Currently people are adapting to the pressure of the economy. They are becoming savvier with their money. The amount of media dedicated to this topic has pushed it to the forefront of most marketers’ minds. Recently this conversation has started to change with subtle indications of economic recovery. The media is starting to ask what will the post-recession consumer look like?

For some the belief is that the recession is having a temporary impact on the consumer. The yearning for prosperity will force the customer to ‘snap back’ to normal. Although this sounds great for businesses who aren’t coping at the moment, it is flawed by the assumption that people learn nothing from experience. On the other end of the spectrum is the view that the recession will create a ‘new normal’. This is based on the fact that the consumers are not ‘weathering the storm’ but are actively adjusting. According to M&C Saatchi research 54% of the Australian population have experienced a reduction in the value of their superannuation and a further 39% in the value of their shares/investments. The perceived reduction in prosperity has lead people to changing where they buy, invest more time in research etc.

This is not a new phenomenon. If history is to be the judge of how the post-recession consumer will act it confirms the ‘new normal’ perspective. For example, the post 1940s depression consumer who taught themselves and the generation beneath them to not ‘squander’ – using leftovers, hand-me-downs, and only buying what was necessary etc.

Added to this shift is the immense influence of business. As the customer changes, businesses are reacting and restructuring. Companies looking to survive are trying to find a lower cost of doing business whilst increasing profit. This adaptation includes reducing pay/bonuses, rethinking their supply chain, squeezing vendors, reduction and redistribution of marketing budget etc. The measures being taken by business to survive are changes that cannot be undone overnight. In fact they are helping permanently change behaviour and create a ‘new normal’.

So what does this mean?

If consumers will be fundamentally changed by the current economic situation business decisions should always be made with the ‘long-term’ in view. This would suggest that companies should avoid recessionary tactics (ie. Price or continuous sales) in favor of those that will win customers during and beyond this phase.

Although the end of the recession is some time off the ‘New Normal’ is something to keep in mind now.