Marketing to the Optimistic, But Cautious

Yesterday (and in today’s newsletter), I referenced a post Google has up on its Retail Advertising Blog, which gives tactics for marketing to four different groups of people in the current state of the economy. In that article, looked at the tactics for marketing to the frugal, or what Google’s Yael Davidowitz-neu calls the "slam-on-the-brakes" segment.

The second group that he talks about are the "pained-but-patient" segment. These are the consumers that are generally optimistic, but are concerned about the short-term, so they reduce spending in all areas, but are a little more flexible than the previously discussed segment. Yael says this is the biggest segment represents a wide range of income levels. Tactics he shares for marketing to this group include:

- Appeal to these consumers practical side by offering better pricing at higher volume – this can take the form of a loyalty club to foster repeat visits or discounts on bulk purchases.

– Market non-necessities as affordable alternatives to luxury purchases.

– Focus on promoting repair services – with their eyes on an optimistic future, this group is likely to prefer repairing a current item to purchasing a new one.

– Build longer term brand awareness now, while you face reduced competition in the market place. Expect that the investment may not pay off until this consumer is feeling less financially constrained, but that it may pay off big in the future.

A loyalty club is a great idea, but there are other ways to encourage customer loyalty without a club. Providing a good customer experience is crucial, especially in this economy. Look at how Amazon has carried itself.

Amazon’s service very well may not reflect your own business’s, but showing customers you actually care about them every step of the way will go a long way toward forming customer loyalty. And that is something you can’t put a price on. A couple more good examples we’ve looked at in the past are 1-800-PetMeds and Fright-Rags. Check these two articles out if you want to see some good customer experience.