February 25, 2010
Guest Post By Heather Rast, Director of Marketing for Clickstop, Inc.
Susie Consumer
There’s no mistaking today’s consumer. She’s looking for a bargain, comparing her e-newsletters and regular direct mail to find the best offer for the brands with whom she’s loyal. She may rope a friend in to join her in some BOGO (buy one, get one) deals. Likely she’s even using her smart phone to comparison shop right in the bricks-and-mortar store. She’s smarter and savvier than the consumer of four years ago, and of course her technology is better, too.
Where Did The Money Go?
This generalized “she” may be a Pragmatic Spender or an Apathetic Materialist, groups which have engaged in thrift but generally remain less troubled by the recession than others. According to market research firm Decitica whose November 2009 study titled “Marketing to the Post-Recession Consumer” segments consumers into four distinct attitudinal groups, Steadfast Frugalists and Involuntary Penny-Pinchers represent the two most challenging groups for marketers to penetrate. The report suggests success hinges on tapping into their core motivations with validating messages to overcome barriers to purchase. These two groups engage in coupon-clipping and deal-seeking behaviors (including purchasing store brand products) with varying degrees of enthusiasm and gratification (Frugalists are okay with going cheap, while Penny-Pinchers do so begrudgingly yet consistently). Their capacity to spend may be reduced from previous years, but together they represent a sizable percent of the population (49%), so opportunities exist for brands willing to develop strategies to reach and engage them. It could be especially worthwhile to do so, considering these groups are less inclined to return to pre-recession spending habits once the economy has stabilized. The reality: cost-cutting is here to stay for many consumers. How is your brand going to make it work for and not against?
The Way You Do The Things You Do
Now that you know what you’re facing, consider a September report from Nielsen which discusses key insights to consumer spending behavior. Online sales are projected to increase almost 200 percent between 2008 and 2012, to an approximate $475 billion. That’s a whole lotta money spent online. This report addresses how shopping has evolved in three dimensions, each touching on fundamental issues or drivers.
1. Convenience is clearly a key hot button for most people. On-the-go lifestyles necessitate ease of use in order to be competitive. Expectations have grown for an “always on, always available” brand. Advances in technology pushes this along in the form of smart phones, netbooks and universal WiFi. Er, even the iPad now.
2. Choice is also another issue. Selection appeals to folks as they consider their available budget and their product needs. They need a match. Retailers should grow a depth of options to allow people to feel comfortable with their decision-making. People may only be able to shop the value market, but they want options when they shop wherever that may be.
3. Value plugs in naturally with the recession setbacks and the new focus on thrift and savings. It’s not so much that people aren’t spending at all, it’s that they’re being selective where they spend their money, more discriminate than before. Their money has to work harder and go farther, so the ability to evaluate choices based on key attributes will enhance customer experience. They appreciate brands which can flex and still be attainable on some level.
Taking It To The Street
A recent CNBC article covers an ABI Research report which includes this staggering data fact: “Mobile online shopping increased from about $369 million in 2008 to about $1.2 billion in 2009; and is estimated to reach as much as $2.4 billion in 2010.”
This information, in conjunction with what else we’ve learned, suggests tremendous opportunity for marketers in the coming year. With smart phone adoption continuing to grow (despite general economic stress and cuts in other personal budget areas), marketers can focus fewer resources in Internet and mobile marketing (than traditional marketing methods) and garner significant increases in sales. These sales may boost the bottom line while feeding more strategic use of brand awareness-building tactics.
The phone is in their hand, and they’re pretty turned on by coupons, discounts, and special offers (we all like the idea of ‘exclusive’). Provided you build a proper mobile site (including offering quality, attractive products) and extend a solid offer, its dollars to donut’s they’ll buy. The data says so.
Heather Rast is Director of Marketing at Clickstop, Inc., a multi-brand, multi-channel merchant operating in several specialty categories including cargo control, pet furniture, and building products. Clickstop’s goal is to grow sales and improve margins for its brands through strategic use of inbound marketing techniques. A seventeen-year veteran integrated marketer, Heather also writes the Insights and Ingenuity blog where she covers brand building, customer experience, brand affinity, and social media for business.
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