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Gift cards with distant expirations are redeemed less often
UPS revs up safe-driving program for teens
Sex and the single recession
The Great Recession is sexy—who knew? Sometimes economic downturns cause consumers to stop, take stock … and realize they're feeling a bit randy. Certain sectors of the intimate industry have been hot. In the midst of recession, sex toy shops are doing bang-up business; sales specifically of sex toys and personal lubricants are up. And mainstream stores have noticed. Walgreens now has a “sexual wellness lab” that sells vibrators, sex games and racy costumes. Even Walmart, sometimes thought to be a bit prudish, sells lubricants, condoms, stimulants and sex manuals. Adult entertainment venues are weathering the economic impotence relatively well. While consumers don't seem to be in the mood for Las Vegas or Reno bacchanalia, local adult clubs are reporting steady business, attracting the same number of customers but fewer “high rollers.” Tellingly, though, sales and rentals of pornography are down. Why? Sexperts credit the availability of plenty of online freebies.
It's not just sex though. People are looking for romance, too. Match.com, the online matchmaker, reported significant growth in the fourth quarter of 2008. Other online dating sites have seen 50% growth in membership during the Great Recession. eHarmony conducted a 2008 study that shows that singles who are feeling financial stress are 15% more likely to want to be in a relationship. Divorce is down. Netflix, wine sales and at-home cooking are all up.
Consumers are simply staying close to home and enjoying what they have there—sexual activity included. It's true that tough times create an appetite for escapism, from movies to videogames to cheap booze. Sex may be one of the simplest forms of escape. But the decline in porn sales and increase in sales of lube, contraception and toys suggest this trend is about real relationships between real people. Boomer men have been disproportionately laid off during the Great Recession. Many are taking on domestic chores as their significant others become the sole breadwinners. A flip of the script on domestic help, couples look at each other from a flattering new angle. ISM has found that crises always cause people to consider the important things in life. During this economic downturn, many are talking about rediscovering the value of relationships over jobs and bank balances. Plenty of products—discretionary and nondiscretionary alike—are still in demand. Their value, from a consumer perspective, lies in their cost per entertainment hour. Intimate moments with a loved one (and the products that enhance them)? Priceless.
Multiracial is fastest growing demo in the U.S.
Estimates by the Census Bureau show that multiracial Americans are the fastest growing demographic in the U.S. Prior to 2000, census survey takers could check only one race or ethnicity, even if they identify with more than one. But since 2000, the Census has allowed people to check more than one box. The result: In 2008, the number of multiracial citizens rose 3.4% to about 5.2 million Americans or 5% of the overall minority population. People who check more than one box has increased by 33%. While checking more than one box is an option, the Census survey questionnaire is still void of a “multiracial” category. Consumers are pushing for the recognition of all their cultural identities. And, ISM believes companies would be wise to realize that the traditional buckets of race and ethnicity are being tipped over and redefined.
Lights, camera, but most importantly, action!
It's one thing to create buzz. It's another to convert it into the hottest ticket in Boston—night after night of sold-out shows at theaters around the city. From opening night onward, the Independent Film Festival Boston 2009 enjoyed lines of people spilling from the ticket windows and stretching out onto the sidewalks and even around blocks. ISM worked closely with IFFBoston to create a strategy and campaign that differentiated and elevated the festival above its Boston competitors and moved them closer to their goal of reaching the Sundance, Tribeca and Toronto festival level. The ISM campaign was centered on an animated anatomical movie trailer highlighting the journey of an idea through the mind and body of the director and into the minds and bodies of the audience. Its singular look and feel demanded the attention of consumers via street and subway posters, print ads, online banners, web design, social marketing and radio. As Brian Tam, Managing Director of IFFBoston put it, “We're really excited. It's our first holistic campaign. It speaks with one voice we've never had before.” You know the results, now see the trailer.
Gift cards with distant expirations are redeemed less often
One of the sweeping changes the U.S. Congress enacted with the credit card bill of 2009 was to require all gift cards to be honored for at least five years from issue. But ISM has found studies that actually show that extending expiration dates actually reduces the likelihood that those cards will ever be redeemed. Behavioral economists Suzanne Shu and Ayelet Gneezy found that people believed they were more likely to use a card with a distant expiration date, but in practice the opposite was true: A card with a three-week expiration was redeemed five times more frequently than an identical card with a two-month time period. Behavioral economists continue to reveal interesting paradoxes of consumer psychology. In this case, shorter deadlines encouraged indulgence, partly because consumers have a hard time planning for indulgence in the long term. More gift cards are getting redeemed during the Great Recession, but they're still a hugely profitable item, because unused cards are pure profit for issuers. In the end, ISM believes that mandating a five-year period for all gift cards could actually turn out to favor business.
