Fast forward to yesterday -- I was chopping celery for my homemade Cream of Celery soup, and the day's news -- the pending inauguration of our new President, yet another financial advisor revealed as a fraud, more retailers declaring Chapter 11, oil prices down again while stockpiles increase, the DOW taking yet another big dive, more layoffs announced, more banks screaming for more bailout money -- brought those marekting strategy thoughts back to the front burner. Lots of thoughts were freewheeling thru my head and then - bam - the flash, the moment of clarity, the "ah ha," the epiphany - struck: Consumer thinking has been forever changed by the events of 2008. That premise led my scientifically-trained mind to the next logical "if...then" thought: If consumer thinking has been forever changed, then marketing strategies must change, or even more companies will find themselves buried in the radioactive fallout of this recession.
So, the question begs to be asked: What are consumers thinking, and what strategies will marketers need to consider for future success? Will what we've done before, or what we're doing right now, still work?
Will generations X and Y continue to "live for today?" The twenty-somethings are already smirking at their elders who moaned over Christmas dinner about vanishing 401k's, IRA's reduced by 30%, bonuses denied, houses losing 50% of value, employer healthcare cost sharing reduced, pensions cut. These young consumers will probably not stress, but instead go with the flow, continue to rent and follow other strategies so they can be fluid, be able to move where the jobs are almost instantly, re-train for new jobs, and not spend hours on the internet studying where to invest their earnings.
My own precious, ginormous Boomer generation is already thinking "hmmm....maybe my penny-pinching, spare-living, cash-in-the-mattress, stay-the-course, just-do-the-job, don't-rely-on-the-government-or-anybody-else, depression-era parents weren't so far off base." Boomers are now incredibly suspicious of everything --- our investment advisers, our health care insurers, big business, oil companies, our employers and most of all our state and federal governments and the politicians running them. When the economy does recover, Boomers will not be investing, and they will not trust the SEC or Treasury or any government agency to look out for our welfare. It will be a long haul back for the Boomers. And any purchasing will be very, very carefully considered.
The Senior generation is a real mish-mash of a mess. If you were about to retire, no doubt those plans are out the window. Many have been forced out of retirement and back to work to make ends meet. Some have had to move in with their kids. Some were prudent and got their house paid off, and their car paid off, and never used credit cards much, so monthly expenses are manageable on a fixed income, but they will certainly not take 5-star luxury vacations, and are inherently anti-gadget buying. Their spending will be minimal in hopes of being able to handle it when that hip needs replacement, or the pacemaker installed.
I have one idea to offer in formulating new thoughts on marketing strategies to take into 2010. I think marketers will need to consider three things to win a consumer's business.
1. Credibility - Marketers will need to get the consumer to trust that we are selling a product that performs as promised and we will be there for a long time to support that product. I see a return to traditional CRM - the building of long-term, face-to-face, loyal relationships with customers instead of quick-hit profit taking.
2. Value - Consumers are savvy, and have become wise to use of the internet, so if the price isn't perceived as fair, they will negotiate, barter, seek out resellers, buy used, wait until the price goes down or - gasp - simply not purchase . The old rush to buy now to "have the latest and greatest" will revert to the more patient strategy of "wait and see" what other consumers say about product usability and performance. And if the product isn't long lasting, or at least hold it's value, it will be a tough sell.
3. Relevance - The biggest challenge is to tailor the marketing strategies so the consumer feels a "need" to purchase the product. We already see that consumers have figured out they don't need 300 cable channels, or 20 MB download bandwidth when 5 MB will do, or an iPhone with 300 apps when all they want to do is call, text or email someone, or to pay $100 for a pair of jeans or $200 for a jar of face cream, or own a 2-ton vehicle that gets 10 miles to the gallon, or listen to XM/Sirius radio with 200 stations. Marketers need to find the new "hook" - the relevant point - that attracts the consumer to want to purchase. Is it organic/healthy? Green/good for the environment? Simple to use? Low priced? Long lasting? Improve their quality of life? Safe? Helpful to the American economy (versus some other country's economy)? Help their company be more profitable, run more efficiently, convert more customers?
This dog will need to chew on this bone for some time to come, but I'm going to enjoy my soup for now. Thoughts welcome.
.JPG)
