Know your market

As we approach the middle of the first quarter of 2010, you might wonder what’s on the horizon for your business and how you’ll succeed in the current economic environment. Well, there’s no magic equation that will apply to all. Though, it would be nice, wouldn’t it?

The truth is that everything is in a state a flux all the time. Even when we don’t think things are changing, they are. So, you must be ready to take on the challenges presented to you and find the right equation for your business.

And, getting to know what your consumers want and need is important for any business strategy. The RBC CASH (Consumer Attitudes and Spending by Household) Index for February shows consumers are displaying increased pessimism about the future. The current Index reading is 39.4, down from 58.3 in January (January 2002=100). RBC Capital Markets U.S. economist Tom Porcelli noted, “Although numerous economic indicators are trending in a favorable direction, it’s evident that ‘less-bad’ is just not good enough for U.S. consumers.”

Conversely, consumers seem to view their personal finances in a more favorable light, although they remain cautious with spending. According to the most recent Discover U.S. Spending monitor, about one-third of consumers rated their personal finances as good or excellent. “With consumers holding the line on spending, they are better able to pay off their monthly bills. This has allowed them to grow more confident about their personal finances,” said Julie Loeger, senior vice president of brand and product management for Discover.

What do consumers plan to do financially this year? American Express’s January Spending & Saving Tracker revealed consumers will be looking to:

Significantly reduce or wipe out their debt (21%)
Buy only what they can afford (16%)
Stick to a monthly budget (14%)

So, how can retailers reach and serve their consumers in these economic times when consumers are placing discretionary spending on the back burner? According to sister publication Casual Living’s exclusive Surviving the Times Retail survey, some retailers are getting out in the communities to learn who their market is and even helping with school fundraisers to help and show concern for their community and consumers. The top three strategies retailers are likely to implement are to:

Initiate direct marketing campaigns (60%)
Develop customer loyalty programs (57%)
Change where they are spending ad dollars (54%)

Now is the time to take action in getting and staying connected with your customers through social networking, i.e. Facebook or Twitter or other social sites on the Internet or even more traditional methods such as face-to-face networking or research.

Get to know your current market, align your goals accordingly and make 2010 your best year ever.