Mercator

Spending power and the power of spending

At a time when almost everyone is trying to spend as little as possible, it’s worth remembering why we do some of your spending in the first place. At its most basic level we need to exchange money for survival - payment for food and utilities - but even in these straitened times, there is still a lot of room for exchanging money for meaning. Spending is a power activity - the buyer has power in the form of money which they can deploy for the purposes of self-fulfilment. Every time we buy something that we want - as opposed to something we really need - we are using our spending power to get the item in question but also to get the power-of-spending ‘rush.’ When a customer emerges from Brown Thomas with a lipstick or a pair of cufflinks they may have gone in for a dress or a suit. They didn’t get what the item they wanted but they couldn’t leave without the rush so they opted for a consolation prize, a Match 4 instead of the jackpot. [Link]

Customer Priorities

Keep in mind that what makes a customer choose your brand has as much to do with the importance to them of your product or service as a category as it does about your brand itself. If you’re selling tea, your brand is at a disadvantage if the buyer is not buying for themselves, but for others in the house. For them, tea is not a priority and they may be tempted to buy a standard own brand in the supermarket. But ten seconds later they buy a premium coffee. Why? Because coffee is important to them - much more so than tea. [Link]