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  A recent article from the New York Times explains that with health care reforms at risk of either passing or being repealed, the industry is not waiting for regulations to mandate more care delivered at less cost.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.

How to respond to trends and opportunities

Observation:  This week’s Springwise.com newsletter delivers on their reputation for reliable business ideas.  In this case, there are three examples of business ideas which respond well to emerging or important trends.  The first is a smartphone that detects radiation, which comes out of Japan in response to greater anxiety about that issue in the aftermath of the tsunami and resulting nuclear tragedy of last year.   Capitalizing on peoples need to know now, the Tim Horton chain in the United Arab Emerates prints the most recent headlines on the sleeve that insulates a customer’s coffee cup.   Respecting the more diligent behavior of today’s consumers, a hotel in London working with a furniture partner to facilitate a “try before you buy” campaign.  You can own the furniture in your hotel room.  Click on any headline to see that particular story, or click here to see the most recent Springwise.com newsletter for yourself.

Implications:  It’s not enough to be a trend watcher.  One must ask how emerging trends can be exploited for the happiness of your customers and the profit of your company.

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

A small number of consumers can be a big factor in product launches

Observation:  Today’s Research Brief offers fascinating insight into the power a select few consumers can have in propelling big sales for new product launches.  Click here to see that story.

Implications:  At CSS, we frequently pontificate about the importance of identifying your true target consumer—the heavy user of the product or service you sell—and super-serving that constituency.

This article seems to support that body of thought, and add urgency to the idea of identifying your heavy user very early in the lifecycle of a product or service.

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

Insights into the (r)etail (r)evolution

Observation:  The May newsletter from Trendwatcher.com focuses on how the consumer is finding value in their online (and often mobile) shopping and spending.  The series is broken into four distinct segments (click on any of them to see the corresponding material):  E is for everywhere,  (M)Etail, E(asy) Commerce, and Oh What a Wonderful Web.

Implications:   There is no shortage of innovation on the web, and it sometimes seems we’re drowning in new digital tools and ways we could be using the web and mobile devices to reach and serve consumers.  Trendwatcher.com is a great source for ideas like these… but it can start to feel overwhelming.

My advice is to keep it simple.  It would be virtually impossible to know everything there is to know about all of your digital options.  So focus, instead, on your customers, and how they’re using their online and mobile devices.  Don’t aspire to serve technology.  Let technology serve you and your most important customers and prospects.

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

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.

Cutting the cord… at the legislative level

Observation:  More and more consumers are living in a wireless-only household, with no land-line phone coming into the home.  According to a story in yesterday’s USA Today, many states have passed or are considering bills that relieve phone companies of the requirement to offer land-line service in all residential areas.  Click here to see the story.

Implications:   If not immediately, it looks as if—eventually—the home phone line will join the ranks of the payphone as historical artifacts.  Phone numbers have evolved from residential to personal items.  And why not?  I can do lots of things from my smartphone, including check sports score, do my banking, see if my couch sold on Craig’s List… and even ask my voice-controlled assistant to find a nearby restaurant for me. 

In comparison, my home phone is stupid.  And fired. 

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

The problem with pleasing customers

Observation:   According to a recent report by Forrester, when you exceed a consumer’s expectations, that level of satisfaction becomes the new minimum expectation.  That’s according to an article in today’s Marketing Daily newsletter.  Megan Burns of Forrester is quoted as saying, “People get used to a level of service very quickly, so you’re constantly shooting at a moving target.”  Click here to see the story.

Implications:   In this day and age, standing still is the new falling behind.

This story suggests that companies should constantly be asking (consumers) how they can do even better.  And as a collection of service or satisfaction improvements is developed, it might be wise to roll them out incrementally, so that the consumer notices.  If you bring a huge collection of improvements to market all at once, it might leave the consumer asking “what have you done for me, lately” just a few months down the road.

Are you innovating to the point where you have something new to offer and talk about frequently… as the customer expects?

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

Letting younger consumers drive: GM prepares for a generational shift

Observation:   A recent story in the New York Times explains how General Motors is adjusting to the needs and preferences of Millennials (people who were born between 1981 and 2000).  The lives of people in this group are not as culturally tied to the automobile as previous generations, the story explains, and GM is trying hard to regain relevance.  Click here to see the story.

Implications:   We’ve posted dozens of stories at this blog under the label of Generational Economics; the term we use for how consumer priorities changes as they move through different life stages.  But clearly, this decade’s “18-34 year-old” is not buying the same way that an 18-34 may have in during the 1960s, 70s or 80s.  And that’s not just true for automotive; it is a reality check for restaurants, supermarkets and furniture stores, too.

