Business as usual is quite unusual, no doubt. Can the same be said for your marketing strategy? If your answer is “Yes,” you may actually be tracking in the right direction.
It’s understandable, though, if the sheer mention of “strategy” right now compels a deep-seated urge to throw a socially-distant punch in my direction. You’re likely thinking, “How am I supposed to plan three to six months from now when we’re simply trying to stay afloat today?”
In failing to plan now, however, you’ll likely find yourself no better off once the COVID-19 proverbial smoke clears. Consumer psyche is in the midst of a dramatic shift that’s affecting financial behavior, shopping habits, and marketing perceptions. This shift will prove to have long-lasting implications for businesses and marketers in the years — if not decades — to come.
Let’s take a moment to explore three research-based predictions for what you can expect from a post-Coronavirus world and how you can use this information to formulate an effective marketing strategy moving forward.
1. Consumer Financial Psyche: Fear-based vs. Risk-positive (aka YOLO-mindset)
Many of us with parents or grandparents who lived through The Great Depression can see firsthand how it shaped their spending behavior long after the economy recovered. I recall my own grandparents, who — despite their business success — clipped coupons and selected dining-out options based upon “who had the best deal.” The COVID-19 economic crisis today is unlike anything the world has experienced in a lifetime, currently on par (and anticipated to be worse than) The Great Depression. The distinction between The Great Depression and the current economic crisis which will prove to shape consumer psyche a bit differently, though, is due to the latter’s speed, magnitude, and cause of collapse.
The COVID-19 economic storm swept through America like a tsunami. Within one week’s time (for some people, even less), businesses that were once thriving found themselves upside down. Families who were previously “financially secure” by American standards saw their entire life savings depleted. The sight of empty streets in New York, death count tickers on our TV screens, and neighbors wearing medical face masks to check the mail have consciously and subconsciously shook us all on a deeply emotional level.
I predict consumer financial behavior will largely take one of two extreme paths: That of the Fear-based Mindset, and that of the Risk-positive (or as I like to call it, YOLO Mindset).
The Fear-based mindset is to be expected. Coronavirus devastated so many and so quickly. Who’s to say how long this will last, or if/when another pandemic will hit? Because of this, many consumers are currently re-examining their spending habits and using quarantine time to find ways to be more financially-savvy, minimal, thrifty, and DIY. In a new survey by Magnify Money, nearly 44% of consumers polled reported that they plan to save at least part of their stimulus check money. Post COVID-19, these consumers will be penny-pinching for months, years, and possibly decades to come. If your product or service is more of a “want to have” than a “need to have,” that coupon or BOGO discount may not be compelling enough to get them back in the door. You’ll need to prove value. Real value. As in, why and how your product or service makes their life easier, simpler, or more secure.
“Value” is one of those terms that many claim to tout, but after closer examination of their marketing messaging, it’s clear that far too many businesses confuse offers with value. The two are not entirely synonymous, and you’ll benefit from knowing the difference.
Not all consumers will shake out of this crisis clutching their pocketbooks, though. Enter stage right, the Risk-positive “YOLO Mindset.” The emotional impact of COVID-19 has caused these consumers to re-evaluate their finances in a different way. Throwing caution to the wind, these consumers have adopted the mantra of “You Only Live Once (YOLO)” and are planning to spend their money like there’s no tomorrow. Because, if there’s anything COVID-19 has taught us, is that life can change in an instant. These consumers will likely spend on discretionary items and experiences as soon as the gates of semi-normalcy are open once again. Their spending behavior may even be seen as impulsive. Successfully resonating with the YOLO Mindset will require underscoring the benefit of acting within the here and now. “You deserve happiness. Now is the time.”
2. Digital Burnout
Have you checked your screen time lately? Yesterday I logged 257 hours in one day. Crazy, I know.
Social distancing and home quarantine have forced many of us to turn to our screens more than ever. More work-from-home Zoom meetings. Distant-learning homeschooling via iPads and laptops. Endless Netflix binges. More YouTube. More mindless scrolling of Facebook, Snapchat, Instagram, TikTok. Daily digital buying via Instacart, GrubHub, and Amazon. If our iPhones weren’t already permanently tethered to our hips before, they’re now intricately linked into our DNA now. But, perhaps too much so?
Our inevitable digital exhaustion has slowly burned for a few years now. Smartphone adoption has been on the decline since 2017, with feature phones once again making a crawling comeback. According to research by Parks Associates, this increase in feature phone adoption is not only among lower income households, but households of all income levels, with adoption of basic phones doubling among households earning over $100K/year between 2017 and 2019. Likewise, adoption is growing more rapidly among younger heads of households than among older heads of households.
What’s causing this technology shift… backwards? Many consumers are experiencing 24/7 connectivity fatigue – FOMO (fear of missing out) on life. We all know someone (maybe even ourselves) who have taken sabbaticals from technology, social media, and the brain-numbing effects of constant connectivity. The connectivity fatigue has been especially profound amongst Generation Z. In a December 2017 Hill Holliday survey, conducted by in-house research division Origin, more than half of young adults ages 18 to 24 said they’re “seeking relief from social media.” Some have deleted their social accounts entirely. In fact, 34% of young adults surveyed said they’d done so. If you haven’t reached that point yet, just give this quarantine order a few more weeks. Trust me, you’ll reach your peak.
