It’s no secret that with the current state of the economy, consumers are watching every dime they spend. But that doesn’t mean they’re not spending. While researching ways to help my clients compete in a recession market, I uncovered several trends in consumer spending and key things businesses are doing to reach potential customers.

1. Watch how your consumers are spending. In order to talk to your consumers, you need to understand their mindset:

• They still love their booz. Alcohol sales are up 10% nationwide with the greatest increase at liquor stores (rather than bars) with lower priced labels and “sale” alcohol moving the fastest
• They are staying and entertaining at home more. Christmas sales may have been the worst in decades, but the gaming industry saw tremendous growth. Software games that can be played at home (in lieu of a night out) like “Rock Band,” “Guitar Hero” and “Wii Fit” had big sales. Hey MiltonBradley, Mattel and other game makers this is a great trend for you to jump on.
• They are making small splurges. Consumers are foregoing expensive travel and indulging closer to home. Instead of big trips, many people are treating themselves to small indulgences such as facials, massages and classes like yoga and dance.
• They want cheap transportation. While car sales are down, other gas-friendly modes of transportation are on the up including sales of motorcycles, bicycles and mopeds.

2. Offer customers a safety net. Under Hyundai’s new “Assurance Program”, if you buy one of their cars and lose your job in the next year, they will let you return it. See the spot below.

3. Give them something free. Anthropologie stores nationwide are offering FREE classes. Topics will include reinvention workshops to help you make the most of your wardrobe in a recession. What a great way to engage your loyalists and encourage store traffic.

4. Be where your consumers are. Your business is being talked about and you need to be a part of that conversation. On Facebook, Twitter and blogs everywhere consumers are giving feedback. I’ve said it before but Zappos continues to be a great example of a business that has an active, continuing presence on Twitter and other places on the web. And because of that, they are referenced to frequently (great PR, hint hint).

5. Be transparent. Especially in this economy, potential clients can smell marketing BS a mile away. Be real with your audience and they’ll respect you and want to keep the conversation going.