Knowing what your customers will spend on now can help you to overcome these gloom times.
The state of gloom is well explained in the Victorian budget’s economic impact statement:
“Across the world, governments have introduced vital restrictions to slow the spread of coronavirus (COVID-19) and save lives. Globally, these necessary measures have seen economic activity and employment fall sharply. The same is true in Victoria. The impact of the pandemic on our economic activity has been significant, with Victoria’s state final demand falling by 8.5% in the June quarter. Employment declined by 180,000 (5.2%) from the March to September quarters 2020, and the unemployment rate rose by 1.6 percentage points to 6.9%. However, this trend doesn’t fully capture the level of underemployment − those people who weren’t able to get as many hours of work as they wanted.” Source: https://www.budget.vic.gov.au/economic-impact
This is the reality now.
This reality can make it hard to tug on the customer emotions that activate more spending or borrowing with you now. And the action-stimulating emotions can change rapidly as Governments increase or limit their spending. Which can make business-generating marketing more difficult.
But there can be a quick, effective way to know what will motivate your customers and prospects now. That way is to use our Key Customer Insights Monitor.
It will tell you what motivates action now and tells you quickly.
The Key Customer Insights Monitor tells you what your customers (and prospects) are thinking and doing and what chords to strike to get a positive response now.
You can undertake the Monitor with your own customers only – or can add a 500 person Australia-wide sample and see the motivations of both current and prospective customers.
And, as a standard Monitor, you can re-use it to see what motivations and practices are changing as the economy changes – so your communications are directly addressing and motivating the current emotions.
Call or email Philip Derham now so you know what more you need to do to target your audience’s emotional responses and so strengthen your business in these gloom times.
You can contact him on (+61) 0414 543 765 or at email@example.com
Victoria has re-joined all other Australian States by ending its COVID-19 lock-down.
The Reserve Bank thinks that Australia is now technically out of recession (1).
But the underlying psychology is less positive.
This less positive mindset is demonstrated by these findings:
- The Australian Bureau of Statistics (ABS) reported that in 2019, more Australians had cash flow problems than five years before – 22% – compared with 19% in 2014 (2).
- The ABS October 2020 Household impact of COVID-19 survey found that 16% of Australian households felt their financial circumstances had worsened because of COVID-19 (3).
- The Reserve Bank of Australia reported a 4% increase in household deposits between December 2019 and June 2020, up on the past three year average of 1% a quarter (4).
- The Australian Prudential Regulatory Authority notes that Australian residents’ deposits with ADIs have risen 11.5% since February 2020 (5) and that
- “Cashed-up Australians have squirrelled away $100 billion in their bank accounts since the start of the coronavirus recession as they remain fearful the pandemic will weigh on the economy and their own finances well into the future” (6)
- The recovery period, for a COVID-19 infected-person, if they recover, can range from two weeks for a mild case to perhaps six or more weeks for severe cases. (7).
- The recovery time required for those potentially unable to work poses a problem. Again, as the ABS notes, 18% of people with a job did not have enough paid sick leave to take two weeks leave, and 33% had no access to paid sick leave (3), so paid COVID-19 sick leave for recovery is out of reach for many.
This extensive background makes Melbourne University Professor de New’s just released Australians’ Financial Wellbeing Study finding that there is an increase in precautionary savings, unsurprising (8).
The increase in precautionary savings can be reflected in a renewed mindset and practice that sees:
Reductions in smaller value spending. Perhaps fewer purchased coffees or accompanying indulgence foods, or other retail purchases, or the
Deferral of larger purchases, such as homes, renovations or cars, which usually require borrowings to finance them.
The business issue is how to respect customers and prospective customers’ precautionary mindsets while encouraging them to shop more with you or to advance their larger, financed purchases.
Our role is to help you by telling you your customer-action motivating insights.
If clarifying those in this changed mindset times can help you to strengthen your business, please call or email Philip Derham, on (+61) 0414 543 765 or email – firstname.lastname@example.org .