2012 Predictions
Time for America to Innovate vs. Procrastinate
The Debt Ceiling Fiasco, European Crisis, Political unrest and the struggling economy are going to shape the upcoming year’s communications. Uncertainty creates the feeling of instability for many Americans that will result in behaviors similar to the years after the Great Depression.
The unfortunate reality, foreclosure rates continues to be around 200,000 per month. As many are forced to walk away from their American dream, how will cultural shift manifest? Adding salt to the wound is one out of ten Americans remain unemployed. For those that have been able to keep both a job and a home – saving will remain king.
Christmas spending did increase 3.8%, but was this money spent or credit card debt? For many it was credit card, which could mean a potentially lower credit score which is going to raise you insurance rates, and everything associated with data that is complied by companies like Equifax.
Many of these factors are going to result in increased consumer fatigue for the irrelevant. Fewer dollars usually mean increased scrutiny in reviewing bills which will result in higher help desk calls. (increasing costs) As much of research indicates, consumers want tips and suggestions on how to better save and spend.
Conversely, corporations will continue to reduce spend in departments which can not clearly articulate its value to the business. As the Fournaise Group released in June of 2011
The top issues CEOs have with their Marketers are:
(1) They keep on talking about brand, brand values, brand equity and other similar parameters that their top management has great difficulties linking back to results that really matter: revenue, sales, EBIT or even market valuation (77%)
2) They focus too much on the latest marketing trends such as social media, because they believe they represent the new marketing frontiers – but can rarely demonstrate how these trends will help them generate more business for the company (74%)
So what are my 2012 predictions?
Consumer:
1) Know Me or No Me: Consumers will stop doing business with companies that continue to spam their email and post box.
2) Privacy Prevails: Consumers will continue to rebel and request government intervention on opt’ing in for internet searches which gather data and other types of queries which could be an invasion of privacy.
3) I only buy from People I like: Consumers will start wanting to spend dollars with Glocal companies (Global companies that act locally – think Southwest Airlines) or just with local companies.
Corporations:
1) Cost Optimization: Spend continues to be monetized with a provable ROI back to the business – in the language of the business. This will not only effect departments such as marketing, but also historical costs centers such as IT. Their investments must contribute and be monetized for the business. Some quick hits will be the costly trade shows events will continue to move to more affordable virtual events. As department sizes continue to be reduced, the fate of such social media such as Twitter may be in jeopardy unless it has a provable outcome for the business.
2) Back to Basics: Serving the customer will again shine as the #1 priority. Companies will focus on word of mouth, local distributed sales agents, and quality products. With this renewed focus, all touch points should be examined and improved from direct mail straight through to bricks and mortar. Delivering excellence again will differentiate the average from the great.
3) Returning to America: Manufacturing is the tried and true way to get the economy going and growing. Both Public and Private sectors must come together and create a strategy on how to strengthen our manufacturing sector. Ask companies like VW why they are manufacturing in America vs. Germany. Learn from the greats on what makes a company flee or flourish. As the global economy stumbles, we can take jobs back to America. We can fill these empty building left behind from Circuit City and Linen’s and Things and begin to replace them with American Call Centers, and Centers of Excellence, and trade schools.
How about it America?