UPS revs up safe-driving program for teens
What can Brown do for you? Teach you to drive, if you're a teen. UPS is teaming with Boys and Girls Clubs nationwide to teach safe-driving techniques used in the company's own driver training program. In 2009, trained volunteer employees will bring the UPS Road Code program to an estimated 1,200 teens in ten U.S. cities, with more cities set to come on board in 2010. Four sessions of classroom instruction include time behind the wheel of computerized driving simulators. High-tech tools like goggles that simulate drunk driving can help teens learn to drive smart. But there's no substitute for hands-on pros like UPS drivers, who navigate tricky traffic every day. Few public high schools offer driver's ed courses today and private driving schools cost big bucks. Free classes that help prevent accidents are a boon to every driver and by bringing its own safe-driving program to teens, UPS has found a smart way to amp its brand. ISM believes that there are many ways your business can better leverage existing operations, talents and programs so that you can expand your brand's reach in interesting and innovative ways. |
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U.S. families are spending less time together, due in part to a rise in internet use and the popularity of social networks. A USC study found 28% said they have been spending less time with members of their households. That's nearly triple the 11% who said that in 2006.
-- AP 6.15.09
An online survey from the International Food Information Council Foundation found that 53% of Americans are trying to lose weight.
-- SupermarketNews.com 5.22.09
About 70% of the consumer complaints recorded by the Zagat Restaurant Survey are about service, far more than food.
-- FoodTheAtlantic.com 6.1.09
Thanks to the economy, intergenerational households are on the rise. According to the Census Bureau, as of last year there were 5.1 million Americans age 25 to 34 living in the home of a parent—a dramatic increase over the 4.3 million who were doing so in 2004.
-- New York Times 5.13.09
According to the National Golf Foundation, the number of female golfers has remained flat in recent years, around 23% of all golfers, while the percentage of rounds played by women over 18 has fallen to 15% from 18% a few years ago.
-- WSJ.com 6.6.09
A report from the Grocery Manufacturers Association and PricewaterhouseCoopers shows that companies reporting on sustainability efforts have substantially outperformed companies that don't.
-- FoodProductionDaily.com 6.5.09
Not only have the Golden Arches stolen share from java leader Starbucks as the place most preferred by coffee drinkers, but McDonald's has also dislodged Dunkin' Donuts from its second-place spot, according to the May 2009 survey by BIGResearch of more than 8,000 consumers.
-- Boston.com 6.18.09
America's Research Group, a South Carolina pollster, says 72% of 1,000 consumers interviewed in February 2009 have haggled in the past year (31% is the historical average) and they've gotten deals 80% of the time; last year, only half the retailers they took a shot at caved in.
-- WSJ.com 6.24.09
The vast majority of Japanese mobile-phone users—more than 80%—access the internet on their phones. That trend might be a good indicator of what's to come in the rest of the world.
-- eMarketer.com 6.11.09
51% of shoppers surveyed by the American Meat Institute say they have changed their meat purchasing relative to the economy. Despite the recent increase in home cooking, the average family prepares only 3.9 evening meals that include a meat item, down from 4.2 meals last year.
-- Gourmet.com 6.10.09
A Gallup Poll from July 2008 found that among women who drink, 43% say wine is what they drink most often and 28% say beer. Among men who drink, 58% say beer is what they drink most often and 17% say wine.
-- SFGate.com 6.7.09
One in nine Americans is using federal food stamps to help buy groceries. Enrollment jumped 2% to 33.2 million people in March, the fourth consecutive month that rolls hit a record, said the Agriculture Department. The average monthly benefit was $113.87 per person.
-- Reuters 6.3.09
Kids' Restaurant Week in New York City gives parents the chance to eat from $29 prix fixe menus while their kids pay their age (a portion of the proceeds goes to the Food Bank for New York City).
-- NYMag.com 6.4.09
According to a survey from the Boston Consulting Group, restaurants are the top category in which U.S. consumers said they are most likely to cut back.
-- Slate.com 5.16.09
According to a survey from the National Business Group on Health, 27% of insured workers are skipping healthcare treatments to avoid copayments, 20% of employees are not taking their prescriptions as advised and 17% of employees are cutting their pills in half to make them last longer.
-- CNNMoney.com 5.27.09
The International Council of Air Shows estimates that 15 million people will attend air shows in North America this year, up from the average of 10 million to 12 million. Air shows are a relatively inexpensive form of family entertainment; they saw a similar uptick during the recessions of the early 1980s and '90s.
-- Los Angeles Times 5.22.09
Americans carry an average of 5.3 all-purpose credit cards in their wallets and the average household has $10,679 in credit card debt, according to the industry publication The Nilson Report.
-- New York Times Magazine 5.17.09
To stay afloat, exclusive country clubs are cutting initiation fees or opening to the public. The National Golf Foundation identified more than 500 clubs at serious risk of closing, and a club manager survey showed twice as many members resigned during the past year as during a typical year.
-- Washington Post 5.21.09
According to the Bureau of Transportation Statistics, Americans are traveling more miles by bus. A separate study by the Chaddick Institute for Metropolitan Development at DePaul University found that scheduled bus service—which had been declining for more than four decades—rose by 8% in 2007 and again by 10% in 2008.
-- USAToday.com 4.29.09
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