consumer playing musical chairs

The real legacy of the recession in the consumers mind isn’t money.  Its choice. The recession has created a swirl of switching and brands are holding out chairs hoping someone is sitting in it when the music stops.

Look at the 2010 numbers (those who switched in past 12 months – nca research UK):

–          Cellular provider 62%

–          Main grocery 40%

–          Home insurance 54%

–          Bank 34%

–          Electricity 78%

–          TV service 49%

–          Investments 34%


What compounds the whole “I want to switch” mindset? Its easy.

81% of all switchers said “switching was easy.”

This all means that consumers are swirling around switching like crazy trying new experiences and seeking not only ‘better deals’ but better experiences. People are on the move and companies & brands should be looking to give them a new home.  Because while switching and seeking new experiences will be fun for awhile … inevitably people find comfort in finding something they like and end up sticking with it.

No. This doesn’t mean that evaluating choices after the recession won’t remain. But at this point consumer movement is at its peak.

The good news for brands looking to get someone to sit in their chair when the music stops?

So far only 25% of switchers have noticed “much better service then what they had before.”

And about 50% have rated the new experience “ok” (not significantly better).

A lot of people are finding out that the grass ain’t greener on the other side of the fence.

This time is a great opportunity for companies.  So often we are being forced to encourage switching to build the business.  Today the consumer is already in the market shopping around. We don’t need to create the switching behavior.  We just have to compel them to stop and try whatever it is we want them to try.

Give them a choice.

And give them a good experience.

And you will be a winner when the music stops.

Written by Bruce