Customers’ behavior and interactions with the brands and businesses they buy from has changed dramatically in the last few years. Their attitudes and expectations have evolved much faster than businesses’ ability to build positive experiences. Despite the fact that companies have access to ever more sophisticated and powerful technologies and solutions to understand their audiences, manage customer experiences and build engagement, customers believe companies have failed to improve their handling of customer relationships in the last three years.
POST SUMMARY: The emperor has no clothes! After years of marketing hype around social media, big data and content marketing it seems that consumers will only purchase from us if they like our products and we deliver on all aspects of the brand promise. More than ever, marketers need to view new technologies as tools which may or may not play an important part in conversion and execute on all marketing initiatives.
In 1971, the middle class included 61 percent of Americans. Today we see only 51 percent in the middle income tiers. In short, the middle class has changed. If I had to sum up what separates the middle class from those classes above and below, I’d have to say it’s about lifestyle and a word marketers love and fear: discretion. The middle class has the economic flexibility to make choices, but its members understand that trade-offs must be made and are forced to consider the impacts.
We are awakening to a dollar-store economy. If you thought they appealed to only poor people you are wrong. While it’s true that low-wage earners still make up the core of dollar-store customers (42 percent earn $30,000 or less), what has turned this sector into a nearly recession-proof corner of the economy is a new customer base. “What’s driving the growth,” says James Russo, a vice president with the Nielsen Company, a consumer survey firm, “is affluent households.” Saving money is indeed in vogue for everyone.
According to the Boston Consulting Group Millennials are going to be a critical market segment across product and service categories. In the U.S., by 2030, Millennials will likely outnumber baby boomers 78 to 56 million. Millennials expect a two-way mutual relationship with brands and companies must make marketing to Millennials a priority now.
According to Nielsen Millennials are 77 million strong, on par with Boomers, and they make up 24 percent of the U.S. population. This represents significant opportunity for brands that understand who Millennials are, where they live and what they watch and buy. In order to truly understand Millennials, however, they must be put in the context of the other generations.
Superconsumers represent 10% of a category’s customers but account for 30% to 70% of sales and an even higher share of profits according to an article in HBR . It’s easy to reach them. This means that you can dramatically increase the efficiency of your advertising and promotions. Instead of trying to activate lapsed users through expensive mass- market campaigns or paying large sums to deliver coupons to customers who haven’t bought your product in months (and probably won’t buy it now), you can focus your efforts on a narrow slice of your customer base. Direct and digital marketing are often much more effective with super- consumers than with others. That effectiveness can be especially valuable to large CPG companies, some of which spend billions of dollars a year on advertising—and for which a 1% increase in the efficiency of ad spending can therefore be worth tens of millions of dollars.