Meet the Scrimpers — Your New Credit Crunch Customers

Finding customers a little tougher to persuade? You can sell to just about anyone if you understand what motivates them. That’s the thinking behind a study covered in Contagious by M&C Saatchi, the ad agency.

M&CS’s “Reacting to Recession” breaks consumers down into eight types. If you can identify the ones that fit your business, you can tailor your offering to suit the times. Here’s how.

• Crash-dieters The largest segment at over 20 per cent of adults, they are reacting dramatically to the crunch, cutting back on all non-essentials and ‘shedding pounds’ from their weekly outgoings.
  Sales tip: This lot just aren’t buying. Better to focus on the following seven categories.
• Scrimpers These consumers want to maintain their lifestyle, so it’s about trading down, but not out — holidaying on the Isle of Wight rather than the Algarve, buying own-label brands, Primark and Aldi.
  Sales tip: Tim Duffy, M&C Saatchi’s chief executive, tells the Telegraph: “Scrimpers provide an opportunity for companies to up volume and up margin, if you can introduce the top-end products to attract them.”
• Abstainers Like the Scrimpers, they want to maintain their lifestyle, but are more likely to defer big buys, such as a new car or entertainment system, rather than simply downgrading brands.
  Sales tip: They may be persuaded by a good deal or the opportunity to buy now, pay later. Work your customer data to find a sales pitch that appeals.
• Clothcutters They don’t want to compromise on quality, so Clothcutters ‘rob Peter to pay Paul’ — that is, they might forego a new car in order to do up the kitchen or do without a summer holiday away but join a local gym with a pool.
  Sales tip: Show them what they are saving — how many months at the gym you can get for the average one-week holiday abroad. Or add value so that products work twice as hard.
• Treaters They reward their frugality — which goes against the grain — with little gifts. Lipstick purchase is used as an economic bellwether for this reason — it’s a classic low-cost luxury treat.
  Sales tip: There are opportunities here for the comfort providers — film rental and takeaway businesses that will profit from cheap nights in. Placement tactics are also worth considering: high-end, low-cost goodies such as Divine chocolate will look even more enticing against more mundane items in the Co-Op.
• Justifiers This is a big opportunity group. Happy to spend, solvent and likely to be single, they just need a good excuse. The iPhone’s launch-day buyers were classic Justifiers.
  Sales tip: What motivates justifiers are added value deals, special or limited offers and new models. Just give them a compelling reason to buy.
• Ostriches Could also be called ‘Dodos’ — ostriches are in denial and spending as if they’re living “Brewster’s Millions”. Some can afford to, but they are mostly young, carefree and unfamiliar with the concept of credit restraint.
  Sales tip: Warning! Great in the short term because they just keep on swiping the plastic, ostriches may struggle over the longer term to repay debts.
• Vultures These are your predatory opportunists. They are circling their favourite stores, making a killing on bargains, and are likely to swoop on property bargains.
  Sales tip: Don’t worry about catering to this customer. They’ll find you.