Consumer Insights in a Pandemic World
I have attended many events and webinars online since last year and the central talking points at most of these forums are centred on the ‘new’ consumer and emerging behaviours – in a pandemic world. (I would have loved to write a ‘post’ pandemic world, but no one really knows when it will end and when will normal days arrive back again). Needless to say, these observations are likely to extend and mature in shape and form in 2021 and beyond.
Considering that so much has been spoken and written about it already, there is perhaps still a need to synthesize it all and outline a neat summary for our ready reference and understanding. This edition of Outside In is an effort towards that meeting that objective. Here are the key consumer insights emerging in a pandemic world… collated from multiple forums over the last year. Also, I have tried ending each sub-section with some humour… just to avoid being ‘why so serious?’ in what is largely a heavy read… Hoping it will bring a smile…
1) Lingering Consumer Sentiments
Fear still looms at the back of a consumer’s mind though it is declining – about various things – Family Health, Job Prospects, Personal Finances, Travel Risks, Etc. Coupled with aggressive online virality of these ‘fearsome’ discussions have even lead to an emotional Contagion of sorts
There’s a forced acceptance of a Desynchronized Society – One where people continue to do many of the same things but no longer at the same time as others – and it is considered as Okay
Movement from Shared Mobility (Lesser use of Uber/Ola Cabs and Public Transport) to Independent Mobility (Rise in 2-Wheeler Sales and Used Cars Market)
Consumers care about Solutions, in addition to Products or Brands – Think of us as People, not as a Customer or Consumer alone – Understand that People Matter
4 things we are expecting as People, as Customers – SAVE: Solution, Access, Values, Experience
Seeking Mood Enhancers: 46% of consumers want to watch Festive Videos to get into the “Holiday Mood” before Festivals
Peers and Reviews play a huge role in pushing customers down from the Top of the Funnel down towards the Bottom of the Funnel – a decent piece of Influencer/Sponsored Content can help Brands build this conversation from Intent to Purchase. For example: Future Group ran a Ghar Ke Nuske content piece on beauty tricks from authentic parlour practitioners, during the pandemic and it worked very well for them
2) Visible Behavioural Changes
3 permanent changes to consumer behaviours: 1) Shift to Online Media, 2) Shift to E-commerce, 3) Importance of Purpose, Corporate Reputation, Doing the Right Thing
During the pandemic people focused on: Health, Cooking, Sports at Home, Connecting with friends & family via Video – which are possible persistent behaviours of tomorrow
People are working on house maintenance/repairs themselves (DIY activities) during the pandemic. Building on this insight, the likes of Pidilite Fevikwik/Fevicol/Dr.Fixit are rolling out ‘how to do it yourselves’ series of content
Pidilite Fevicryl is rolling out content on arts and crafts focused on children activities at home and art teachers. Built a lot of short-snackable content – Prince Harry campaign, GOT campaign, Poetry/Unlock campaign – while keeping true to its Brand proposition
Airbnb brought travel/places back to into people’s homes during the pandemic. They worked with Influencers of Yoga, Calligraphy, Etc. to showcase Online Experiences and brought their content to people in their Homes – focused on people-to-people connections; Drove campaigns like Go-Near which are at driveable distances to build consumer confidence; Drove campaigns like Live Anywhere (work from a Goa beach house)
Gaming is becoming a source of convergence within families – similar to the way a TV series would bring them together
3) Evolving Media Habits
Families with kids want more digital at-home entertainment
Need for Short snackable content: Brands need to make ‘snackable content’ which needs to be refreshed every 10 days
3 consumer recreation themes are emerging: 1) Fun, 2) Hope, 3) Trust/Togetherness > Time spent on Social media went up by 2X, on Gaming went up by 4X
Content Distribution has become democratized now – Dozens of ‘Distribution Channels’ & Mediums have emerged now, which are not dependent on TV (which was the case earlier)
Digital/Online Content is now feeding the TV Content; There’s no wait for a particular 9 PM TV show now, it is put up then and there on one of the Digital Channels
The core of all Video Marketing initiatives will be ‘Good Storytelling’ > 3 strong ‘Storytelling’ trends are emerging: 1) (Being) Real in Life, 2) Relevance vs Aspirations, 3) Resonate with Me
Curiosity of people has risen tremendously that they want to stay abreast with news throughout the day, whereas traditional newspapers only have a daily cycle. So, trend is emerging of consuming traditional newspapers in the morning and consuming multiple editions/updates on the digital channels through the day. So, for print media it is no longer a question of this ‘or’ that, it is important for them to have this ‘and’ that – learn how to co-exist – Print newspapers and Digital newspapers will go hand in hand
4) Seeking Relationships with Brands-led by Purpose
64% of consumers around the world are now belief-driven buyers
81% of people around the world expect brands to do the right thing
89% respondents want the brands to shift to products that help meet today’s challenges
Customer Loyalty isn’t dead, the way it manifests itself has changed now – Brands need to adapt to this New Consumer and the way it expects loyalty to work
