Meet the New Consumer

In an age of austerity, celebrate the new value shopper

Brands that will succeed are true to their core, assure potential buyers, and share positive and inherent values with confidence and responsibility.

Approaching Today’s Consumer

In reality, price is important — but never enough. Quality and performance are first and can dial up value for a consumer. The downfall of focusing on price alone is it risks devaluing your own brand. A brand’s inherent value means a lot more than just cost. Shoppers are keen at making meaningful distinctions among good value, affordable and cheap.

Additionally, focus on what your brand can do. Can trading down seem like trading up? Can a higher price brand be a greater value?

Make the consumer feel smart, not cheap. In this market, it’s about winning. A brand’s value equation will vary by the category landscape and the needs and mindset of the shopper.

Utilizing research as a “reality check,” tell your consumer what your brand can do to help, and activate that message at the point of decision. Establish empathy upfront. Walk in the shopper’s shoes.

Know it is okay to give a nod to the economy as long as you don’t overplay it. Tailor your message to the shopper’s mindset. Know that what the consumer hears in mainline communication may be different from what he or she responds to in-store.

Understand Needs vs. Wants

Consumers are awakening to the consequences of living beyond their means and are making real choices about how and where they will spend their dollars. For example, consumers need to pay taxes and buy food. They also feel they need to shop at Walmart.

Those same shoppers see Starbucks, going out to eat and doing home improvement projects as wants. These are things they would like to do, but may not consider them a necessity. How will your brand make the final cut with the new value shopper? Focus on the behaviors that the shopper can control to reap the upside potential.

Do…

• Think bigger about your brand
• Praise consumers as “savvy shoppers”
• Focus on what they’ve gained (getting more for less)
• Gain their trust (with transparency and accountability)
• Aim for personal harmony
• Walk in their shoes (in the context of their lives)
• Partner with your core
• Activate your brand along the last mile of the shopper’s path to purchase

DON’T…

• Label consumers “bargain hunters”
• Dwell on what they’ve lost
• Win them over with your “charm”
• Only emphasize low cost
• Act impersonally
• Tout broad appeal

Keep Communicating

Knowing all this about the new value consumer, there are practical strategies to ensure a stronger brand/consumer connection — and sales:

• Create tailored brand experiences wherever and whenever a consumer can be most impacted by a message. Understand the consumer journey and the different touch points along the path to purchase.

• Offer real brand value — and relief of financial burdens — at the same time. Give shoppers a reason to buy your brand beyond just price, and help them feel good about the purchases. And promote the brand, too. Go beyond traditional contests, games and giveaways, and create innovative programs that contribute to real growth and brand value. Shoppers want to feel smart about every purchase they make and are willing to spend more if given a reason and a fair price.

• Stay top of mind. Frequent messaging is critical. Don’t be afraid to interrupt, engage and persuade. Whether it’s in-store, on the street or in large venues, create brand experiences focused on getting noticed, telling the story, and closing the sale.

• Diversify your audience. Target locally but communicate individually.

• Develop and grow loyalty programs. Proactive and aggressive reward for patronage allows you to hold on to consumers and also gather data intelligence.

• Turn the shopper into a buyer. By understanding what drives shoppers and analyzing how they act both outside and inside the retail environment, brands can influence purchase decisions.

• Understand how consumers experience brands and shop online, and then develop engaging online communication that has real impact.

• Design your in-store presence to showcase brand equity and enhance the shopping experience. Communicate with shoppers by creating tangible reasons to purchase.

In today’s market, it’s not about being cheap, it’s about being relevant. Allow shoppers to know your brand is worth the price of purchase. If left uninformed, new value choices will quickly become the new shopping norm — and your brand may be left out of the basket forever. It takes very little time to create a new and lasting habit, so protect your brand turf by being relevant at the point of decision, and act as a challenger brand at all times. Now is the time to connect with consumers, for the long term.

Ken Featherston is managing director, OgilvyAction Chicago.