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.

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.

Gift cards make a comeback

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

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.

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

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.

Dear Santa: Please give my child… lower expectations

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.

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

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

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

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

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

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

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

UPDATE: Black Friday backlash

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

- Mike

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

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

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

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

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

Some gift items could be in shorter supply this year

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

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

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

A potpourri of stats about the holiday shopping season

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.

Another holiday forecast; this one calling for “precision” purchasing

Consulting firm Accenture published a forecast for the 2011 holiday shopping season.  You can read highlights from their report by clicking here. 

Implications:   This study is important because it goes beyond the “what,” to ask “why?”  Consumers are citing less discretionary income, less money in savings, and an increase in living expenses as reasons they will shop—but with caution—this gift-giving season.

How will your respond to these attitudes toward holiday spending?  If the consumer is going to be more careful, that means they’re going to do more research in advance.  If you haven’t already, now is a great time to re-evaluate your website and make sure it provides maximum assistance to the research-hungry consumer with minimum effort and time invested.

Also, ask yourself whether your fourth quarter messaging appeals to the things that are most important to your target consumer.  It’s important to be high on the shopper’s consideration list, especially when they’re doing lots of research in advance.  (When the consumer is shopping for the products or services you sell, it’s important to be very high on their consideration list; they will probably buy before they make it to store #6 or 7.)

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

UPDATE: Revenue projections for the holidays

Yesterday, I offered a post about the increase in temporary holiday hires of some major retailers (see the story immediately below).  Today’s Marketing Daily offers a story to support that anticipated growth, citing projections from the National Retail Federation.  Click here to see the story.

Implications:   The projections are nice to hear, but revenue growth is unlikely to be spread evenly among holiday retailers.  Those who do the best job of connecting (communicating) with their target consumers and satisfying the benefits they seek are going to have a much different holiday season than those who do not.

How are you preparing?

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

Stores hiring in anticipation of the holidays

Many retailers expect the holiday season of 2011 to be a bit of a paradox; in spite of clues that the economy is still teetering, they think that shopping activity could enjoy an uptick.  That’s according to a story in today’s New York Times.  So, there is likely to be a slight increase in the numbers of temporary retail workers hired for the holidays… or at least hiring at levels that were similar to last year.  Click here to see the story.

Implications:   Instead of having turbulent economic news cause people to avoid shopping for the holidays, is this the year that people indulge because they’re fatigued by the turbulent news?  What do you anticipate in your local market?  Are you planning to add staff or services to satisfy any additional traffic your company might enjoy?

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

Forecast suggests consumers will indulge—a little—during the holidays

A forecast from Deloitte offers some optimism about the 2011 holiday shopping season.  See the overview that was published by Marketing Daily this week by clicking here.

Implications:   I’m always entertained by the idea—as explained in this story—that smartphones and touchpad computers have become “needs,” since neither product even existed ten years ago.  (But the Deloitte representative was right… many of us consider these items absolute necessities these days!) 

Small indulgences and self-gifting:  Two important sales opportunities to be watching for this holiday season.

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

More funds for Father's Day

According to this story from the National Retail Federation and BIG Research, moms and kids are planning to up the amount they spend for Father’s Day this year.  (Click here to see the story.)

Implications:  I hope my wife and kids are reading this.

But seriously, folks.

This is one more example of the pent-up demand that can follow a recession.  People have suppressed their spending for several years now (the recession was officially given a start date of 12/1/07 when it was announced in 2008). 

Have people cut back on the amount they used to spend—or have they put-off buying entirely—the product or service you sell for financial reasons?  What kind of offer, incentive, or product bundle might help them decide to unleash their pent-up demand?

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

Financial infidelity

Today’s Media Post Marketing Daily provides an interesting look at something we have long referred to as as financial infidelity… that is, concealing expenditures from a spouse or significant other, either through silent spending or providing outright misinformation. Click here to read the story.

Implications: The story suggests that Gen Y members are more notorious about financial infidelity than their elders… but I wonder if that has something to do with the extreme economic circumstances that have impacted this group at a younger point in their lives.

In our on-location Elm Street Economics workshops, I have explained what the behavior of financial infidelity might look like… and that sometimes, it might even involve a form of money laundering at the household level. For example, someone indulges in the purchase of an expensive golf club at the pro shop, but doesn’t mention it to their spouse. Further, the golfer pays for the club partly in cash, partly with a household check card, and perhaps partly with a charge card. Any of the three amounts are less likely to be noticed by the spouse… so the big-ticket purchase is less conspicuous.

