Coronavirus has changed consumer behavior — here's what marketers need to do next

Summary

The COVID-19 pandemic has rapidly altered consumer behavior, with anxiety spiking and shopping patterns shifting. Consumer insight firm Kantar and analytics company Bliss have observed these changes through extensive data collection. Initially, panic buying surged, particularly for essentials like toilet paper and pasta. As consumers adapt to the 'new normal,' there's a return to nostalgic purchases and comfort items. Brands are expected to pivot their offerings, like LVMH and Burberry, which have shifted from luxury goods to protective gear and sanitizers. Consumers now seek practical help and staff welfare from companies, and they value brands that contribute positively to the pandemic response. As the crisis evolves, brands must plan for recovery by aligning with their core purpose, providing utility, and rebuilding consumer confidence.

Takeaways

• 📈 Consumer behavior is rapidly changing due to the COVID-19 pandemic, with spikes in anxiety and concern.
• 📊 Sentiment monitoring by companies like Kantar shows that after initial panic, consumers begin to adjust and think about the future.
• 📉 Analytics company Bliss observed significant drops in store footfall, with varying degrees of impact across different countries.
• 🛒 Consumers exhibited survival instincts, leading to panic buying of essential items like toilet paper and long-life food.
• 🔄 Stage 2 of consumer behavior showed stability as consumers adapted to the 'new normal', with a return to nostalgic purchases.
• 🤝 There was a temporary illusion of loyalty, with fewer visits to fewer stores, challenging businesses to retain customers.
• 📢 Advertising is seen as acceptable by over 90% of consumers, as it provides a sense of normalcy and escape from bleak news.
• 🔄 Brands like LVMH, Sandro, and Burberry pivoted their offerings to more useful items such as protective clothing and hand sanitizers.
• 🏥 The primary demand from consumers for brands is to prioritize staff welfare and offer practical help, like mortgage holidays or insurance rebates.
• 🌟 Millennials, aged 25 to 34, are seeking practical help the most, as they've been impacted quickly by the pandemic's financial effects.
• 🔮 As we move forward, brands need to pivot again to align with their beliefs and help society rebuild confidence in various aspects of life.

Q & A

What has Cantar observed in terms of consumer sentiment during the COVID-19 pandemic?

Cantar has noticed a spike in anxiety and concern for the general situation among consumers during the pandemic. As restrictions were imposed, there was an initial adjustment period, after which the level of concern settled back a bit, and people started thinking more about the future.

How does Bliss Analytics describe the initial consumer behavior during the pandemic?

Bliss Analytics observed a 'panic' stage with significant drops in store footfall, especially in markets without lockdowns like Sweden, and a decrease in grocery shopping in places with eased lockdowns like parts of the US and the UK.

What consumer behavior did Bliss Analytics identify as consumers adapted to the new normal?

After the initial panic, consumers entered a 'stability' phase where they adapted to the new normal, showing nesting behavior, returning to nostalgic purchases, and buying comfort products.

What changes in consumer behavior did the pandemic bring about in terms of brand loyalty?

The pandemic led to an illusion of loyalty, with people making fewer visits to fewer stores, which poses a challenge for brands to retain customers as the situation transitions from a health crisis to an economic one.

How have brands like LVMH, Sandro, and Burberry responded to the pandemic?

These fashion and luxury brands have pivoted their offerings from clothing or cosmetics to more useful items during the pandemic, such as protective clothing or hand sanitizers.

What is the primary expectation consumers have from brands during the pandemic?

Consumers primarily expect brands to prioritize staff welfare and offer practical help, such as financial services providing mortgage holidays or rebates on insurance.

What does the script suggest about the role of advertising during the pandemic?

The script suggests that advertising can provide a sense of normalcy and a bit of escape from the bleak news, with over 90% of consumers being okay with brands advertising during the crisis.

How are different age groups affected by the pandemic, and what are their priorities?

Millennials, aged 25 to 34, have felt the impact on their household finances the fastest and are looking for more practical help. Different groups of consumers are demanding different things from brands.

What are the recommended actions for brands as they navigate through the pandemic and plan for recovery?

Experts recommend that brands should continue advertising, consider media choices carefully due to changing media consumption, and start planning for recovery by focusing on simplicity, staying true to their purpose, and ensuring their actions are as useful as possible.

What is the key to rebuilding consumer confidence as economies start to reopen?

Rebuilding confidence involves restoring trust in going out, interacting, and the economy itself, which will be a collective effort over the next few months.

Who ultimately decides the pace at which restrictions are lifted and freedom is utilized?

While governments may relax restrictions, it is ultimately the public who decides how quickly they use their regained freedom.