Audience demands trusted and authentic content now more than ever from Brands, so it is imperative for them to build Transparency into their whole proposition now
Creating an ‘Assurance Messaging’ is the need of the hour – in the Post-COVID times
Conspicuous consumption is paving way for Conscious consumption – It is reflected in Automobiles sector, as people pick value options
People are looking at Societal Impact – How do brands make an impact in their lives and at society at large? Looking for validations on Eco-friendly stuff, Adding value to society and so on
Trust is the new currency – Consumers have moved strongly towards ‘Leader’ brands
Boat (Indian D2C Electronics Brand) POV: Today brands can only be built by product and community. Only marketing will not work
5) Rise in Digital Commerce and Engagement
Two long-term consumer trends are emerging: Shift to e-commerce, Focus on hygiene (Personal, Home/Premises)
Digitally-influenced Sales have gone up by 20% in the last few years and the Digital acceleration is increasing – according to a BCG-Facebook Report
Customers buy larger pack sizes (or in bulk), as preparation for stay/work from home scenarios
Consumers now want super-solver brands particularly around affordability, accessibility and self-sufficiency – Brands are expected to be solvers and not sellers
88% of overall Online growth is coming from Brand-owned websites – primarily because their experience is much superior compared to Marketplaces
Winter Category products like Tea and Coffee went up as compared to Cold Drinks and Ice-creams during the pandemic; Ready-to-eat Categories went up as the pandemic lockdown dragged on and the fun about cooking at home went down
Consumer touch-points are changing now – Moments of Truth (MOT) have become advocacy levers now. User-generated Content/Customer Advocacy now drives Brand Engagement
Online Promoters have arrived decisively now – who will guide you through the whole purchase process – Conversions can go upwards of 80% compared to 3% for non-guided purchases – in the Mobile category
90% of consumers who have bought apparels online during the pandemic have indicated that they will continue to purchase online even after things go back to normal – according to a BCG-Facebook Report
Interesting Consumer Trends seen by Google: Education shift to Online is permanent – In Urban Centres, professionals are educating themselves for relevance; In Rural Centres, people are focused on educating their kids without a break
6) Future Aspirations
Bigger Houses but Spending Less:Since people were at home, they were investing in their life plans. Consumers found themselves stuck in their homes for such a long duration, for the first time ever, and they didn’t really know what to do with it. Consumers were looking at bigger houses but at the same looking to spend less than what they would have in a normal scenario – which seems contrary. What they really meant was that they were looking at options which were similar to their current ecosystem & aspirations, but they were willing to ‘adjust’ them based on new reality. This insight was instrumental in the Magicbricks ‘Ghar Par Rehkar, Ghar Ko Dekha’ campaign – which allowed customers to prospect ‘value’ homes by sitting at home
Rise of Revenge Shopping:After a full year of stay-at-home orders, quarantines and business closures and restrictions, consumers have a lot of pent-up emotions. Their solution? Revenge shopping (The idea of revenge shopping has already proven true in China, where stores and malls have been reopened for months. Luxury items and brands in particular have seen a huge uptick from eager customers.) The biggest winners in revenge shopping could be shopping malls, which have largely been decimated by the pandemic
Revenge Travel to propel Homestays Demand: Consumers are open to spending a little extra for privacy and safety at the moment. Instead of a hotel, they are opting for private villas for get-togethers, a home they can call their own even if for a few days. They are looking at customized arrangements like a bar set-up, DJ for entertainment, elaborate menu that includes a variety of starters and desserts
In Conclusion
Let me summarize with these impact-snippets by Rishad Tobaccowala in one of the forums:
Maximize Technology, Combine with Humanity – to grow business in modern Data-driven Age
Focus on The Customer/The Consumer/The Subscriber – the people we are selling to – We need to first understand who we are selling to, what their hopes & dreams are, and what are their behaviours are like. It doesn’t matter what Technology we use – We need to know how they have changed, what they expect and where they are going
References and Sources:
1) My Notes from ET MarTech Summit, IAMAI Conclave, Cannes Lions Live, Adobe Summit, WPP Commerce, PHYGITS, Nudgestock (and any other Event that I might have inadvertently missed)
2) Revenge Shopping: https://www.forbes.com/sites/blakemorgan/2021/03/22/customers-are-ready-to-back-with-covid-revenge-shopping/?sh=35ef644e30ab
3) Homestays Demand: https://hospitality.economictimes.indiatimes.com/news/hotels/revenge-travel-to-shoot-homestays-demand/78034416
4) Marketoonist/Tom Fishburne Comic Strips on Brand Purpose, Consumer Advocates, Consumer Wants, Snackable Content
5) Consumer Sentiment on Pinterest: https://in.pinterest.com/pin/353180795757549625/
6) E-Commerce Trends: https://www.kyozou.com/8-jokes-online-seller-will-love/
7) 1000 Steps – Shopping Meme: https://in.pinterest.com/pin/796011302880812849/