Two months ago, marketers seemed reasonably confident about how 2020 would unfold. We didn’t expect a pandemic that spread rapidly, disrupted supply chains, and prompted a lockdown of non-essential businesses. Now everyone is revising expectations as a looming recession puts an end to years of continuous growth.
COVID-19 won’t last forever, but even if a vaccine arrives tomorrow, 2020 is now a lost year for marketers. Annual conferences were canceled, digital ad spend was reallocated, and customers still shy away from non-essential spending. What’s more, the longer lockdown conditions last, the harder it will be to create a semblance of pre-2020 normalcy. The good news is that we can still prepare for this new marketing reality. What will the landscape look like once COVID-19 is a memory?
Digital-first businesses will be bigger than ever
Direct-to-consumer (DTC) brands and ecommerce platforms were growing well before the coronavirus pandemic, particularly among millennial and Gen Z customers. With the outbreak of COVID-19, other demographics that traditionally prefer in-store shopping are turning to online markets for the first time.
According to ACI Worldwide, retailers saw a 74% increase in online orders in March compared to the same timeframe in March 2019. Some brands, such as the Canadian bookstore chain Indigo, are reporting a 300% increase in online transactions since physical chains closed. While in-store shopping will resume once COVID-19 recedes, many customers are likely to continue making online purchases for convenience alone.
Some particularly critical retail categories to watch during this period are groceries, medicine, and grooming products — all industries that traditionally benefited from in-store sales. If marketers lean into these trends with digital-first tactics, customers will remember these service experiences in the months to come.
Remote workplaces will be far more common
Just as consumers learn to appreciate the benefits of online shopping for the first time, many businesses are finally coming to terms with remote workplaces. Where possible, brands have implemented new options for teams to work from home while communicating through video conferencing platforms like Zoom or Google Hangouts. What’s more, 36% of employees who work from home enjoy it so much, they want to continue doing so once the pandemic is over.
To be clear, building a remote workplace is far from simple — it requires a digital work culture that trusts each team member and facilitates clear communication on necessary objectives. Yet the benefits will be hard to ignore, especially since remote work leads to increased job satisfaction and decreases in sick days. Combined with cost-saving opportunities in offices, businesses are likely to consider remote employee options in the future.
As marketers, this means a significant portion of prospective customers will be spending far more time at home, granting them a new post-pandemic lifestyle. This experience can influence everything from relevant ad creative to how brands communicate with them. For example, retail email open rates are currently 40% higher than normal, likely because customers at home are more receptive to personalized offers.
Just-in-time economies will seem risky
Traditionally, most businesses selling products must operate under the expectation of a “just-in-time” economy. Under this model, brands maintain the smallest possible inventory level to save on storage costs while still meeting projected demand. When handled effectively, just-in-time in an incredibly efficient system — the problem is that COVID-19 completely disrupted the supply chains that let it run smoothly.
As deliveries from nations like China halted or were delayed or ceased, companies scrambled to stop manufacturing or find alternative supply chains. Once the pandemic concludes, some businesses may opt to overstock inventory to ensure operations continue. If this occurs, retailers and manufacturers may need to resurrect the practice of overstock clear-outs, often implemented after major holidays in the 1990s. Marketers will also have a role to play if this occurs by incorporating such elements into updated promotional strategies.
We might be less receptive to “fake news”
In times of uncertainty, people place a strong emphasis on reliable information. In our current crisis, that usually means gathering up-to-date news on treatments and quarantine timeframes, but now extends to seeking out trusted sources of data. For example, new studies suggest 74% of Gen Z respondents want social media platforms to offer a fact-checking service. This dynamic suggests consumers are becoming aware of the ways false information propagates through media.
For marketers, this means target audiences are far more receptive to messaging that is informative or educational. Right now, customers are incredibly conscious of how brands react to coronavirus by managing online deliveries or protecting staff. By communicating the ways you’re taking the initiative now, you’re building valuable trust — even if these customers won’t make a purchase during the recession.
It also means successful branded messaging will emphasize trust and transparency. Campaigns should focus on the ways brands serve customers while acknowledging the challenges of this new reality. Don’t pretend it’s business as usual — as the social media study implies, nobody wants “fake news” right now.
Data-backed marketing will continue unchanged
While COVID-19 has disrupted industries and personal lives, it’s important to remember that some things don’t change. Marketers continue to place a strong emphasis on data collection and analytics tools that help us reach and understand customers. Once the pandemic passes, brands will rely on these techniques to engage with customers whose shopping and travel habits have transformed.
When all is said and done, marketers may never return to business as usual. What we can do is adapt and pivot to unexpected circumstances to create the new business as usual we’re all discovering.