Captivating Consumers During COVID-19

As we noted in our introduction, most consumers currently feel financially vulnerable. In response, they have tightened their purse strings: their spending has been curtailed to wisely keep cash on hand for liabilities.^iv And consumers aren’t just spending less—they’re also spending judiciously.

Our research found that consumers are focused on buying essential items and employing methods to save money during the pandemic. A third of surveyed consumers indicated they are purchasing fewer non-essentials (36%) and more essentials (34%) during the pandemic than they were before. As far as saving more money, about half of the consumers we surveyed are not making any large-ticket purchases during COVID-19. Furthermore, one-third of those under the age of 37 are investing more than they did pre-pandemic.

While these shifts in behavior are entirely understandable, companies should take note that many surveyed consumers plan to stick with these newfound habits post-pandemic—so this has the potential to be a long-term change, not a short-term one.

Nostalgia for pre-pandemic days may prompt us to look forward to a time when consumers feel confident enough to return to physical stores and branches en masse and indulge pent-up desires for in-person, tangible shopping experiences.

However, it seems unlikely if we listen to what consumers are telling us after several months in the pandemic, which is that COVID-19 has served as an unforeseen spark for technology adoption.^ix We’ve noted how consumers are more open minded about shopping-related activities and new brands, but they’re overwhelmingly receptive to new technology, too. And much like with prioritized spending habits, many of the consumers we surveyed said they wanted to continue with many of the technology-related activities that they started during COVID-19 once the pandemic subsides.

From contactless shopping to virtual substitutions,consumers have had their hands forced in 2020; while it could be argued it was out of necessity, they’re clearly embracing new technologies. Nearly two-thirds of our survey participants (72%) indicated they are comfortable interacting with new technologies to make a purchase. And even though respondents were less comfortable with delegating tasks to third parties, more than half
(54%) still listed this as an influential factor in their purchasing decisions.

For example, consumers may be open to nontraditional communication methods with a personal touch during the COVID-19 pandemic; 32% of the 18–50 age bracket are open to using chat to communicate with associates during COVID-19. Comfort adopting technology to shop with more safely and conveniently is seen across all age demographics:

As consumers’ spending habits continue to change, businesses must transform and innovate to meet their needs. Many of the consumer behavior shifts discussed in this report have happened under hardship, shifting dramatically in a short period of time. But if consumers have been resilient enough to adapt and adopt, they have a right to expect the same from companies. By focusing on how to address these behavior shifts within the customer experience, companies can evolve right along with their existing and potential consumers.

Methodology

The surveys were conducted in September 2020 using a statistically significant national census-based population sample via SurveyMonkey. They are representative of the general U.S. population.