Understanding and shaping consumer behavior in the next normal

 


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The epidemic has turned everyone's life upside down. The lockdown and the social distancing imposed has disrupted every routine in day-to-day life. The duration of the lockdown has forced people to give up some of their most ingrained habits. 


In normal times, customers tend to stick to their habits stubbornly, making for the slow adoption of innovations that require a behavioural change. the present crisis has forced consumers to change their behaviour rapidly. this presents a rare opportunity. Even though the impetus for change may be transient, companies should take this opportunity to meet customers today and extend it to the post-crisis period.


Five actions can help companies bring about behavioural change in consumer for the long term.

  • Reinforce positive new beliefs.
  • Shape emerging habits with new offerings.
  • Sustain new habits, using contextual cues.
  • Align messages to consumer mindsets.
  • Analyse consumer beliefs and behaviours at a micro-level.


Reinforce positive new beliefs

Beliefs that a consumer holds is a key influencer of consumer behaviour. Beliefs are so deep-rooted that they prevent consumers from logically evaluating alternatives. this perpetuates existing habits and routines.


The crisis has forced many consumers to change their behaviours and their new experiences have forced them to change their opinion about a wide range of daily activities. When consumers are delighted and surprised by new experiences, long-held beliefs can change and consumers may be more willing to repeat the experience when the crisis passes. this is a unique opportunity for the company to reinforce the new experiences and shape behavioural changes o their products even when the crisis passes.


An effective way to reinforce the new belief is to highlight the peak moment, which could include the first-time experience with the product or service. 


Shape emerging habits with new products

Companies can nudge consumers to new products through innovation. Health-oriented beverages which are popular during epidemics can become a star product in a company's portfolio to serve the health-conscious consumers beyond the epidemic also. 


Sustain new habits using contextual cues

Habits form when the consumer starts associating certain behaviour with a particular context and eventually that becomes automatic. Companies should identify the context that drives consumer behaviours. product packaging, marketing can help consumer sustain the habit. Some companies may need to identify/ create new contextual cues. 


Align messages to consumer mindsets

The epidemic has made people anxious, angry and afraid and this makes marketing to the consumers a tricky affair. The heightened emotions could have a lasting impact on consumer behaviour and shape their preferences. Companies should ensure that their brand communications are attuned to consumer sentiment The quality of communication and its ability to strike the right note would be a competitive advantage.


Also, consumers will see through messages and actions that are performative and that commercialise social issues. the communication should align with the brand's purpose. 


Analyse consumer beliefs and behaviours at a micro-level

Consumer behaviours and beliefs would continue to evolve over the coming period. Consumers must conduct consumer insights work with a focus on identifying the changing consumer behaviour to get an understanding of consumer behaviour. Digital data gathering and monitoring techniques will help companies understand the emerging behaviours. This can be validated through large scale surveys and in-market testing. This would help companies refine their product offering and market messages accordingly.


In the past companies may have conducted the surveys a few times in a year, it is important now to keep a close eye on the evolution of consumer behaviour on a weekly/ monthly basis.


The epidemic has changed the habits of consumers rapidly and some of them are likely to remain post epidemic also. Companies that develop a fine understanding of the changed beliefs and adjust their offerings will be best positioned to thrive post-epidemic.




Understanding and shaping consumer behaviour in the next normal

By Tamara Charm, Ravi Dhar, Stacey Haas, Jennie Liu, Nathan Novemsky, and Warren Teichner

McK 2020/07

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