Brand Integrity and the Next Normal
COVID-19 has touched nearly every facet of life and is projected to permanently shape consumer expectations and preferences. Supply shortages and business closures empowered consumers to think and shop outside of the pre-pandemic norms and this empowerment has increased engagement with socially conscious brands. The disruption to inertia has the ability to upend the SMB environment allowing smaller brands to compete in markets where historically they’ve had little visibility. The trend towards conscientious consumption is expected to rise even as supply chains replenish shortages.
To compete in the new economy SMBs will need to adjust their strategies to align with new customer preferences. To do this, businesses would be wise to consider a pivot strategy that authentically highlights their company’s values and is structured to meet customers on their terms.
This year exposed the reality that despite the comforts afforded by technological advancement there remain factors outside of our control. This rude awakening expedited retail and dining trends that business analysts predicted to take hold in the somewhat distant future. This forced companies to act quickly to accommodate the needs of a market in quarantine and the resulting economic downturn. Large corporations like Proctor and Gamble rely on R&D teams and data science to support sharp pivots during an economic downturn but the SMB sector has historically lacked the information and resources necessary to implement real-time change.
Americans are waking up and demanding more action and less talk from the brands they support. Time spent in quarantine combined with supply shortages have reset consumer loyalties, changed how and where consumers spend their money, and challenged them to make more deliberate choices.
To rebound successfully, small business owners should be considering how to position their strategies to align with these trends. According to a recent McKinsey study, there are 5 key themes impacting consumer choices in the post COVID-19 era and in order to thrive post-Covid the SMB sector should consider their position in relation to themes listed.
Shift to value and essentials
Flight to digital and omnichannel
Shock to loyalty
Health and “caring” economy
Homebody economy
Theme 1: Shift to Value and Essentials
Consumers are unsure of the economic future and are buying less. When it comes to non-essential purchases, they are willing to spend more money to do business with a company whose values are consistent with their own.
Theme 2: Flight to Digital and Omnichannel
Foot traffic is expected to be suppressed through 2021. The market is interested more than ever in delivery and this requires small businesses to pivot to an eCommerce strategy that makes online shopping a focus and not an afterthought.
Theme 3: Shock to Loyalty
The shortage in big brand supply chains forced consumers to shop alternative brands and they’ve done so successfully. This has reset customer loyalty will have an impact in purchasing decisions long after the market recuperates.
Theme 4: Health and Caring Economy
The pandemic created a more empathetic consumer and this is evident in both purchase decisions and online activity. Convenience oriented inertia has become less of a factor as consumers place more value on brand’s message and values.
Theme 5: Homebody Economy
With Americans staying home there is more interest in at home experiences. Even as restrictions lift, consumers are poised to spend less of their income on activities outside the home and continue to be cautious about travel and dining in restaurants.
The effects of COVID-19 were unkind to the SMB sector as many small businesses lacked the financial resilience to hang on. For those that have weathered the storm. the time is now to establish a strategy to meet customers where they want to be met. Business owners should embrace the opportunity to re-introduce themselves with renewed focus on their own values and an eCommerce strategy that widens their reach. America is rooting for the success of the small businesses in their communities and are primed to establish new shopping habits.
How will you amplify your brand in 2025?
