Customer Confidence

Consumer Confidence is a very qualitative term which denotes the health of the economy of country. It is affected by number of factors, overall economy, share market and industrial environment. Its effect could be gauged by last year recession itself,when it duped leading to low sales, large layoffs but the point is lower customer confidence will in turn lead to lower sales and demand for goods which in turn will lead to higher layoffs. Its a vicious circle which needs to be broken if the world economy has to revive.

When today we are seeing higher demand from customers in the festival season inspite of continuing declaration of bad debts of large financial players, may be the recession factor is now been factored in by the customers in their mindset. But this led to breaking of the above Vicious circle and we are seeing the light that some day this dark recession will end.

Companies should try to boost Customer confidence by giving consumers some new innovative products, services at fair prices. Actually marketing has also undergone change after last year recession. Today you cannot bombard consumers with direct marketing, he would simply not bulge, rather it should be targeted sales promotion and advertising that would do the trick. Branding strategies will also help in boosting customer confidence.

Regular surveys should be undertaken by the companies to gauge consumer confidence for their markets,which would help them devise their product and marketing strategy. Since its a qualitative term, we need to be careful while interpreting results of survey,This survey should include its sample from present as well as prospective customers, sales people, Channel People for your Company.

Customer Confidence is deeply affected by the liquidity in the economy, availability of cash with the people, since if people have more of cash at their disposal then they would be more biased towards buying. Consumer Confidence will increase if the consumer is shown, what are the benefits that would accrue to them by using or consuming the product. All in all if its up then its a win win situation for everyone and country's economy as a whole.