Consumer behavior during the recession

Recessions can cause radical and disruptive changes in consumer behavior. The OTO Research report confirms that during this recession 80% of consumers will change their spending habits. 89% of consumers will systematically check online which are and where the best products are, and what is their value for money. Consumers are getting smarter in the way they optimize their spending. During a recession, your brand’s role is to build trust and justify value for money.

I have identified four major consumer trends that will shape consumer spending and behavior for the next 24 months and beyond.

1. Squeeze cash

With falling markets, falling property prices, and job security in a distant memory, consumers have a money-saving mindset. Consumers are making full use of the Internet to save money. For example, visitors to online coupon sites increased 42% year-over-year, while the time spent on these sites also increased 28% year-over-year. In another example of the cash restriction, consumers get a cheaper caffeine fix at home than at more expensive coffee shops. Tesco in the UK has seen coffee machine sales rise 76 per cent and ground coffee sales 13 per cent compared to last year. Sales of thermal mugs have also increased by 78 percent.

2. Sell

Internet-empowered and cash-strapped consumers are embracing the idea of ​​making money rather than simply spending or saving it. As Trend Watching indicates in its latest report, “if saving is the new expense, then making money, selling personal assets, property and creations, outshines saving.” Established online platforms like eBay are serving this new trend well, however there are excellent examples of this sales trend (my personal favorites include):

Parkatmyhouse.com – Connects those who have parking spaces for rent with those who need them. Car owners can pre-reserve a parking spot every day, but can also make one-time reservations for a football game or a day of shopping in town.

Giftcardrescue: service that allows users to exchange their unwanted gift cards. Consumers create an account and provide details of the card they have and GiftCardRescue will indicate the redemption value they are willing to pay.

Ether.com Phone Tips: By signing up for a toll-free Ether number (which is forwarded to any regular phone number), consumers with specific expertise, from holistic life coaches to PowerPoint assistants, can charge their clients by the hour , minute or per call.

The government is also taking advantage of the Sellsuming trend – Assembly Bill 1920 (also called Solar Surplus Bill) in California, which will allow consumers who produce solar energy to be paid by their utility company for any excess electricity generated annually. base. Michigan, Minnesota and Rhode Island are considering similar legislation.

3. Escapsim

Consumers are spending money on things to distract themselves from our financial headaches, and the entertainment industry should be ecstatic. Theatrical attendance has increased by 13% year-on-year; Fast & Furious broke the record for the most lucrative opening weekend for a film released in April.

Brands that embrace and invite a positive proposition (that embrace this need for escapism) will do well during these tough times. Philip Graves, author of the Consumer Behavior Blog, has a fascinating article on the psychology of the consumer mind during a recession and the need for many people to restore their emotional balance through what they consume.

4. Word of experience

Consumers share and talk about their experiences with brands, products and services. OTO research confirms that 54% of consumers say their main source of information when choosing a brand is consumer-generated content about the product and the brand experience. Even for the mythical iPhone, PleaseFixtheiPhone.com asked users to list product defects and asked Steve Jobs to correct them. Over 250,000 votes and 1,600 posts in less than a week! Monitoring and understanding what consumers are saying online about your brand is no longer an innovation but a necessity.