The impact on customer behaviour following COVID-19: Future-proof your business by aligning to the shift

Just like everything else in the face of Covid-19, customer behaviour is changing. And fast.

In this blog post, Wizz outlines how the crisis has impacted what, where, how and why customers are purchasing. She dives into how this will change the face of retail forever and how you can future-proof your brand by aligning to these shifts.

What are customers purchasing?

At the moment, customers are pretty much sitting in two camps: They’re either tightening their purse strings or are looking to treat themselves.

The former can be attributed to the instability and uncertainty of life at the moment, prompting many to want to reduce their outgoings wherever possible. The latter is thanks to those going out less and, therefore, having more disposable income and time to research new products. As a result of Covid-19 then, the middle-ground in the retail world is less popular. Luxury and bargain brands are continuing to thrive, whilst those somewhere in between may be suffering.

Popular categories are also shifting, with wellbeing and self-care taking centre stage as a way for people to get through this stressful period. As we predicted in our Retail Trend Report, 2020 has been the year for aromatherapy and aromacology, at-home treatments, supplements and even the merging of mental health with skincare rituals. The pandemic has only acted to make this more apparent.

Therefore this is one of the biggest opportunities to connect with customers as a lot of brand switches are happening.

Where are customers purchasing?

Perhaps unsurprisingly, there has been a huge channel shift towards all things digitals. In fact, it was immediate.

With customers and brands alike recognising the power of digital retail, there is no doubt in my mind that the preference for online retail and marketing will continue. That’s why a digital strategy truly is more important than ever. Create a content and communication strategy to align with this so you are serving customers consistently across multiple platforms. I suggest creating one overarching theme a month to focus on for press, blogs and email marketing. Also weave this into social media, alongside 3-4 other content pillar themes. 

However, it’s also important to prepare for the re-opening of physical beauty shops. Before the Coronavirus, 80% of beauty was purchased in-store and this demand will not completely disappear.

Testers will prove to be one of the biggest challenges for brands and having a sampling strategy will be important to ensure customers are still able to try before they buy in a hygienic way, whether in-store or online.

Following the Covid-19 crisis, the experience will be even more important for stores. Going out will have much more weight on it, as simple replenishment will have moved online. There will need to be an element of entertainment, education and excitement to in-store visits. I highly recommend investing in training and resources for staff to ensure that when a customer does interact it is a valuable and memorable experience.

As Jules Sheridan, Directory at Sheridan&Co, points out: “One of the key parts in ensuring safety is to facilitate social distancing measures. However, as designers, it is essential we are able to create spaces and environments that are intriguing and visually compelling, as well as safe. Non-essential retail is a leisure activity, a pastime, and done well, a memorable and enjoyable experience.” (Source).

Finally, I predict that stores will embrace a hybrid between tech and people in-stores, whereby customers can get human help but also use their own devices to access digital information. 

How customers are purchasing

As we said, there has been a huge increase in customer engagement online. Whilst a lot of research is done by customers online before purchasing, particularly skincare, this will only increase. As such, making content easy to find and optimised for your brand will be more important than ever.

Going forward, there are certain aspects of customer experience to consider more carefully.

Mainly: How can you connect with your customers? You have the opportunity to connect with more customers digitally, as contact is not so limited to London or large cities. Use this as an opportunity to connect further afield as these customers likely have more disposable income and will be open to new experiences!

Having digital content available to customers who are browsing in-store will also be important as the use of personal devices during in-store shopping will see a huge rise, from AR for makeup where testers won’t be readily available and further research into ingredients.

Why are customers purchasing?

Conscious consumerism has been a movement that has been fast-tracked in the face of Covid-19, as customers look to purchase from value-led businesses. From ethical, sustainable and social purpose brands, to companies and their stances on the recent growth in the Black Lives Matter movement.

This provides indie brands with an opportunity to create an emotional connection with their customers, which is helping them to scale more quickly than ever.

Get clear on what your values are as a brand and what the values of your customers are. Nail down into your purpose, to ensure a deeper connection and greater brand advocacy.

This is not about jumping on a bandwagon or theme for the sake of it. It is about ensuring that your purpose is instilled in your brand. The conscious consumer will be savvy to those who are trying to follow a trend or movement without truly advocating for it.

Whilst there’s no denying that Covid-19 has thrown a spanner into the works, this doesn’t mean that your brand can’t shift with the times and come out of the other side of it stronger than ever. Use the changing customer behaviours to future-proof your business and make your brand the best it possibly can be!

If you enjoyed this blog post, sign up to our mailing list to get exclusive access to Wizz’s trend presentation, to learn everything you need to know about consumer and retail trends and purchasing habits in a post-pandemic world. You will learn how to attract more customers and stand out among the noise of the busy retail landscape.