verde consumer behavior report - january 6, 2021
takeaways from this weeks report:
After a challenging and uncertain year, to say the least, consumer sentiment is trending towards the positive - in all measured spectrums.
The “10 Most Popular Stories of 2020” from Harvard Business School. Seven out of the top 10 were COVID and/or crisis related. What were the other three?
What consumer behavior trends are expected to stick in 2021.
Consumer Behavior Report - January 6, 2021
Happy new year! As we type our first consumer behavior report for 2021, there’s a lingering feeling of déja vu. All eyes are focused on an election (looking at you, Georgia), coronavirus cases continue to surge and a certain phone call from a certain president is all over the news. But this is not a replay of a year that will live in infamy.
There’s a renewed sense of hope lingering out there. Is it the vaccine? The passage of the second stimulus/relief package? Is it politics? Or is it that people have simply exhausted their capacity for...well...exhaustion? Let’s gauge what’s out there, shall we?
Measuring Consumer Energy
You read that right. Consulting firm Forrester developed an index to measure consumer sentiment. They launched the tool in 2019 as an indicator of consumer’s readiness for innovation and brand engagement.
Measuring sentiment spectrums, like: isolation/identity, distrust/trust, comfort/novelty, and vulnerability/efficacy, the index revealed a (near) rock bottom for consumer energy in September 2020. The good news? It’s all up from there!
With results published on Dec. 23, 2020 for 2021, consumer feelings in all measured spectrums were moving toward the positive. In the period from September to December:
After months of feeling isolated, consumers were experiencing a higher sense of community and greater validation of their values.
“[For] most of 2020; consumers have been apprehensive about brands’ intentions and cautious to believe that organizations will follow through on their promises.” Heading into 2021, “...consumers are relatively more open to the idea that the people and organizations around them are driven by good intentions.”
Consumers are expressing a serious need for diversions that inform, delight and entertain.
After a year of feeling like they had no control, consumers are beginning to turn the corner toward seeking new tools, resources and solutions.
Meanwhile, from the C-Suite…
The latest McKinsey Global Survey on the economy (Dec. 2020) found that executives are also “...ending a year of global crisis and profound uncertainty on a relatively positive note. “ From profound uncertainty to relatively positive?
Based on the period we’re moving on from, that’s downright glowing!
In Dec. 2020, 43% of all respondents felt current conditions in the global economy were better than mid-2020.
63% feel their country’s economy will be stronger six months from now.
61% feel the same for the global economy.
34% anticipate growing their company’s workforce in the next six months.
“For the first time [in 2020], respondents are more likely to report improvements in the global economy than declines, and much more likely now than in earlier surveys to say global conditions have stabilized.”
The Insight of the Year-End Lists
Harvard Business School Working Knowledge posted its “10 Most Popular Stories of 2020.”
Seven of the top 10 were COVID and/or crisis related
Two were about leadership
And one was about working smarter, not harder
Numbers one and 10 are especially revealing:
The #1 most-viewed article was, “Merck CEO Ken Frazier Discusses a COVID Cure, Racism, and Why Leaders Need to Walk the Talk.” Ken Frazier is the one of just four black CEOs among Fortune 500 companies. And yes, Merck is obviously a key player in COVID-related research. But Mr. Frazier also reminds us that we need to continually work for DEI and that breaking institutional racism requires deliberate and consistent action. This is not just a 2020 story; it needs to be an everyday effort.
As for #10: “Good Leadership is an Act of Kindness.” Enough said. (But please read the article, of course!)
Trend Watch for 2021
According to our very own Kristin Carpenter in PR Daily, expect these consumer trends to continue in 2021:
Increased/continued emphasis on health and safety.
Values-based spending and greater emphasis on corporate social responsibility.
Creating a human connection online because the digital experience is the front door to your business.
New tech is the new normal, e.g. virtual try ons, product visualizations, etc.
Leveraging data as a tool for a better customer experience, not just a direct promotion and sales tool.
We’re not in the habit of giving in to negativity, but jeesh, 2020 put up a good fight. Here’s to a healthier, brighter and more fruitful new year for everyone! Happy new year.
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