Is your company, product or service seeing a change in the way young adults buy?  Indeed, is your category changing in a way that response to shifting consumer preferences?

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

UPDATE: Another casualty of the digital age

Observation:   Last week, I posted an article noting the end of the printed edition Encyclopaedia Britannica.  Over the weekend, a story in the Los Angeles Times pointed to another casualty of the Internet age:  The printed business card.  Click here to see the story.

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

A dramatic sign of our digital times

Observation:   If you want to know just how wired we have become, you can look it up in an encyclopedia… but soon, the only up-to-date version of that information source will be online.  Encyclopaedia Britannica has announced that it will discontinue its printed version, according to this story from the New York Times (click to link).

Implications:   The company has been publishing these impressive volumes for 244 years.  Wisely, they’ve also been publishing on the web for many years, and seem to be focused on staying current with mobile devices.   What remains to be seen is whether their business model can prosper in a world where information has become so eager to be free, through sources like Wikipedia and a seemingly infinite list of other web resources.

Once upon a time, buying air travel used to be a complicated ordeal, often requiring the intervention of a travel agent to interpret the numerous options and seemingly foreign language of the airlines.  That process was ultimately simplified, and information once controlled by experts was released to the general public; we can now shop for and purchase plane tickets from the miniature screen of our smartphones.  (For that matter, I find the best time to plan my travel is when I’m sitting at 30,000 feet using GoGo.)

What information does your business control?  Could your business actually grow if you figured out a way to relinquish that control to the consumer?  Could your company suffer is someone else figures it out first?

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

Smart phones eating into the camera market

Observation:   As the inboard devices become more sophisticated and take photos of higher resolution, lots of people are leaning on their phone for “spur of the moment” shots.  However, consumers still want a point-and-shoot or D-SLR for those really important shots.  That’s according to a story in today’s Marketing Daily.  Click here to see it.

Implications:   Every industry category seems to be going through change, either in response to technology and innovation, or in the aftermath of the recent recession.   

Do customers sometimes choose a cheaper alternative when considering the products you… but then come back to you for a need that is really important?  (Are you seen as the quality choice, or the low-price option?)  Is technology or an emerging competitor eating into your sales?  Sometimes, a shift like this can happen so slowly that you don’t realize the magnitude of an emerging competitor. 

Just ask Kodak.

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

Open mike night… for cooks?

Observation:  In a world where even The Food Network is deploying a reality TV strategy, it was only a matter of time before actual restaurants gave aspiring chefs the chance to cook for the crowd.  See this story from today's Springwise newsletter (click to link) about a restaurant in Paris that’s giving everyday people the chance to show their stuff. 

Implications:  Love it.  Why not the same approach for a home improvement store?  Stylist?  Fashion designer?  All kinds of retail could take advantage of this approach as a creative way to connect with consumers and connoisseurs alike. 

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

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.

Macy’s takes online interaction into the store with QR codes

A recent story from Online Media Daily asks the question, “Are QR codes worth it?” for both the retailer and the consumer.  It’s worthwhile question, and you can read that story by clicking here.

Implications:   Of course, QR codes are just another tool.  And like any piece of equipment, whether it’s effective depends on how you’re planning to use it.  Can consumers “shoot” your QR code to find a landing page with important information about your products, a map to your location, or a coupon that represents value?

One of the stronger uses I’ve seen lately is the way Macy’s has placed QR codes not just in their advertising, but in their stores.  When consumers see the signs—strategically placed throughout each store—they can scan the QR code to hear from designers and celebrities.  It’s like having a virtual sales person point-out the strongest attributes of the featured product.

If you’d like to see the visual explanation, here’s the one Macy’s offered on YouTube (very similar to the television campaign they’ve been running this month to tout this new “service.”)   Note how they emphasize simplicity, and not technology!

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

New Coke for the video age: Netflix un-changes its formula

Today’s New York Times contained a blog post that nicely summarizes the about-face taken by the Netflix after trying to spin-off its traditional DVD rental business.  Click here to see the story.

Implications:   In recent days, some of my colleagues and I have pondered the limitations of research.  Specifically, we reflected on the iPod, iPhone and iPad, and how so much of that innovation originated on the gut feeling and intuition of Steve Jobs and the company he created.  Many of those innovations come in spite of research, as much as they are born because of research.  A century ago, Henry Ford is credited with saying, “If I had asked people what they wanted, they’d have told me ‘a faster horse’.”

