BCA Expo July 2011

The Consumer Of Today
What Are They Possibly Thinking?

Billiard Congress of America
Lynn Switanowski July 14, 2011

The Trauma Of Change

“The Future Has A Way Of Arriving Unannounced”
~George Will

“We PLAN for your PROFITS” www.cbc-group.net

1

The Pace Of Change Is Accelerating Every Year

“Sometimes In Our Confusion, We See Not The World
As It Is, But Through Eyes Blurred By The Mind.”
-unknown


Why Listen To Me?

•25+ Years Retail Industry Experience

•Fortune 100 Senior Sales and
Marketing Executive

•Small Business Strategist

•Helping Independent Retailers Create
Profitable Strategy, Inventory and
Marketing Programs Since 2004

2

Seminar Objectives

•What Motivates Each Generation to
Spend Money

•Understand Consumer Shopping
Habits- Today and in the Future

•Learn How to Anticipate Consumer’s
Needs


Consumers Are Buying Premium Or Value With The
Mid-Tier Being Squeezed

• The US Is Becoming Premium
An “Hourglass • Highly Targeted
Economy” • High Experience
• Higher Prices

• Manufacturers And
Retailers Are Trying Mainstream
Products
To Capture This
Marginalized
Fickle Consumer With
A Wider Range Of
Products • Low Price
• Mass, Dollar
• Private Label

Value
Source: Market Research


3

To Survive – And Thrive - Businesses Must Meet
Emerging Consumer Trends
Desire To Belong To A Community
Consumers Want To Interact
With Products, And Partner In
The Retail Experience
Brands Need To Evoke A Sense
Of Purpose And Inspiration
Consumers Need To Emotionally
Feel Switching Costs When
Leaving Community

Seek An Immersive Retail Shopping
Experience
Stores Need To Be Destinations,
Not Just Product Showcases
Stores Should Motivate
Consumers Through Education,
Experience And Trust


Let’s Explore Consumer Change Drivers

• Changing Demographics of • Changing Behavioral Trends
Large Market Segments – Interconnected And
– Boomers Rule Involved
– Y - Now – Personally Speaking
– X – Tra Special

• Additional Demographic Trends • Other Factors
– Household Size – Supplying The Answers
– Shifting Income – Resources Rock
– Service Sector Explosion
– Culture Clamor
– Boomers Rule
– Y - Now


4


• Changing Demographics of • Changing Behavioral Trends
Large Market Segments – Interconnected And

– Culture Clamor
– Boomers Rule
– Y - Now


Who Are We Talking About?

Baby Boomers Generation X Generation Y
Born Between Born Between Born Between
1946-1965 1965-1977 1977-1994
79 Million 48 Million 70 Million
Boelter + Lincoln - May 2008


5

Boomers Rule; More Money, Time And Choices

• Highly Educated, More
Economically Empowered And
More Self-focused
• First Wave Of Successful
Female Boomers With The
Money And Resources
• View Themselves As Younger
Than They Really Are (By 20
Years); 50 is the new 30
• Healthier And Active; Expected
To Outlive Prior Generations
• New Desires: Experiential
Engagements, Quality Of Life
Improvements From Products
And Services


Gen X - er’s; Connected And Practically Minded

• First Latchkey Children
• Maintain A Cautious Economic
Outlook
• Prefer Products Based On
Practicality
• Heavy Users Of Communication
Tools To Stay In Touch Better
• Will Be Primary Buyers Of Most
Goods By 2012
• Maintain Balance Between Work
And Leisure
• May Choose To Remain Living At
Home With Parents Longer


6

Gen Y; Let’s Talk About Me, Right Now

• Spending Habits Emulate Boomer
Parents
• Everything Is Interconnected,
Anything Goes, Everything Is
Available And Nothing Is Private
• Lack Of Loyalty To
Products/Services
• Interested In Peer To Peer
Experiences
• Socially Conscious
• Savvy Shoppers; Place A High
Degree Of Importance On
Individualism, Self-fulfillment And
Personal Involvement In The
Creation Process


Millenials; Text Me To Connect With Me


7


• Changing Demographics of Large • Changing Behavioral Trends
Market Segments – Interconnected And

• Beyond Market Segment Trends • Other Factors
– Culture Clamor


Household Size Reductions Smaller Households With
Reductions;
Fewer Married Heads Leads The Trend

