they can hold on to that car a little longer, and some have opted for Netflix in lieu of going out to see a movie.

In a word, consumers have reconciled their spending with their income and assets.

In a recent post, I suggested that frugality might not be simply fashionable for some consumers; it might be more accurate to call it their new operating system. [See the posting 11/14/11.]

Implications: In almost every example of reduced spending, consumers will explain that they’ve come up with an alternative (e.g., spending more on automotive service so they can spend less on a new car payment, or buying a new home theatre to avoid the cost of out-of-home entertainment over the long haul). They’re spending somewhere, just not always on the same things they used to spend on.

In an age when people are more likely to consider alternatives to past purchasing habits, it’s a great time to ask the question: Who are you the alternative to? In what situations might your company, product or service act as the perfect replacement to a previous spending habit?

People have spent four years getting used to the idea of home values that are smaller and job security that feels less secure. Contrary to the official economic status, they feel like there’s still a recession going on… but it doesn’t scare or shock them anymore. They have learned to cope—reconcile—and carry on as best they can. They have lives to live, after all. Does your value proposition—and your messaging—fit into that new lifestyle?

* Please note that I did not use the now cliché reference to, “the new normal.”

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

Cyber Monday sales increase

2011-11-29T06:54:00.002-06:00

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

2011-11-28T09:16:00.002-06:00

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

2011-11-22T07:30:00.004-06:00

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

2011-11-22T06:48:00.002-06:00

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

2011-11-21T13:06:00.000-06:00

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"

2011-11-21T11:47:00.000-06:00

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

2011-11-17T10:30:00.000-06:00

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

2011-11-17T09:15:00.001-06:00

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

2011-11-16T06:34:00.008-06:00

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

2011-11-15T11:04:00.003-06:00

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

2011-11-15T07:16:00.001-06:00

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?

2011-11-15T06:08:00.004-06:00

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

2011-11-14T05:58:00.001-06:00

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

2011-11-11T12:49:00.000-06:00

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

2011-11-11T12:42:00.000-06:00

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

2011-11-10T13:37:00.002-06:00

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

2011-11-10T05:55:00.003-06:00

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

2011-11-10T05:40:00.001-06:00

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

2011-11-09T22:11:00.000-06:00

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”)

2011-11-08T12:23:00.000-06:00

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

2011-11-08T12:14:00.000-06:00

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

2011-11-07T10:46:00.003-06:00

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

2011-11-04T09:45:00.000-05:00

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)

2011-11-04T09:36:00.000-05:00

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

2011-11-04T08:08:00.001-05:00

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

2011-11-03T12:52:00.002-05:00

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

2011-11-03T09:35:00.001-05:00

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

2011-11-02T11:25:00.000-05:00

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

2011-11-01T11:26:00.002-05:00

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

2011-11-01T09:46:00.000-05:00

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

2011-11-01T09:44:00.000-05:00

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

2011-11-01T08:22:00.002-05:00

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.

Consumers less likely to re-locate

2011-10-31T09:39:00.002-05:00

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

2011-10-31T09:18:00.001-05:00

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

2011-10-31T08:57:00.000-05:00

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

2011-10-31T08:15:00.000-05:00

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

2011-10-27T11:48:00.003-05:00

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

2011-10-26T21:48:00.000-05:00

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.