Covid-19: Now what? Three trends shaping consumer behaviour

In the post COVID-19 world, the need for change is obvious. The way we live, work and play has fundamentally changed.

Buzz words like “pivoting” and “innovate” abound. Just about every person and their dog has an opinion on the best way forward. It can be confusing to make sense of it all.

While there’s no doubt the current climate presents us with challenges and opportunities, how do we know which challenges and opportunities to focus on? How do clubs, pubs and hospitality venues strike the balance between changing and staying the same?

We’ve identified the three most influential trends on consumer behaviour post COVID-19.

Association

Associations have a huge influence on consumer behaviour. We pair things together to help us make sense of the world. These mental ‘short cuts’ tell us how to feel: excited when we see the flashing lights of a gaming machine, more alert when we smell coffee,

These mental ‘short cuts’ are increasingly relied on in times of rapid change. We rely on what we know as a way to guide us.

It’s one reason why there’s projected to be a long-term slump in the demand for easy packaged foods such as soups and dried pasta. People associate these items with more stressful times.

It also helps explain why consumers are stocking up on treats such as chocolate. Treats make us feel good, relieve short-term stress, and are generally associated with reward behaviour.

Venues need to strike the balance between embracing change (both inevitable and opportunistic) and maintaining the status quo.

This is particularly important given our client base, many of whom are older Australians and/or grappling with significant job insecurity.

Key takeaway: While the shut-down provides opportunities for change, providing a familiar environment for returning patrons is also important. Reminisce about the past in posts on Social Media. Pair changes with a familiar or positive stimuli to encourage positive associations. Examples include pairing re-branded websites with familiar images, or new digital signage with an appetising image of dessert.

Mind

In response to stress, the body activates the fight-or-flight response. This mobilises the body to respond to a threat (whether real or perceived) to maintain safety.

This response is automatic and adaptive when there’s immediate danger. You need it if someone unexpectedly pulls in front of you when driving, for example.

Long-term stress however, such as the stress experienced from COVID-19, has the potential to keep people in this response far longer than necessary.

Long term stress has far reaching influences on consumer behaviour. Consumers may become more conservative in behaviour. They may be more unlikely to accept major changes, and rely on decisions they’ve made before over making new ones.

Incidentally, this difficulty in making decisions is why many organisations aren’t striking the balance between change and sameness.

Consumers will increasingly look to leaders for guidance – including your senior management. Breakdowns in communications, including systems, may result in frustration, aggression and disengagement with your venue. Patrons may be more likely to engage in problem gambling or other negative behaviours.

Key takeaway: Understand the impact stress may have on your patrons. Brief your front-line employees to the signs of stress and consider refresher courses in conflict resolution. Check in with your patrons, provide support resources, and use your marketing to communicate how your venue is keeping patrons safe through cleaning and hygiene practices.

Values

Our world post COVID-19 may be less geographically accessible, but in many ways it feels smaller. Changes to work and home life and increasing digital connections means many consumers are more socially and environmentally aware.

A survey by Accenture, for example, suggests consumers are becoming more health conscious and sustainable, with 64% of respondents say they are focusing more in limiting food waste, 50% are shopping more health-consciously and 45% are making more sustainable choices when shopping.

Similarly, research by Mintel reveals 73% of consumers are influenced by a companies’ charitable giving when deciding where to make purchases.

Whether these changes are temporary or longer lasting remains to be seen. However, you should embrace opportunities to re-align organisational values with the values of your customers.

Key takeaway: Communicating your venues’ corporate social responsibility will become even more important. Information such as sustainable food choices, how your organisation protects vulnerable employees and members, and community support initiatives are key. Consider going the extra mile by adopting a new organisational value, and embedding it into your strategic initiatives, HR practices and organisational objectives. Prioritise digital means of communication – while the world is ‘small’, now is the time to really connect with your patrons.