More couples said "I don't" to expensive weddings last year

According to a story from today’s Marketing Daily, the average expenditure per wedding was down last year. The article cites research from The Knot. (Click here to read the piece.)

Implications: This story leaves me with more questions than answers. Is the cost-efficiency driver a long-term consumer trend? Or was it just a short-term response to the recession?

My hunch is there’s a little of both. Economic strife is often accompanied by a shift in purchasing priorities. Like spending less when you can… to be sure. But when it comes to some purchases, people sometimes spend a little more, to buy things that will last.

Are weddings impacted by this phenomenon? No… I’m not being a cynic or suggesting that marriages don’t last. I’m just suggesting that weddings themselves are one-time events… and weddings don’t last. I’ve personally observed more than one couple whose weddings we have been involved with in the past year… and frequently heard the attitude, “Let’s put the money into the house,” or, “If we save on the reception, we can start off our marriage with a stronger financial footing.”

Are you seeing this in your business? If you’re a wedding services provider (hotel, officiate, photographer, baker, jeweler or wedding party band), this could impact you. But it could affect you, too, if you sell furniture, home improvements, investments or cars.

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

Unemployment rate falls to 8.9%

Because a sustainable recovery depends on consumers having jobs and paychecks, it’s good to end the week with some good news about unemployment. Depending on your preference, here’s the story from the New York Times… and here’s the way it was reported by the Washington Post.

Implications: We still have a long way to go before describing the economy as “robust,” but based on what we’ve been through, this is good news.

As employment gains, pocketbooks open. Have you sidelined any products, services or offers in response to the recession… which might be good to reconsider now, in the face of increased optimism?

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

Ready for the return of the minivan?

The other day, my wife and I met some old friends at a coffee shop. One of the young moms mentioned that they were thinking about replacing their Honda Odyssey with a newer minivan. Another mom in the group scoffed: “You’re thinking about another MINIVAN,” as if doing so was akin to infecting oneself with an incurable disease.

The Honda owner did not over-react to the negative response. She just asked, calmly, “Are you still driving the Tahoe?” “Yes,” her counterpart replied. “You live in a suburb,” said the van owner, “when was the last time you actually put that thing into four wheel drive?”

The Tahoe mom went silent. And it occurred to me that I had just witnessed another example of how consumers are gravitating to the authentic, in the aftermath of the Great Recession. It reminded me of a story I saw in the New York Times on just this topic a couple of months ago. Click here to see that story.

Implications: Big SUV’s will still be around years from now. But they are likely to be driven by people who have a demonstrated need for an SUV (because of a sport they are involved with or a utility that requires such a vehicle), rather than being driven by those who simply find it fashionable.

Minivans, at one time, were fashionable, too (when they were new, and the decade after). But eventually, society deemed it the vehicle of stereotypical soccer-moms (“Eeewwww”), and the functional people-haulers of the 80’s and 90’s were replaced buy the more sporty, stylish, SUV. Same soccer-moms, different truck.

In many ways, the Great Recession made people a little more realistic, and content to be who they are. We sought-out the authentic; if you’re a family with small kids, that might mean adding a minivan to your family fleet. Even here in Minnesota where I live, the streets are plowed within hours of every snowstorm. If the minivan or a cross-over can better defend the family against expensive gasoline, fewer might stick with the bulky SUV merely for fashion’s sake.

Did the recession bring your customers down to earth? What are they doing differently now? How has your company, product or service adapted to these changing priorities? How has your marketing responded to this consumer trend?

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

From aggravated to aggregated: This platform helps keep your status updates targeted and relevant

I’ve long restricted my LinkedIn profile to my professional life… and then chat-up my personal interests on Facebook, which I reserved for personal relationships. (I don’t think my colleagues and business associates want to see my vacation photos, and my friends aren’t all that interested in the latest qualitative research discovery I’ve made!)

Some people have more than one Facebook account—one for their personal life, and one for their professional endeavors—and the same goes for their presence on LinkedIn and other social sites.

In another story from Springwise.com this week, a company called Whoopaa helps users separate work from pleasure in more convenient way… aggregating information into categories and helping users “post” to the pertinent social, professional, or family connections in their life. Click here to see the story.

Implications: It is amazing how far the consumer trend toward personal archiving has come. We’re being bombarded with so many messages—even from our friends—that we must use artificial aids to sort them into categories of interest.

If your company, product, or service were going to be sorted into a compartment of the consumer’s life, where would they put you? If they were inclined to recommend you, would they tell their family, friends, co-workers… or all of the above?

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

This business is really in the toilet

This week’s Springwise.com newsletter featured a Dutch company that has made a business out of offering bathroom facilities. Click here to see the story.

Implications: Sometimes, the most amazing business ideas are those hiding in plain sight.

Next time I travel, I’m going to count the number of businesses who display a sign that says, “Restrooms not for public use,” or similar.

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

Just as there were many different recessions, there are many different recoveries

As far-reaching as the recession was, it was not a singular event that treated everyone the same. The Great Recession was a very personal event, depending on the employment, housing, revolving credit and other financial dynamics of an individual or their family.

A story in today’s New York Times suggests that like the recession, the recovery will be a highly personalized matter, at least with regard to credit card use. Click here to read the full story.

