Welcome to the [your name here] rest area

Trend Observation:  Some states are considering the sale of “sponsorships” for way-side rest areas and other state-owned assets, according to a story in today’s USA Today.  It’s one way that states can make up for revenue shortfalls.  One state is even considering selling naming rights to a few bridges.  Click here to see the story.

Marketing Implications:  What government-owned structure might you logically put your name on?  Would it be smart for a beverage or soap company to put their name on a town’s water treatment plant?  Should a tire company put their logo on a recently paved street?  Maybe it would be smart to put your company name on a ________________.

Associating your company, product or service might be more than just a natural plug. Explained in your other marketing materials, it could be a way of endearing yourself to consumers as a business enterprise that is doing its share to keep taxes low.

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

Hospitals do a little self-diagnosis

Observation:   A recent article from the New York Times explains that with health care reforms at risk of either passing or being repealed, the industry is not waiting for regulations to mandate more care delivered at less cost.  Many hospitals are proactively working to refine their systems and streamline their services.  Click here to see the full story.

Implications:  Like any business, there’s more to operational change that simply reorganizing a flowchart.  When companies introduce “efficiencies,” it is important to mitigate the frustration likely to be felt by customers (patients).  When new, favorable features are introduced, the company cannot take for granted their customers will notice.

If you are a stakeholder in a health care organization, how are you communicating the changes that are either underway, or likely inevitable, as the category moves toward a more cost- and profit-oriented future?  What kinds of messaging might weave you more deeply into the fabric of the community you serve?  For those changes that might be less well received, how can you placate a consumer that might not be all that enthusiastic about the changes you are making?

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

Increasing focus on the obesity epidemic

Observation:  A story from Marketing Daily this week explains how the Disney companies plan to limit junk food marketing in media assets that serve youth audiences; the announcement was made in Washington with First Lady Michelle Obama on hand (click here to see that story).  And last week, a firestorm debate started with New York City’s mayor Michael Bloomberg suggested restricting the sale of super-sized softdrinks (click here to see one of the stories published by the New York Times on that issue).

Implications:  There seems to be growing momentum behind the idea of healthy living.  Does your company offer a product or service that fits into this strengthening trend?  Should you consider adding one, or altering your current menu in a way that the consumers you serve are given more healthful options?

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

Austerity is voted out in France

Observation:  We seldom devote space to the Euro Zone at this site; there are plenty of global economic pundits covering that topic.  But it is worth noting that Francoix Hollande defeated Nicolas Sarkozy in the French presidential election.  Sarkozy generally favored cuts in public spending to solve the economic woes of the country and region; Hollande is a socialist who believes spending will stimulate the economy and people with higher incomes should fund that spending.  Click here to see the Wall Street Journal’s full story on the matter.

Implications:   I’m just watching this story wondering how many of the 17 countries in the European Union might follow suit… and how these shifts in policy might affect companies who export to Europe, or import products and services from Europe.

Also, I’m wondering whether the mood of the U.S. can be expected to shift in similar ways between now and November.  What do you think?

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

Changes to health care spending

Observation:   Over the weekend, a story from the New York Times explained that health care spending is down… and more dramatically that the economic effects of the recession can be blamed for.  The article strives to explore a number of possible reasons for the decline; read the story by clicking here.

Implications:   If you sell any product or service that is related to health care, this issue impacts you.  We can anticipate that if the number of patients who are spending has declined—or the amounts they are spending have declined—the field of providers that are competing for those patients and dollars is going to be more heated.

So how can health care providers—and health care marketing—effectively capture their unfair share of patients?  Absolutely.  Start by looking at the product or service from the consumer’s (patient’s) point of view.  Follow the money trail, from consideration to admissions to pre-op to discharge.  As a story from NBC Nightly News suggested over the weekend, you might even look at the ceilings of a hospital room, to see what the patients see as they’re lying in bed!  (Click here to link to that video, or watch it in the viewer below.) 

The patient, above all, wants a successful outcome.  But on that journey, they’d also appreciate some empathy, responsiveness and authentic concern from the physician and support staff.  If you can deliver that experience, and explain your unique selling proposition in advertising (on-air, in-print, online), you’ll likely fare better than other providers who are competing for those same patient dollars.

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

NBC News footage:

Visit msnbc.com for breaking news, world news, and news about the economy

A conversation about protecting competition

Observation:  A story from today’s New York Times—or perhaps it would more appropriately be called a near-editorial—explores the complex relationship between innovation, competition, and regulation.  Specifically, the article focuses on price-fixing allegations in the e-book industry.  Click here to see the story.

Implications:   This is a worthwhile read because so few of us are immune to the forces of disruptive technology. 

What companies could step in from the fringe to steal share from your long-secure revenue sources?  Could it be that the best way to protect yourself from that new competition would be… to make that move first?

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

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.

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

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.

Political discontent

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.

UPDATE: Occupy Wall Street

This week’s Iconowatch, the newsletter from Iconoculture, builds on a topic we mentioned earlier this week about the recent Occupy Wall Street demonstrations [see "Preoccupied with Wall Street"].  This article notes that Millennials make up a large percentage of the Occupy movement.  Click here to see it.

