Searching for simplicity: Consumers want technology to make life easier

Observation:  Citing a study by Ketchum, a story in today’s Marketing Daily suggests that consumers want technology make their lives easier.  Click here to see the story.

Implications:   It might sound like this report is stating the obvious, but the fact of the matter is many companies have completely overlooked this one simple request of the consumer.  We tend to think of innovation as adding another feature, or more bells and whistles… when the reality is that the best innovation can occur when we take something away.  Think iPod (reducing the many buttons and controls of previous music players to a single button and a dial).  Think Jiffy Lube (reducing the previously complex process of taking your car in for service to a ten-minute, oil-change-only experience).

Is your website filled with bells and whistles?  Or does it simplify the relationship between you and your consumer?  How about the in-store experience?  Would the best innovations mean adding some elements, or taking some away?

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

Moms using smartphones on the go. (Literally.)

Observation:  Research from Meredith’s Parents Network indicates that one in five moms consume media while in the bathroom.  The study was cited in a story by Online Media Daily, and you can click here to see the full story.

Implications:   If you still don’t believe we live in a multi-tasking world after reading the OMD story, I don’t know what to say.

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

Today, 60% of food shopping is intended to satisfy an immediate need

Observation:  According to a report from the International Dairy, Deli and Bakery Association, the majority of trips will involve purchasing food for instant consumption or an immediate need.  Further, consumers are spending more on food and gasoline because of rising prices in both categories, and placing more emphasis on health as something that contributes to the value proposition.  A summary of the findings were published in an article from Convenience Store Decisions, and you can click here to read it.

Implications:   Time Sensitivity remains an important—and increasing—driver of consumer behavior today.  Grocery stores that waste consumer’s time risk being displaced by companies that offer quicker meal solutions, faster checkout alternatives, or entirely different channels… such as convenience stores, restaurants or home delivery meal options.

But certainly, this need for speed isn’t confined to food consumption.  Is your company, product or service subject to the rule of Time Sensitivity law?  Is there anything you can do to accelerate your offering?  Or—and this is a very real possibility—is your category immune to the issue, satisfying customers who are so time-stressed that they’re eager to slow down, relax, and have a nice candle-light dinner?  Could you have different customers who expect different things… or the same customers who want speed on a weekday but leisure on the weekend?

Staying in-touch with consumers has never been more important, as the benefits they seek within the products they buy continue to evolve.  [By the way, for more stories on the issue of Time Sensitivity, click here.]

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

Using digital to offer the right thing at the right time

Observation:  The Springwise.com newsletter is frequently a source of consumer-focused innovation, and this week’s issue did not disappoint.  It featured a story about one bookseller in Spain, who is offering a free sample—the first chapter of a book—via a QR code on in-train advertising.  Click here to see the story.

Implications:   Effective marketing focuses on a consumer with the motive, the means and the opportunity to commit a purchase.  In this case, the motive might be boredom during a train ride, and because most folks on a train are commuting we can assume they have the means (money) to spend on a book.  And opportunity is facilitated by the use of QR codes, which most smart phones are capable of reading with the download of a simple app. 

Think about your product or service.  What would be the best possible timing for you to deliver your message or invitation to a consumer?  Are you doing it?

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

Lots of folks skipping lunch (or bringing it in a bag)

Observation:   Yesterday, I wrote a story about the idea that some consumers are starting to indulge again; now, I’m sharing an article suggesting that fewer people are going out to lunch.  It appeared recently in USA Today (click to link).

Implications:   The USA Today story isn’t just about people who are cutting back, financially, on their lunch expenditures (although that is one reason that some folks are lunching less).  The stronger focus of the story is that people are feeling time-stressed, and don’t always want to take the time required to sit-down for a decent lunch meal.

I find that ironic in a world where we can get phone calls, emails and documents delivered almost anytime, anywhere.  This issue graphically illustrates just how busy we think we have become.

Whether you’re a restaurant, or any other product or service category, are you doing anything that helps consumers save time?  Do you deliver?  Can I order online?  Using my smartphone?  Lots of people will decide on lots of purchases in the coming year… with the hope that, really, they are buying time.

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

UPDATE: Do consumers prefer online or in-store?

Observation:  A Research Brief story this morning asserts that consumers prefer online over in-store shopping.  Click here to see it.

Implications:   I fear that the data cited in the RB story does not go far enough; or perhaps it gives a right answer to the wrong question.  As I’ve been discussing in recent posts, the consumer does not necessarily want to choose between online or in-store.  They want multiple channels available to them, and they want to use the channel that suits them best at any given moment.  If the purchase is a no-brainer, they want to get it done fast.  If the item is one of complexity, they want to hold the product in their hand, and perhaps talk to someone knowledgeable about that product.

