Some results from a worldwide research study by Synovate:

52% — of Americans say they have permanently changed their attitudes regarding the importance of saving money

42% — of Americans are looking forward to being able to spend freely again

59% — of Americans who said they are going to do their best to not go back to the way they spent before

For more information, visit www.synovate.com/insights

And research-based projections from another company, Decitica:

There will be four distinct consumer segments “after the smoke clears” from the recession:

• Involuntary Penny-Pinchers (29%) have been severely affected by the recession.  They are mainly made up of households with less than $50,000 in income.  Their behaviors now reflect those of the Steadfast Frugalists – but they don’t revel in it like that group.  Only 17% find buying store or generic brands satisfying as opposed to 59% of the Frugalists.  They are, however, the group that admits to being most scared by the recession.  They are 87% more worried about the future than the other groups.

• Steadfast Frugalists (20%) are committed to self-restraint, engaging in prudence with enthusiasm.  80% of these folks say the behaviors they have adopted will likely stay with them for a long time.  29% consider themselves “tightwads”.  They are least brand-loyal and most likely to discount marketing messages.

• Pragmatic Spenders (29%) are consumers whose income has blunted the effects of the recession.  Only 28% of them feel the recession has changed what and how they will buy in the future.  They are more likely to be over 60 and from the Northeast or West.

• Apathetic Materialists (22%) seem least changed by the recession.  They have not embraced the new frugality to the same extent as the other groups and get minimal satisfaction from frugal behavior. The group has more men and younger consumers than the other groups.

There have been quite a few economic downturns over the past 20 years.  Not as bad as the current one, maybe, but they shook us up, too.

Each time as the economy recovered, some companies bounced back better than others.  When they were asked how they navigated the economic storm so well, the companies inevitably said they used the time during the downturn for two things:

• Training their staff  

• Getting to know their customers better

 When the economy began to recover, they were ready on all fronts.

Getting To Know Them

Do you need to know your customers better?  Do you know what your customers think of your company, what they think you are doing well and what could use some attention?  Do you know whether/how often they turn to competitors rather than your company? 

Is it time to review your Customer Satisfaction research? 

– We don’t do Customer Satisfaction research.  There’s never been a better time to start.  It can be one of the least expensive types of research – and you can often use results immediately to make positive changes!

– We do a study every few years and it’s not time.  Changes in the past year may be a good reason to consider varying from your schedule.  A lot has changed in the world. Do you know if your customers’ attitudes toward your industry/your company are among those changes?

– We do customer comment cards, but we don’t get many back.  Either your organization is “perfect in every way” or the program has gone stale.  Maybe it is time to take a look at the program and how it is being implemented to see if it can be made more vibrant and actionable.

– We only have a few customers.  Some B2B clients have told me this.  If you already feel you know your immediate customers well, perhaps offering to partner with them on a Customer Satisfaction study of their customers might be useful for both of you right now.

Everyone has customers.  It never hurts to think about what you can do to keep them or improve your relationship with them.

Let’s discuss your customer satisfaction research needs and affordable options that you may want to consider.  I will be glad go over your current program with you without cost.

Jacquelyn Nerren

Marketing & Research Counsel

1960 N. Parkway, Suite 1206

Memphis, TN  38112

 901-725-1728             

 nerrenj@bellsouth.net        

 www.jackienerrenresearch.com

Those of us who have been there before recognized the signs. Consumer confidence plummeted. The housing market skidded to a halt. And then it really began to get ugly!

Now everyone is thinking more about personal spending — and companies are in full “recession” mode.

When this kind of economic trouble strikes, the instinct of most companies is to cut costs. Traditionally a substantial percentage of the cuts come from the marketing budget, including the research budget.

There’s no way to say this without sounding self-serving – I’m in the research business, after all. But it still needs to be said. Stopping research during a major economic change is one of the biggest mistakes that companies make.

Every economic change in recent history has resulted in a change in consumer attitudes toward spending. It is during tough times that consumers are forced to make decisions about what really matters to them. When they can afford to do less, to buy less, to consume less – it is especially important that companies stay on top of not just what they choose, but WHY they choose it.

A few of the notable changes in consumer attitudes that happened during downturns and affected the marketplace permanently:

• “I deserve it” – the substitution of little luxuries for big ones. Certain candy companies, for example, were poised for this one. The others had to play catch up.
  
  
• Experiences vs. more “stuff” – it was economic downturns that fostered the desire for “you can’t take that away from me” experiences (like adventure travel, family cruises, eco travel). This mindset has been particularly prevalent in the baby boomers, who have lived through repeated economic cycles.
  
  
• Yearning for safety. This product of economic hard times spawned “cocooning” – and the market for home renovations and additions as well as certain types of furnishings for the home.
  
  

What new consumer attitudes will this economic downturn bring? Will your organization be ready to act on newly developed needs and feelings? Customer intelligence is key to customer loyalty now and after the economy improves.

Let’s discuss your research needs and affordable options that you may want to consider.

JACQUELYN NERREN MARKETING & RESEARCH COUNSEL featured in the business section of The Commercial Appeal, Monday March 30th, 2009.

Read the Consumer Insight article (PDF)