COVID-19 has changed consumer behavior in several ways. Social distancing is one of the most prevalent norms that consumers are most likely to continue post-pandemic.
Brandmaximizers enables businesses to respond to changing consumer norms faster and with more efficiency. We offer a range of post-pandemic daily workplace assistance products for a safer, healthier and a more productive environment.
An awareness of the changing norms of consumer behavior enables businesses operating in the pandemic to respond to them effectively. Many businesses are already up for the task. For example, many businesses are moving to the digital space more aggressively to cater to customer demands for a contact-free purchase.
Given here are some key changes in consumer behavior and efficient ways for businesses to respond to these changes:
A rising inclination for local products
Recent consumer behavior data by Accenture shows that over 40% of shoppers are interested in buying from stores that are in their neighborhood.
In an IBM study, 25% of participants said that they have increased purchases from local stores. Consumers also indicated that they were keener on buying products that were produced or sourced locally. Consumers want to avoid crowds. They want their products closer to their location and are keener on product availability. Steep discounts are no longer the only attractive buying parameters to drive foot traffic into a store.
How businesses can respond:
- Study your consumers, in particular, your existing customers. COVID-19 has people reacting to it in different ways. Some consumers may be more concerned about the existing situation than others.
A changing mindset influences consumers’ purchasing decisions. For example, some customers may shift to local produce. Other consumers may prefer sticking to their old purchasing patterns. Understanding consumers behaviors is important to ensure that businesses respond to changes in a more personalized way.
- Recreate a marketing plan that caters to post-pandemic customer demands. As consumers’ behavior may vary, it is crucial to reach out to your customers with a customized marketing plan. A one-marketing-plan-for-all is no more efficient.
- Examine the suitability of your existing products and services. Assess consumer demands and revise product and service profiles if needed.
An increase in price-conscious shopping
COVID-19 pandemic has shaken the world economy. Consumers feel unsure about the situation of the economy in the coming years. This uncertainty reflects in their purchase behavior.
Consumers are being cautious in their spending. Some consumers are sticking to the purchase of essentials alone. A preference for cheaper and local brands is being witnessed.
Accenture’s consumer research analysis for March and April shows that over 45% of consumers are shifting to a more cost-conscious shopping.
How businesses can respond:
- Refrain from launching new products and services. There is uncertainty among consumers regarding the future. This is likely to prevent them from experimenting with new products or services.
- Focus on improving existing customer relations.
A study by Intelligence Central shows that 55% of consumers appreciate a brand that has made changes for customer convenience. 50% of consumers appreciate businesses taking steps to address pandemic concerns.
58% of consumers showed appreciation for brands that were responsible for their messaging. 54% of consumers valued businesses that offered charitable contributions to pandemic causes.
- Make purchase experience better for first-time buyers. Some consumers may have switched to your business amidst COVID-19 concerns. Leverage the opportunity to make loyal customers out of them.
Examine existing purchase process. Remove inconveniences, if any, from the process.
A mindset of health-conscious shopping
A consumer behavior survey shows that above 57% of consumers have become more health-conscious in shopping. Businesses operating in the pandemic must adapt to the fact that consumers have become more health-conscious than ever.
How businesses can respond:
- Include health-friendly elements in products or services, where applicable. For example, a furniture brand could focus on marketing its ergonomic line.
- Reprioritize business investments to meet new consumer preferences in the post-COVID times.
- Include business ecosystem partners such as suppliers in your transformation plans. This way, your business can cater to new consumer demands at every step.
A preference for contactless shopping
From making a purchase to paying for products and services, consumers are seeking contactless shopping at every stage. This development is set to continue even after the pandemic.
Businesses adapting to the pandemic influence are witnessing the growth in the use of contactless payment methods among consumers. Consumers are using their smartphones or other mobile devices to pay money instantly.
An IBM study estimates that 40% of consumers will use contactless payment methods even in the future.
How businesses can respond:
- Make shopping safe and convenient for consumers by facilitating contactless payments.
- Avoid marketing strategies and shopping initiatives that involve large crowds.
According to this study, initiatives such as trade shows will be less popular among consumers in the coming months.
A whopping 75% of consumers stated that they were not likely to attend such crowded events in 2020.
But hospitality businesses such as restaurants and bars may have a reprieve. The same study states that consumers are more likely to visit hospitality venues and recreation parks after curbs are lifted. Such businesses can respond by creating a safer indoor environment for consumers.
- Redefine the way you conduct daily business operations. Adapting to new norms at the workplace and conducting customer interactions in accordance with these norms are essential.
A growing comfort for online shopping
Consumers across ages have taken to online shopping to adhere to COVID-19 norms. Online retail has been a life-saver for many businesses in pandemic that either shut shop or witnessed a decline in footprint at physical stores.
The older demography, which was earlier uncomfortable with online channels, is now one of the key users of the digital space.
The sense of safety that consumers associate with online shopping is set to drive the demand for such shopping post pandemic.
How businesses can respond:
- Leverage merger and acquisition opportunities, especially in the digital space.
- Shift to a data-driven operating model in a more aggressive manner.
- Set up a centralized command center with strategic inputs from across divisions. Include KPI (Key Performance Indicators) tracking within such command centers.
COVID-19 pandemic will have a significant impact on all types of businesses. It will also redefine consumer behavior. Businesses can sustain the pandemic and carve a stronger future with a strategic response.
Timely operational transformation can empower businesses in pandemic with the competitive edge to be relevant to consumers and stay ahead.
