In June of 2009 we reported on the impact the unstable economic environment was having on mom’s relationship with brands. With the economy stabilizing somewhat, we felt it was a good time to review the status of those mom-brand relationships.

In February, a study was fielded to 475 respondents with children under the age of 19 living at home. Among the many subjects on which this study probed was the behavior modifications moms have experienced re: product and retail brands.

Not surprisingly, some key measures of saving behavior actually increased during the period. For example, in the June ’09 study 66% of moms reported being more cognizant of in-store offers. In our most recent study that number has increased to 72%. Similarly, 58% of moms reported using more coupons in June. By February, that figure had increased to 63%. These numbers are hardly shocking. Undoubtedly, given the ebb and flow of the economy, some households that had not previously been impacted have experienced a personal downturn in the last eight months.

Conversely, many families who had felt the economic sting prior to last June have seen their personal situations improve in the interim. Lost jobs have been replaced; salary cuts have been restored, etc. Even more likely, people expecting the worst back in the summer of 2009 never realized it. How have these moms’ behaviors changed?

As a result of these economic realities, we anticipated that a large portion of our sample would have migrated back to their previously established brand relationships. But, while some brand migration is evident, it is nowhere near the levels anticipated.

On the product side, 65% of the respondents reported making substantive changes in the brands they’ve purchased. Of that number, only 9% said that they have returned to many or all of their previously favored brands. Of special interest are the influences on the decision to revert to prior brand behaviors.

In some instances (33%), comfort level with an old brand was identified as a major influence on moms reestablishing their relationship. Other brands benefitted from a lack of performance on the part of the competition. 37% of respondents identified dissatisfaction with their alternative selections as a primary driver of their return to prior purchase patterns. Of equal importance, however, were the steps their original brands took to woo mom back. 34% cited lower pricing and 31% reported more aggressive promotions as major influences on their decision to return to their historic brand relationships.

Retailer loyalties, while significantly impacted by the economy, have not experienced the same degree of migration as product brands have. 54% of moms reported substantial outlet switching. Of these only 8% have returned to most or all of their previously favored retailers.

The reasons for switching back mirror the rationale provided for returning to historic brand behaviors. Comfort with their prior stores was noted as a primary influence by 36% of the moms who’ve reverted to at least some of their old outlets. 30% cited dissatisfaction with the product assortment offered by their alternative choice. And, as was the case with product brands, many retailers had to win customers back with better deals. 36% cited lower prices and 35% noted more aggressive promotions as primary motivators in switching back to their old retail relationships.

The economy, while more stable than it was last summer, remains in flux. As a result, there are continuing pressures on brands’ relationships with moms. The longer this situation continues, the greater the likelihood that the attitudinal and behavioral shifts we have seen will remain permanent. The result will be more cautious and demanding consumers, particularly among those responsible for family. Retailers will continue to go out of business and brands will disappear from the shelves. The winners will be those organizations that understand the true needs and wants of their audiences and can successfully strengthen their customer relationships at every touchpoint.

If you are interested in connecting with moms, email Nicole, our mom team lead.

Find out more about how we talk to mom»

Moms modify purchasing behavior more than any other customer group.

The economy. It’s become a daily reason for not buying, not going, not doing and not splurging. And it’s affecting everyone. But no one quite so much as Mom.

Trone recently polled 1,140 mothers with children still at home to find out how the waning economy was impacting their lives and routines. We then compared their answers to those of the 2,181 other respondents and noted some clear distinctions.

Stress levels are up.

It’s not extremely surprising. But it is disturbing. Our panel of moms indicated many more sources of stress than other respondents. They’re frustrated that there’s never enough time to get everything done. They’re concerned about their relationships with their spouses. And most importantly, they’re worried about how the current economy will affect their families and their children. Moms were actually 26% more likely than other participants to say that the long-term implications of the economy are contributing to their stress level. The difference jumped to 29% when asked about short-term financial issues.

Spending is down.

Moms are doing everything they can to plan for their family’s financial future—including reducing spending on everything from health and beauty aids to home furnishings. They’re spending less on the things they need and deferring purchases of the things they want until a later date.

