Post-Pandemic Motivations: In continuous search of the truth.
Follow the third part of our Post-Pandemic Superhero series, the consumer charged for 2021. In this article, we focus on her motivations: brand purpose, influencers and servitization. For the first part of this series, check our intro article.
To help you start 2021 at best, we are presenting her in a (free) Webinar on the 20th of January at 4pm CET. Register here!
In a world where artificial intelligence seems to have control over our lives, fake headlines are hard to distinguish from real ones and polarised opinions on important issues blur our sight, consumers are looking for facts and new ways to find the truth. Brands need to adapt as well.
Consumers are deeply concerned about the lasting impacts of COVID-19 on their lives, both from a health and economic perspective. There is more care about the future, represented by a search for financial stability, safety, and security amid rising uncertainty. Of people planning large purchases pre-Covid-19, 94% said the pandemic has impacted those plans.
After a year of disaster and turbulence – the COVID-19 pandemic, a global economic crisis, the societal wake-up to systemic racism and political instability – another epidemic surfaces; the misinformation and widespread mistrust of societal institutions and leaders around the world. On this context, the post- pandemic superhero is looking to control whatever she can.
Adding to this is a failing trust ecosystem unable to confront the rampant infodemic, leaving the four institutions – business, government, NGOs, and media – in an environment of information bankruptcy and a mandate to rebuild trust and chart a new path forward. In the next 3 sections, we will dive into the PPSH’s motivations: brand purpose, influencers and servitization.
“Without a trusted leadership source to look to, people don’t know where or who to get reliable information.”
Trust in information sources at record lows.
Image: Edelman
What does this change mean for 2021? The Post-Pandemic Superhero has higher expectations towards brands not only communicating but delivering on their purpose. And we will see brands experimenting with giving control to customers, as well as taking advantage of the growing importance of influencers.
#1 Brand purpose
Purpose and belief-driven brands have more traction with the Post-Pandemic Superhero.
The new consumer requires trust, searches for control and answers, and has a positive attitude towards introspection and consciousness — focusing on their physical and mental wellbeing. As an example, the focus-inducing app Forest was in 2020’s top 10 most-downloaded paid apps on the App Store, next to big hits such as FaceTune.
Living in uncertain waters in 2020 also led to loyalty shifts, in which consumers’ preferences are changed, making them more prone to trying new products and services (e.g. digital groceries & home delivery). Actually, these changes in preferences are led by consumer’s beliefs: consumers are belief-driven. Indeed, the loyalty of consumers is often tied their beliefs. This is why the involvement of brands in social issues is growing. Research by Unilever shows that one-third of consumers base their purchases on a company's social and environmental performance.
The traditional reasons to buy for price or convenience are shifting; as the 2021 consumer wants to see brands that improve the world alongside making a profit. Consumers increasingly expect brands to “take a stand”.
Industry highlight: Patagonia
Patagonia has always strived to remain true to its eco-friendly ethos. All the way since 2013, the brand has encouraged people to support its environmental efforts by signing up to ‘The Common Threads Initiative’, a scheme set up by Patagonia that asks people to buy only what they need, repair what breaks, and re-use or recycle everything else.
Image: Ecoplum
The point is not to have a politically correct position on a broad range of topics. Instead, it is to choose the specific topics (or causes) that make sense for a brand and its consumers and to have something clear to say about those particular issues. In a transparent world, younger consumers don’t distinguish between the ethics of a brand, the company that owns it, and its network of partners and suppliers. The post-pandemic superhero is looking beyond tangible products and actually trying to understand what is it that makes the company tick (McKinsey, 2020). A company’s actions must match its ideals and those ideals must permeate the entire stakeholder system.
Led by Gen Z’s way of consuming, the post-pandemic superhero is mostly well educated about brands and the realities behind them. When he is not, he knows how to access information and develop a point of view quickly. If a brand advertises diversity but lacks diversity within its own ranks, that contradiction will be noticed.
Purpose was already rising in importance. Now it matters more than ever — 63% of global consumers prefer to purchase products and services from companies that stand for a purpose that reflects their own values and beliefs, and will avoid companies that don’t.
The pandemic has tested our humanity and values. COVID-19 has given us all a common purpose and thereby elevated the very idea of a company’s ‘purpose’. Questions that will be commonplace as we move into this decade will be focused around issues of human and business resilience and their intersection with purpose: Why does your company exist? How does it contribute to societal, economic and environmental progress? Is your supply chain both secure and ethical? How is the ‘contract’ between business and society changing, and where is COVID-19 accelerating that change?
Certainly, purpose also involves taking a stand on societal issues, also implying political ones. Consider for example when, just some months ago, brands let influencing people take over their Instagram account to talk about and create more awareness on the Black Lives Matter Movement. Especially because of this, brand purpose can be very delicate. It is a widely discussed topic not only because of its importance in developing authentic connections with consumers, but also because it can be difficult to get right. If a brand’s values and actions aren’t genuinely aligned with the causes they seek to associate themselves with, the ensuing backlash from consumers can cause lasting damage to brand reputation.
#2 Influencer and trust
The Post-Pandemic Superhero negates one single source of truth, and turn to influencers as a new one.
The gastronomic influencers have become essential for the publicity of restaurants in this digital age. Collaborating with influencers to reach potential guests is a great art.
Image: theforkmanager
Many audiences find navigating the news media landscape harder than ever, as adults globally trust media outlets 40% less than last year. Every day, consumers all over the world read, watch
and listen to the news for updates on everything, from their favorite celebrity to their political candidate, taking for granted that sources are truthful and reliable. On the other side of the spectrum, many audiences find navigating the news media landscape harder than ever, with consumers around the globe actively avoiding the news altogether.
