Brand Loyalty: How to Thrive in the Next Normal

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75% of Americans have changed brands during the pandemic. (*) That shift in brand loyalty sounds high, but it shouldn’t come as a surprise. In a matter of months we experienced:

  • Fear and uncertainty brought on by a global pandemic

  • An economic crisis of once-in-a-lifetime proportions

  • 39% fewer people at their workplaces (*)

  • Double the amount of usual screen time

  • 10 years of ecommerce progression (*)

We’re adjusting to the new world, but now it’s imperative to look ahead and discover what brand loyalty means in the next normal. To do so, we have to identify the reasons for the dramatic shift in brand loyalty, and what we can learn from the successes and falters during our time of crisis.

 
 

Reasons Behind the Dramatic Shift in Brand Loyalty

 

Life-altering events almost always inspire a change in spending behaviors. As the shutdown began, relevance, safety, and availability became the three key factors impacting brand loyalty. 

 
 
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Relevance

The economic shutdown left ten of millions unemployed and many more fearing financial instability. As a result, 40% of consumers (*) reported started spending less or intended on spending less shortly after the shutdown began. 

We were encouraged to “stay home, stay safe,” which caused us to realign our priorities. We spent less on restaurants because they were take-out or delivery only. Bars and entertainment venues were closed, the travel industry was crippled, and gasoline sales dropped 50% because people were driving less. (*)

Consumers chose to spend more on groceries, household supplies, and home entertainment instead. DIY projects skyrocketed, puzzles and the Nintendo Switch became hot commodities, and Disney+ reached 70 million paid subscribers - an achievement that took Netflix 7 years. (*)

Speaking of digital…


Safety

 
 
 
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Brands are going through a digital revolution, (*) and brand loyalty changed due to the digital capabilities of retailers. Ecommerce thrived during the pandemic, largely in part because it was the safe - and many times only - option for brands.

In the early months of 2020, we were still learning about COVID-19: how dangerous it was, how it spread, and what measures we could take to protect ourselves. Safety became a huge priority for consumers, and rightfully so. Consumers spent $347.26 billion online in the first half of 2020, up 30.1% from 288.84 billion in the same period in 2019. Beforehand, ecommerce sales were just growing 12.7% year over year during this time period. (*)

Curbside pickup also saw a huge spike. In December 2019, only 6.9% of the top 500 retailers with stores were offering curbside pickup. By August 2020, the number jumped to 43.7%. (*) These retailers were quick to understand the safety needs of their consumers, and met their demands in order to achieve brand loyalty. 

 
 

Availability

 
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Many consumers shifted to alternative brands simply because their go-tos weren’t open. Some retailers stayed open during the pandemic only to discover that their suppliers were closing their doors. Manufacturers shut down all over the world, disrupting the supply chain and made certain products and brands unable to meet the demand of the consumers. 

The lack of availability revealed a flaw in their value chains. To remove friction and deliver the optimal flow of value, all departments in a business - everyone from sales to commerce to IT - have to work in unison. The faster a brand can resolve a problem like these or have a plan B in place, the more relevant they’ll appear in the eyes of their customers. Sustained relevance over time earns brand loyalty and trust. (*)

Without quickly fixing your value chain, your consumers will have limited or no access to products and will look for alternative options. Many consumers did. 

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Why Some Brands Succeeded While Other Faltered

 


Most of the brands that exceeded their expectations during the pandemic had a combination of three things going for them: visibility, consistency, and sustainability. In fact, many of them had all three. 


Visibility

 
 
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Many of the brands that remained successful during the shutdown had a digital presence and clear, socially conscious messaging.

As of 2019, 40% of small businesses chose not to invest in a website. (*) Many of them struggled when their brick and mortar stores were closed indefinitely, while the ones that went online are rushing to catch up to brands that already have a strong digital presence. 

Other brands struggled with their messaging. Often, brands see the potential for a better world, but struggle to articulate their purpose and turn their vision into strategy and operations. (*) The brands earning customer loyalty can not only articulate their messaging, but that messaging is in aligned with the global issues at hand. In the era of COVID-19, 64% of customers choose to buy from socially responsible brands. (*) Given the state of the world, it’s most likely that this trend will continue. 



Consistency

In unpredictable times, the ability to consistently provide value products and/or services is a surefire way to gain brand loyalty. The best way to do that is to ensure consistent messaging on all of your platforms as well as consistent interactions across all departments. Consistency isn’t just important - it’s expected. (*)

Avoid silos. Consumers are accessing multiple touch points during a purchase. If there are disconnects within the company, it can disrupt a buyer’s journey. 75% of consumers expect consistent interactions across all departments. However, 58% say they feel like they’re communicating with separate departments as opposed to one company. (*)

Open lines of communication and clear messaging can keep you consistent and your consumers coming back. 


Sustainability

In 2020, empathy, care, and concern are part of a new currency. (*) For years, consumer concern regarding sustainability practices have been on the rise. These practices are no longer a benefit - they’re vital. Consumers will shop more sustainably, and more than two-thirds are willing to spend more to do so.  (*)

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Regarding plastics alone, surveys revealed that:

  • 85% more respondents expressed a commitment to turn down plastic utensils with food orders in the next 12 months

  • 37% more are willing to use reusable drinkware

  • 21% more intend to bring reusable shopping bags to stores (*)


 
 
 
 

To prove their sustainability, many companies, including Nestlé, Lindt, and Mars, are having their manufacturers go completely transparent. Manufacturers who are adopting these processes are being rewarded with brand loyalty rates of about 94%! (*) Sustainable commitments to water resource management and greenhouse gas emission reduction are also boosting consumer loyalty as we approach the next normal. 

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The Next Normal


The pandemic is temporary, but growth of ecommerce and shifts in brand loyalty are here to stay. As of August 31, 2020, more than 75% of consumers who adjusted their behaviors due to the pandemic said that easing government restrictions will not change their cautious behaviors. (*) Many consumers are listening to medical experts, and the experts are saying that it’s going to be a dark winter.

Behavior changes caused by the pandemic have and will continue to reshape consumer decision journeys. What happened this year is not something that consumers will soon forget. They’ll remember the brands that were there for them as well as those that weren’t. How you adapt or already adapted will determine the brand loyalty of your consumers for years to come. 

 
 
 
 
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