Blanket statements can get you into trouble.  Consumers purchase preference are likely to depend on the personality of the buyer, the personality of the product, and the circumstances which bring the two together.

[For more on this matter, see “Target:  Showrooming” from 4/5/12, or “Showrooming” from 3/2/12.]

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

For web consumers, velocity is critical

Observation:   A story from today’s Marketing Daily illustrates just how important speed can be in the mobile or traditional web experience.  Click here to see the story.

Implications:   The temptation for many traditional marketers is to drone on and on about the color, texture, service, selection, horsepower, history… all of which can be nice, but which are often lost on a consumer that is long gone to a faster site.

How quickly can your company communicate value?  How effective are you at focusing precisely on the benefits that a consumer wants to gain? 

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

Price still an important thing, but it’s not the only thing at drug and grocery

Observation:   That’s according to this story from Drug Store News, citing research from SymphonyIRI (click to link).

Implications:   “Value” isn’t always about price.  Consider, instead, how the product or service you sell—or the way you sell it—adds value to the consumer’s life.  I’m banking on more and more digital interaction (especially mobile), concern about The Fuel Economy, and increasing Time Sensitivity as issues that drive consumer trends in the next few years. 

What are you anticipating?

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

Snack attacks represent opportunity for restaurants

Observation:   Today’s Marketing Daily includes a story about the rise in snacking frequency, and the role that restaurants can (and could) play in that mini-meal category.  Click here to see the story.

Implications:   It seems that things like the dollar menu at fast food restaurants or the pastry display at your nearest coffee shop are serving to facilitate more frequent eating occasions of smaller servings.  This report indicates that snacking occasions have increased; I’m going to keep my eyes open for a report that illustrates whether formal dining occasions have declined.   

Meals used to be an appointment, happening at breakfast time, lunch time, and dinner time… and you better not be late!  These days, though, it seems like many folks have become less meal-time focused, and more likely to graze throughout the day.  (I wonder if this might be a by-product of time poverty.)

If you own or operate a restaurant, the fear here could be that your average ticket revenue might fall.  But in a glass-half-full perspective, realize that this might be a chance to get more people in the door to sample your restaurant, and become comfortable with the idea of returning later for their major meals.

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

More workers lunching at home

Observation:   More workers are getting away from the office over lunch hour, and dining at home.  That’s according to this recent post from Food Manufacturing (click to link).

Implications:   I appreciate the way this story outlined a problem (for foodservice manufacturers and restaurant operators), but then also suggested some ways to entice consumers back into the restaurant and retain those you’re already serving.  It’s important that we focus on the things we can control (service, quality, menu options), rather than those things we can’t.

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

Generational Economics: The Age of Upgrades

Marketing Observation:  To fully appreciate why people age 35 to 49 behave the way they do, we have to reflect on the type of spending that was going on when they were younger (age 18-34, or “the Age of Acquisition”; see immediately above).

Think about all those belongings the typical consumer acquires in their 20s and early 30s, which they usually did not own when they turned 18:  New cars, homes, furnishings, appliances, educations, spouses (or partners), children and more.  How did we acquire all of these things while earning what amounts to the median salary of a 26 year-old?

First, we had to make choices.  Compromises.  While we were buying almost everything, we could not afford to buy the BEST of everything.  So, we purchased a lot of entry-level goods.  From cars to starter homes to knock-down furniture… you know the routine.  Secondly, we racked up a lot of consumer debt.  There’s a reason credit card companies so often target young adults and teenagers.  A lot of people use credit cards to feed their insatiable consumer appetite during the age of acquisition.  And finally, we got help from the Bank of Mom and Dad.  Plenty of middle-age and older parents can tell you how expensive it can be to help their adult children get up-and-running.

But, lets get back to the Age of Upgrades.  By the time we turn 30, 35, or 40 years old, our purchasing priorities change a bit.  By now, most folks have their career well established, and a family underway.  And since you already own much of what you need, you shift from simple need-based purchasing to more want-based purchasing. You already have a (home, car, furniture), but now you’re ready for a nicer (home, car, furniture).   You decide it is time to jettison the knock-down furniture, and replace it with a solid oak wall unit.  Out with the entry-level domestic hatch back, in with the imported SUV. 

Note that for the Age of Upgrades, I’ve arbitrarily drawn the line at 35 to 49.  You might draw the line differently for different categories of products and services.  But either way, it is that life stage where low cost is replaced by quality as a purchase priority.  You’re often after products that are thought of as premium, rather than famous for being low-priced.

Marketing Implications:  A good word for people in their Age of Upgrades is “momentum.”  Their careers are moving forward, their children are growing, and life is moving at a very fast pace.  It’s a lot of work… and this group has every right to start feeling like they deserve a taste of the finer things (which is a relative term). 

