The New Consumer Consciousness

I’ve posted on the how the recession is changing the face of consumerism in America in the past (see More of Less, and Meaning of Value in this Economy).  Ogilvy/Communispace just did a study that surveyed 1200 U.S. consumers and qualitatively explored topics with 694 online community members that analyzes the effects the recession has had.  The findings confirm that American’s outlooks, hopes, and clarity has changed  You can download the full study here

So how Are consumers emerging from the great recession?

First, let’s look at some key indicators:

• We are getting paid less, not more.  Middle-class families earned less by the end of 2008 than they did in 1999 when adjusted for inflation (NY Times 1/10).
• 1 in 4 mortgage borrowers are under water (WSJ 11/09)
• 10% is the official unemployment, but Real Unemployment is 17.5% (NY Times 11/09)
• American’s are saving more.  Savings increased more than +6% year-over-year (WSJ 8/09)

A new consumer consciousness has awoken and consumers are more aware than ever about the products and services they are purchasing.  What they are doing with this new found awareness is diverse.   The choices we are making are definitely more deliberate. Our newfound clarity has helped to align choices with values.

Here are just a few takeaways:

• People are discovering new ways to explore the world, appreciate their lives, and to reconnect with values.  American’s are reconnecting with what they can see and feel that is local and tangible–themselves, their family, and community.  Respondents said Main Street (49%) was the most important indicator for them to pay attention to for gauging a recovery.

Much has been written about how Groupon.com popularity has soared due to the fact that consumers are looking for great deals in this economy and the new power of crowd-sourcing.  However, connecting with what is local and tangible is a major driving force behind Groupon’s success.  In an out of control economic situation making choice that are local gives consumer a sense of order and control.

• Self-Reliance is the new insurance policy.  Americans have developed a new sense of planning, analyzing, and delaying gratification that has become part of who they are.  They like to see themselves as strong and capable in the midst of all this economic dysfunction.  56% of American’s would rely on themselves to get the country back on track vs. the Government (33%) or Financial Institutions (11%).

Brands need to align with this can-do attitude and be helpful to their quest for something better.  American Express and All State have tapped into this consumer insight with their latest campaigns.  American’s are inherently optimist even if they are not thinking optimistically at the moment.  On a political level the National Tea Party movement has captured this feeling that we need to rely on ourselves vs. government and large corporations.  Brands that offer consumers empowerment and independence will win this battle.

• The reincarnation of the American Dream.  The dialing down of ambitions and the traditional pursuit of happiness–which is bound up with accumulation material wealth–is being relinquished in favor of the pursuit of PEACE OF MIND.  Consumers are achieving this goal by adopting sustainable living habits for the long-term.  Not only when it comes to the environment, but also making choices that do not bankrupt our health, fiscal resources, or values.

While this recession may have given rise to more cynicism, doubt, and confusion, it has also been the springboard for Americans to develop new appreciations for intangibles, and to reconnect with what they think is important.  Brands that will be successful will offer durability, authenticity, transparency rather than corporate, one-size-fits-all, protect the profits at all cost mentality.