Consumer Confidence at 7-year High
In the latter part of the year 2007, consumer optimism began to wane, and soon we suffered one of the biggest meltdowns of our economy since the Great Depression. As the economy worsened, many businesses went into survivor mode, cutting employees, reducing and not replacing inventory, and reducing the advertising budget. We will always argue that advertising is the last thing a business should cut when sales start to slump, but that’s what happens, and we really can’t blame you for that.
However, if you did cut your advertising budget in 2007 or 2008, then to be truly consistent, you need to increase your advertising budget now in 2014. Why? Because the retail economy is roaring back.
The Conference Board is an organization which since 1916 has tracked consumer confidence in the U.S. People do not buy things, especially discretionary items unless they feel confident about their short term economic future. When people feel good, they buy. When they’re worried about their jobs, they don’t buy.
The Conference Board publishes a monthly index number reflecting consumer confidence. The higher the number, the greater the confidence. As you might assume, the Index has been lower than normal over much of the past seven years due the recession.
Over the past three months, however, the index has been rising, and is now at the highest point since October of 2007.
What Does Consumer Confidence Have to Do With Advertising
Consumers drive our economy, so as their enthusiasm grows, so do your sales. Now that you know this information, what do you do about it? The answer is to prepare for success. Just as you prepared for bad economic times a few years ago, you must prepare for good times. It’s time to rebuild your inventories, train and have in place the right employees, and boost your advertising budget before your competitors do and steal your market share away from you before you even have a chance to cash in on better times.
Another way to prepare is to analyze your digital footprint. In other words, it’s time to make sure your website is ready for the increased traffic that’s already starting to grow with the economy. Before the recession, a lot of buyers still made their way physically to stores. During the slowdown, people got used to going to the internet. It saved on gas, and often, they were able to find a better price online. The online habit isn’t going to change just because there’s more confidence and cash in the economy, because it’s now a buying habit. To succeed, you’ve got to conform to consumer behavior.
HD Marketing & Design Fort Wayne
At HD Marketing & Design, we can help you review your digital efforts. Not just your web site, but also your social media and use of video. And, we can help you get found online, because no matter how good your website is, if no one sees it, no one will buy from it. Give us a call, and we’ll be happy to come to you and show you how you can capitalize on growing consumer confidence.
Get ready! The coming months are going to be terrific!