Implications:   Another particularly thought-provoking observation from this article was the idea that many commentators are referring to the Occupy movement as (I paraphrase) “more of a street party than an meaningful demonstration.” 

Didn’t they say something like that about many of the demonstrations that happened in the 60s and 70s?  It will be interesting to see if the movement fades into autumn, or whether it will grow into a voice that influences the outcome of next year’s election.


[Editor's note:  Another worthwhile story about Occupy Wall street was published the following day (10/13/11) in the New York Times, explaining the "share of voice" these protests have begun to receive in various news media, as the movement fans-out across the U.S.  Click here to see that story.]

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

Pre-occupied with Wall Street

If you’re feeling like your income has lost some of its spending power since the beginning of the recession, you’re not alone.  A story from the New York Times this morning explains that incomes have fallen since the recession is widely held to have ended, due largely to the persistently high unemployment rate.  (Click here to see that story.) 

This issue, combined with pervasive coverage about gridlock in Washington, extreme compensation for many of the country’s CEOs, and higher food and fuel prices, has led to outright economic frustration.  

Yesterday, there was a story in the New York Times about the group Occupy Wall Street and several variations of the movement that have sprouted-up around the country.  Click here to see that story.

Implications:   The NY Times story acknowledges that the “Occupy” movement started very small, but hints that uprisings also started small in places like Tunisia and Egypt this spring, and throughout much of Europe over the summer.  I’m nowhere near ready to watch for a citizen-led uprising here in the U.S.  But smart government officials—and businesses—are noticing this period of discontent.

It might be more important than ever to communicate the logic of your business to your customers.  If there is a price increase, why is it justified?  If you’re a public company and paying dramatic bonuses, what is the logic?  More often now, consumers are not just re-thinking the dollars they spend; they are more closely scrutinizing the very companies they spend with.  If you’re running a fundamentally sound and fair business (which I assume to be the case)… transparency is your friend.

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

The changing definition of retirement

Today’s New York Times carries an interesting piece on the now bi-partisan thinking that something—we’re not sure what, but something—needs to be done to reduce the cost of Medicare and Social Security.  Click here to see the story.

I raise the issue not for its political zest, but for its likely impact on consumer behavior. 

Implications:   Many people (including me) have been saying this for years, but it now seems more apparent that retirement will look different for future generations than it has over the past fifty years. 

It is likely that future retirees will have to be more self-reliant, in terms of having an income, paying for more of their own healthcare, and more.  How might that impact consumer’s investment decisions in their 20’s and 30’s?  How might this influence spending decisions for people in their 40’s and 50’s? 

Just as important, how does your company, product or service fit into this new "golden years" landscape.  Are you ready to serve customers who have deferred their retirement?  Are you ready to meet a LOT more people who consider themselves to be semi-retired, and perhaps never fully retired?  How will their needs be different than those of past customers age 65 and older?

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

Creating consumer confidence… at the local level

Ben Bernanke stopped here in Minneapolis yesterday to speak at an economics luncheon, and today’s New York Times shared an interesting perspective on his remarks:  That, as tough as things are, consumers think the situation is even worse than it really is.  Click here to see the story.

Implications:  Alas, the Federal Reserve chairman realizes who sets the tempo for the economic recovery… the consumer, of course.

We can debate all day long about whether the current sentiment of consumers is rational or not.  But here’s a better idea:  Ask what you can do to amplify the optimistic, encourage your customers to enjoy themselves as they escape reality by walking through your store, or deal with today’s realities by taking advantage of the products and services that you offer.

I’m not waiting for the government—either party—to create consumer confidence.  We’re going to have to do it ourselves.

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

Recession 2.0?

A story in today’s New York Times offers some clarity to an issue that most of us have been thinking about over the past two months:  Whether the U.S. economy is heading into—or already in—another recessionary downturn.  Click here to see the story.

Implications:  If it turns out that the recession has returned, we at least have the advantage of realism, this time around.  (When the last recession hit, lots of people were shocked.  This time, they won’t be.) 

A major tenet of Elm Street Economics is that whether the nation as a whole is in recession, technically, matters less than current mood and financial state of the customers you serve.  Your customers decide whether they are in recession… not Washington or Wall Street.  Are the folks in your city or suburb adequately employed and their incomes are reasonably stable?  Or do the people in your trade area continue to feel the strain? 

One should not ignore the macro-economic issues facing our country.  But accept that there’s little you can do about that, and focus instead on the micro-economies (the households) you serve.  Measure your offer to meet the local climate, and adjust your messaging to suit the current mood.

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

Don’t bank on it: How pensions and investments are changing in the mind of the consumer

Before I clean the weekend’s news stories off my desk today, I’d like to share one that came from Saturday’s New York Times, which illustrates what future tensions could look like as spending cutbacks trickle-down from the federal level to the state, city, and even school district level.