What does your company sell that might be seen as a small reward or a well-deserved indulgence?  Does your marketing talk about the value-added services that might make this group feel like a pampered guest?  What do you offer that might be particularly active to their pride and joy (their children)?  Does your company, product or service help solve the time-sensitivity issues that can exist in households where people are juggling the demands of their career with the needs of their family?    

The Age of Upgrades is ready… to spend with companies that have upped their game.

Mike Anderson, for The Marketing Mind consumer trends blog, service of The Center for Sales Strategy.

Consumer trends for food and packaged goods

Observation:   Today’s Marketing Daily shares insights from the Hartman Group related to consumer packaged goods.  Among the notable trends they offer:  44% of adult eating happens alone (contrary to the visuals in a lot of CPG advertising).   And roughly 11% of CPG products are consumed within an hour of purchase… meaning many items are purchased and consumed spontaneously (they call it compulsively) or as a just-in-time meal or snack solution.  Click here to see the full Marketing Daily story, or to request a download of the complete report from Hartman Group, click here.

Implications:   This report helps illustrate both the spontaneous nature of today’s food shopper, and the incredible velocity at which consumers seem to be living.

For years now, we’ve been talking about how today’s food consumer is different from those of years past; today’s shopper is less likely to back the station wagon up to the supermarket and load it up with groceries for the month… and more likely to stop in on Thursday just to find a meal to serve that night when she/he gets home.

For many consumers, the supermarket is increasingly being treated like a pantry, where one stops in for what they need in the near term or to solve an immediate meal incident.   

What kinds of changes are you seeing in the way people buy in your category?  Has your company, product or service adjusted to those shifts?  Has your messaging?

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

Cyber Monday sales increase

Observation:  As if trying to out-perform the record in-store retail sales of Black Friday (see immediately below), Cyber Monday followed with even more remarkable sales increases.  By some accounts—like this one from USA Today—sales were up as much as a projected 18%.  Click here to see the story.

Implications:   Some analysts are pointing to this year’s holiday sales as evidence that the economy has stabilized and consumers have grown wildly more confident.  Others are suggesting that sales might taper-off now that consumers have taken advantage of the most advertised discounts of the year.  Only time will tell which group is closer to reality.

If you’re a business owner, marketer or manager, the best bet is to not wait for the analysts results... but work to improve your own.  How can you add value to the gift giving (or receiving) experience?  Which distinctions have been most important to your holiday buyers so far?  Are you emphasizing those unique value propositions in your messaging to other buyers?

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

Online shopping impacts on-lot test drives

Observation:  A story from the Detroit News suggests that online buyers are taking fewer test drives before buying a car.  See the piece by clicking here.

Implications:    We’ve been long studying how, when consumers conduct extensive Internet research, it can have the affect of compressing the face time a dealership or retailer might get with that consumer.  This article seems to suggest that web research could even eliminate their opportunity to sell… or up-sell.

How is online buying—or research—impacting the face time you used to get with your customers?

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

Can consumers buy time (from you)?

Yesterday’s New York Times had an important story about people who have lost a major “career” job, and who are now piecing-together several part-time positions to make ends meet.  Click  here to see the story.  

Implications:  When it comes to surviving the current economic environment, many people have devised creative and sometimes dramatic measures to make life work.

Think about that.  Once upon a time, we might have assumed a C- or VP-level executive to be a terribly busy person; an important customer for whom time is more precious than money.  On the other hand, one might have assumed that workers in a less stressful job had plenty of time on their hands… and that they might see savings a few bucks as more important than saving time.    

Well, you can toss those assumptions into a bin labeled “1999 stereotypes that no longer apply.”

Consider the middle-aged adult (or anyone) who lost a career job somewhere during the Great Recession… and who is now working two or three jobs (or more) to make ends meet.  Consider how tired and frazzled they are, and how little spare time they might have. 

What does your company, product or service do to help time-sensitive consumers make ends meet, either in terms of cost savings, or in the way it helps them save time… and take a much needed break?  Are you doing everything you can to streamline the transaction time?  Are you making it easy for people shop or research their purchase via your website?  Are you open extended hours, and is your staff respectful of their customers’ time?

There is an old saying that “you can’t buy time.”  But you can sure sell products and services that help people save it.

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

From a guide wire to a noose: The connected society is on information overload

We’ve been hearing about the 24/7 news cycle for years… that sense that on any typical news day—even more so when a major world event is happening—if we tune away from the news for even a few moments, we might miss something critically important.

Fast forward to 2011:  The “news” we absorb isn’t just coming from a newspaper or major network… it’s coming from our network, via laptops, smartphones and iPads.  Today’s Research Brief featured a story about information overload in the wireless age.  Click here to read it.  A PDF of the Digital Lifestyle survey on which the article was based is available by clicking here (if you’re willing to give up your name and email address).