Research shows that the more consumers felt they could detect and evaluate misinformation, the more likely they were to feel that the post was intended to manipulate readers. Similarly, the less consumers trusted Facebook, the more likely they were to feel that the post was intended to manipulate them, and they became more skeptical.
One takeaway here is that when communicating the truth in response to a fake news story, managers need to consider the trustworthiness of each media channel, and choose the appropriate one to communicate with consumers.
Another study (US) shows that consumers’ awareness of fake news and trust in media outlets have a significant impact on consumers’ perception of the news in general. The knowledge of being persuaded by an article significantly influences consumers’ perception of the fake news, subsequently brand trust.
Tip: How are influencers categorized?
When in doubt, ask yourself what the long term and short term benefits are. Is your goal to promote overall brand awareness? Then an army of micro influencers is likely the smartest —
and most economical — choice. Need to promote an event, generate buzz, or promote a fashion show? Macro influencers will provide that reach you need in a short period of time. When you need quick results and bigger numbers to match, they are often the best route to go.
Image: Mediakix
It may be a huge marketing channel for businesses the world over, but social media is rapidly losing trust as a reliable communication tool, leading to changes in what and how people (and therefore businesses) use these platforms. Already in 2018, consumers, regulators and media observers have questioned the privacy, accuracy and ethics of nearly every social network. The result: 60% of people no longer trust social media companies.
The awareness of deep fakes in the web (manipulated media, which are video, audio, or both where someone's likeness is replaced with someone else’s likeness, where people can be made to appear as they’ve said or done something that never actually happened in reality) makes trust towards the media very weak.
Modern consumers expect authentic brand relationships and have begun to see through celebrity endorsements as the financial transactions they are. In contrast, influencer marketing (the promotion and selling of products or services through people who have the capacity to affect the consumer’s spending habits) is based on the trust and respect the consumer has built with an influencer. Influencers are seen as trustworthy by consumers.
It is when consumers identify with certain influencers that they will follow them and start being part of a community. These influencers represent a stream of thought and/or opinion for their followers. Therefore, brands that choose influencers which represent their values best will be good vehicles of trust and community building. The Post-pandemic superhero is skeptical, and will turn to his own community for his source of truth. Influencers hold might hold a safe path to brand trust, and can bridge this trust chasm with their honest advocacy.
Industry Highlight: Instagram
People already shop from creators by asking product questions in comments and Direct messages (DMs).
With the ability to tag products, creators can provide the information their followers are looking for and get back to expressing themselves and sharing what’s on their mind, which will make their followers happy too.
Image: techcrunch
#3 Customer in control
In uncertain times, staying in control is a sought for and prized luxury.
In 2020 and beyond, the value of products is relative to the level of control they give. For example, in payment experiences, consumers and businesses are likely to be drawn to ones that offer more control. As payments become more digitized with contactless payments (NFC), buy-now-pay-later programs like Klarna, and digital loyalty programs, experiences are being embedded into customer purchasing journeys. Non-financial services providers (e.g. Starbucks) are offering customers payment experiences in-journey. This extends to emerging trends such as smart appliances (Internet of Things), voice recognition, ambient sound triggers, RFID, and even brain-computer interfaces.
After these uncertain times, financial planning and control are a priority. The market is in retract mode and personal finances follow in this pattern. Brands are offering much more than a bank account, guiding Millennials into budgeting, planning, and thriving with their wallet in retract mode.
Industry Highlight: Dave - “Banking for humans.”
Dave, the US-based digital banking service, takes care of overdue bills, advance partially next pay on no interest, and even by matching gig-jobs work to its account holders.
Image: Dave
The control effect is everywhere - only by looking at modern thermostats, it can be seen that control is valuable even in the least-expecting sectors. In constant growth are smart home applications (an example is Nest thermostat), controlled via smartphone. This allows customers to control the light, room temperature, music, security, and all amenities at their home when they are away. And these applications are then controlled under smart hubs, such as the Google Home app. In simple words: give your customers the control through empowering product and services.
So, how to give your customers power in 2021? In the blurry lines of fake news blurring the sight, build services around your product, and defend the interest of the customer, putting them in mission control. This strategic move will in turn improve the customer relationship with the brand. Advocating for clear truths, and digitizing customer experience will build long-term trust.
To kickstart 2021, ask yourself the following questions
Looking at the dwindling trust of your consumer in fake news and in traditional media - do you know where and whom to invest in to tell your brand story that tells the truth that highlights your purpose and in turn creates a long-lasting connection with the consumer?
Here are some starting points to get on with their motivations:
What are the strategies you need as a brand to help your consumers out, rather than push for more sales?
Are you aware of the negative impacts your product may have on your consumer’s lives? What strategies can be deployed to resolve it?
Do you have a strategy for non-traditional forms of media to connect with the right set of influencers or micro-influencers to connect with your audience to build a relationship of trust?
Want the full insight? Join the Post-Pandemic Superhero Webinar.
On the 20th of January at 4pm CET, meet us online to understand the full profile of this customer, learn how to align your product, services and marketing initiatives to draw business value from engaging with her.
Get to know her before she walks out of sight!
For more information, check our pages below:
Have you met your consumer of 2021?
Out of the ashes of 2020 came a new consumer. And although the pandemic isn't over yet, consumer behavior, motivations and routines have changed forever.
