3 Shifts in Consumer Sentiment You Need to Know
According to a FocusVision study, how a customer feels about a brand has a 1.5x greater impact on driving positive business results. Although products and services can be designed and marketed based on a functional need, consumers will still make a purchase decision based heavily on their emotions.
As we approach the 1 year anniversary of the first case arriving in the United States, it’s highly likely that your consumer base has experienced a range of emotions. From denial to grief, from hope to despair. Maybe fear or helplessness. Back in the spring, Carolina Wanga, former Chief Culture, D&I Officer at Target, shared an insight that has stayed with me — she predicted that consumers would likely face various levels of post-traumatic stress disorder after COVID, which would call for brands to pay close attention to changes in shopping behavior and consumer sentiment in order to be successful.
The pandemic, which was originally thought of as a short-term reality, has forever changed consumers’ buying patterns for the long-term. Considering the global economic impact of the pandemic, consumer sentiment has also varied over the duration of the worldwide crisis. Some industries, such as home goods and personal care, have grown throughout COVID. Others, like fashion and luxury, have stumbled. The difference? Consumers aren’t too confident in the economy and their buying behaviors reflect this sentiment.
McKinsey & Company has been running a consumer sentiment study since the beginning of quarantine to measure feelings about the economy and shifts in behavior. Here are a few call-outs from their most recent survey:
Consumers do not expect their routines to fully resume until the second half of 2021, but are still planning for an economic downturn
There are 4 fundamental shifts to consumer behavior highlighting the need for convenience and value
Shift in focus to values and essentials: with limited budgets, consumers are only focusing on what they need
Flight to digital and omnichannel: Limited access to brick & mortar stores has led to the boom of e-commerce
Shock to brand loyalty: Consumers are going to buy what provides the most value even if it’s not their usual go-to brand
Homebody economy: The habit of staying home has settled in lending to the growth of industries that keep folks entertained while quarantined
3. Shopping behaviors have changed with some habits here to stay and others likely to fade after the world returns to normal
As you think about your product/service innovation and marketing plans, consider the following:
What value do you offer to your consumers? This can be a combination of price (product bundling), digital user experience (shipping, loyalty rewards, engaging content), and the emotional benefit of your product/service.
Think about how your product fits into the new routine schedule of your consumer. In order to successfully add your product, think about how you will reward your consumer for buying with you when there are so many other options available.
Create content that will break through the clutter. Because of the flight to e-commerce, channels like IG and Twitter have become crowded digital flea markets. Your content has to be eye-catching, designed with a clear call to action, and will likely require a paid boost.
If your team isn’t already prioritizing this, start to measure your brand’s consumer sentiment on a daily basis. This is more art than science, and your metrics won’t be as quantitative. The more you collect, the more themes will appear for you and your team. Start with product reviews, social comments and mentions, and any standout emotions or opinions. The better you are able to articulate your consumers’ feelings, the more focused your marketing efforts will be to break through the clutter and survive the COVID-impact.