Will consumers stick to their new behaviors for the long-term?
Will consumers stick to their new behaviors for the long-term?
This week, I’ve been thinking a lot about consumer behavior and how much of it will really carry on beyond the pandemic. We’ve all seen the figures—10 years growth in ecommerce adoption in 90 days time—but how much of that will normalize once things are, well, normal? I’m not convinced that the ecommerce penetration will remain at such a high rate post-pandemic, but I do think there has been a value reset for US consumers causing brands to quickly adapt.
Customers are more willing to switch if they perceive value
As of late September, 73% of consumers report demonstrating a new shopping behavior such as using BOPIS or switching brands. Of those brand switchers, 67% say that the switch was prompted by the desire for value. And “value” doesn’t just mean lower cost or some sort of promotion, it also means better quality. Now more than ever brands and retailers should consider carefully whether running holiday promotions is right for them and their customers as I wrote about in my last post.
When owned retail is risky, partnerships rule
Promotion isn’t the only thing to consider this holiday season. Direct to consumer brands in particular are looking for ways to increase brand awareness in lieu of holiday popups or other measures. Last week, I spoke to Modern Retail about Food52’s partnership with Nordstom and how it serves the brand without the risk of owned retail.
The shift from front of house to back of house
While brands and retailers would normally be ramping up seasonal hiring to handle increased foot traffic in the front of house, this year they’re looking to boost the back of house workforce to accommodate BOPIS, curbside pickup and fulfill from store. Even Apple has jumped into the fray launching fulfill from store for customer orders that meet a specific criteria set. In order for these initiatives to be successful, brands and retailers must ensure they have the infrastructure in place to support store teams as they acclimate to a new skillset.
Though foot traffic hasn’t returned to pre-pandemic levels—and likely won't for quite some time—it’s clear that customers still desire in-person interactions. Brands have a golden opportunity to test new systems, technologies and workflows to set themselves up for success post-pandemic. Don’t squander it.