verde consumer behavior report - november 11, 2020
Now that the U.S. election has been called and Pfizer has announced promising results for a COVID-19 results, we can put 2020 in the rearview mirror, right?
Not so fast. Consumers (ahem...people) have been deeply affected by the uncertainty and fear that 2020 served up. What does this mean for consumer behavior? Consumers are more confident than ever in their feelings and values. And those feelings and values will play a role in their purchasing decisions.
Values Matter
Deloitte recently came out with its 2021 Global Marketing Trends report, and the title pretty much says it all: Find Your Focus. It’s been a murky year and consumers--just like all of us--are seeking clarity.
Loosely quoting from the report, here are the top seven marketing trends according to Deloitte:
Purpose: Flourishing brands will know why they exist and who they are built to serve.
Agility: Successful marketers will invest in agile marketing strategies, based on nimble organizational roadmaps and leveraging relevant, digital tools.
Human connection and experience: Organizations should reflect and support the values, emotions and actions of those they are built to serve. For many, this means reprioritizing human connection over speed-to-market and efficiency.
Trust: Trust is earned when what’s promised is what’s delivered. Messaging and performance must be transparent, consistent and reliable.
Participation: Brands should foster customer engagement on a deeper level, going beyond low-touch, low effort participation (e.g feedback, like reviews and comments) to more active participation (e.g. developing content, co-creation of product and initiatives)
Fusion: Focus on innovative brand partnerships that move beyond point products and solutions to understand human needs in a more fundamental way. “People don’t need cars, they need to get from point A to point B.”
Our take: We’re all in a specialty market (to some extent). It’s interesting that at this time when people crave clarity and connection, one of the biggest consulting firms in the world is zeroing in on what specialty brands and businesses have embodied and championed for years. Keep it up (and double down)!
Optimism matters
Maybe he’s born with it; maybe it’s a vaccine? Reuters is giving President-elect Joe Biden some credit for record highs in worldwide stock indexes and (surprisingly) a surge in crude prices (as of Monday, November 9). It seems investors have optimism for improved trade relations under a Biden administration.
While Biden can take some credit, the primary motor powering the upturn is promising vaccine news. In coordination with German partner BioNTech SE, Pfizer Inc. announced its COVID-19 vaccine may be 90% effective in preventing infection.
Calling it a light at the end of the tunnel, Chris Zaccarelli, chief investment officer at Independent Advisor Alliance said: “The vaccine is really driving markets. ...It’s a game-changer in terms of consumer spending and consumer behavior and it augurs well for future economic activity as we begin to see a reversal of trends caused by the pandemic.”
Political beliefs matter
Do political beliefs influence your confidence in the economy? Axios certainly believes so. Morning Consult's daily Index of Consumer Sentiment (ICS) shows that consumer sentiment among Republicans dropped significantly from Election Day to Wednesday of last week.
The day after the election--and several days before a winner was announced:
Consumer confidence among Republicans dropped 7.6 points on Nov. 4
Consumer confidence among Democrats was static on Nov. 4, but increased by 4.6 points from Nov. 1 to Nov. 3
For comparison, October saw a notable downturn in economic confidence among all consumers
Republicans still express higher confidence (106.3 on the index) in the economy than Democrats (83.2 on the index)
Our take: There are so many factors that influence consumer sentiment and spending, but “our take” is that we are experiencing an upswing in consumer confidence. Aside from differing values and politics, consumers are feeling more optimistic about the economy - which is encouraging in terms of an economic recovery and holiday season.
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