Smaller Households Create Opportunities For More Personalized
Products And For Experiences That Are Fun For One

8

Shifting Income Lifestyle Spending Shifts And Declines
Income;
As Consumers Age


Service Sector Explodes; More Help, Integrated
Offerings
• Spending On Goods Will
Continue To Lose Ground To
Spending On Services
• Older Generations Becoming
More Service Oriented
– Do It Yourself Is Gone
– Do It For Me Is Next
• Younger Generations Seek To
Integrate Good, Services And
Experiences

To Satisfy Consumer Needs; Best In Class Retailers Will
Incorporate Services And Experiences Into Their Concepts

9

Culture Clamor An Increasingly Diverse Population;
Clamor:
Hispanic Demographic Shows Highest Growth

Percentage Of US Population
By Race/Ethnicity 2012

Asian American
6%
African American
13%

White
65% Hispanic
16%

Source: US Census Bureau




– Culture Clamor


10

Interconnected and Involved Social Status Is About
Involved;
Who You’re Connected To

It’s Not Who You Know, It’s Who Knows You

Personally Speaking Customized Solutions
Speaking;

• Value Proposition Guiding
Purchases Changes
– Heightened Emphasis
On Personalization
– Product And Service
Solutions Designed
For One Person At A
Time
• Consumers Demand
Niche Products,
Experiences And Services
Uniquely Suited To Their
Tastes, Interests And
Aspirations.

Power Shifts From Retailer/Manufacturer To Consumer

11



– Culture Clamor


Supplying The Answers Consumers Have Hand In
Answers;
Creating End User Products
• Individual Interactions
Between Retailers And
Suppliers
• Retail Evolving Toward True
Demand; Not Shelf Space
• Value Chain Becomes More
Intimate; Consumers Share
Information; Expect Value In
Return
• Extreme Consumers Seek
Out Opportunities For
Involvement That Brings
Product To Market

Consumer Shift To Products And Services That Fill Exact Need
– Better & Quicker

12

Resources Rock Sustainability Rules The Day
Rock;
• Consumer Of 2012 Won’t
Be Taking Resources For
Granted
• Corporate Social
Responsibility And Product
Sustainability Will Become
More Important Factors In
Purchase Decisions
• Consumers Will Employ
Triple Bottom Line
Scorecard; Performance
Will Be Measured On
– Environmental
– Social
– Financial Scales

Companies Will Be Measured Based on How They Deliver To
The Planet, The People And A Profit


Traditionally, Consumers Found Value In Production
And Accessibility Aspects Of Value Curve
Business Value Curve Today
Innovation Production Accessibility Experience
• Features • Speed • Effort • Shopping
• Functions • Quality • Selection • Buying
• Fashion • Consistency • Price • Using
• Customization • Emotional
• Personalization connections
• Self-expression

Value added at the right
by the right place at the
product to the right price
right customer
at the right
time


13

Going Forward Consumers Will Seek Value in
Innovation and Experience Aspects Of Value Curve
Business Value Curve in 2012
Innovation Production Accessibility Experience
• Features • Speed • Effort • Shopping
• Functions • Quality • Selection • Buying
• Fashion • Consistency • Price • Using
• Customization • Emotional
• Personalization connections
• Self-expression

..Improving
Shopping And
Value Added End Use
By Innovating Experience
To Increase And
Relevancy Connections


Successful Businesses Must Focus on Innovation and
Deliver an “Experience”
Deliver Breakthrough Products/Services
• Work With Consumers To Create New Innovative Products
• Develop Open Source Like Communities To Create Breakthrough
Ideas
Marketers Must Evolve From A Transactional Mindset To A
Relationship Approach
• Establish A Customized Relationship With Every Customer To
Increase Customer Retention;
• Create “Stickiness” Through Electronic Marketing

Retailers Can Garner A Larger “Share Of Wallet” From Each
And Every Customer To Drive Sales Growth
•Shift From What Moves Product To What Moves People
•Drive Short Term Incremental Profitability With Existing Customers
Rather Than By Attempting To Attract New Customers


14

Is Your Business Ready For the Future?


Is Your Business Ready For the Future?


15

We Talk Retail In These Places – Join Us

@RetailHelper

http://cbcgretailreport.blogspot.com

www.linkedin.com/in/lynnswitanowski

http://www.facebook.com/CBCGroup

16

BCA Expo July 2011

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