VSA's Jerry Stiedaman wrote an article for WARC, “With consumers craving stability, now is the big opportunity for big brands.” Read an excerpt below.
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Ongoing consumer uncertainty means that for big brands, it’s time to shine. Despite the call to disrupt and reimagine business—a call that spawned a thousand startups—the national and global turmoil of the past few years (and in the financial sector the past few months) has brought about a significant shift in consumer priorities. The result is a renewed focus on the familiar and reliable.

According to PwC’s February 2023 Global Consumer Insights Pulse Survey, 96% of those surveyed said they were planning on adopting cost-saving behaviors in 2023. The study also showed that 69% of consumers altered their nonessential spending in the previous six months. These statistics show that consumers are adopting much more careful spending habits in 2023, and brands will need to make their offerings feel truly valuable amid growing price sensitivities.

The antithesis of long-lasting value? A company with shady credentials or an unproven track record. Startups have been hit particularly hard with this brand connotation—failures have left thousands of consumers in the lurch. As one example, before its recent sale to e-commerce specialist Retention Brands, the subscription makeup service Birchbox left customers without their monthly boxes for some time. The brand posted a mea culpa on Instagram, citing “a host of unprecedented setbacks that are affecting all of you, our cherished members.” It’s no wonder that people seek safety over novelty.

The startup landscape is also getting walloped by financial factors. Rising interest rates around the world mean they are increasingly vulnerable to competition. VC funding is radically slowing after the worst Q4 since 2013. And the startup-friendly tech sector has seen more than 100,000 layoffs this year. This damage was further compounded by the sudden collapse of Silicon Valley Bank (SVB) in early March. Many startups relied on SVB for banking and payroll—in fact, 88% of Forbes’ “Next Billion-Dollar Startups” were SVB customers.

With startups hurting from financial difficulties and reputation damages, more established brands have a clear opportunity here to reposition their offerings and lean into the demand for safety and consistency with a longevity well suited to the task.

So how does the big brand take advantage of these times? Here are three thought starters:

1. Refocus and strengthen your core experience.

The last decade has seen a barrage of brands differentiating themselves with a veneer of friendly colors and unconventional marketing tactics. While that might get people in the door, it certainly won’t make them stay. By refocusing on stability and strength, you’re investing in your company’s future: Bain & Company says that “across a wide range of businesses, customers generate increasing profits each year they stay with a company. In financial services, for example, a 5% increase in customer retention produces more than a 25% increase in profit.” Put simply, existing customers spend more than new customers. Plus, their referral potential gives you a free, built-in acquisition machine.

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VSA’s Jerry Stiedaman, Associate Partner, Client Engagement, was recently published in MedCity News. His article, “Healthcare and Gen X: 4 Things Marketers Need to Get Right,” examines how despite its spending and decision-making power, Gen X is routinely overlooked by healthcare marketers. Jerry outlines why healthcare marketers should consider the Gen X audience, and the four steps to winning the generation’s loyalty and attention.

Read an excerpt below.

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When it comes to healthcare marketing, Generation X once again gets the short end of the attention stick.

Overshadowed by boomers—a prime target for healthcare advertising dollars as they age and require more care—and millennials—the holy grail audience for the emerging health-tech industry—Gen X’s unique healthcare needs and position often leave its members underserved and mostly ignored.

Gaining the attention and loyalty of just one Gen X consumer can grant healthcare marketers a fast-track audience with all of their family members.”

This oversight is a massive missed opportunity for healthcare marketers. First off, Gen X is at the height of its spending potential. Its U.S. population of 65 million has saved a collective $13 trillion and owns 29% of the nation’s household wealth (versus just 6.4% owned by millennials).

It’s also the sandwich generation, which means Gen Xers make healthcare decisions for their aging boomer parents and their millennial children in addition to themselves. Gaining the attention and loyalty of just one Gen X consumer can grant healthcare marketers a fast-track audience with all of their family members.

Just like its neighboring generations, Gen X has unique perspectives and needs that marketers must know. Here are four ways that healthcare marketers can better connect with their Gen X consumers:

1. Make it branded

Gen X was the first real healthcare consumer, coming into purchasing power after the patient rights movement of the 1970s and the healthcare consumer rights movement of the 1990s. It also witnessed the rise of pharmaceutical ads targeted directly to consumers, which began as early as the ’80s and exploded full force in the late ’90s. As with other buying experiences, Gen X is accustomed to shopping around for its healthcare.

Gen X’s comparison for the self-determined selection of healthcare experiences makes investing in a brand critically important for healthcare businesses. Companies need to invest in a strong brand that stands out from competitors and creates a connection with the Gen X consumer. Ensuring a consistent, clear narrative across all points of the consumer journey demands a brand that is well-equipped to carry its message.

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