The reconciliation of 2011

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

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

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.

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

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?)

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

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

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

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

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

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

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.