How to sell to a post Covid customer?
Sailing through these difficult times,
with highs and lows of new cases tiding our shores, we’ve shifted from being
concerned of our health to being distressed about the economy. As the cases
peak, and we’ve learnt to normalize the situation, is when we realize that the
economy is slowly crumbling to a recession. As anxious consumers notice the
drastic shifts in the macro economy, a historic rise of unemployment and a
radical dip in the GDP, they are finding good reason to worry. With growing
financial uncertainty and economic pain, market researchers at Truecode believe
that consumers will be looking for a value-added and affordable experience post
corona for their retail experience.
Value perception is mainly based on how a
commodity is priced, its quality and the service you offer. A consumer deems a
product to be a good deal if the product is capable of fulfilling all these
criteria’s set forth. Even though the crisis that has emerged from Covid’19 is
one that is similar to other recessions, it still proves to be more complex
according to Truecode. When taken in comparison to the Great Depression, where
there was a steady decrease in productivity, this economic slump has denied
people from being productive all together. Another factor that market research has
put forth is that the virus has affected different regions adversely, with one
region having a higher number of cases and severe lockdown restrictions than
other regions.
How do you build a value strategy to
attract a post corona consumer? Since mid-march, there has been a steady
increase in companies laying off people, and hence an increase in the trend of
spending consciously and only on essential commodities. Even when considering
that the lockdown restrictions have been eased, market research shows that it
will take time to build back the consumer confidence. Researchers at Truecode
believe that it will take consumers 2-3 months to get back to their traditional
spending patterns. Although the crisis
shows similar patterns of that of historical economic depressions, it still
remains intricate. Truecode’s research shows that conventional spending
patterns have been deferred. Looking at a small example of grocery shopping,
consumers are choosing to buy in bulk, make fewer visits and aim to spend only on
essential commodities. Consumers are also branching out to other retailers and
brands, depicting a shift even in brand loyalty. The factor that differentiates
the economic crisis caused by Covid’19 from other depressions is the factor of
people having to risk their health and safety. This has led to an acceleration
of shifts in consumer behavior. In fact, taking into consideration the sectors
of restaurants, travel and hospitality, instead of noticing a gradual decrease
in numbers, with quarantine they have come to a complete standstill. In
accordance with Truecode, retail trends of going digital have been unfolded in
a fraction of time than expected. Typically, online grocery stores used to
charge a steeper price for delivery and tip, but now with the insistence of
staying home, this is the market that experienced the highest boom.
How do you conceive the idea of Value
perception to your strategy? Retailers, according to Truecode, firstly need to
shift to a dynamic of a convincing value message with the help of advanced
communication, pricing and promotional activities. They need to provide a
sector wise value strategy targeting different consumer bases. Market research
shows that there is no ‘one-size fits all” strategy to overcome the obstacles
of a post corona economy. Retailers, especially the essential goods sector can
provide improved services like ready to eat meals and home delivery.
Secondly, market research shows that
localising brand efforts can increase effectiveness. Adjusting price, promotion
and advertisement with relevance to local communities can help build brand
loyalty and better evaluation of competitors. Retailers can strategize on
better opening price points and newer services to get more effective results.
Thirdly, researchers at Truecode believe
that retailers need to be aware and agile in terms of choosing the right
mediums to publicise their deals. Digital circulars, in store promotions and
price drops need to be vocalised to reach the target consumer group. Retailers
should also ensure that products are available before promotion, so that
consumers are not disappointed and can help build trust.
Fourthly, retailers need to emphasise on
value communication, for example a bundle of popcorn and candy can encourage
consumers to spend in order to create an in-home experience of going to the
movies. Retailers should try to substitute experiences that are denied in
quarantine by creating them with individual products sold at your stores.
Lastly, at Truecode, we believe in the
importance of shifting to a digital age and urge retailers to build their own
digital presence in order to maintain and supply to their constant consumer
demands. Hiring fresh new talent in aspects of e-commerce and building networks
out of work from home moms are all ways to ride this wave of recession.
Riding this wave is not easy, at Truecode
we urge retailers to grab the bull by its horns and make the most of every
opportunity. Digital is the new era, the faster the transition and speedier the
results.
