How to Keep Your Brand Relevant As Consumer Behavior Changes
The pandemic is forever changing consumer behavior. Some of these changes are reactionary, like the shift in specific, socially conscious values. However, many of these changes were already happening incrementally and sped up as our whole world changed in a matter of weeks.
In our previous article, we talked about why 75% of Americans have altered their shopping behavior in light of the pandemic. Here’s how to keep consumers from leaving yours and how you can find new ones.
Consumer Behavior Shifts to Ecommerce
Many retailers achieve 35% or more of their sales through increasingly more sophisticated ecommerce both on their websites and social media platforms. Ecommerce was already growing at a rapid pace before the pandemic, with 12.7% year over year returns. In 2020, that number has jumped to 30.1%! (*)
more than 35% online growth (*) for essentials like over-the-counter medicine, groceries, household supplies, and personal-care products.
What you can do about it:
If you want to stay relevant, you’ve got to have a strong online and social presence.
Invest in social commerce! We have seen incredibles results these past few months on e-com ads on Facebook, Instagram and Pinterest! Same thing with Google shopping.
Cost per acquisition have been reduced by more than 80% overall for the brands we are working with, in less than 6 months.
Boost your visibility on e-tailer platforms like Amazon, Target, Walmart or Fresh Direct depending on your positioning.
Make sure you have enough inventory, it is sometimes challenging to meet the demand, especially on platforms that are easy to scale up like Amazon.
You may not experience substantial growth overnight, but by remaining consistent, savvy, and engaging, you will most likely enjoy a growing audience and substantially increase e-com sales over time.
Brick and Mortar Closings
As of October 12, 14,324 stores have closed this year.(*) Without the ability to go to a physical store, consumers have had to explore new options based on what’s available to them. Safety is another huge concern. 70% of shoppers don’t feel comfortable resuming their “normal” out of home activities, despite the many precautions that retailers are taking.
A few example of the store closing for bankruptcy:
Ascena Retail Group: 1600 Stores
Brooks Brothers: 75 Stores
Century 21: 13 stores
G Straw Raw: 24 stores
J. Crew: 54 stores
JCPenney : 158 stores
K-Mart: 52 stores
Le Pain Quotidien: 63 stores
Lord & Taylor: 38 stores
Modell’s Sporting Goods: 153 stores
Pier 1 Imports: 936 stores
Pizza Hut: 300 Stores
Sears: 72 stores
Sur la Table: 51 stores
Bed Bath & Beyond: 200 stores
What you can do about it:
Experts like BDO partner David Berliner suggests that the key to retail success is to look into smaller spaces while also offering online purchasing options. For example, if you’re a clothing store, you can showcase a shirt in one color that people can try on and then offer multiple color options online. This also gets your consumers visiting your web, which boosts SEO and shows them what you may be carrying in other locations.
Also, as the world goes more digital, many mid-to-large retailers can get away with having fewer locations. (*)
Change in the Buyer’s Journey
Availability and safety concerns are driving consumers to use more digital touchpoints as part of their buyer’s journey than ever before. Much of their discovery and evaluation stages occur online through search engines, blogs, social media, and influencers.
The purchasing stage of the journey has changed, too, as new payment methods are available while others grow in popularity. Some of these purchase points include mobile wallet and email. 14% of shoppers are also making purchases through social media. (*)
What you can do about it:
Avoid silos and ensure that you’re messaging is clear and consistent across all of your departments and platforms. As digital touchpoints are on the rise, silos are causing more and more consumers to leak out of the funnel. If they’re told one via your newsletter and another on Instagram, they’ll begin to distrust you. Now more than ever, trust is a vital aspect of the buyer’s decision. Keep your information synced so that you don’t run the risk of losing a potential customer.
Rise of Empathy
Times have been tough, and brands are realizing that they need to be empathetic more so than ever before. The pandemic has made us become socially conscious in new, different ways. As a result, we want to buy from brands that meet those needs.
What you can do about it:
To meet these needs, many successful brands have invested in insight selling. Insight selling involves using additional data sources to gain better consumer behavior insights. These insights include:
Customer communication history
Customer purchase history
Competitor insights
Customer staffing changes
In the time of COVID-19, insight selling is crucial to a brand’s survival. By being able to empathize with who your consumer is, you can make savvy value propositions that can turn them into loyalty customers now and for years to come.
What else you can do about it:
Show the world how your brand has been helping others in need during these trying times. Follow in the footsteps of companies like Vital Proteins and Dole.
Vital proteins has become a well-known socially responsible brand by donating over 23,000 collagen waters to various charities since the pandemic began. Some of these charities include Meals on Wheels, Ronald McDonald House, and the Greater Chicago Food Depository.
Meanwhile, Dole delivers weekly, nutrient-packed smoothies and fruit care packages to 650 hospitals with messages of gratitude to workers on the frontlines.
The kindness of these brands and their commitments will be remembered long after this pandemic is over.
As the saying goes, people do business with people they like, know, and trust. In socioeconomically challenging times like these, consumers are looking for values that are aligned with their own. If your brand can meet their needs, these consumers will go out of their way to support you.