Building the Relationship with a New Dialogue

Seismic…catastrophic…epic. However we choose to describe it, the financial downturn that began in December 2007 has had such a significant impact on all of our lives that it now even has its own name. As recently reported on Bloomberg.net, the “Great Recession” has been added as a term of reference in the Associated Press Stylebook Online.¹

While the term has been used before for other economic downturns, many experts agree that this one deserves special recognition. Adding the term to the online stylebook in March 2010 and to the print edition to be published later this year is a big step toward official recognition of the term and inclusion in dictionaries. As the lexicographer Orin Hargreaves points out in the article, “It clearly is a shift in everyone’s perception of their financial and economic life.”

Although there are signs that we are now slowly moving past this period, we recognize this paradigm shift and acknowledge that it has altered the way we act as consumers. A recent report published by PricewaterhouseCoopers demonstrates just how much our shopping behavior has changed due to the economic downturn.²

“The economic shocks of the past two years have created greater urgency for retailers and their suppliers to understand and respond to the new marketplace realities—not the least of which is the fact that the recession has changed shopping behavior: 72% of all shoppers recently indicated that their shopping behavior has changed significantly or somewhat as a result of the economic environment, and only 7% have made no changes at all.”

Has our purchasing behavior changed forever? Some believe that when the recession is finally over, consumers will go right back into spending mode. But how many of the 72% will rejoin the 7% with no changes at all? Whereas before these difficult times many people viewed a “big ticket” purchase as almost an entitlement, now there’s a sense that it’s an indulgence—something to be enjoyed every now and then, but not every week.

The Great Recession has undoubtedly changed the attitudes and behaviors of consumers in many ways. But one thing has not changed at all. That is the need for us, as marketers, to respond and adapt to these new purchasing patterns and to continue to connect with existing and new consumers. Our relationships with our consumers are all still built on meaningful and relevant connections, but this time there’s a new type of dialogue.