The Impact
It goes without saying that the Covid-19 pandemic turned the world as we knew it upside down. If Covid-19 was an ad campaign, it would’ve certainly come with a range of memorable taglines, such as “unprecedented times”, “stay safe”, “oops, I forgot my mask”, “6-feet apart”, “second wave”, and “the new normal”.
Most people would probably prefer to forget all of these phrases as well as the chaos that defined 2020 and parts of 2021, however, just like with any global crisis, the pandemic altered the way we do things, and the world of marketing was not immune to shifting strategies and perspectives.
Listed below are three trends in consumer behaviour that emerged during the Covid-19 pandemic that marketers should continue to keep in mind as we settle into post-pandemic life.
Three Consumer Behviour Trends Emerging from The Pandemic
1. Increased consumer confidence in E-services
It’s no surprise that in 2020, people relied on internet services more than ever as a result of the stay at home orders that were implemented around the world. According to research from Shopify, 83% of buyers said they made at least one online purchase during the first three months of the pandemic.
In Latin America, McKinsey and Company reports that 13 million people made their first-ever e-commerce transaction between January and May of 2020. This trend shows no signs of
slowing down, as it is predicted that there will be an increase of 169% in e-commerce purchases from new or low-frequency users post-outbreak.
In addition to shopping online, there has also been a consumer shift towards virtual, at-home experiences. This has proven to be a major opportunity for online experiential marketing. The home quickly became a place to live, shop, work, and play during the pandemic, which led many on the hunt for virtual entertainment.
For example, there was a 10 percent increase in Europe of new users engaging in online streaming, and 13 percent in online gaming. According to Arora et al.’s research, 60 percent plan to continue streaming even once the pandemic is over, and 44 percent intend to keep gaming online.
Avi Dan, a writer for Forbes, expects these trends to continue even after pandemic recovery, as he argues that “amid the disruption, consumer behavior may never return to the old “normal,” even after COVID-19 abates or conquered… Americans will continue to spend more time at home, seeking safety.”
2. Higher brand turnover and a desire for trust
The pandemic allowed many people to enjoy more downtime than ever, which gave consumers the opportunity to really think about where they wanted to spend their money going forward. This led to an unprecedented challenge to consumers’ brand loyalty, as almost half of consumers tried new brands in 2020.Trust seems to be a big player in this, as 55 percent of consumers reported turning to brands they trust during lockdown. While trust is driven by many factors, one area that was emphasized during the pandemic was social awareness and a commitment to social activism. Now more than ever, consumers want to hold brands to account, and therefore, it is important that companies strive to uphold strong moral values, while also maintaining authenticity. According to the American Marketing Association, at the end of 2020, marketers identified trusting relationships as the highest priority for consumers during the next year. Despite lower spending during the pandemic, a majority of marketers also expect customers to focus more on “trusting relationships” than “low price.”
3. Shopping from local, independent businesses.
While the pandemic produced a lot of negative consequences, one of the positive impacts was a sense of togetherness among communities, and in turn, an increased desire from consumers to shop local. According to Shopify’s research, 46% of buyers in the US and Canada reported making a purchase from a local, independently owned businesses since the beginning of the pandemic, and of that group, 34% reported doing this more often than in pre-pandemic times. Avi Dan believes that this trend will also go the distance, as he predicts that localized content and product personalization will be more important than ever in order to strengthen the connection with customers. As discussed in point #2, the post-pandemic consumer demands more from brands. There is an expectation of trust in order to maintain brand loyalty, and local, independent businesses are often better-equipped to create a strong, lasting relationship with consumers.
So, there you have it, three important trends in consumer behavior made especially
relevant as a result of the pandemic that marketers should be aware of as we return to
normal life.
While it’s important to keep these trends in mind, you may be wondering how these will
impact the post-pandemic world, and how experiential marketing agencies should
respond. What’s the future of experiential marketing in a post-Covid world? We’ve got
these questions covered. In our next blog, we’ll discuss the post-pandemic consumer
along with specific experiential marketing strategies in greater detail.
