Recovery, now 33 months old, continues to have strong points and soft spots

Observation:   An article in today’s New York Times reminds us that just as the recession did not treat everyone equally, the economic recovery has both favorites and underdogs… driven by employment, geography, and industry category.  Click here to see that story.

Implications:   If you’re a business owner, manager or marketer, it remains critically important to tune-in to the customers you serve and aspire to serve—locally—more so than you focus on the national headlines of the day.  Just as the headlines out of Wall Street and Washington tended to be overly gloomy as we entered recession back in late 2007, the national news can be misleading during the recovery; while the country, as a whole, is gaining economic momentum, there are parts of the U.S. that are not feeling the upswing as much.  Further, because we are approaching an election, candidates are extremely critical of the current economic climate, and incumbents tend to be extremely positive about it.  Reality often lies somewhere in between.

In what ways can you determine how your local customers are feeling about their future prospects?  Could it be as simple as walking around the store, lobby or dealership… and asking folks how they’re doing?  Or might you pay closer attention to products and services you sell that are related—either directly or indirectly—to things like employment, the price of gas, or other household spending influences?  Could it be that a little primary research is in order?

Consumers can be a great source of information.  And they’re a source that’s very close to your cash register.

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

Finances contribute to a new education gap

Observation:   In recent months, I’ve used the term Dumb Bell Economy to explain an economic landscape that is filled with extremes.  I don’t use the term as a reference of intelligence… but to point out that there are lots of people who enjoy abundance, lots of people who are suffering, and fewer people than ever who feel like they’re in the middle (class).  (Click here to see that series.)

Today’s New York Times explains that the chasm between those who have and those who do not has also visited education.  Click here to see that story.

Implications:   There are a couple of reasons I think this story is important.  First of all, education influences the future.  But secondly, I’m interested in chasms that could expand—or be established—between various economic classes.

Companies generally thrive by super-serving a core consumer group.  Is your customer base making progress in their quest to build a future, or are they facing challenges?  Are they increasingly upscale, or financially challenged?  (By the way, there is great opportunity for businesses that succeed in super-serving almost any core audience.)

By the way, how does this issue impact educators… or the people responsible for selling education to incoming or prospective students?

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

A look at the chasm between rich and poor

Observation:   A recent Research Brief newsletter suggests that the chasm between those who have and those who have not can look differently, depending on the group you are in.  The article cites Pew Research in suggesting that 66% of those surveyed think the conflict between rich and poor is “very strong.”  But feelings can vary significantly depending on political view, socio-economic status and ethnicity.  Click here to see the briefing.

Implications:   We’ve been referring to the current economic climate—and the chasm between rich and poor—as the dumb bell economy.  A lot of people at least perceive that the middle class has shrunk… and that there are lots of people on either end of the financial spectrum, and fewer folks in between. 

How are your customers feeling?  Are they, like many people, trying to decide where they fit into the spectrum?

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

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.

The world of extremes continues

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.

Census offers supplemental report for "near poverty"

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

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

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

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

The dumb bell economy

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

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

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

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

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

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