Brand loyalty: How covid19 is affecting consumer behavior
November 12, 2020at6:30 PM
We are living in a time that is most certainly affecting our overall lifestyle choices and is affecting the way we carry on our daily activities. Our lives have taken a 360-degree turn since the beginning of this year 2020, people now are living differently, thinking differently, and in so many ways, buying differently. Habits we are getting used to these days will most certainly ride out beyond the bounds of this crisis, forever causing an effect on what we value; our shopping preferences; and how we usually live and continue our work.
The covid19 pandemic has increased long-lasting and long-term trends, dragging brands and organizations to promptly adapt in order to fulfil customer demands and due to the whole crisis situation demand for certain products and services is outstripping production & supply services too. It is vital and crucial for brands as they move forward cautiously, they must put more focus on understanding consumer behaviour and their rapidly changing mindset.
Consumers’ attitudes and behaviours towards their purchasing habits have changed, they are now complying to new particular circumstances by allocating their time and money differently, wondering what the future holds. The overall economical concerns continue to linger on even though the situation with overall COVID-19 cases is slowly beginning to stabilize, and in many countries and their markets, health fears have subsided and are lower as compared to many others. The major concerns consumers are facing now is about the impact of the crisis on their job security and finances which is ultimately impacting their spending and brand loyalty.
“We expect these changes will shape consumers’ habits even beyond the effects of COVID-19,” saysMcKinsey. “In…the U.S., upward of 60% of consumers who tried a new behaviour plan to stick with its post-crisis.”
Due to the fear of health and safety, consumers are avoiding public places and are most certainly avoiding retail store visits. Instead, a boost in the e-commerce industry has been seen over the past months, consumers continue to use omnichannel services such as home doorstep delivery, online chat features and online consultations. In broad perspectives omnichannel approach means that consumers are preferring a multichannel approach to buy goods and services that provide them with a seamless shopping experience, whether they're shopping online using a desktop or mobile device, by calling the service provider directly through telephone, or even by visiting a retail store.
Few major changes as observed in consumer behaviour and their brand loyalty:
As compared to past years consumers are now more concerned about shopping intently and cost-consciously.
There is a rise in the demand for local & sustainable, and for products that provide value.
The evident surge in usage of e-platforms and omnichannel preferences appears to continue for a longer period of time.
Ketchum’s study suggests that 62% of consumers who have changed their brand preference will make a permanent change before the pandemic is over.
Companies that prefer a business-as-usual approach, even during and after the pandemic is over can most likely expect to lose their loyal customers. Also, losing revenue and permanently damaging their Customer Retention Rate (CRR). Brands will have to cultivate consumer-focused, feedback centric approaches in order to retain their loyal customers.
According to a new report published by Ketchum, the report majorly identified four pandemic personas: retro reengages, open-minded explorers, worried with holders and cautious questioners. These personas define types of consumers based on their buying habits and approaches.
We can expect brands to continue to adapt to the situation and pay close attention to their customer base now more than ever before. There is an easy way to understand how your focused customers feel about your products or services is by asking them for feedback. Data collected through feedback is the only way out to build new strategies, make changes according to customer needs and it's also a way to connect with them on a personal level and show concern during these hard times that we are all in this together. Connecting and caring about your customers will help them stick to your brands even during the crisis. For Example Amazon this brand has grown itself into one of the largest online shopping platforms which promise to sell A to Z products based on their customer needs, and also by providing and delivering a brilliant customer experience. Even during the pandemic, Amazon ensured that their services remain unhindered, this brand provided easy access to everyday essential products, including masks, sanitizers, food items, etc., while also upholding the tenets of safety and social distancing. Amazon is thriving by the phrase, “The customer is always right!” and they mean it by prioritizing customer feedback to faster and free delivery systems to quicker resolution of disputes.
At Dropthought we believe that to build a sustainable relationship with a customer, we must value their feedback. We believe in building a situation based and feedback centric client engagement plan that will not only help businesses to leverage the data collected abundantly but also if done right this can turn into a long-lasting opportunity to keep your customers intact and keep the revenue bar up and running.