Decoding Digital Shock and Awe: Consumer Brand Marketing Lessons for the Coming Year(s)
It’s been noted elsewhere: the COVID-19 pandemic initiated a decade’s worth of digital adoption in less than a year by consumers and companies alike. It was a shell-shock to all, and consumer marketers are still trying to sort out the pains created by that transformation. I recently had a chance to check out McKinsey’s excellent ConsumerWise Sentiment Survey, which provided several key takeaways, including:
- Reducing friction is more important than ever. A direct outgrowth of lockdowns and social distancing during the pandemic, consumers now have a higher focus on self and are spending more time online and alone. This is driving an emphasis on instant gratification, convenience, and less tolerance for friction in their purchasing experiences. Marketers should be on notice to make the buyer journey easy and fast.
- Be digital, but tap into trust networks. Digital and social channels do influence consumer purchasing decisions and brand perception, but brand trust comes mainly from the influence of family and friends. That means referral programs can be incredibly important.
- Gen Z has buying power (duh!). The generation whose upbringing was most affected by the pandemic has come of age, and they’re tending to splurge. The caveat is that they are not optimistic that inflation will stabilize and prices will decrease, making them more price-sensitive. Where they ARE especially interested in spending is in the apparel and beauty categories. Is this any surprise from the Instagram generation?
- Local is the new global. The McKinsey report says 47% of global consumers say buying from local companies is important in their purchase decisions, and the number has jumped meaningfully this year for U.S. consumers, with the reason for buying from local brands being a strong desire to support domestic businesses. The takeaway: if your brand is made in the USA and you’re selling to U.S. consumers, lean into it.
- Manage your marketplace. According to McKinsey, 49% of U.S. consumers surveyed plan to delay purchases over the next 3 months, and nearly as many plan to wait for sales or promotions before purchasing in the apparel category. Brands need to meet consumers with promotional tactics and offers that deliver real value if they’re to entice consumers to loosen the purse strings.
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