fbpx

Brand reckoning 2020: COVID drives shift in preferences as companies struggle to adapt

by | Aug 3, 2020 | Covid-19, Public Relations

As brands and retailers stand on the cusp of more uncharted territory, new consumer trends are posing new challenges for marketers as nearly half (45 percent) of consumers polled in a new large-scale study from comms giant Ketchum say that as they continue to cope with the uncertainty of health risks, economic downturn and restrictions in day-to-day living caused by COVID-19, their brand preferences have changed.

In step with evolving societal trends in the wake of flashpoint events highlighting systemic racism in the U.S., close to three quarters (74 percent) said the recent protests against racial injustice have made it more important to support businesses that improve diversity and inclusion.

The new study, Brand Reckoning 2020: How Crisis Culture Is Redefining Consumer Behavior, Loyalty and Values, surveyed Americans in mid-June—three months into the U.S. pandemic—on their actions, their openness to reengaging with the outside world, and the extent to which this period has redefined their values. The study also is being conducted in the U.K. and Germany.

Recent events have driven Americans to revisit their relationships with brands

Nearly half of those surveyed (45 percent) report they have changed at least one brand preference already, and a majority (62 percent) expect that their brand preferences will change permanently before the pandemic is over. For some, the importance of brands will be diluted; 63 percent report they will purchase more private label items in the future.

“We’re living in a crisis culture that is driving people to revisit many long-standing values and behaviors—everything from the brands they buy to how they evaluate companies on their handling of COVID-19 and systemic racial injustice,” said Mike Doyle, president and CEO of Ketchum, in a news release. “It’s a brand reckoning that is both a powerful opportunity to connect with a dramatically shifting consumer audience and a wake-up call to innovate or face irrelevance.”

Brand reckoning 2020: COVID drives shift in preferences as companies struggle to adapt

The culture crisis is changing how corporate behavior is judged

An overwhelming majority say it is now more important to them than before COVID-19 that businesses prioritize customer safety (90 percent) and employee safety (90 percent) and that they communicate effectively (88 percent). Eighty-eight percent say the coronavirus has made it more important that companies behave ethically. And, amid nationwide protests against racial injustice, 72 percent say it is more important to support minority-owned business through their purchases.

Meet the crisis culture personas

Based on how open they are to reengaging with the outside world and how much their values have changed during this phase of nonstop disruption, Ketchum’s analysis of the data shows consumers can be divided into one of four types:

  • Retro Reengagers (33 percent of consumers) are ready to return to the world as it was. Politically conservative, they are most likely to feel very comfortable visiting shared spaces, most likely to believe face masks shouldn’t be required in public, and less likely to prioritize diversity and inclusion in choosing brands.
  • Open-Minded Explorers (22 percent of consumers) have new priorities as they return to a world reopening. Politically polarized, they are most likely to change brand preferences post-COVID, more likely to be urban and educated, and more likely to be influenced by advertisers, social media and bloggers.
  • Worried Withholders (20 percent of consumers) are not easily influenced: they prefer their comfort zone. Politically centrist/somewhat conservative and the oldest persona, they are more likely to feel somewhat uncomfortable visiting shared spaces, least likely to have changed their brand preferences during the pandemic, and likely to consider advertising less influential now than before COVID-19 hit.
  • Cautious Questioners (25 percent of consumers) keep their distance until they know more. Politically liberal, they are twice as likely as the average American to feel very uncomfortable visiting shared spaces, most likely to have an underlying health risk, and most likely to feel positive about companies prioritizing diversity and inclusion in the wake of Black Lives Matter protests.

“Never has it been more relevant to understand your target audience’s current mindset,” said Mary Elizabeth Germaine, partner and managing director at Ketchum Analytics, in the release. “In our work with many of the world’s leading brands, we’re seeing massive consumer behavior shifts that are likely to persist. We now have access to data that lets us apply precision marketing techniques to communications, enabling us to target based on evolving behaviors and beliefs and thus drive higher brand relevancy.”

In addition to surveying consumers in the U.S., U.K. and Germany on behavior, loyalty and values overall, Ketchum’s study also examines these related specifically to health care, wellness, retail, travel, consumer packaged goods, food and technology, as well as employees.

Brand reckoning 2020: COVID drives shift in preferences as companies struggle to adapt

Read the Ketchum blog post for more info.

Ketchum Analytics – recently honored with the AMEC Platinum Award for Most Effective Media Intelligence, Research and Insights Company – conducted the Brand Reckoning 2020 study, a nationally representative survey of 3,883 Americans aged 18+ between June 14 and June 23, 2020. The study’s overall margin of error is ±1.57 percentage points at the 95% confidence level.

Richard Carufel
Richard Carufel is editor of Bulldog Reporter and the Daily ’Dog, one of the web’s leading sources of PR and marketing communications news and opinions. He has been reporting on the PR and communications industry for over 17 years, and has interviewed hundreds of journalists and PR industry leaders. Reach him at richard.carufel@bulldogreporter.com; @BulldogReporter

RECENT ARTICLES

10 creative ways to use QR codes in media communications and PR

10 creative ways to use QR codes in media communications and PR

In the fast-evolving landscape of media communications and public relations, QR codes are emerging as versatile tools capable of bridging the gap between traditional strategies and the interactive potential of digital technology. By transforming passive print ads into...