It can be predicted that once quarantine orders start to lift, consumers will be itching to escape screens and reacquaint with tangibility. This will have obvious implications for marketers, many of whom are heavily invested in digital advertising. Dare I say that perhaps the best way to reach the post COVID-19 consumer will be via traditional means? One of the most basic rules of marketing is to meet your consumer where they’re at, and after 8+ weeks of home lockdown…online is likely not where they’ll be found.
Print ads, billboards, direct mail, guerrilla tactics – remember the world of offline marketing? Consumer retinas are burning. Offer them some reprieve. Many business owners (incorrectly) believe traditional marketing is synonymous with boring and dusty. Not true. Take for example iconic British clothing brand Ben Sherman. During the 2010 New York Fashion Week, Ben Sherman set up their Soho location with shirts hanging outside leaseline that were ripe for the picking. As passers-by slowly swiped the free shirts, the public started to realize it was part of a clever offline marketing campaign. Nearly 600 shirts were taken with a tag saying, “Nicked! From Ben Sherman Soho NYC. But, you are forgiven (Just this once).” This offline publicity stunt generated major buzz for Ben Sherman during a period that would otherwise be difficult for a high-end clothing brand to break through the noise.
Watch behind-the-scenes of the Ben Sherman offline stunt here.
The marketing team behind 2016’s Deadpool movie took a unique offline angle by launching a series of campaigns that channeled the character’s infamous irreverent humor. One of these campaigns involved billboards that spelled “Deadpool” in a… ahem…creative way. The billboard quickly made the jump from offline to online to become a viral hit.
Approach traditional marketing in a traditional way, you’ll get traditional results. Come in at a new angle and you’ll realize that traditional marketing is only as “tired” as you make it to be.
3. “Us” vs. “Them” Perception
There’s a renewed love for small business right now, and rightfully so. A few fast facts, according to the SBA via The Balance Small Business:
- There are 30.2 million small businesses in the U.S. accounting for 99.9% of all businesses.
- Small businesses created 1.9 million new jobs (as of the last survey in 2015) out of a total of 2.7 million, accounting for approximately 70% of all new jobs.
- Firms with fewer than 20 employees had an average job creation rate of 20.8 compared to an average of 12.6 for firms with more than 20 employees, although small business job creation can often be followed by job loss due to small startup volatility.
The Coronavirus pandemic has helped consumers better understand just how vital small businesses are to both our economy and culture. “Local love” is stronger than ever. And, with many small business owners publicly vocalizing their frustrations (real or perceived) that the government’s support has largely been too little too late, consumers are rallying behind their local mom and pops like never before. If you’re a small business owner, this is great news for you. A large corporation? Maybe not so much.
Cookie-cutter corporate restaurants and retail chains, big banks and the like have been falling out of favor with consumers for some time as the trend toward “local love” started long before COVID-19’s influence. In fact, this trend was first building momentum back in 2015, according to a survey by ComScore. The survey found that a staggering 93% of shoppers prefer small and local retailers over large, national chains. Should that survey be repeated in today’s climate, I’d bet you a stash of toilet paper that the percentage would be even higher.
The perception of “us” (small business, Middle America values) vs. “them” (corporations, big banks, unending greed) is rampant. What to do if you’re a large company, or, a local franchise owner with a “big corporation” brand? You may be feeling more disconnected from your customers than ever. To regain that connection, you should first demonstrate to your customers that you’re capable of empathizing (not just sympathizing) with their current state of being.
Your next advertisement must tick the box for each of the following:
☐ Humility
☐ Humanism
☐ Transparency
☐ Altruism
Take for example Verizon’s latest “Pay it Forward” small business campaign. The streaming entertainment series is designed to help raise funds for small businesses in need, leveraging top musical talents like Dave Matthews, Luke Bryan, Ryan Tedder, and Alicia Keys to headline these weekly events. Beyond the streaming series, Verizon has pledged to donate $2.5 million to Local Initiatives Support Corporation (LISC), a nonprofit aimed at community development, with the option to give an additional $2.5 million as consumers engage with its programming. The LISC will use the funds to give grants of up to $10,000 to struggling businesses, focusing on entrepreneurs of color, women-owned businesses, and startups in historically underserved communities.
Watch the latest Verizon “Pay it Forward” tv spot via iSpot here.
And now, a lesson in what not to do. Toyota recently found itself as the rear-end of a viral joke:
Yeah, consumers are on to you. Don’t think they aren’t. Toyota isn’t the only one to blame here, though. Most big corporations are struggling to find the right messaging; many are producing spots that awkwardly bookend emotional acknowledgement with the standard CTA of “Buy our stuff!” There’s your disconnect. It’s akin to hearing from your significant other, “I want to be with you, BUT…” Whatever follows that conjunction will surely have you questioning the sincerity of what came before, no? Furthermore, simply acknowledging “hard times” falls flat. If that’s your strategy, save your dollars and don’t even bother. Instead, go beyond empty pats on the back and show how you’re directly helping the situation, and/or demonstrate a united oneness with humanity as a whole.
The Bottom Line
Many companies never recovered from the 2008 recession. Others blossomed (Venmo, Groupon, Uber, and Instagram…to name a few). Those who not only survive, but thrive, during widespread hardship typically share one major commonality: Innovative thinking that disrupts the status quo.
Normal as we knew it will never be again. Nor should how you operate and market your business from here on out. Now, go forth and get unusual.
cassie d'arpino 