Being in marketing and very much involved (and thinking) about money and the future I thought I would give my opinion on a trend that never seems to disappear- consumers plan to cut spending.
In a recent, article 72% of Canadians are concerned about the cost of living ranking retirement, taxes, and housing costs higher than health concerns! To me this doesn’t come as a shock, as a recent car owner and sole renter of a moderately priced apartment I would have to agree. The cost of living can really add up! The scary thing is we are the people that fuel the economy. Ontario is in debt, but in order to recovery every consumer must prioritize and way out what they want versus what they can reasonably afford. However, what if what they can reasonably afford doesn’t cover the basic necessities? What if this creates a standstill in our economy as it continue to decline? This can be a long standing debate from a business/economic stand point, so I’ll leave that to the professionals and tap into what it means as a marketer.
Canadians will be spending less on essentials and even less on discretionary income.
This article got me thinking, so I have come up with a few opinions/tips on how to combat this:
- Understand and accept the trend
- Track consumer spending throughout the remainder of the year and target products to consumers where and when it makes sense to.
2. Show empathy & compassion for what your consumers are concerned about
- We know consumers are now focused on affordable housing and getting out of debt- so why not mirror their concerns? Now is the time to heavily market for affordable real estate (If you find your sales are depleting), and banks (to discuss RRSP’s and TFSA’s) to let consumers know we are aware of their concerns and we are here to help.
3. Reward them
- Think luxury and inspiration.Discounts and coupons. Whatever will entice your consumer to stay with your brand and keep buying.
4 Integrate your strategy
- Spending drives our economy and if consumers aren’t buying into your strategy our economy will deteriorate.
- Think outdoor, social, online/mobile strategy. Where does your consumer spend most of their time? What makes sense for your product and who you are trying to reach?
- Integration creates a smooth and well put together strategy that will help to increase brand awareness and thereby drive more sales
- Consumers are mobile- they want fast, efficient and reliable media at their fingertips- act on that.
I hope this little- tid bit of information got you thinking, enjoy your weekend:)