Welcome to 2009. For many the year to come is expected to be riddled with challenges, which of course bring opportunities if you frame them right. Consumers might be pulling back or waiting in the retail sidelines, but they won't stay there forever. Not only will the economy turn around, but consumers don't like depriving themselves any more than you do. Even the most detailed consumer trend reports say that although consumers will be more cautious, they will still want to treat themselves from time to time and they will be looking for fun and exciting ways to relieve the emotional upset of financial uncertainty.
According to a recent report from business strategists Arcus Group, marketers who have taken the approach of “going through this together” with their customers have been more successful at maintaining share and revenue during a slow market. Now is the time to take initiative in determining how consumers are feeling and behaving, and to be there for them as partners in less than desirable economic times.

The most predominant trend in consumer behaviour during a slow market is the tendency to postpone, trade down, or buy less. This means they expect more bang for their buck and are less brand-loyal than usual. “Trusted brands are more likely to have successful new product and extension launches,” says Arcus, “but overall interest in new brands and new categories tends to decline.” This opens up a need for conducting deeper and more frequent customer research. “A new demand forecast model for each item in a product line is required to adjust to new consumer purchase patterns. Consumers favour multi-purpose goods over specialized products and tend to focus more on reliability, durability, safety, and performance and less on gimmicks.”

Trendwatching.com, a website dedicated to reporting on up-to-the-minute consumer trends and creating catchy buzzwords to describe them, says “perkonomics” is the way to attract, retain and rejuvenate brand love. Essentially a juiced up version of loyalty programs, perkonomics is all about giving that little extra something to show customer appreciation and gaining more face time with first-time buyers who are looking for a long, trusting relationship from whomever they do business with. Trendwatching also warns against looking exclusively at industry trends, pointing out that consumer trends are far more indicative of broader stroke opportunities to capture a share of the lifestyle and desires your key demographic might be looking for.

Though most marketing specialists agree companies that increase marketing efforts during economic down times are more successful than their competition, it's reasonable to suggest that many mid-range businesses are going to pull back in this area over the coming months. According to MicroMass Communications, which provides marketing advice based on behavioural science, when it comes to luxury items, money thrown at people who have already made up their minds is futile. The company recommends refocusing marketing efforts on the undecided group and at customer retention techniques.

Everyone is quick to point out that the powersport industry might be in trouble because it offers a luxury, non-essential product – the first thing to go from consumer budgets in times like these. As important as it is to be aware of this, it's also key to remember that powersport vehicles offer the consumer something that life's essentials can never measure up to – excitement. No matter what happens, people still want to feel good, feel free and feel in control of their lives, and they are never going to get that feeling from buying toothpaste or garbage bags. Embrace customers in their quest to escape from the worry of a tumultuous market with direct, focused, customer-centred campaigns aimed at value and appreciation. Even if they don't buy now, when the dust settles they'll be thinking of you.

CPT