This article in Brandweek hit home for me, being in the age group surveyed and having made some of these same decisions lately. While we have been hearing for some time now that the economy is hurting, it seems as if the reaction has been a bit delayed by consumers this age. The brand list below was startling to me, especially among a group that is as brand conscious as Gen X/Y’s. Missing from this list is a technology brand and I wonder how long it will be before this groups stops buying new computers, cell phones, music players, etc. and what kind of increased impact that will have on the economy.
“Consumers 21-39 years old are feeling the economic pinch, according to a study conducted online by the Zandl Group on May 23. Sixty-one percent of the 312 men and women surveyed said they have become more frugal of late. Almost half (48%) said they frequent bars and clubs less, 39% are driving less and 35% are eating out less…This has a severe impact on what brands they are choosing. Here is a list of what companies and categories are keeping into favor and which are falling out of favor.
Popular
- Trader Joe’s
- Walgeens
- Craigslist.org
- Forever 21
- Target
- Paperbackswap.com
- Dollar Stores
- Fuel-efficient sedans
Unpopular:
- Whole Foods
- Starbucks
- Sephora
- Room & Board
- Nordstrom
- Netflix
- American Apparel
- SUVs
Last week I ordered a “large coffee” from Starbucks. It was an interesting experience for me: usually my order is very complicated. But, just as the new, massive ad campaign promised, I received a venti Pike’s Roast in the brand new Starbucks cup.
The best part about my order however was that my cup came with this little green tab in the sip hole. I actually commented to my co-workers about it: “this is brilliant! I am so tired of spilling coffee on myself and in my car.” As it turns out, this “splash stick” was the result of customer feedback. BusinessWeek this week reports that
“this is corporate democracy in action: At the month-old MyStarbucksIdea.com, customers can make suggestions, other customers can vote on and discuss them and Starbucks can see which ideas gain support. It’s key to Howard Schultz’s plan to reinvigorate his company, to which he returned as chief executive in January.”
Starbucks is not the first company to try this–the company is actually following the lead of Dell. Both companies are using software that acts “like a live focus group that never closes.” Customers want to feel like they are being heard, and this is a great way to do that. Additionally, Starbucks is using “idea partners” to moderate the conversations and tell customers what things have already been tried or why things won’t work. And the ideas that gain traction on the site, actually get implemented–like the splash stick. Fantastic example of engaging in conversations with consumers.