Implications:   Even if you read the article or white paper, reconsider the extent to which consumers are receiving messages.  33% of survey participants said they even check their device in the middle of the night.  And 64.2% of respondents said the torrent of information they are receiving has gone up by 50% compared to one year ago.

Consider the traffic your messages have to compete with.

Then, consider whether your marketing message has the relevance to win.

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

The grocery store at your door

Colleague Matt Sunshine passed along this story from his USA Today iPad app:  It explains that Walmart is testing home delivery of groceries in San Jose.  Click to link.

Implications:   Much coverage has been given to the idea that people sacrificed convenience for the sake of financial savings in response to the recession.  But it would be a mistake to assume that time saves became less important.

Many people are working twice as hard for the same or smaller household income, when compared to three or four years ago.  Time Sensitivity is still pervasive, and likely to compete with things like inflation and the price of gasoline on their list of important concerns as consumers set their purchase priorities.  

Since this blog was started, we have focused intensely on the matter of Time Sensitivity.  If you’d like to review other postings on the topic, click here.

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

Employment continues to gain strength in numbers. But there's more to that story.

A few moments ago, news alerts from both the New York Times and the Washington Post flashed on my screen: The unemployment rate continues to fall, even if modestly. The U.S. economy added more than 200,000 jobs last month. Click here to see the Post story, or here to review the Times version.)

One of things that I’m watching, though—along with a lot of other people—is the type of employment that folks are finding. Yesterday, a story from the NY Times explained how some folks have had to move down a few rungs on their corporate ladder… or they might be on an entirely different career path than before. Still others might be working two or more jobs, in an effort to replace the primary job they used to have. Click here to see that story.

Implications: I must tell you that I’m delighted to end any week with news that jobs are being added to the economy at a rate faster than analysts expected. But if you’re in business, that’s a broad-brush issue that doesn’t tell the whole story.

If someone has had to step down in income or position, it will impact their behavior as a consumer. Chances are, the new job (or jobs) will lead to some career intensity, as people struggle to get back to the income and lifestyle they once knew. And even in households where no job loss was suffered, job cuts at their company were likely to create more demand on each employee, so those workers are working harder, too.

Is your company, product or service designed to save the consumer time? (Many people are under more time pressure than ever!) Are you talking about that in your marketing efforts? Time sensitivity was a huge issue even before the recession. And while some people began placing more importance on saving money than paying a premium for convenience… time sensitivity did not just evaporate. It’s still putting a lot of pressure on many consumers.

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

Consumers are trying to research online before going in-store

Today’s Research Brief suggests that only 3% of consumers have an extreme loyalty toward their brands… which allows one to infer that 97% will consider other options. Perhaps that is why, as the story suggests, consumers are so intent on doing research before making a purchase.

And while the web is a favored source of that research, nearly a third of consumers (30%) say they cannot find meaningful information at the store or product sites they visit.

Click here to see the Research Brief for yourself.

Implications: Does your website provide the kind of marketing you want… or the kind you consumers want? (Of course, this is a question for your consumers, not you.)

The next time I design a customer feedback survey, I’m thinking about two more questions I should ask.

“What could [company] do to make your shopping research easier, and therefore your purchase experience more pleasant?”

“Please visit our website before answering this question: What could we add to (or delete from) the [company website] to make your shopping research easier, and therefore, your purchase experience more pleasant?”

Obviously, this is a survey that would be very easy to administer from your website, almost anytime, so you could gain this intelligence beginning now.

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

Information overload remains a source of stress

Even compared to a few years ago, our access to information is greater. We’ve had websites and expanded cable for a long, long time. But of late, we have access to ever-smarter smart phones, i-Pads, e-readers and apps. Is your life better for all of it, or simply more cluttered? Do you have more time today, compared to a few years ago... or less?

The topic rises in my consciousness because of a newsletter I received yesterday from McKinsey (in my email), a story in the New York Times (which came through an app on my Droid), and an invitation to a time management seminar that heard about (from a friend on LinkedIn).

Implications: After reading the McKinsey and NY Times resources above, one might ask, “Am I making good use of my customer’s time? Is the velocity of their transaction sufficient to make them appreciate my service, or speak poorly about it? When I invite them to visit the company website or Facebook page, are they being incentivized with something that rewards their investment of time?

Is the content of my marketing full of the things I am proud of… or have I narrowed the message to focus on what matters most to my prospect? The time they will devote to consideration is finite; am I using those precious seconds of awareness in an optimal way?

The race to the sale does not always go to the lowest price, nor even the highest quality. Among time-starved consumers, the race sometimes goes simply to the provider who is faster.

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