This presentation is a summary of the keynote speech delivered at "Consumer Day 2010" at Leuven University, Belgium in March 2010. It provides a framework for spotting and responding to consumer trends in post-recession Europe and is aimed at senior marketers and policymakers.

1. Rising Trends of the
Post-Recession Consumer
March 2010

2. Consider how three consumer themes combine into one
Organisations should consider three
core perspectives for their
understanding of consumers:
– GENERATION - how to group
consumers
– ATTITUDE – how to interpret
consumers
– TECHNOLOGY– how to enable
consumers
©

3. Spotting trends - the rule of ‘Individuals and Crowds’
Zoom in too close and everything becomes individual, so
take two perspectives - close-up and zoom-out.
©

4. The ‘Social DNA’ of Generations
Fifty years ago, an entire generation
of 20-30 yr olds across Europe
struggled to find jobs and affordable
accommodation.
Now in their 70s and 80yrs, this
generation has remained cautious in
its spending and investment
behaviour throughout their lives.
Today, a new generation is
experiencing the same struggle for
financial freedom throughout Europe.
How should organisations respond ?
Time Magazine 2009
©

5. Generations move together and carry their past with them
“To know where people are
today,
focus on their
generation,
not their age.”
©

6. Where the consumer mindset goes, behaviour follows
The Indulgence Era The Recession The Consequences
Consumer Consumer Consumer
(1985 – 2006) (2007 – 2012) (2013 - ??)
Ambition Trading Up Economising Responsibility
Sensibility Exuberance Anxiety Vigilance
Mindset Bullish Sober Resourceful
Orientation Self-expression Self-preservation Networks
Adapted from “A Darwinian Gale” –Yankelovitch 2010
The ‘boom and bust’ economy shocked the European consumer from an
indulgence mindset to one of ‘hard times’.
In post-recession, consumers will seek a middle ground.
They will try to learn from the past, rather than hide from it.
©

7. Consequence 1: Responsible
The shift from “worthy cause” to “worthy choice”
Indulgence Era Consumer Recession Consumer Consequences Consumer
Ambition Trading Up Economising Responsibility
©

8. Consequence 1: Responsible
Integrating responsibility into the value proposition
Indulgence Era Consumer Recession Consumer Consequences Consumer
Ambition Trading Up Economising Responsibility
“Creating a Better Everyday Life For
As Many People As Possible”
©

9. Consequence 1: Responsible
Making responsible consumption easy-to-find and simple-to-buy
Indulgence Era Consumer Recession Consumer Consequences Consumer
Ambition Trading Up Economising Responsibility
©

10. Consequence 2: Vigilance
Older generations rely on ‘experts’, to help ‘guard against’ as well as recommend
Indulgence Era Consumer Recession Consumer Consequences Consumer
Sensibility Exuberance Anxiety Vigilance
Baby Boomers (1943 – 1960) ©

11. Consequence 2: Vigilance
Younger generations trust the ‘wisdom of crowds’ – preferably their own
Indulgence Era Consumer Recession Consumer Consequences Consumer
Sensibility Exuberance Anxiety Vigilance
Gen Y / Milennials (1982 – 2003) ©

12. Consequence 2: Vigilance
Reaching new generations requires flex in brand and engagement channels
Indulgence Era Consumer Recession Consumer Consequences Consumer
Sensibility Exuberance Anxiety Vigilance
Baby Boomer Engagement Gen Y Engagement via
Avon’s Mark sub-brand
©

13. Consequence 3: Resourceful
Older generations marvel at technology, and seek freedom and efficiency
Indulgence Era Consumer Recession Consumer Consequences Consumer
Mindset Bullish Sober Resourceful
Baby Boomer + Gen X -
Resourceful
©

14. Consequence 3: Resourceful – Enjoy Being Smart
Indulgence Era Consumer Recession Consumer Consequences Consumer
Mindset Bullish Sober Resourceful
Brands are already using
generations in their
advertising to convey this
theme (VW)
http://www.youtube.com/watch?v=OVN2tzxXsTk
©

15. Consequence 3: Resourceful
Generation Y expect to BE part of the product – both uploading and downloading
Indulgence Era Consumer Recession Consumer Consequences Consumer
Mindset Bullish Sober Resourceful
Milennials / Gen Y -
Resourceful
©

16. Consequence 3: Resourceful
Older generations expect to pay, but younger ones blend ‘free and premium’
Indulgence Era Consumer Recession Consumer Consequences Consumer
Mindset Bullish Sober Resourceful
©

17. Consequence 3: Resourceful
Consumers will demand joint decisions, and expect technology to visualise it
Indulgence Era Consumer Recession Consumer Consequences Consumer
Mindset Bullish Sober Resourceful
Doctor - Patient Teacher - Parent Builder - Client
©

18. Consequence 4: Networks
Consumer orientation will shift from ‘me’ to ‘us’, to ‘my crowd’
Indulgence Era Consumer Recession Consumer Consequences Consumer
Orientation Self-expression Self-preservation Networks
©

19. Consequence 4: Networks
Consumer networks will make their own rules for product price and distribution
Indulgence Era Consumer Recession Consumer Consequences Consumer
Orientation Self-expression Self-preservation Networks
• Wahanda offers heavily discounted spa treatments, but only on proviso that a
minimum number of people apply. This is called a ‘mobdeal’, and encourages viral
selling by people emailing the deal to their friends
• Bookcrossing is a community where people buy a book and then leave it in a
public place, advertising its location through the network. The world becomes a
library. It is a fun and free way to encourage reading.
©

20. Consequence 4: Networks
Consumers are starting to include barter/swap into mainstream consumption
Indulgence Era Consumer Recession Consumer Consequences Consumer
Orientation Self-expression Self-preservation Networks
Sin Dinero (Spain) has graduated from traditional monthly markets
attracting older consumer in small towns to trendier versions in Barcelona
and Madrid, publicized by enthusiastic on-line networks.
©

21. Consequence 4: Networks
The ‘Mobile Phone’ will die out with today’s oldest generation (80-90 yrs)
Indulgence Era Consumer Recession Consumer Consequences Consumer
Orientation Self-expression Self-preservation Networks
• 80-90 yr olds will ignore it
• 70 yr olds will be taught it (by
their children or grandchildren)
• 40-60 yr olds will marvel at it
• Under 40 yr olds will take it
all for granted
©

22. Case Study of Post-Recession Consumer: Car Sharing
Responsible + Vigilant + Resourceful + Network
Indulgence Era Consumer Recession Consumer Consequences Consumer
Orientation Self-expression Self-preservation Networks
• Responsible – environmentally friendly + less traffic
• Vigilant – a trusted provider, all drivers pre-approved and cars well-serviced
• Resourceful – fun convenient vehicles at low-cost, flexible pricing
• Networked – entire process of ‘book-use-return’ can be conducted via mobile device
©

23. Use this framework to embrace consumer trends, not resist them !
Challenge your organisation to think
and combine these three perspectives:
– GENERATION - how to group
consumers
– ATTITUDE – how to interpret
consumers
– TECHNOLOGY– how to enable
consumers
©

24. For help, advice and further information…….
Rick Harris, Managing Director
Customer Faithful
rick@customerfaithful.com
www.customerfaithful.com
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