Image by Mike Monteiro
We see a dramatic shift in consumer behavior: Pre-Lehman we wanted to have the newest gadget, wanted that flat screen, wanted the luxury car, wanted the luxury vacation, wanted anything bright and shiny. Not anymore.
This dramatic shift is reflected in the dramatic decline of auto sales, horrible retail sales, how deflation rears its ugly head and consumer credit sees the biggest fall in decade. These are the symptoms of a behavior shift that will be us for long time to come.
Marketers love wants. Their main job over the last decades was to convert wants into needs. Based on the Abraham Maslow hierarchy of need theory, marketers mostly forgot about the basic needs of people and appealed to the need for self-actualization: This car will make you more successful. This gadget will make everybody else jealous. This product will complete you. Those times are over.
While people are struggling to deal with the new reality, they are only concerned about their basic needs: Air to breathe, Water to drink, Food to drink, Sex to procreate. Add to that the need for Safety and Security, the need for love and belonging, the need for the respect of our fellow’s and for self-respect.
0-60 times have become irrelevant. Same is true for claims of cars as ego extensions. Instead, people buy cars to go from A-B safely, efficiently, without being disrespected by their neighbors. This changed mindset will increase the value of WOM, digital conversations and honesty in marketing. Sure, it was fun to live in a dreamworld of wants being needs, supported by flashy advertising and singing monkeys. But, the party is over.
Throw those champagne bottles and glitzy toys away and go back to the basics: Listen to the needs of people. Understand how this new reality affects them. And how it changes their thinking, outlook on life and behavior. Connect with them. Don’t try to fool them anymore. It stopped working a long time ago and it’s completely counter-productive in this environment. And, don’t get fooled: This is not a temporary shift. This shift is a permanent change. Just like your post-Depression generation didn’t jump on the materialistic bandwagon, this generation won’t believe in consumption as self-actualization anymore.
Just like The Who said: We won’t get fooled again.