I found an interesting
(PowerPoint) presentation about the retail strategy of US retailer Family
Dollar. In it they note a few things about consumer behaviour
in the
current climate. You can download the presentation at retailsmartresults.)
Based on that analysis, and a
few additional resources, I have compiled this little list for you.
- Doing more
things at home
This does not
only refer to the ‘cocooning’ indentified by futurist Faith
Popcorn, but rather about how consumers are spending their money. In a recent survey
, the researchers found in particular that it is affecting dining
habits.
- Using more
coupons and discounts
US-based
stats,
but at the same time, internet-based coupon sites are spreading their
tentacles. For instance, see what Groupon is
doing.
- Want ‘green’
but don’t want to pay for it
Rather than
quote research, let me ask this: When you booked your last flight
(online), did
you tick the box that allowed you to offset your carbon footprint? Click here to answer
the quick poll (just
the one question) and I will share the results with you next week.
- Combining
errands and shopping trips
Family Dollar research.
5. “Trading down”
to less expensive items (anti-consumption mindset)
Last month, the
McKinsey
Quarterly released a report
about changing consumer
behavior. Of the consumers that
they
surveyed, 18% traded down in their categories, and the majority of those
who
traded down did not find any difference between the lower-priced brands
and the
brands they had traditionally used. Over 75% of consumers who traded
down
were going to stay there, very happily.
Just last week in Inside Retailing,
a commentator said
there has been a shift in the consumer's psychology of acquisition. "The
wild days of abundance and status for status' sake are no longer
relevant.
Customers are more discerning in both their product choices and with
whom they
choose to have a relationship."
6. Greater reliance on social
networks and word-of-mouth for final decision making
Again,
if
you have not seen Dan Zarella’s presentation on the science of social
media, you can download or watch here at retailsmartresults.)
The
question is of course; if this is so, then how has that changed how you
do
business?
Have
fun
Dennis
PS:
Remember to answer
the poll, AND
there is a great
blogpost about customer
service that money can’t buy that you can also read…