Marketing Forecast from Ad-ology

Overuse of credit cards is frequently cited as one of the contributing factors for the economic turmoil many consumers find themselves experiencing. Overall, consumers are cutting their reliance on revolving debt. But the U.S. economy still runs on largely on credit and J.D. Power and Associates 2010 U.S. Credit Card Satisfaction StudySM reveals that consumers perceive these companies as ‘financially stable’ and ‘reliable.’

The days of the defined benefit (DB) retirement plan are so over. In 1998, DB plans, a cornerstone in union heavy industries such as manufacturing and energy, comprised 4.19% of employer payroll costs. Ten years later, that amount dropped to 1.99%. In addition to the rapid shrinking of DB retirement plans, employers have made significant cuts to this benefit overall. Between 1998 and 2008, retirement benefits dropped 19%.

The credit card industry is recovering from serious challenges encountered in the past few years. Too many consumers loaded up on debt before the recession and many are now either working out payment plans or they filed for bankruptcy and need a fresh financial start. At the same time, the federal government passed sweeping financial reforms designed to prevent credit card companies and consumers from contributing to another economic bubble. These factors mean credit card companies will be marketing to key demographic groups to find new customers.

Small business owners have been hit especially hard by the recession. The combined effects of the credit crunch and the drop in business activity has made it difficult for SMBs to compete, especially for top talent. On top of that, many SMBs cannot afford to offer the kinds of employee benefits that their larger counterparts, companies with 500+ employees, do.

Few consumers enjoy the process of filing an insurance claim relating to home damage. But accidents do happen and consumer sentiment about an insurance company is closely linked to how they are treated during the claims process. J.D. Power and Associates recently surveyed consumers who filed a homeowner’s claim to determine satisfaction levels and the likelihood of renewing with the same company. The company’s findings provide insight for insurers who want to acquire new customers and retain the ones they currently have under contract.

Small business lending remains constrained across the U.S. Loans outstanding in the first quarter of 2010 stood at $670 billion, substantially lower than the $710 billion level in 2008. The Federal Reserve, understanding that small businesses employ half of U.S. workers and generate an even larger percentage of job growth, has been looking into why banks aren’t lending to this crucial sector. Some analysts say businesses are being cautious and not seeking financing. Other analysts indicate that banks are being too conservative when lending to small businesses.