Your Customer has Changed: The New Five Customer Profiles of 2020

I’m old enough to remember the “Great Recession” of 2008/2009. It was an economically challenged time. But it was nothing compared to now. Back then, some people were laid off and had to find new jobs. Some industries even took it on the chin, television news included where my wife and I were working.

But this downturn has the makings to alter the competitive landscape for almost every business in the country moving forward.

It’s critical you understand that your customer, in just the last few weeks, has changed forever. And if you’re going to survive, much less thrive, you’re going to have to understand how they have changed. We’ve broken the new customers profiles into five segments to help you get your head around who you will be serving in the future.

Customer Number 1: No More Spending (Panic)

This customer group has shut down their spending by nearly 100%. They are not spending any money on anything that is not considered essential. They typically are fearful and will be saving every penny they make, if they still have a job. If they are now unemployed, they might not even be looking for work, because of their fear. They will depend on stretching their government stimulus money as far as it can go. To get them to buy your product, you will have to be the low-price leader, and you will have to show this consumer why they will literally not be able to live without your product. Any product not supporting the survival plan will be tossed aside without another look.

Customer Number 2: Sad but Hopeful

This group of customers are watching the news, they are consuming the latest Facebook memes and stories that apply to their lives. They see the pain that’s already come for people who have lost jobs and they realize it may happen to them before it’s all over. They are sad about what’s happening, but they see a light at the end of the tunnel and refuse to panic about the situation. This demographic will continue to purchase products and supplies, but they will be looking for the best price. They will also need to feel their purchases are in the best interest of their families, communities, local businesses, and can be justified while others are suffering. They believe the country will come out of this recent downturn stronger.

Customer Number 3: Solid and Selective

This buying group is made up of people who are on the upper end of the wealth and pay scale. They see the recession as something cyclical; they’ve been through them before and know this too shall pass. They have cash reserves and are solid in their financial standing. They have planned for this and know they can weather the storm. When it comes to purchasing power, they have the assets required, but will not spend frivolously. They are more inclined to purchase top quality products, and put more psychological equity into a good or service which has a higher level of craftsmanship. They will not waste money, now or during the good times. But they will continue to purchase the products they use on a regular basis as well as services which can free them up to use their time more effectively to generate more revenue or to enjoy more of their free time.

Customer Number 4: I’m Good Right Now

These are the people who despite warnings about coronavirus, decided to pack together and enjoy spring break on a beach. The fact that many later developed symptoms didn’t seem to phase this consumer. They are willing to spend money right now on anything that may help them feel good, reduce their anxiety about the economy and job prospects, or help them forget what lies ahead. They may look at the last recession and hope for the best, despite knowing that this downturn could be even more severe than “the great recession.”

Appealing to this target group consists of avoiding future-focused messages, for instead using language like: buy it now, enjoy life today, and experience all that life has to offer in the moment.

Customer Number 5: Dealmakers with Reserves

This class of consumer has money to spare, but wants to feel like they get a deal, a bargain, and have an intrinsic need to negotiate. The buyer will like be looking at higher end products or services and wants to feel like they are able to create a deal using their experience, intelligence and skills. Messages aimed at this group need to encourage haggling, but not at the level of a yard sale. They are likely successful and have the cash resources to purchase. They will often be looking at larger items such as real estate or higher end cars, knowing there will likely be willing buyers who will reduce their prices. This group of consumers likely has a “vulture” account that was stocked with excess cash during the boom of the last ten years. Now they want to use it strategically. The best messaging to convert this class into buyer will focus on their experience, acknowledge their planning skills and massage their healthy egos.

That wraps up the five new consumer profiles as we move into the rest of 2020. Remember, if you need help crafting messages, advertising or marketing for any of these consumer types, we’re here to help. Just log on to www.stokesherzog.com, hit the contact form and we’ll get together to show you how we can help your business.

Sarah Stokes and Chris Herzog, who are both former WEAU television news anchors, started STOKES|HERZOG, an advertising and public relations agency in 2014. The agency assists both local and global clients with all of their corporate business consulting, advertising, public relations, and marketing needs including video production, website management, graphic design, social media management and overall marketing and advertising strategy.