Changes in behavior and the next normal

Changes in behavior and the next normal

Using exclusive conversion data on the channels that have most impacted online shopping during the pandemic, we took a brief look at who the new digital consumer is, what their aspirations are, and how the crisis has itss Accelerated the transformation process.

2020 will go down in history as the year in which a number of extremely important milestones changed the history of digital commerce in Brazil and around the world.

And this was not only due to all of the reinvention that the market went through, but mainly due to changing consumer behavior.

In the midst of the pandemic crisis, the way people viewed their needs and consumption habits painted a new panorama for those selling on the Internet.

In the Today article I will detail how these changes took place, what the new consumer demands are, which channels influence them the most and what we actually call the new normal [1 9459007] for e-retail businesses .

Come on?

  new consumer

How has social isolation changed the impact of different channels of shopping before and after the pandemic?

For the vast majority of society, social isolation was a novelty. And a novelty, not very pleasant, so to speak.

In addition to the consequences for their personal life, consumers also exhibited broad behavior with regard to the channels that influence them most for shopping on the Internet.

Investigated During conversion, it was found that with isolation, the content and relationship channels such as social networks became stronger when a user was influenced to buy a product, while the opinions of other people and the recommendations of friends and acquaintances decreased

Google’s influence increased by 45.8%.

In numbers, the influence of Google and other search engines increased by 45.8%. Following the same trend, social networks became more influential by 24.8%.

Of all the networks, Instagram is the most influential: 46.4% of consumers believed this was the channel they had the most influence on when making purchases on the Internet.

The influence of TikTok, a relatively new social network, has already reached 4.44%.

On the other hand, factors that always had a high priority when it came to getting a user to fill out a purchase as an indication of the opinion of friends and other people fell by 34.6% and 41.8%, respectively.

These data show us a new consumer, more susceptible to advertising and advertising, directly or indirectly, as their exposure to social environments decreases.

What has changed in consumer sentiment with the pandemic?

But the change in the purchasing influence channels wasn’t the only movement of the new consumer: feeling about the purchase itself has also changed.

Thanks to factors such as financial instability, economic insecurity and caution with regard to the family budget, the digital consumer now has further involvement in brands and their shopping experiences.

According to data, it was from McKinsey & Company consulting firm that the digital consumer began to focus on essential products with some added value.

With regard to the experiences in e-commerce, the traditional gives way to the omnichannel in which stores are offered physical and digital belong together. An example of this is an online purchase that can be picked up in-store.

The new consumer is also becoming more loyal as they prefer to continue buying from brands they already knew or who were customers before the pandemic.

In Brazil, still according to data from McKinsey & Company the pessimism of the population with regard to the country’s economic recovery made consumption even more cautious, since the only consumption sectors with increased purchase intentions were groceries, household goods and personal care.

On the other hand, according to the conversion survey e-commerce grew by 33% during the pandemic.

92% of Brazilian consumers still believe that it will take more than 2 months for their routines and financial life to return to normal. Of these, 32% believe that this period can last up to 6 months.

How do changes in personal habits affect consumption?

Quarantine, practically compulsory For a large part of the population who do not work with essential services, this also led to great changes in habits for people’s practical life.

Among these, the introduction of remote work was one of the most important.

To take just one example of this growth, the home office brought more users to the Zoom 20x video conferencing service in just 3 months. The daily base of the software, which was 10 million users per day, rose to 200 million.

According to the exclusive survey by Conversion to Home Office in Brazil of all Brazilians employed during the crisis 60% work in the entire home office or in a hybrid model (as part of the face-to-face and remote Part).

54% of consumers have a greater intention to prepare their own meals. Between 30% and 40% are more likely to be entertained in the home, and 22% intend to improve the infrastructure in their homes. (McKinsey & Company)

For example, sales of streaming services in the US rose to an estimated 7 years in just 5 months. In the same trend, e-commerce grew in the country in just 8 weeks, which was estimated at 10 years.

In terms of communication, 43% of consumers said they watched more TV, 40% said they visited their social networks more often and 28% said they listened to more radio.

Reading news on the Internet also grew by 39%.

Telemedicine also caught the eye: 44% of consumers who had to cancel or postpone any medical consultation or examination they attended an online consultation during the pandemic.

Permanent compliance with digital services goes through a deeper process than just the mandatory introduction of new habits.

In McKinsey & Company Advisory Report on the Impact of the Crisis, four archetypes on economic behavior in different countries were identified and associated with the population’s engagement at the time digital air.

