Study: Marketers Not Connecting With Today’s Consumer
Among the study's key findings is that "having it all" is an unrealistic goal with 75% of those surveyed saying they would rather get out of the rat race than climb the corporate ladder—and instead, 76% said they would rather spend more time with family than make more money. Moreover, Americans are showing disenchantment with the pursuit of money with 75% again saying they would trade job security over a job that offered an opportunity for raises.
"The most surprising thing about our study was how much consumers were saying what they would NOT do for money, even when money worries are high on the list," said Graceann Bennett, managing partner and director of Strategic Planning at Ogilvy & Mather Chicago.
"Prioritizing your life based on money is seen as a sure way to be disappointed since the pursuit of money is often reliant on factors outside of consumers' control. They have gone down this road before and are saying that they are not necessarily happier or better off as a result."
In fact, the recession has revealed important new consumer priorities with quality of life and peace of mind at the top and a focus on living life in a more sustainable way both from an environmental and financial point of view.
According to Manila Austin Ph.D., Communispace's Director of Research, "Consumers didn't fully understand the idea of sustainability until they found themselves living unsustainable lives—working too hard, carrying too much debt, and not living or planning for the long term. Now consumers are re-imagining their lives for a sustainable future for themselves and their families."
Quality is still in according to the study with 73% of consumer saying they would rather have fewer, high quality things. But while they still want some luxuries, their shopping habits have changed as a full 92% say they are using coupons, 91% are shopping at cheaper/discount stores and 90% are buying more store brands
"We are finding consumers make very interesting trade-offs across seemingly unrelated categories in order to get their lives into balance while still feeling like they are treating themselves to those things that make them feel normal and well taken care of," said Bennett.
"Holding off a few years to buy a new car may enable them to keep their everyday Starbucks indulgence going while someone else may ease up on their ambitions for a promotion to feel safer in their job even if it means less money."
Through a series of in-depth exercises with nearly 700 online community members, Communispace's Manila Austin noted that "many people feel the recession is not their problem. They say that they are in control themselves, but see others spending and consuming too much and feel they need to change their habits. Importantly, they also believe that it is the consumer who will get the country out of the recession, not the government or the banks."
A shrinking circle of trust in banks, established institutions and even the media has led 69% of consumers to say that the recession has caused them to rethink their perspective and values with 78% saying that the recession has changed their spending habits for the better. The local community - "Main Street" - is now the focus for the majority of those polled.
"The consumer is moving forward, but many marketers are projecting the stresses of the economy in their marketing and are not connecting with the new consumer mindset," said Bennett.
"It's time for marketers to reflect the new positive self reliance of today's consumer and to tap into building relationships with more one-on-one marketing efforts."
Bennett cautioned however that it is important for marketers to tread carefully into the discount space, because brands that are associated with deprivation and the recession may conjure up less than positive associations once consumers have a bit more cash to spend.
With consumers dramatically increasing the research they do before making purchases large and small, the brand with the better information will win. There are also significant demographic trends that demand a more personal message especially when looked at regionally with consumers on the west coast more optimistic than those on the East. Some 32% on the West say the US will emerge from the recession stronger, while only 19% on the East coast feel this way.
"Today's consumer is even more complicated than before," said Communispace's Dr. Austin.
"There is no one marketing solution that captures a mass value proposition. We called this study 'Eyes Wide Open, Wallets Half Shut' to reflect the challenge of understanding and connecting with how post recession consumers view the world."
A variety of quantitative and qualitative research was conducted. Ogilvy Chicago sampled a nationally representative 1,200 American adults through a robust online survey. Communispace conducted a series of qualitative studies including interactive conversations, image galleries, and other dynamic and exploratory activities with its proprietary online community members which involved some 694 consumers participating.
To view the study, click here.