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Volume
2, Number 8
September 2008 Quick
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Special
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Mpell Solutions For Sales Support: For Marketing Support: For Redemption Support:
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This Issue:
The U.S. economy, facing a consumer-spending slowdown and a weakening global economy, is poised for an unpleasant finish to 2008. The pattern of growth that is emerging this year -- a mediocre first half followed by a weaker second half -- is the reverse of what most forecasts showed at the beginning of the year. Economists have downgraded growth forecasts in recent weeks. "We are on the cusp of a renewed deceleration in growth," Goldman Sachs economists said, noting that a contraction in consumer spending is likely over the second half of this year.
Households are grappling with layoffs, stagnant wages, falling home values and tighter credit. The U.S. government's economic-stimulus program, which was intended to give households a boost in the middle of the year, may not have done enough to stave off recession. The payments coincided with a run-up in fuel prices, so a portion of the checks were gobbled up at the gas pump. So far, most of the money appears to have gone to savings and debt rather than to immediate spending in stores. Retail sales in July were weaker than expected at many chain stores, suggesting the May and June sales boost from the stimulus checks is quickly fading.
These forecasts are particularly relevant in the current economic climate. You need to appeal to your customers’ emotion and impulse by offering a special incentive to motivate them to action. The value propositions that previously attracted customers, simply aren’t enough anymore. MLB Special: $25 Value/ $5 Certificate
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We’ve noticed an increase in the value of promotions relative to the purchase level necessary to qualify for the promotion. In addition, special incentives and promotions are taking a more dominant position in print, online, and media creative. The urgency for a truly compelling call to action is increasing.
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