Research has its limitations, but so does running a business without sufficient research, as learned the hard way by Netflix in recent weeks.  (Or, I supposed you could say that research has now been done… in a manner more expensive than simply canvasing their customers and prospects.)

Is your company moving too fast?  Too slow?  Have you asked your customers?  Or, are you safe in contemplating a new product or service launch that is so good... your customers might not have even realized they might want it?

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

Manufacturing and jobs vs. the economy

Recently, the New York Times published a video story about the Marvin Window and Door factory in Warroad, Minnesota.  The story caught my eye because the town is not far from where I grew up in the extreme north central U.S., but it is also a testament to the convictions of a privately held company—and its employees—during rough economic times.  Click here to see the story, or watch the video immediately below.

Implications:  Susan Marvin, the company’s president, sums this story up well.  “You can sustain the business operating like we are and wait for it to improve.  Or, we can say that’s just plain not good enough and we’re going to do something about it.”  The quote is a teaser, but we can assume it means finding new ways to sell and satisfy customers… or finding new customers to satisfy and sell.  Perhaps Marvin will find new markets for their product line, or new product lines for their facilities to manufacture.

But you have to love how they project an air of control, rather than begin victims.  And that’s an attitude that trickles down right through the ranks of their employees.

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

Thought leadership: Are they media, marketers, or both?

This morning’s New York Times illustrates how the line between media company and marketing has become more blurred, as leading fashion magazines start acting as a direct conduit in the retail relationship.  Click here to see the story.

Implications:  The theme to these campaigns might be something we think of as “Thought Leadership.”  Consumers seek the counsel of fashion magazines to determine what’s in style; it is only a natural next step to click on the magazine’s website to commence the retail transaction of that style.  The consumer came to the media seeking information, and product was tucked conveniently into the equation.

Lets turn the tables and put the same principle be to work for your business.  Does your company provide information to its customers?  What kind?  How valuable is that information?  Does your messaging (marketing) include the kind of counsel or guidance which could be grown into your own Thought Leadership campaign?  Does your existing website—or could a new blog—provide the kind of intelligence that makes purchasing in your category easier?  Just as magazines have placed product close to the coverage, could you insert a knowledge campaign conveniently close to the products you sell?

We live in an age where media can be divided into three different types:  Paid (where you spend money to advertise), Owned (your company’s website, blog, publication or social media presence), and Earned (those actions on the part of your company which are covered by the press as public relations).  Thought Leadership can help you maximize all three types of advertising.

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

Cash shows signs of obsolescence

A story in today’s New York Times serves as a reminder that just as email impacted postage stamps, plastic has impacted money.  The number ofone, five and ten dollar bills being printed is on the decline.   (See the story by clicking here.)    

Implications:    I’m wondering how long plastic will prevail as the king of payments, and how much of an impact electronic payments might have—especially the emerging use of smartphones to “swipe” a payment—on the declining use of cash.

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

When your phone expires before your contract

Around 62% of customers feel their smart phone is obsolete now, or that it will be obsolete before their wireless contract is up.  That’s according to a recent story from Research Brief.  Up to 48% of customers would consider buying a new phone early if terms were favorable (even though doing so would almost certainly involve some cost).  Click here to see the full story.

Implications:  Funny… my wife is going through this right now.  The phone she is carrying was more than enough to satisfy her desire to take phone calls and send text messages at the time we bought it.  But as new apps have rolled out and more sites have become optimized for mobile, she has become disenchanted with the device ahead of its’ scheduled retirement.

We inquired about purchasing a phone upgrade… and the price was over $200.  It would cost about $175 to opt-out of her contract.  If other consumers are running into a similar situation, one must wonder whether it is only the phones that have become obsolete, or whether the way they are sold has become dated, too.

Personal examples aside… consider this underlying issue:  Consumers are buying smart phones at an amazing rate, even knowing they will be confident of the product for a span of about twelve months.  That says something about how pervasive technology has become in our society, doesn’t it?

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

One size does not fit all

Today’s New York Times features a story about sizing in the apparel industry.  There is no real standardized practice between designers or retailers now, but a move is afoot to change that.  Click here to read the story.

Implications:   My take-away on this story is focused on consumer frustration while clothes shopping.  If you can be a size ten in one line, but go to another store and wear a size 000, one must wonder why this issue has not been addressed before.  (And one might now better understand why many women pick a favorite designer or brand in clothing, and then tend to stick with it.) 

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