How the Recession has changed your Consumers Views

One thing we know is that the Global recession has changed much about how we need to interact with our customers. What you may not know is how much.

Euro RSCG Worldwide has just published its new research in a white paper called "The New Consumer". The research shows how the recession has given consumers an added reason to think about the way they buy things. (Read the full white paper here).

The study -- which included responses from 5,700 adults in Brazil, China, France, Japan, Netherlands, England and the U.S. -- found that across the board, people are looking for ways to add meaning to their lives, and are fed up with many aspects of consumerism.

Here is a brief summary of some of the main points (full summary is available here)

Consumers are smarter, more empowered, and more demanding than previous generations of shoppers. They make full use of online tools to connect with others and score the right buys.

• 62% do lots of consumer research online—e.g., seeking out product info, reviews and ratings, price comparisons.
• 79% read consumer product feedback/reviews online before making a purchase.
• 57% trust customer reviews more than “expert” reviews.
  

People have resolved to change the status quo and take greater control of their present lives and futures. A primary way in which they will do this is through their consumption choices—their strongest means of power and influence. We are seeing the advent of “proactive mindfulness”:

• 72% are shopping more carefully and mindfully than they used to.
• 54% are paying more attention to the environmental and/or social impact of the products they buy.
• 51% are more interested today in how and where products are made.
• 45% are willing to pay a slightly higher price for products that are socially or environmentally responsible.
  

They are eager to reduce their negative impact on the environment and on other people:

• 64% say making environmentally friendly choices makes them feel good.
• 72% feel good about reducing the amount of waste they create.
• 54% are making an effort to buy fewer disposable goods.
• 65% believe they have a responsibility to censure unethical companies by avoiding their products.
• 51% avoid shopping at stores that don’t treat their employees fairly.
• 57% say it makes them feel good to support local producers, artisans, and manufacturers, and 45% say it is important to buy locally produced goods.
  

Consumers seek to align with brand partners who share their personal values:

• 50% say it is more important to them today to feel good about the companies with which they do business.
• 57% prefer to buy from companies that share their personal values.
• 49% prefer to do business with companies that have a reputation for a purpose beyond profits (e.g., Newman’s Own, The Body Shop).
• 54% believe the most successful and profitable businesses in the future will be those that practice sustainability

Naomi Troni the CMO of Euro RSCG Worldwide says "It's bigger than just environmental concerns -- it's really about a more meaningful way of life, and it's more widespread. Even five years ago, things like organics were seen as more of a fringe movement. Now, more people are looking beyond the impact of things on their own bodies and health, and on the global impact of their purchases."

Another clear change, she says, is that consumers are enjoying many of these cutbacks, not suffering through them. In the U.S., for example, 87% say saving money makes them feel good about themselves.

"It makes them feel smarter," she says, "and they enjoy feeling one up on the brand."

Question is now how do you improve your brand in the mind of the new consumer. For many businesses it requires a transformational change and this can only occur if you are prepared to change the way you you see, think and act - both as individuals and as a company.

Click here if you are interested in exploring how to transform your business potential into extraordinary results