Americans are returning to their core values. Increasing numbers believe that there are more important things than money. They stress intangibles over tangibles. Many want to reengage with family.
But that doesn't mean they want to engage with marketers, and that may account for the fact that at deadline almost 30 million had signed up for the Federal Trade Commission's do-not-call list.
"It shouldn't have been a surprise," said J. Walker Smith, president of Yankelovich Inc.
According to Smith, this shift in priorities started in the late ‘90s and accelerated after 9/11.
But it has led to "increasing socialization of marketing resistance," said Smith, who reported on these trends during a speech at the National Center for Database Marketing conference in Long Beach, CA, and in an interview.
The most recent Yankelovich Monitor survey, for example, found that consumers rank advertising among the top five things that need more government regulation.
The others: Water pollution, toxic wastes, air pollution and nuclear safety.
And the turn toward core values may be having an effect on sales.
For one thing, people who say shopping is linked to their happiness are now want to spend less.
The lesson for direct marketers is that "it's all about emotional resonance," said Smith.
Just what do consumers want on a personal level?
Above all, 94% said they feel a need to make time for the important people in their lives.
Of those surveyed, 73% said they identify more with integrity than success. That number is up from 58% four years ago. And 67% agree that they may not be as well off in future as they were in the past, but that they will be happier and have better moral character.
And consumers are less inclined to cocoon, to hide inside a protective shell. Only 33% put their home lives into that category. In contrast, more than half described their homes as beehives—places with constant buzzing and interaction.
Even the baby boomers are less materialistic than they were. In 2001, 86% of affluent older consumers said that they would prefer to spend their money less on objects than on enriching experiences. That's up from 65% in 1991.
But why this animus toward advertising? As Smith sees it, that is due, in part, to the constant intrusion, and the almost comic effort by advertisers to find new places for their messages.
For example, an English firm is now marketing a toaster that will sear the weather forecast onto toast. "How long before we have brand logos on our toast?" Smith asked.
Joel Babbitt, the former director of marketing for Olympics, wanted to place "a giant synchronous billboard" that could be seen by three quarter's of the world's population at different times, Smith said.
The project died, but Smith cautioned: "Don't bet against it in the long run." (Babbitt also regrets the wasted billboard space on stray dogs, according to Smith).
It used to be that direct marketing messages stood out. But now they are blended in with all the surface noise, and consumers have lost patience with them as proven by the fact that they are opting out at an alarming rate, Smith continued.
For example, 33% signed up this year to have their names have their names removed from a mailing list. That number has risen from 12% in 1997 and 23% in 2001.
Similarly, 29% registered for a non-telemarketing list, compared with 13% in 1997. And the number is only going to grow with the introduction of the Federal Trade Commission's national do-not-call list.
When asked by Smith if they had screened a telemarketing call with their answering machine, virtually everyone in the audience signaled that they had.
The paradox is that "the best customers are resisting the most," Smith continued.
Smith predicted direct marketing will survive—but at some cost. "These are productivity and profitability issues," he said. "It will cost more money to chase shrinking response."
And general advertisers hardly get a free pass, for consumers are finding it harder to distinguish between brands.
For example, half see little distinction between banks (down from 70% in 1994).
And only 46% see a meaningful difference between long-distance companies (compared with 62% in 1994). Barely over 40% see a difference between cold remedies (vs. 67% nine years ago).
There also were double-digit drop-offs in the number of people who see differences between soft drinks, athletic shoes, domestic beer, and several other products.
These findings mirror a general disenchantment with government, the churches and other institutions. About the only institution that has grown in trust is the military, according to Smith.
And CRM managers should also go back to school. Almost half of all consumers get angry because of bad customer service once a month or more often. Nineteen percent are quick to say so. What's more, 94% feel that they should get the same level of service as the wealthy, and this includes people in both the $35,000 and $75,000 income categories.
That's not all. Almost three quarters scrutinize monthly bills because they don't trust the companies. And 60% disagree that consumers benefit when the government stops regulating and industry.
