[ViewPoint]

Successful entrepreneurs don’t simply react to business conditions, they carefully review the economic landscape at any given time and make decisions based on what they anticipate market conditions will be like six to 12 months down the road. As a result, they often avoid the financial pain experienced by their less forward-looking colleagues. These individuals often are called visionaries, when in reality they’ve simply structured their businesses to provide sufficient time and resources to think strategically rather than reactively. So, as we usher in a new decade — a future filled with much financial uncertainty — how good are you at predicting the future and responding appropriately?

One way to ensure you have properly positioned your company for future success is to have a thorough understanding of the post-recession consumer. That’s why I recommend you track down a copy of the July/August issue of the Harvard Business Review, which addresses this topic as part of a comprehensive Special Report titled, "Managing in the New World."

In an eye-opening article written by Paul Flatters and Michael Willmott, partners at Trajectory, a company specializing in consumer trends forecasting, the authors state that the post-recession consumer is characterized by a new thriftiness and a desire for simplicity, two trends that could have wide-ranging implications for businesses moving forward. By studying consumer behavior and spending statistics following previous recessions, the authors discovered four key trends have accelerated during this most recent recession: "consumer demand for simplicity, a call for ethical business governance, a desire to economize and a tendency to flit from one offering to another."

What does this mean for the pest management industry? "Unlike consumers in previous recessions, who greeted the return of financial stability with a buying spree, current consumers entered the recession feeling bloated," the authors write. "When they regain their ability to spend, they’ll continue to buy simpler offerings with the greatest value." It’s a prediction shared by Steve Good, senior vice president, business development, Terminix International. During a speech at NPMA Academy last year, Good said consumers under financial stress exhibit "economic anxiety," prompting them to seek out cheaper alternatives to the goods and services they purchase without sacrificing quality. In the midst of such economic uncertainty, PMPs who take steps to enhance the quality of their service, while communicating regularly with customers, will perform better in a post-recession economy than those who continue to operate on a business-as-usual basis.

That’s not to say, however, that all pest control services are created equal. Consumers aren’t likely to risk their homes — their single greatest asset — by cutting corners on a termite treatment, or threaten the health of their family by failing to address a serious wildlife control issue, making some types of services more recession-resistant than others. "People are going to pay to keep wildlife out of their attics," Good observes. "It’s not something the typical homeowner is going to do themselves." The same goes for bed bugs and stinging insects, which threaten a customer’s sense of safety and personal well being.

Unfortunately, cockroaches and ants may be a different story, particularly if it’s a mild infestation. During an economic downturn, homeowners are much more likely to attempt to address minor pest problems on their own, figuring if they’re unsuccessful they can always call a pest control company later. Therefore, PMPs would do well to heed the advice of Paul Flatters and Michael Willmott, who write, "...consumers coming of age in this recession will, like their great-grandparents who lived through the Great Depression, carry the attitudes and behaviors they learn now throughout their lives. Some consumers may return to boom-time consumption patterns in the coming decades, but millions of people under age 35 entering this recession may well remain simplicity-seeking, thrifty, green yet mercurial consumers who will hold businesses to very high standards. Companies would be wise to understand what these consumers want and be prepared to deliver it." Sound advice indeed.

The author is publisher of PCT magazine.