Rewarding the Post-Recession Consumer
surprise, delight and package well
The average house size has fallen for the first time since 1973. We’re consuming less, and consuming more meaningfully. Given the pace of recovery, this isn’t a new trend. It’s a new habit.
One hypothesis is that the Great Recession is an early symptom of economic maturity. Perhaps the US’s explosive growth during the 20th century was economic adolescence. Now, our more mature economy will grow at a permanently more modest rate, much like that of pre-unified modern Europe.
I see this as outstanding news. It offers Americans the opportunity for the upgrade of a lifetime. In the mature economy model, the thoughtless consumption of disposable stuff we don’t need will be replaced with two post recession types of spending:
- Necessary consumption: buying basic things we need to live comfortably, such as food, heat and transportation
- Rewarding consumption: buying things that signify, stimulate or emotionally satisfy. These are “milestone” purchases like a birthday dinner, an anniversary gift or a kitchen remodel
Increasingly, necessary consumption will be commoditized, and will thus be highly competitive and subject to discounting. Embracing the idea of rewarding consumption is the future.
This means marketers have to look for ways to reward your consumer, even when the purchase falls into the necessary category. What if an oil change was accompanied by a car wash?
Deep cuts necessary to survive the downturn have most businesses thinking like airlines. As our slow recovery persists, whatever your business, begin to think like a chocolatier or a jeweler. These experts in rewarding consumption surprise, delight and package well. Emulate them and you’ll turn an ever more discerning customer into a devotee.
