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Barbara Sullivan founded the customer communications and strategy firm Sullivan & Co. almost two decades ago. With offices in New York and Washington, the firm's clients include numerous blue-chip companies, such as Goldman Sachs, AOL Music, Comsat, Yahoo! and MetLife.It seems that most of the country is cutting back. People are putting off big purchases such as cars and appliances, cutting what they spend on preventive health care, skipping contributions to 401(k) accounts and slashing discretionary spending. "They are looking for reasons to put off buying and demanding more value when they do," says Barbara Sullivan, founder and managing director of the customer communications firm Sullivan & Co.
Staying competitive in such an environment means understanding and accommodating what Sullivan calls "the new frugal mindset." "Now more than ever, it's important to understand your customers," she writes. "Is security important, or gratification? Are they saving for an education, a house, or retirement? Are they looking to enhance a career or change direction? These differences are important at all times, but when people are making trade-offs, it's especially important to know which values are most important to their decisions."
Sullivan outlines five ways to turn the new frugality to a company's advantage. The tips range from making sure everyone who has contact with customers is properly trained in this shift in approach to figuring out who your real competition is. Often, it's not just similar products or services. "When people are cutting back, they are more likely to trade off among different desires: contribute to an IRA or put a down payment on a car; take a vacation or buy a TV; buy a whole new outfit or just a new blouse," Sullivan explains.
POSTED BY: Frank Marchese (December 03, 2008 07:08 PM)
Ms. Sullivan succinctly highlights what marketers should be focused on in these challenging times. Those businesses that show their customers that they really care and offer relevant products and services that have real value will be the ones who reap their loyalty.
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