Implications: I know people who regularly use their credit cards for necessities, but only because they like to rack-up frequent-flier points or other rewards. I know people who use cash, even for a major purchase. So blanket conclusions can be a dangerous thing.

But the fact is, a tremendous number of consumers have been trying to de-lever over the past few years. While some are again warming-up to the idea of using a credit card or financing a major purchase, it appears unlikely that we, as a society, will go whole-hog on another spending spree like the one that preceded the recession.

On the other hand, there are consumers who are using credit instruments every day, not out of want, but out of need.

In your business, does a “qualified customer” look the same in 2011 as they looked in 2006? What, if anything, has changed?

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

For restaurant recovery, is breakfast the most important meal of the day?

A headline in today’s Marketing Daily asserts that a 4% lift is seen for breakfast sales this year. Reading deeper, the 4% figure is a projection from Mintel. Click here to read the story, which asserts that breakfasts will be an important driver of restaurant growth and healthy options will be an important driver of breakfasts.

Implications: I have a few questions, here. Hasn’t breakfast been a traditionally challenging day part for a huge number of restaurants? (Breakfast places aside, of course.) If breakfast was the weakest link, doesn’t that just naturally make it a relatively easy place to increase sales (especially in terms of percentages)?

As a late-stage boomer, I can understand the need for healthier entrees, as expressed by a significant number of survey participants. But time starvation continues to play an important role in how consumers prioritize their workday food purchases. According to their own study, a platter meal is favored on weekend mornings… but the breakfast sandwich (a grab-and-go option) is the preferred breakfast meal on weekdays. (Can you make it healthy… in a hurry?)

The Mintel study—or any research that leads you to understand who your target consumer really is and what they really want—is a very useful tool. But be careful how you use those tools. Research seldom points to a single conclusion. More often, it asks you to consider a range of possibilities.

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

Moving from comfort food to experiential cuisine

JoAnne Naganawa, friend and fellow trend-watcher from Seattle, just passed along a story she found in Fast Casual magazine—an industry trade publication—suggesting that consumers are moving out of their “comfort zone” when it comes to dining out. (Click here to see the story.)

Implications: When people go into shock—literally—their body is coiling-in to only the essential activities, like breathing, pumping blood, etc. The Great Recession could be thought of as a similarly traumatic event, which caused people—in terms of finances and consumption—to coil-in to only the most essential of behaviors.

To a restaurant, that might mean down-grading from upscale to fast casual, or from fast casual to fast food, or from fast food dining to a variety of supermarket options (like grab-and-go, deli, or heat-to-complete entrees). And when we did dine out-of-home, we were more inclined to order those things that would be predictably satisfying. The Great Recession was a time to serve foods known to satisfy, rather than the exotic or adventurous.

The times, they are a changing. (Again.) This consumer trend was almost predictable, as pent-up demand is no less an issue for out-of-home dining than it is for automobiles or home furnishings. As people once again “go out,” they are seeking an entrée or experience (or both) that they cannot achieve at home. Is your restaurant serving that meal? Is your store delivering that experience?

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

A surge in automotive, but who gets the credit?

Is it Detroit that is recovering? Or is it the financial industry driving the recent increase in automotive sales? Those are the questions asked (and answered) by a recent story in The New York Times. Click here to see it.

Implications: This is an important story to read if you sell cars… or appliances or furniture or office equipment or computers... or any other product that is frequently purchased with the help of financing.

This is important not just because it is a sign that financing is more readily available than it was even a few months ago, but also because it seems consumers are more willing to consider financing than they were just a few months ago.

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

Many happy (tax) returns

Over the past few years, many consumers used their tax refund to pay off bills and pare-down consumer debt. A Research Brief that was published yesterday suggests that more people will use their refund as “fun money” this year, replacing home electronics, furniture, or even buying a vacation. That’s according to an NRF study cited by the story, which you can read in full by clicking here.

Implications: We knew that the recession would be followed by a period of pent-up demand, as consumers relaxed a bit from their self-imposed (or economically-forced) policy of restraint. Now that the job market has at least stabilized (it doesn’t seem to be getting any worse), and many people have at least made progress in their decision to control debt… they’re in a position to indulge, at least a bit.

Now… if fuel prices will just not mess things up…

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

Many banks still have work to do, with regard to trust

A story from yesterday’s Marketing Daily suggests there are still cracks in the level of trust consumers have for many financial institutions. The article cited The 2nd Annual Edelman 2011 Trust in Financial Services as its source. (Click to link.)

Implications: Jeff Zilka, quoted in the article, suggests that it’s not enough for a bank’s advertising to be compliant with applicable regulations… but that it must also be consumer-compliant. (An institution should question whether their message is believable.) Citing the need for transparent and honest communication, he suggests that brochures and sales materials should be scrutinized by focus groups, just as a bank’s advertising often is.

I couldn’t have said it better myself. There is no greater fine than the one imposed by consumer opinion.

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

Gas prices shift the priority list of consumers

According to this snippet from Automotive Industry Digest and Automotive News, car shoppers are adjusting their car-buying criteria to account for jumping oil prices. (Click to link.)

Implications: The article suggests that at $3.50 per gallon, many consumers begin making adjustments to their driving habits, and at $4 or more, they begin changing their purchase intentions (favoring more fuel-efficient models).

Are you thinking about how an increase in fuel costs will impact consumer activities related to your company, product, or service?

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