2020 saw businesses re-tool to weather pandemic restrictions, high consumer uncertainty and intense volatility. While many of those impacts continue to be felt today, there are reasons for businesses to feel hopeful about the rest of 2021. Consumer sentiment, which measures economic health via consumer opinion, is rising and restrictions across much of the country continue to relax as summer draws near.
Good marketers continually adapt to changing business landscapes, staying abreast of new developments and capitalizing where they can. That skill set has proved invaluable through the last year, with buying behavior fluctuating greatly from quarter to quarter. However, this year especially, there is value in taking a look in the rearview mirror to first assess why the current conditions look the way they do.
A quarter of the way through 2021, marketers have been able to look back with more context about everything that contributed to the volatility of 2020. The latest Nielsen Total Audience Report released in March puts the entirety of consumer behavior of 2020 in context.
According to the report, most consumers across all age ranges saved more during the pandemic than they would have ordinarily.1 This was likely due to lack of opportunities to spend money or concern for future finances. The report also states that at least 46% postponed a major purchase ($500+). Across traditionally higher-earning demographics (age 35+), 51-64% postponed major purchases.
This information isn’t particularly surprising. Virus anxiety canceled planned trips and luxury purchases that ordinarily would be made in were nixed to adhere to social distancing guidelines. But looking forward, the report offers information marketers can use as those factors ebb. Of the group that put off major purchases, between 63-80% intend to purchase in the next year. Even though COVID-19 is still very much present, marketers must be poised to capitalize on a population that is ready to spend again.
The economic stress of the last year was seldom discriminatory knocking most industries on their heels. Retail, hospitality and travel felt those effects particularly strong. Spring of 2021 brings with it hope this next period can help recover some of what was lost. PricewaterhouseCoopers has tracked consumer sentiment going back before the economic collapse of 2008 and has, in the first quarter of 2021 measured the highest consumer confidence it has ever seen.2 With vaccination rollouts underway, individuals seem more comfortable returning to pre-pandemic behaviors like travel and eating out. Deloitte’s latest survey has measured the lowest consumer anxiety since April 2020. This further reinforces that while financial concerns persist, buyers are looking forward with optimism for the first time in a year.3
While almost a fifth of advertising messages this time last year offered nods to the global health crisis, it may be time now to focus again on value propositions and company differentiation. Those messages will likely still need to reflect hesitancy from many to resume normal behaviors. Making mention of safety policies and focusing on cleanliness will likely be staples for the foreseeable future.
As we continue to analyze the past year and look ahead, some old consumer behaviors will likely re-emerge while other new behaviors may be here to stay. Make sure to look at the consumer patterns within your business and industry and adjust your marketing as needed. And remember, convenience, value and quality seldom go out of style.