Do you sell a big-ticket item that might be purchased on the down-low? How could you make the purchase easier to accomplish “in bits and pieces” (do you offer a layaway program that would help move the purchase to the “up and up”)? How could you help a customer “out” their purchase intention, by helping them sell their spouse on why this purchase is a great idea? (In other words, it’s not enough for you to make the sale… how can you help your customer make the sale to their spouse/significant other?)

Indulgent purchases that had seemed “out of the question” during the great recession may be more acceptable, now that the recovery is underway. But that doesn’t mean that conspicuous consumption is back. You may still have customers who think an extravagant or indulgent purchase should be done carefully and with discretion. How can you help that become accomplished… or unnecessary?

[Note: For a counter trend to financial infidelity, see the preceding story, which follows immediately below.]

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

New attitudes toward generosity and gifting

My wife recently encouraged me to buy an expensive D-SLR camera, to replace one that I had irreparably damaged on a kayak trip last fall. I agreed, under the condition that she might go easy on my birthday and Christmas gifts this year (the camera would do the job).

Not long after that, I encouraged my wife to purchase a painting that she fell in love with while we were on vacation. She consented, under the condition that the trip and the painting would be considered her holiday present.

I thought that our behavior might be unique, but within an article in Saturday’s New York Times I found evidence that we might simply be part of a growing trend… where gifting has moved toward giving someone permission to spend on a themselves, to fulfill an expensive hobby or passion. It was a fascinating story, and you can read it by clicking here.

Implications: The great recession taught us to avoid waste. The trend that his hinted at by this story takes the pressure—and the risk of potential waste—off of those who toil and stew about what the perfect gift might be for someone they love. Instead of trying to be mind-readers—knowing what the absolute perfect give might be—we are becoming facilitators… encouraging our spouse or significant other to fulfill a dream or desire (and not feel guilty about it).

Is your product or service too complex for someone to give as a gift? (Julie may have been intimidated to know what kind of lens capability, speed, storage and connectivity I would look for in a camera… and I don’t have a clue when it comes to choosing a painting or any other decorative decision.) Perhaps the solution is not to market your product or service as a gift that someone gives, but as a dream to be encouraged.

In this scenario, I can imagine a whole new range of things (aspirations) that begin to compete for the gift dollar. Travel? Higher education? Anything which, purchased for oneself, might feel selfish… but when purchased with the encouragement of a loved one, could be the most generous gift of all.

PS: It’s Valentine’s Day. Still need a great, last-minute gift idea?

[Note: For a counter trend to this posting, see the story that follows—Financial Infidelity—immediately above.]

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

Holiday sales success! (A return to the "old" normal?)

For the past three years, we’ve heard a lot of chatter about “the new normal,” a state in which people are credit-averse, financially responsible, and frugal in their spending habits. I thought the phrase was a bit over-used, to the point that it became cliché. (Any phrase that is used in a way that is thoughtless eventually becomes meaningless.)

Anyway… this morning’s New York Times offers one estimate of retail performance for the holiday season: UP 5.5%. Click here to see the article.

Implications: I loved seeing the good news this morning, and I hope your company was among the businesses that enjoyed strong revenue. But I’m wondering: Will the pundits now herald a return to the “old” normal?

Mike Anderson

My opinion: A smart use of email marketing

Last night, I was flying from Atlanta to Minneapolis, and learned of a special “holiday gift” from Delta Airlines, Google Chrome, and GoGo in-flight internet service: Free Wi-Fi on this flight. So I fired-up the laptop and started working… free, except that I had to give GoGo my email address during the registration process.

Today, I received a very simple email from GoGo, with “Receipt” in the subject line of the message. It showed a table like this:

$12.95 for In-flight Internet Service
-12.95 for promotional discount
0.00 Sales Tax
-------------------------------------
$0.00 Total Cost (Happy Holidays!)

Implications: This was a smart way for GoGo to get me (and thousands of others, I will assume) to try in-flight Wi-Fi. Some people will pay to use the service in the future, some people will not. But I loved the way GoGo didn’t just give me value. They reminded me that they gave me value! (No harm in that, is there!?)

Next time I need to get some work done when I'm in the air, will I remember how easy logging-on to the plane's Wi-Fi system was? Absolutely.

Mike Anderson