The Australian Bureau of Statistics tells us facts – lots of facts – and leaves the drawing together and understanding of the influence of those facts to us.
Five recent facts that influence your business are that the proportions of people who:
- Own their homes outright has declined from 43% to 38% (1995-6 to 2015-16),
- Own their homes with a mortgage has risen from 28% to 37% in the same time.
- Are children is down from 22% of the population to 19% (1995 to 2015).
- Were families with children were 64% of all in 1996 but only 61% in 2016. And yet
- Spending on non-essentials was down. In 1984, 44% of household income was spent on discretionary items, but by 2015-6, this had declined to just 41%.
Individually, these facts may or not be interesting, but as a collective, raise concerns for your business.
Proportionately fewer families have children, yet there is less discretionary spending. More is being spent on basic items, including mortgages.
Less discretionary spending means less on optional purchases – the small or the larger pleasures, as well as other products, services or facilities.
Seeing these facts as parts of a trend, you could continue marketing as before or you could find out what your customers do and want, then see what motivates them, so they’ll spend more of limited discretionary spending with you.
We specialise in finding these opportunities and motivations quickly and cost-effectively. So, as you reflect on the new year and its challenges, call or email Philip Derham now to start identifying the trends that are influencing your business and to find out how to motivate your customers your way.