In this article, former employees from a small Rhode Island town are facing a cutback in pension payments from the city they used to work for.  (At a time when bondholders are seeing no such cutback.)  Click here to see the story.

Implications:    As the story suggests, it is more likely that a court—rather than a city council or mayor—will decide the outcome of this case.  I raise the issue not for its political ramifications… but to further illustrate the creative fallout that continues to make itself known in the wake of the recent recession.

In what ways might these kinds of headlines change the way consumers save for retirement?  In what ways might these issues cause 45-64 year-old consumers to become even more cautious about spending (since they are close in proximity to retirement)?  In what ways might these stories discourage younger folks from participating in a pension plan, 401K or other employer-sanctioned investment plan?

If you’re in the financial planning, investment or banking business… life just threw a whole collection of new questions your way!

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

Schools are hurting and you can help (and do well as you do good!)

The Engage:  Teens blog from Media Post launched a three-part series today about the state of education and school budgets.  While the opening premise seems to focus on the challenges that schools are facing (slashed budgets, too few teachers, and greater than ever scrutiny, for example), you’re also wise to consider how these issues might represent opportunities for your company, product or service.  Click here to see the story.

Implications:    If you’ve ever considered a cause marketing initiative that benefits education, now might be a great time to revisit the issue.  Parents are less likely to assume that government (even at the local level) can solve all of the fiscal challenges their communities are facing.

Could you sponsor a section of the local school library?  Provide snacks to after-hours school sessions?  Does your product advance the goal of education?  Could you run a promotion that generates cash for your local school district?

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

A street-level look at the political and economic landscape: Ugly

There has certainly been no shortage of chaos over the past week.  The debt ceiling conflict was solved (for now) last Monday and Tuesday (see this Denver Post story).  But it wasn’t accomplished without casualty:  By Thursday, polls had been published illustrating the dismal approval rating of congress (see this NY Times story), and the press has been no less brutal for the White House.  Late Friday, Standard and Poor’s reduced the U.S. credit rating (as published here by the Washington Post).

Implications:    On a positive note, the U.S. economy added more than 128,000 jobs last month… and that number would have been considerably higher if not for the state government shutdown in Minnesota, which temporarily shed 30,000+ positions.  But based on the few polls and considerable press devoted to public sentiment, I have to believe folks are fed-up with the way the system is working right now. 

Heading into an election cycle, we can expect the rhetoric to increase, and the discontent right along with it.  Waiting for the economy to calm is probably not an option.  Getting to know your consumers better than you ever have—and serving them more effectively and efficiently than ever—is going to remain critical for the foreseeable future.

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

What spending cuts could mean on Elm Street

The debt ceiling compromise that passed the house yesterday (and which should pass the senate and be signed into law today) could have a significant impact on the recovery, according to this story from USA Today (click to link). 

Implications:   The original idea behind Elm Street Economics was to suggest that small business owners, managers and marketers should pay less attention to Wall Street and Washington, and focus more on their relationship with consumers; those folks who ostensibly live on the Elm Street cul-de-sac within a few miles from their place of business.

Experts fear (according to the USA Today story) that a fragile economic recovery (just 1.3% economic growth last quarter) could be hampered in the coming months by spending cuts included in the debt ceiling compromise.

Stay tuned.  It sounds like focusing on consumers will be just as critical in the next few years as it has been for the past four.

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

The political “to do list” looks different today

A pair of stories in today’s New York Times signals a shift in the focus of U.S. government in coming weeks and months.  First, this story reviews the passage of a debt ceiling agreement (click to link).  Pundits expect the senate to approve the house bill by early afternoon and that it will be signed by the president later today... hours before the treasury department had said it would be unable to meet all of its financial obligations.  Secondly, another Times story suggests that attention will now be shifted to job creation and the economy (click to link).

Implications:    I’ve seen a lot of press focused on the frustration of people (aka voters, consumers) about their politicians, lately… and wondering why the debate about the budget and the debt ceiling has seemingly cost them months of getting anything else done.

It will be interesting to see, in the coming election cycle, whether people remember how much (or little) got done by their employees this summer.  (And I make that statement in a completely bi-partisan tone.)

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

Politics aside, many people seem ready to put politicians aside

This morning, the New York Times had an interesting piece on some less-than-scientific research they conducted over the weekend, having to do with the debate over raising the debt ceiling.  Click here to read the story.  Its only conclusion:  Washington is not getting anything done.  And folks are not blaming the White House or Congress… they seem to be blaming both.

Implications:    Right now, it might be easy to start thinking that many consumers—aka “voters”—are thinking that either major party is too extreme in their approach to finances. 

Will that cause one or both major parties to move more toward the middle?  Will the chasm represent an opening for candidates that either defy their current party’s thinking, or who come from an independent alternative?

Speaking as a trend watcher—not as an advocate for either party—one gets the feeling that patience is running out.  Especially for those politicians who might be seen as more loyal to their party than to the people (again, aka “voters”).  Absent some progress on the debt ceiling, the deficit and jobs, the next election could look a lot like the last… but with neither party coming out as the clear winner.

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