Surviving Low Consumer Confidence

Welcome to Monday Marketing Briefing, where the week begins with a quick jaunt through the marketing world. Stick on the kettle, grab a chair, and enjoy the latest news, insights, and opinions (all of which are my own).

Thanks to a medication shortage, last week was sponsored almost exclusively by Nescafe Gold instant coffee - until about the mid-way point when I got hit by a cold, and then it became a joint-sponsorship deal with Vicks and Covonia.

Why all the clumsy name-dropping, you ask? Well I was inspired by this one funny video I saw on Instagram over the weekend. It's a clip from a tween show called Chicken Girls: The College Years (I have no idea either), during which product placement for Eos skin cream is so clumsily squashed into the dialogue that, for a moment, I thought I was watching Riverdale again.

In 2024, I really hope that these haphazard shout-outs are handled with a bit more...grace. Meanwhile, let's crack on with this week's MMB before my morning Twinings English Breakfast Tea goes cold.

If you've been following economic recovery in the news lately, you might have come across the buzzword 'consumer confidence'. Rising and falling in such quick succession that it's given me a stiff neck, consumer confidence is increasingly being tied to the perceived success or struggle of marketers.

But what does consumer confidence even mean? Well, in short, it's how optimistic the public are perceived to be when it comes to the economy. If we're all worried the whole thing will tank, the consumer confidence index sees a drop.

Naturally, following a pandemic and a war that impacted energy supplies, the economy is under a great deal of strain - with KPMG forecasting slow growth into 2024 - and the consumer confidence index has been yo-yoing like crazy. But hey, this is a marketing newsletter and my financial knowledge stops short around this point. So let's instead turn to what this means for us.

As Marketing Week reported, the most recent drop in consumer confidence shows that the public are switching to 'saving' rather than 'spending' mode - which GfK's client strategy director called 'bad news for marketers'. Optimistic.

OK, so people don't want to spend and our world revolves around convincing them to do exactly that. So what do we do when confidence is low? Well, having done this merry dance a few times, I've thrown together a (non-exhaustive) list of suggestions - and I'd be interest to hear yours as well.

• Work on Trust. Even if spending is seemingly off the table, there are plenty of other customer interactions to be focusing on. Investing time and effort in developing engagement, brand loyalty, and other interactions with your audience is a great way to prime them to spend in the long term. While it's not great for immediate sales targets, you can rest easy knowing you've likely ensured their future custom when they're ready to spend again.
• Prioritise Quality and Worthiness. As marketers, we're used to having overflowing to-do lists, and that doesn't change when consumer confidence drops (in fact, the lists get longer). Re-prioritising actions, however, can help you to make the most of this time of slow sales. Seek out feedback from past customers, promote the features and accolades that make your product/offering stand out, and make sure that you're putting the strongest possible argument forward for a consumer buying from you rather than your competitor.
• Focus on Education. While the term 'low consumer confidence' is a somewhat scary economic term, the solution might possibly be hiding in plain sight. To make the situation easier, we need to increase how confident our customers feel about what we're selling them. It's a different kind of confidence, sure, but at least it's one we can control by educating them on the benefits, uses, practices, processes, etc. of what we're offering. When they're confident in what you're marketing and their own knowledge on the problem it solves, it's much easier to make a sale.
• Watch the Competition. Now is the time to be keeping your keenest eye on the competition and what they're up to - after all, the usual struggle for customers' attention dials up from 'Street Brawl' to 'Hunger Games' when consumer confidence drops. But just because you're watching the competition doesn't mean you should copy them. Instead, do your own thing and do it better rather than wasting time trying to replicate; you want to be the one they remember when the dust settles.
• Remember That Christmas is Coming. I know, I know: I'm not a financial expert. But let us consider for a moment that this drop is akin to the tide going out before a tsunami hits. Only instead of the tide, it's spending; instead of a tsunami, it's Christmas. As someone who slows down the spending to save for the festive season around this time of year, this is something I know about first-hand. We know that Christmas is when spending skyrockets, so don't be afraid to be optimistic - and do prep for a competitive December.
• Don't Panic. Hey, we're marketers - and we've been around for a long time. Whether it's the cost of living crisis, a recession, or just a particularly hectic Tuesday, it's possible to navigate turbulent times and still emerge on the other side largely unscathed. Just remember to support one another, stay ready to pivot your strategy, reach out to customers, keep an eye on the competition, and keep looking ahead. It's a long list, but you'll be alright.

Although it's being lauded as 'bad news for marketers', I'm quite confident in both our ability to weather the storm, and that consumer confidence will rise again (probably around Christmas - I mean, come on, have we learnt nothing from the last hundred years of capitalism?). Besides, marketing through dire financial circumstances is a rite of passage, and what marketer doesn't love a challenge?

Speaking of which...

It's just challenge, challenge, challenge this week - starting with Netflix looking for revenue diversification as their ad business takes time to build.

Meanwhile, market research budgets have reportedly been revised down by 1.5% in the third quarter of the year - while main media marketing budgets have risen.

And finally, X (formerly Twitter, and no I still haven't made peace with that) has announced a trial tier called 'Not a Bot' which will charge new users $1 per year to post. It might be a challenge to sell that idea.

Tesla are considering further price cuts, with Elon Musk declaring that advertising won't work for the company until their cars are more affordable.

I caught a fascinating glimpse into what marketing professionals in the fashion world need to know today.

An investigation has been launched into Worcester Bosch after accusations of misleading marketing claims.

Join me as we take a look at the tools and tips that belong in every marketer's toolbox.

What is it? Google Digital Garage, a free digital skills training platform from Google.

Who is it for? Anybody looking to develop their professional skills - whether that be learning to communicate better, brushing up on digital marketing abilities, or exploring how to champion diversity - as well as those wanting to grow their business.

Why does it belong in the toolbox? I mean, for one it's free. We all love a freebie, right? And while there is a certain bias (the cloud computing courses, for example, discount the likes of Microsoft and AWS in favour of Google), there's a lot of useful knowledge to be picked up on from the Digital Garage. And yes, the Garage has been around for a long time - I remember using it back when I worked in Manchester - but the fact it continues to remain relevant is a testament to the quality of content and frequent updates. The learning is fresh, the information is actionable, and there's a great variety of educational opportunities. And did I mention it's free?

We're in the midst of working with our Security Team on an internal Cybersecurity Awareness Month initiative, including a Lunch & Learn and sharing branded security fact graphics. Obviously it's all Halloween themed as well, because I can't help myself. It's also been fun teaming up with another department to promote something internally - and there's definitely a future MMB issue in that.

In the meantime, have a great week and thanks for joining me!