The World of Marketing According to COVID-19

Welcome to the Dove Direct Print and Marketing Blog. Today's post, "The World of Marketing According to COVID-19," provides an update depicting the ramifications we are experiencing across the marketing world. Brands and marketers are managing chaos, disruption, and ongoing innovations under the auspices of the COVID-19 pandemic. Interestingly enough, there are bright spots in some segments of the marketing and digital spectrum. That said, consumer behavior habits are adapting to the pandemic onslaught in surprising ways. Meanwhile, some countries and brands have plans underway to prioritize whom they target in the wake of lock-down lifts and phase re-openings.

We have heard of the economic downturns across multiple industries, especially the retail sector; however, there are also bright spots afoot. For example, in China, retail sales fell 16% Year over Year during the first four months of 2020; however, online sales rose by 8.6% according to E-consultancy. That trend raises a question. "Should we be gearing up for universal online access?" For example, in the US, its common knowledge that a large number of consumers are unable to access the web. Educators, retailers, and other sectors would be wise to devise a plan that ensures universal internet access is available to all. Undoubtedly, such a plan will require government legislation and possibly stimulus to make unlimited universal access a reality. Imagine if 95% of the country had access to broadband! Would e-commerce purchasing be even higher?

Our Quote of the Day:
  "Build something 100 people love, not something one million people kind of like." – Brian Chesky, Airbnb Co-Founder

Customer Support of Local Establishments

While there are tons of news reports about the pandemic, some of which are misleading, consumers are taking the bull by the horns and engaging with local shops during the lock-down. Deloitte reports the following snippets:

• Consumers are favoring local businesses - 59% of consumers in Britain have used more local stores and services to help support them during lock-down;
• One in five have stopped using a business due to their response to COVID-19, for instance, those that have refused to prioritize front-line workers or failed to ensure the safety of their employees;
• 62% say they will be more likely to spend money at a business that takes extra steps to ensure the safety and well-being of their employees once lock-down restrictions have lifted.
  
  

Conversely, US consumers are in some ways mirroring the 59% of British consumers who are opting to support brick and mortar retail. A recent IBM survey indicates that upwards of 75 percent state they are purchasing essential goods (i.e., food & beverages and household & cleaning products) from local stores. The survey also notes that consumer respondents in the Northwest are more likely to purchase essential goods online and ship to home or another destination over any other US region.

Another key finding of the IBM study exposes that the pandemic is shifting local shopping priorities. Among those surveyed, 25 percent of respondents state they now shop more often at locally-owned stores and buy more locally made, grown, and sourced products. In other words, 25% of the US buying public is ripe for marketers and brands with messages designed for the local brick and mortar establishments.

Increased Vehicle Usage

While vehicle purchases are on hold and trending downward, there is a bright spot. According to the IBM survey, more than 17 percent of those surveyed say that they intend to use their vehicle more as a result of COVID-19. Approximately 1-in-4 states that they will use personal transportation exclusively going forward.

The increase in personal versus public transportation will be a boon for car dealers. Astute car dealerships should have, at minimum, a dual opportunity. Dealers can market their service and repair centers while promoting dealer-certified and new car sales for those that plan to switch to personal transportation only. It is common knowledge that automotive service departments are the cash cow of any dealership. Dealers can expect that more people will spend to keep their vehicle running in top shape. The service stream of revenue should continue long after the purchase date. There are also opportunities to up-sell and cross-sell with or without compatible partners.

Consumers Prefer Brands that are Safety Minded

Deloitte Digital's research states that "Sixty-two percent of consumers are more likely to spend money at a business that takes extra steps to ensure the safety and well-being of their employees once the majority of lock-down restrictions have lifted.

As re-openings continue, 23% of consumers say they are likely to shop in a business that uses fewer employers in stores and branches to limit contact with customers. Just one in five (20%) say they would be more likely to use online-only stores once lockdown has lifted, with 41% of consumers saying they have found it challenging to access the goods or services they need online during the lock-down period."

Online Revenue Growth

An Econsultancy report states that during the near three-month pandemic lockdown, "US online retailers saw an average 126% increase in online revenue for the same period last year, a figure that flattens the poor performance in March and the steady rise in sales during May. The Nordics have seen a significant and relatively consistent spike, raising its revenue growth to 166% year-over-year, while the rest of Europe has seen a smaller 115% uptick." The overarching takeaway, while it is evident that online purchasing has risen, marketers and brands are now tasked with how to increase visitor participation across the digital spectrum.

The boon in online revenue growth has also impacted digital traffic speeds. 24/7 Online traffic affects speed and access for online users to the point that some sites lag, crash, or don't load at all. Although top-tier brands appear to be ok for now, even within the top brands' digital marketing efforts, the question looms, "How many users are going to see those digital ads and campaigns?"

Marketers can improve their online digital marketing with direct mail marketing. A Direct Marketing Association study indicates that direct mail generates a 4.4% response rate vs. the 0.12% made by digital mail. In other words, direct mail can drive recipients to digital destinations and achieve a higher ROI during the period and beyond.

The Net-Net

The trends that we are tracking from a myriad of data analysts portray an overarching theme that consumer behavior is changing. Whether that behavior will remain part of the customer purvey going forward remains to be seen. However, these trends present opportunities and directives for marketers as the landscape evolves. We hope you found value in this article. Thanks for reading "The World of Marketing According to COVID-19."

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