Mobile Marketing Can Work Well in the Recession

Due to the recessionary environment, consumers have been willing to forgo their favorite brands to cut household costs. Could mobile marketing offer a new access point for brand engagement and marketing opportunities.
With the economy reeling the consumer’s willingness to “trade down” to lower-priced brands over the past two years has been increasing. According to research by comScore a decline in loyalty to consumer goods brands is typically one of the byproducts of a recession as consumers give greater consideration to price.

“While every brand is different, some of the potential uses of mobile might be special offers and discounts sent via mobile, games and mobile apps,” said Andrew Lipsman, senior director of industry analysis at comScore, Reston, VA.

“There is also significant potential to leverage location-based services for highly targeted communications that could reach the consumer at or near the point of purchase.”

The study evaluated the change in brand loyalty within a number of consumer goods categories, including health and beauty aids, over-the-counter medications, apparel, food, household products and house wares.
As the economic downturn has continued, the percentage of shoppers who typically buy the brands they want most has steadily declined across the categories examined.

In March, less than 50 percent of shoppers reported purchasing the brand they want most.

In some categories, particularly CPG household products and house wares, consumers were already more likely to buy a brand they did not “want most” at the start of the recession. Higher ticket items have seen large increases in trading down possibly due to larger absolute savings on a single purchase.

Despite shifting consumer dynamics, research has repeatedly shown that premium brands that invest in marketing and promotion activities aimed at maintaining buying at preferred levels are able to minimize short-term erosion of share to less expensive brands and position themselves for a bounce-back

I think brands have only scratched the surface of what is possible using the mobile channel to drive increased consumer engagement and long term brand loyalty. Let’s see what improved mobile browsing and location based applications do for the market.