Across the board, moms are being more aggressive than other segments of the population to pursue savings opportunities. Coupons are becoming more important and family entertainment and vacation allowances are being cut.

Even the woes of the automobile industry are partially attributable to the recent behaviors of families with children at home. Moms are 25% more likely than others to defer a planned automobile purchase this year. And, among those that must buy, most are more likely to purchase a smaller or used car to save money.

Brand relationships are at risk.

Here’s the big one. Moms’ economy-driven behaviors are affecting brand loyalty.

In all packaged goods categories, moms are more willing than others to switch both product and retail brands to lower expenses. Take groceries for example: Among moms looking to reduce spending on groceries, 66% are very or extremely likely to shop at less expensive outlets and 77% will switch to less expensive brands.

The effects don’t stop at packaged goods either. While moms will obviously do their best to protect their children from feeling the impacts of the economy, the same can’t be said for themselves or the family pet. Fifty percent of moms plan to reduce spending on themselves this year by shopping at less expensive outlets (78%) and switching to less expensive brands (73%). Similarly, over 75% of moms that are interested in saving on pet expenses plan to try different retailers or seek cheaper brands.

Brand communications must adapt.

Two things are obvious.

1. The economy has changed Mom’s spending behavior.
2. Brands must address this new Mom differently.

The tactics that have been used to reach and speak to moms in the past are obsolete. Every message that a brand puts out into the world must now pass through a financial filter. Do I need it? Do I want it? Is it worth it?

In the future, manufacturers and retailers alike will need to consider this financial filter and stay in touch with their customers’ changing needs. Constantly evolving will be the key to keeping their brands relevant in these trying times.

The owner-pet relationship is a key indicator of willingness to spend.

It’s no secret that pets mean different things to different people. Most of us have seen a woman with a dog in her purse or know of someone with an outside dog. These people are nothing alike, but we lump them together because they are all pet owners. Why? Because we aren’t thinking about how these pet owners feel about their pets.

We often assume they have the same wants, needs and concerns for their pets when in fact nothing could be further from the truth. In a recent segmentation study, Trone found just how different they really are, identifying distinct pet owner segments. The study explores the often complex relationships between pets and owners, and their willingness to spend on pet care.

Using the Trone Brand Connections Panel with over 2,000 respondents of dog and cat owners, we found that 76% of all dog owners stated that their pet is a significant contributor to their well-being. The study also looked at how relationships changed in the different life stages of pets (puppies/kittens, adult and senior). Puppy and kitten owners are typically younger, are moderately more likely to have children and tend to visit their vet more often. Puppy owners are also more active with their pet, while senior pets tend to be with older owners.

Identified Pet Owner Segments

Most pet owners fall into one of eight unique categories. The names of each segment mirror the role that the pet plays in the pet owner’s life.

The more than four million people that Trone estimates are in the Pampered Pooch segment often say their pet is their best friend. The nearly five million people in the Handbag Dog segment are upscale, highly educated and like to show off their dogs. These unique relationships are great indicators of a pet owners willing to pay for pet care as seen below.

Pet's role in how I define myself

Understanding the attitudes that people have about their pets is critical for marketers to grasp if they want to achieve strong business results and use their budgets wisely. This study highlights significant differences, among segments, in the type of products and services a pet owner buys, such as food, medical and veterinary needs. For example, nearly 60% of the Pampered Pooch segment would spend $3,000 or more to treat their pet’s terminal illness in the last two-three years of its expected lifespan and more than 70% of the Wingman segment have used or would consider pet insurance (57% would consider). It also highlights the amount owners are willing to spend on these products and services based on the relationship they have with their pet. The old saying that a dog is a man’s best friend is true for some segments, but for others, today’s pet sleeps in your bed and provides the entire family with a friend and companion.
This study reinforces the importance of targeting the right segment with the right message at the right time. Companies cannot push their products to these pet owners and expect a positive result. They must identify the segment or segments that are best for their brand and craft relevant messages to each segment and create an ongoing dialogue to get into the hearts and minds of their customers.