Guest Series Article 2: Winning The New Consumer - Marketing To The New Consumer

By Erica Thompson, CRM and Marketing Expert

2009 was a tough year to be a retail marketer. Those who didn't succumb to promotional pricing pressure found themselves firmly rejected by once loyal consumers who seemed willing to jump to a new brand anytime a good deal could be had (e.g. Abercrombie & Fitch). Retailers were forced to cut marketing budgets virtually across the board, as consumers closed their wallets and cost control became critical to making the bottom line. Marketers were asked as never before to prove their spending was driving not just sales, but profitable sales. The always challenging relationship in retail between marketing and key operating partners — finance, operations, merchandising, IT — frayed further as the consumer became harder to predict and pressure mounted to drive traffic. The evolving role of web marketing and social media combined with the devolving role of more traditional marketing vehicles did not make life easier for the retail CMO (whose average tenure continues to decline). And in the midst of all of these challenges, retail juggernaut Wal-Mart gained traction and won new converts as consumers consolidated trips and became more price sensitive.

I think it's a year we're all happy to see behind us. So now the question is, what will 2010 hold for retail and how should marketing evolve to support future growth? There will be clear winners and losers at this time next year and marketing will play a key role in determining who ends up on which side of that battle. I believe there are a few key strategies to winning and retaining the new consumer in 2010 and those marketers who follow these key tenets can help shape retailers that emerge better and stronger.