The Four Ways Customers Behave in a Recession

May 20, 2020 5:59:26 PM

Topic: COVID-19

   
On-Target! Makreting | Digital Marketers In Houston |

The same tactics that worked on a majority of your prospects six months ago likely do not apply in the ‘Coronavirus economy.’ That’s because purchases depend on consumers’ having disposable income, feeling confident about their future, trusting in business and the economy, and embracing lifestyles and values that encourage consumption.

During an economic downturn, customers simply behave differently. According to a study by Harvard Business Review, these are the four types of groups customers fall into during a recessionary period.

Slam on the brakes

Feel most vulnerable
Reduces all types of spending
Mostly lower income
Some anxious higher income

Pained but patient

Tend to be resilient
Optimistic about the long term
Less confident about near-term
Largest segment, many income levels
Worse news will slam-on-brakes

Comfortably-well-off

Feel secure about ability to ride out challenges
Continue to consume
Primarily top 5% income bracket
Some are comfortably retired

Live-for-today

Carry on as usual
Typically urban or younger
More likely to rent than own
Spend on experiences
May extend timetables

Understanding which segment your customers belong to will help you identify strategic opportunities on how to market your products or services during the downturn. 

Get more insight and tools that will help you understand your customers and thrive in 2020 and beyond.

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