Consumer Trends for 2011

So what are people likely to be doing with their time and hard earned money in 2011?

The current economic climate has created different trading conditions for us all as we move into a new economy which is less focussed on materialism and more about a new set of values for customers.

As a result here are some of the latest trends in consumer behaviour that are likely to shape consumer behaviour in 2011 and how they could affect your business.

1. Prepare for the worst
Consumers are going to continue to be careful in their spending particularly in the first quarter of 2011. In the UK, 43% of consumers say that saving an emergency fund is their key priority and up 15% on the previous year. Debit rather than credit transactions are set to rise by around 60% between 2010 and 2011. Consumers want to know what they are getting themselves into: no loopholes, hidden costs and pricey upgrades.

What does this mean for you?
Potentially all businesses will be facing a tough start to the year as consumers yet again rein in spending post Christmas and react to the VAT increase. Hopefully after the first quarter of the year this will improve but businesses should be prepared to a tough start to 2011.

What can your business do?
Well what not to do is to do nothing yourself and then re- emerge in spring. What you need to do is to communicate with your customers and remind them of the benefits of your business and why they should continue to do business with you. This doesn’t have to be expensive. Enewsletters are an excellent way of keeping in touch with customers and giving them a reason to be reminded about your product. Social Media is also a cost effective way of speaking to existing customers and attracting new customers too.

2. Retail Rebirth
With on line experiences developing rapidly, retailers face a no-win battle against the internet. In the UK, 47% of consumers are only buying clothes which are on sale, offer or promotion and 35% say their choice of store is determined by special offers or discounts.

What does this mean for you?
This focus on looking for the best deal is not just going to just affect retailers it will affect all businesses and means that you are going to have to be innovative about how you get people into your business and encourage them to buy from you.

What can your business do?
You can think of innovative ways of getting to the customer service and may extend into advice and demonstrations while exclusivity and environment may also be key to engaging customers with real life not virtual shopping experiences. If you are a retailer, have customer shopping evenings or for other businesses why not invite your customers to a special event. These type of events are also good at attracting local Press and PR for your business and a Press and PR campaign is a very cost effective way of getting your message across to new and existing customers.

3. Smart Phones
Smart phones are going to be key again in 2011 with 28% of UK consumers owning a smart phone and by 2015 iPhones will make up 11% of all total devices used in the UK. Social Media was big in 2010 and will continue to be so in 2011 with more and more people being able to access social media sites like Facebook, Foursquare, LinkedIn and Twitter on their phones and using social media to find out what other consumers think about products and services.

What does this mean for you?
It means that you need to consider the use of social media tools as part of the marketing and communication you have with your customers because if you don’t you may find your customers are using social media and that your competitors are communicating with them through this medium.

What can your business do?
If you are already using social media as a communication tool it means you will need to continue to work hard at communicating and working via this channel. If you are not yet using social media you should consider using it as part of your communication with customers. Bright Light Marketing carry out one to one tutorials with clients to get them started on their Social Media journey which has allowed many of our clients to gain new business in a cost effective but targeted way.

4. Garden State
There has been a huge growth in gardening in the past year and this is likely to increase in 2011. In the UK one in five consumers grow their own fruit and vegetables and the UK allotment waiting list has grown 20% in 2010. In addition to the increase in growing your own, the past year has seen a growing interest in local food products and companies who are local and not big brands.

What does this mean for you?
Rural businesses have a huge opportunity to tap into this interest in local, particularly food businesses, retailers and tourism businesses however other rural businesses can tap into this trend by highlighting the benefits of local knowledge and customer service that tend to exist in rural areas.

What can your business do?
Highlight in your communications the local in your product and also your local knowledge and customer service.

5. Staycation is here to stay
Although the first quarter of the year may see less people taking short breaks, 2011 is likely to a good year for tourism with more people staying in the UK for their holidays and with the price of the Pound against the Euro making the UK attractive for European holiday makers.

What does this mean for you?
Well if you are a tourism business it gives you a huge opportunity to speak to past and current enquirers and customers and communicate with them to bring your tourism product back to their minds. If you are not a tourism business you may still benefit from this as visitors to any area don’t just stay in their accommodation but will of course spend in the local community where they are staying.

What can your business do?
Again like some of the other trends in order to take advantage of this you need to communicate and raise awareness of your product to visitors in your area. If you are a tourism business this can be by sending out a regular enewsletter to your database and use other communication tools such as Press and PR, the media will pick up on this trend and are likely to increase their focus on UK Holidays, make sure you get some of this coverage. Again social media is an excellent tool and is used by a lot of very successful tourism businesses. If you are not a tourism provider but do benefit from visitors why not communicate with local accommodation providers and let them know about your product and ask if you can display a leaflet within their accommodation?

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