Understanding shifting spending habits can help businesses through difficult times, a new report finds
The Communications Agency (TCA), an independent marketing company, has used original research to uncover the changing attitude of consumers in the recession. The report, ‘The Crisis of 2008: Impacts on Consumers in 2009 and Beyond’, found that although individuals are worried about the economy, there are positives.
As TCA chief executive Adam Leigh points out, there are some sectors that do well during a recession – including those related to staying in and having fun – while the old maxim that we reach for chocolate, lipstick and other minor perks amid downturns is borne out by figures showing L’Oreal’s sales rising sharply in 2008.
Indeed, Leigh suggests there are opportunities for those who can realign their businesses to these shifting patterns of behaviour, as consumers become more discerning – and keener to deal with companies in all sectors who understand their new priorities and offer more.
Life Changes
Leigh also expects a move towards more traditional values and authenticity – fewer ready meals and more home cooking – and a fall in appetite for continual technology upgrades, for iPods and the like having to serve a decent life-span before being replaced.
Brands, says Leigh, must understand the pressures consumers are under and act accordingly. And interestingly, the research offers clues as to how.
Offering Added value
With 64 per cent of people reducing their expenditure and researching purchases more, they are clear about what they expect from brands and providers: 75 per cent welcome advice on making their money go further, while 88 per cent say they’re actively looking for deals, offers and special terms when choosing what to buy.
“The fact is,” says Leigh, “that customers will be loyal if they get back something real and tangible.”
Earn trust and get sharp
Given the battering consumer confidence has received, TCA’s research suggests that consumer trust needs to be reinforced. Businesses should focus on realistic communication and keep promotions practical.
The key point says Leigh, for businesses faced with the increasingly competitive markets and price pressures, is not to panic, but to use the opportunity to sharpen their offering – and to identify areas for growth, areas of strength, and tricks they may currently be missing.
(QUOTE) “Brands that really understand the pressure consumers are under will still thrive”
“Think differently. Know what your customers are thinking and what they want,” he says. There are long-term benefits to be had for those businesses that understand their customers and can tune into consumers’ changing needs.
Sign of the times
- 67% agree that “I am more actively looking for cheap ways to have fun”
- 78% agree that “it is good for us to be thrifty and explore new ways of saving money”
- 18% of consumers feel little will change for them
- 40% are shopping online more