Beware of the blues

Osborne: Society feeling pinch
Osborne: Society feeling pinch

In the wake of George Osborne’s budget announcement, all parts of society are feeling the pinch. The budget seems to hit middle-class consumers the hardest, with average income likely to fall by more than £1,500 this year – unfortunate news for marketers who target higher earners in the hope that they will spend more.

In addition, the Office for National Statistics reported that UK retail sales fell by 0.8% in February – 0.2% more than was expected from January. This decrease in consumer spending will have a knock-on effect on marketers as retailers are likely to lower their marketing budgets if sales are down, and with the effects of the increased VAT yet to be seen, consumer spending could shrink further, casting more gloom for marketers in the future.

In the midst of mounting pressure to entice customers into buying more, and with the possibility of marketing budgets decreasing, marketers need to understand that customer knowledge is now more vital than ever.

Different customers will be affected by George Osborne’s budget in different ways and consequently marketers should be using their vast pools of customer data to pinpoint the budget’s effects, attending to customers accordingly.

While it may be tempting to send out mass, untargeted emails in the hope that they will appeal to some consumers, marketers have to be smart about the ways in which they use marketing tools. Historical customer data can open up a world of invaluable information on consumer buying patterns, viewpoints and trends. With a customer base that is tightening its belt and potentially impacting marketing spend, marketers need to use the resources available to them, from simple common sense to highpowered analytics, to make thorough, well thought out decisions instead of running blind into tactical decisions that will only deter consumer spending even more.

Roger Llewellyn
CEO, Kognitio

Latest from Marketing Week

Marketoonist on GDPR

The Marketoonist

Tom Fishburne is founder of Marketoon Studios. Follow his work at marketoonist.com or on Twitter @tomfishburne See more of the Marketoonist here

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here