These are:

  1. Temporary setback : In strong economies such as China, the effects of COVID-19 are only a small obstacle on a long journey. The country’s rapid economic recovery has made the crisis a small one Setback made, and since there were already a large number of consumers who are already familiar with digital services, the adhesion behavior should continue. In general, the pandemic has not seen a huge surge in electronic commerce.
  2. Big shock : In industrialized countries like the United States and England, the economic impact has been great and its consequences will last for a long time. In this case, the acceleration of e-commerce usually continues for some time due to very satisfactory delivery services.
  3. Big shock but low compliance with digital commerce : Countries in continental Europe suffered mainly big economic shock Cities like Paris and Rome, whose tourism-dependent activities are a large part of their business. On the other hand, the acceleration of electronic commerce should not expand as much as, for example, in the USA, since the shopping experience of the population was not satisfactory.
  4. Digital acceleration : in developing countries like India and Brazil the effects of the crisis are still unclear and will depend heavily on how government management is carried out in the coming months. On the other hand, the pandemic is very likely to accelerate the digital migration trend, despite assuming a low consumer base.

Will the new habits persist? What will happen to the crisis? Meet the Next Normal

With all the questions raised by the e-commerce industry, the main thing is: what will of all the behavioral changes that occurred during the crisis last when the pandemic ends ?

This may be the key question when we think about what the new – or next normal will actually be.

The development of the digital market is more or less developed in certain countries. This is also a decisive factor in shaping this near future.

According to McKinsey & Company, for example, in Italy, one of the countries that has suffered the greatest economic shock but very little digital liability, 60% of consumers made online purchases during the pandemic, but less than 10% of them found the experience satisfactory.

Of all the points that culminated in this dissatisfaction, poor shipping services and waiting times for a purchase and low prices have been The digital branding of brands is most critical.

In China, on the other hand, the e-commerce market was so advanced before the new coronavirus that there was little or no difference in the number of crises in the growth of

Back to the telemedicine in the USA mentioned in the previous topic: Only a proportion, between 40% and 60% of patients who have had an online consultation or who have purchased a medicine remotely, intend to use this type of service again.

The discussion of why some experiences have not captivated consumers should focus on the provision of these services, rather than just the habits of those who buy.

Who is the new consumer?

The statistics of dissatisfaction with certain of the above-mentioned services exposes us to a controversial reality: while some sectors of the Internet have been advancing rapidly for several years, it has been shown that others are not even minimally prepared for them.

The internet is definitely not volatile, you have to realize that the new consumer already exists and the unpreparedness of certain categories of consumption to communicate with them puts them a long way off.

When speaking to a new audience, data is more than important, but it should always be remembered that consumers are human and their behavior can vary. Contacting digital retailers before the pandemic and those who didn’t.

Fundamental generational differences flow into this equation when effective communication is established az with the new consumer.

Generation Z, for example, which was much more exposed to the Internet during their entire life, suffers from the aggravation of being hardest hit by the crisis, as they are also disproportionately exposed to self-employment. and therefore to financial instability – than previous generations.

Other important points of discussion: behaviors that are determined by personal values tend to vary; When fully opened, will there be a movement back to the human connection?

Anti-ecological behavior of the new normal

The use of plastic, for example, increased due to the focus on individual and hygienic devices and contradicted the sustainable trend that was in vogue until the beginning of the pandemic crisis. What will last in this case?

In general, the new consumer:

  • has an intensive presence on the Internet, so companies must also be there;
  • For fear of the new infection, choose stores that offer options Transit Services that integrate physical and digital, removed and deployed on the sidewalk. Therefore, companies have to offer them while conveying credibility and security.
  • Rather trust big brands for information about smaller brands. Therefore, companies must do their best to instill confidence in their communications.
  • Use less, but use more when you buy. That way, businesses should talk to that highest ticket consumer and meet their needs.
  • It is more focused on their values, so businesses should communicate with them.
  • Change settings quickly as the circumstances change So brands need to be ready to get feedback quickly, gather data, and stay ahead of trends as much as possible.

What is the new normal for companies?

We finally come to the question of a million dollars.

Unfortunately, there isn’t just one answer, nor is there a recipe for cakes so that your business can be 100% successful in adapting to new buying habits.

In Brazil Even if we can say that the e-commerce industry is already of some size, there are still some industries that have a long way to go.

As in other times, to know exactly the customer you want to sell to. This is the starting point for establishing effective communication.

Some points for companies to consider are:

  • How does your consumer consume information and content? With what means?
  • What does your consumer buy?
  • What is most important to him?
  • Where did your consumer buy before the crisis? Has this behavior changed?
  • How do you consumers prefer to shop?
  • What is the biggest attraction of a virtual business for your consumer?

From these answers and the solid result of frequent market research it can be concluded: It will be easier to adapt marketing strategies to the new scenario.

This time, however, with a new perspective: The Internet is no longer the future, but the present.

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