By Nancy Villanueva, CEO Iberia & Middle East, Interbrand

 “When we are all facing both actual and anticipated grief, idiosyncratic rituals can restore our sense of control over our lives… the loss of many of our public rituals… has led people to naturally look for new ones.” These are words by Harvard professor Mike Norton.

Nancy Villaneuva

The Covid-19 crisis has further strengthened the position of the consumer as the centerpiece of brand and business strategies, not only to withstand the economic impacts of the pandemic, but to create a strong foundation to sustain recovery and success in the new era ahead. Brand-driven actions have been aimed at both building business resilience and consumers’ hope. 

There is no doubt that the health crisis is a turning point in contemporary history. Nothing will be the same once humanity overcomes the virus. Neither will consumers. Over the last few months, their perceptions, behavior and expectations have been evolving. In consequence, it is vital for brands to monitor and accompany them in this process in order to anticipate and respond effectively and quickly.

We can identify, among others, five trends that will mark future consumers. Some of them were already developing before the pandemic and others are a direct consequence of it:

1) Security And Confidence, New Drivers For Consumption

The priorities of consumers and the factors they will consider when choosing one brand or another are more than ever directed towards safety and confidence. As they approach a product, service or experience, they will ask themselves: Is it safe? Is it valuable? Is it meaningful? Consumers will accept a marginally higher physical and economic exposure only for what they see as truly worthwhile – or, conversely, they will make risk aversion and good value their primary filter. In an uncertain world, health status and risk aversion will be fundamental drivers of choice and behavior.

2) Looking For Brand’s Social Roles

The world is looking for leaders. The countless responses that businesses have made in the Covid-19 crisis have shifted customer expectations: consumers demand greater social involvement of companies, as they believe that companies have a role to play in society beyond their own financial interests. Aspects of the business once of little interest to the public are now part of consumers’ conversations and judgment – from your employees’ satisfaction to where a business pays its taxes. 

Responding to the social expectations of consumers will also be a powerful driver of decision, since, according to several studies, the vast majority say that when the crisis ends, they will consume more of the brands that promoted solidarity initiatives.

3) Uncertainty Asks For Flexibility

The new conditions of social and security distancing, as well as the uncertainty regarding the short and long term future, have boosted the demand of consumers for flexibility. From trial periods to returns or cancellations, brands will be able to rebuild the trust of their customers by giving them control and customization of space, time and their products and services. 

4) Seamless, Frictionless Experiences

The demand for seamless, contactless customer experiences will accelerate the confluence of categories and supply chains into broad competitive arenas. Regardless of the industry, consumers will expect and value frictionless transitions between channels and experiences for a satisfying, relevant and efficient shopping experience. This expectation will lead brands to make a significant effort to remove barriers between the physical and the digital, between the store and the home, etc.

5) Back To Essentials

As fear wraps the future, hedonism and ostentation will be replaced by an investment in things that endure and hold their value over time. We are entering a new scenario in which people will prioritize a more responsible, less impulsive and more conscious consumption. Therefore, brands must build on the value and meaning of their products and services. Younger consumers, above all, don’t forget that the current crisis is linked to the climate emergency, so they are demanding that brands have responsible policies for the circular economy to take care of the future of the planet.