Nuts & Bolts - 5 Minute Interview: Ira Kalish: Future Consumers to be Tough Sells
Not quite a realized dystopia, the year 2020 will witness the birth of a new global consumer. These consumers could be a challenge for marketers, as they will likely be more frugal and, simultaneously, more demanding. They'll want products that are built to last, green and delivered with a smile by happy employees.
These are among the findings in "Consumer 2020: Reading the Signs," a study authored by Deloitte Research. Although released in January, the findings are being supported by an article published in April by the Pew Research Center and in a study announced in September by Altair Customer Intelligence. Pew and Altair report that multigenerational households are on the rise, with the latter finding that "14.22 percent of all U.S. households" have at least two adult generations living in them. More research released in September, a survey by Kantar Media Compete showing 72.6 percent of U.S. shoppers are waiting for sales before they buy, also illustrates the frugality Deloitte predicts will continue.
We interviewed Ira Kalish, Ph.D., director of consumer business at Deloitte Research, about the study for more insight into what direct marketers should know about consumers in the coming years. Hint: It's about more than the Great Recession.
Target Marketing: In "Consumer 2020," Deloitte Research predicts consumers will more likely be living within their means, and companies may need to go after market share rather than growing markets. What does this means for loyalty programs?
Ira Kalish: In a low-growth environment where market share is of greater importance, loyalty programs are especially important. They are an important tool in, at least, retaining market share. Consumers will be reluctant to switch retailers if they risk losing benefits. Also, if executed well, loyalty programs can be a tool for boosting share of wallet. The problem is always that they are not often executed well.