March 24, 2011

Now that they’re ridden out the recession, consumers are ready to take risks again. So says a new study, “Shifting Sands 2011,” from Culinary Tides Inc., reported by Fast Casual magazine. The study analyzed 123 separate lists of Top 10 predictions affecting the food industry this year. Though it was focused on food, the report analyzed predictions across a wide range of sectors, including government, technology, health and travel, as well as the food and beverage segments.

The overall findings: Consumers’ attitudes are changing for the better. There is a new focus on “adventure, courage, optimism and playfulness.” Consumers are moving away from fearfulness and “comfort food” and toward experimentation. They’re also moving away from “clannish” group behavior toward greater individualism.

No matter what industry your business is in, this is good—really good news. Why? Because attitudes toward food are a key indicator of where a country’s economy is really heading. I’ve been through a few recessions in my time, and during economic crises consumers inevitably clamor for the familiar and safe. They hunker down and eat comfort food. That’s why foods like macaroni and cheese or ice cream always boom during down times. In fact, the biggest part of the cupcake explosion occurred during the Great Recession.

When the economy strengthens, consumers become more adventurous—and that translates to more than just food. What can consumers’ greater sense of adventurousness and experimentation mean to your business?

• Take customers from your competitors. Many customers stuck with the companies they’d been doing business with not out of loyalty, but because they were familiar with them and afraid to make a change during turbulent times. Now, that they’re feeling bolder, they’re likely more amenable to shop the competition and make a switch. Reach out to them, find out what they’re less than satisfied with—and how your business can better fill the bill.

• Consider raising prices. OK, don’t go crazy here—people are still watching their budgets closely. Still, greater optimism translates to economic confidence, and people who are feeling adventurous and experimental are more likely to shell out a little extra. Consider adding little luxuries or extras to your existing products or services, or bundling products or services to create higher-priced packages. Recent surveys show people are actually spending more on small luxury items like their daily dose of Starbucks or portable technology.

• Offer something new. Adventurous customers seek the thrill of the new—not the same-old same-old. If you’ve been thinking about launching a new product line or adding a new service, this could be the perfect time to make that move.

• Focus on the experience. Even in the depths of the recession, customers showed willingness to pay for memorable or unique experiences. As confident customers seek more excitement, the experience your business offers them will become even more important in making the sale. How can you improve the buying experience, your store environment or your customer service?

• Be bold. Consumers aren’t the only ones feeling audacious—business owners I’ve spoken to are starting to feel fairly confident, too. If you’ve been considering making a bold move (acquiring another business, undertaking a joint venture), do it now before analysis paralysis sets in.

Do you really have to work so hard at his? In short: yes. Remember adventurousness works both ways. If your customers are in a shop-around-mood, there’s a good chance they’re reconsidering their relationship with you as well. You’re going to have to work extra hard to keep their business. How? By following the wisdom of famed German writer Johann Wolfgang Von Goethe: “Boldness has genius, power, and magic in it. Begin it now.”

Related Topics

• Managing

Related keywords

Rieva Lesonsky, Article, recession, AllBusiness.com