It’s the Economy. Why does that mean I need to change?
“I can't change the direction of the wind, but I can adjust my sails to always reach my destination.” ~Jimmy Dean.
We live in a VUCA world (Volatility, Uncertainty, Complexity, and Ambiguity). People are nervous about the economy. The US economy grew slower in the first quarter of 2023 than expected. How do you lead your business / take risks in a VUCA world? One way is to evolve your product/service and/or pricing to meet your client’s changing needs. If your product/service no longer meets a client’s needs, why would they continue to buy from you?
Have you updated your client insights in light of the current economic impacts? (BTW, you should regularly) —> Have their needs changed? If you want to grow revenue, think about how you can modify your product/service and pricing to better meet the changing needs of your target audience.
Here are some insights you might want to consider as you adjust your sails (consider modifying the products and services you offer) …
Gen Z (11-26 yo) are finding it harder to save (73%) and pay down debt (43%). How are they coping? By being proactive. They are trying to earn extra income (75%), get an education (40%), advance their careers (32%), and look for a new job (31%) / second job (26%).
Millennials (27-42 yo) live paycheck to paycheck (73%), compared to just 60% of the wider population. Older millennials face a particularly tough financial struggle between supporting children and aging parents.
Gen X (43-58 yo) have been most affected by inflation due to many of this generation being the primary breadwinner (43%) and sandwiched between parent and caretaker duties. They have the most significant decrease year-over-year in their ability to save (37%) and are cutting back on eating out (36%).
Boomers (59-77 yo) are unprepared for retirement, and recent inflation is not helping their situation. The median retirement savings for baby boomers is $120k —> 27% haven’t saved a penny toward retirement. To retire comfortably, an individual needs to save ~$1 million. That’s a scary gap and means that Boomers may need to keep working longer or significantly reduce their standard of living.
As a Product Owner or Marketer, you should consider …
Does your product/service help your clients save/spend less, pay down debt, and find resources to live better?
If not, can you modify it to fit your client’s needs better in the current economic cycle?
Can you reduce your pricing? —> Example: Cedar Point is reducing its season ticket price for the 1st time in almost 20 years.
If you can’t adjust your pricing, can you quickly provide a basic version of your product/service with fewer bells & whistles at a lower price point?
What else can you do to show your target that you “get” them and their current situation (not in a superficial way, but that you genuinely feel their pain)?
Build a relationship. Demonstrate how your value prop helps them live better lives / resolve their pain points.
Let’s start a conversation about Leadership in a VUCA world, Product Marketing, and adjusting your sails.
Additional Sources:
https://www.linkedin.com/pulse/economic-growth-slowing-other-happenings-world-work-taylor-borden/
