The Post-Covid Consumer
What behaviors are sticky, and why it matters
As the current pandemic is beginning to come under control with each passing the day, the questions of life as consumers in the “new normal” come into play. If history is any guide, there will be a relatively natural pattern of lifting government restrictions followed by renewed consumer confidence. The lifting of government restrictions will obviously allow people to get out more and return to preferred activities but the true test will be what activities consumers will choose based on their confidence. Will they dine at the favorite restaurant, travel via airplane again or book that long-desired cruise? These choices will tend to be more personal, individual choices with each person/family deciding what is a risky encounter versus not and which activities are worth the risk.
An equally important question is what activities consumers will continue once restrictions and concerns subside. One current approach is to look at what habits have changed and understanding the sticking power of these new habits. Due to the length of the pandemic, we believe that certain habits have shifted while new ones formed and are now common. Those Brands and companies that can best adjust with these new & shifted consumer habits with have a higher probability of winning as a company/Brand in the marketplace. For instance, the digital shift in both digital commerce and digital entertainment was already growing but quickly accelerated in ’20, thus capturing a few years of projected growth achieved in less than a year.
What consumer behavior do you think will stick longest?
Sticky or Not?
The key question with these new & adapted habits is to predict the stickiness of the habit change. For instance, most CPGs (consumer packaged goods companies) have focused on the “time famished” consumer in the last decade, yet this same consumer has likely (hopefully) had more time with friends & family which has certainly changed their habits—whether it’s more frequent dinners with their family & pods leading to more quality time with loved ones. These habits are generally positive, thus will tend to be more of a priority for these consumers now than were in the past. This example is a habit that is expected to be rather sticky in that it will likely continue for the foreseeable future and slowly erode as more activities come (back) into our daily lives.
Another area of stickiness is outdoor activities. As consumers “get off the couch and get outside”, the belief is that many enjoy these new-found/renewed activities and aim to keep them as part of their lives in the future. Lastly, as we think about seasons & celebrations, consumers will aim to celebrate major holidays and milestones with more fanfare & vigor as a reflection of being grateful for our lives and not take it or family for granted.
Of course, time will tell how much society returns to habits of our past but the focus should be on the new habits that have formed and the simple fact that while we hope to move beyond this pandemic, consumers have been significantly shaped by it.
Author: John Maitrejean,
Marketing Director, Variety Brands at The Hershey Company
Hershey, PA