Brand management: Addressing changes in customer behavior resulting from economic uncertainty
Addressing changes in customer behavior resulting from economic uncertainty
Marketers are constantly assessing the state of their target market and consumer behaviors in order to most effectively position their brands for success. The current economic climate has left some marketers concerned about changes to consumer behavior and spending, and many report their organizations have already enacted changes to strategy to ensure long term success.
How are marketers addressing changes in consumer behavior?
One minute insights:
Marketers report changes to both consumer spending and behavior, and most say spending has increased over the past 12 months
The most common changes to consumer behavior cited by respondents are increased demand for social awareness, increase sociocultural sensitivity and increased price sensitivity
Marketing teams are using website analytics and analysis of sales team data to track changes to consumer behavior and develop effective strategies
Investments in new shopping experiences (e.g., online shopping) is the most common way marketers are adjusting brand messaging to meet changes in consumer behavior
Every respondent reported feeling confident in their organization’s ability to meet these changes in consumer behavior and drive marketing success
Despite changes to consumer behaviors, nearly all marketers are reporting spending in their target markets is up
98% of marketers report their organization has experienced changes to consumer spending over the past 12 months.
Over the past 12 months, has your organization experienced any changes to consumer spending in your target market?
No, and we don’t expect to 0%
Additionally, 87% say their organization has experienced changes to other consumer behaviors (e.g., shopping habits) over the past 12 months.
Over the past 12 months, has your organization experienced any changes to other consumer behaviors (e.g., shopping habits, platform preference, etc.) in your target market?
Note: May not add up to 100% due to rounding
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Question: In your opinion, what should marketers be doing right now to solidify their brand, and create a marketing strategy that can withstand a potential recession?
Marketers must design a stable strategy and automated advertising to achieve more customers regardless of the state of the economy or social status.
Marketers are tracking consumer behavior and spending, and most are confident recent consumer behavior changes will positively impact marketing’s success
Analysis of internal sales data (64%) and data sharing with vendor/distributor partners (64%) are the most commonly selected methods marketers say their organizations use to track changes in consumer spending.
How does your organization track changes in consumer spending in your target market? Select all that apply.
Social listening 31% | We are not tracking changes to consumer spending 1% | Not applicable 0%
n = 91
Nearly half (48%) of marketers report consumer spending in their target market has increased somewhat over the past 12 months. An additional 32% say consumer spending has increased greatly. Just 11% of marketers report a decrease in consumer spending.
In the past 12 months, how has consumer spending in your target market changed overall?
Not applicable 0%
n = 91
Note: May not add up to 100% due to rounding
As for consumer behavior, the most commonly selected tracking methods are via website and app analytics (64%), market research surveys (63%) and voice of customer data (60%).
How does your organization track trends in consumer behavior in your target market? Select all that apply
Feedback loop from sales 33% | Benchmarking reports 27% | Consultant research 22% | We don’t track trends in consumer behavior 4% | Not applicable 1%
n = 91
When asked what changes in consumer behaviors marketers have observed in their target market, over half report an increased demand for social awareness (56%), increased price sensitivity (54%) and increased sociocultural sensitivity (51%).
What changes in consumer behavior have you observed in your target market? Select all that apply.
Increased demand for climate awareness 30% | Shift to online shopping 29% | Increased use of social media shopping 27% | Increased demand for local and small business affiliations/products 22% | Increased demand for voice of customer data (e.g., online reviews, UGC, etc.) 19% | Not applicable 2%
n = 91
Nearly two-thirds (62%) of marketers say these changes to consumer behavior will have a very positive impact on their organization’s marketing success.
What kind of impact do you anticipate these changes will have on your organization’s marketing success?
Very negative impact 0%
n = 91
Note: May not add up to 100% due to rounding
Question: In your opinion, what should marketers be doing right now to solidify their brand, and create a marketing strategy that can withstand a potential recession?
When going through a recession, emphasizing the value of your product is important to remind customers why your product is the one to choose amongst all the others.
Marketing teams are pivoting strategy to meet changes in consumer behaviors, and at least a quarter of marketers say a potential recession will be the greatest challenge to overcome over the next 12 months
To align with observed customer behavior changes, two-thirds (66%) of marketers report their organization has adjusted brand positioning to include investments in new shopping experiences (e.g., online shopping). Other top selected alignment methods are an emphasis on affordability/value (49%) and highlighting ease of use (49%).
How has your organization adjusted brand positioning to align with observed changes in consumer behavior in your target market? Select all that apply.
Emphasized customer-centric marketing practices 37% | Highlighted our dedication to customer satisfaction 27% | We haven’t repositioned our brand 1% | Not applicable 0%
n = 91
62% of marketers say their organization’s brand positioning is very aligned with observed changes in consumer behavior. Just 1% of marketers say their organization’s brand is unaligned.
How aligned do you feel your organization’s brand positioning/messaging is with observed changes in consumer behavior in your target market?
Somewhat unaligned 0%
n = 91
Note: May not add up to 100% due to rounding
The top three priorities for brand management over the next 12 months cited by respondents are adjusting prices and value proposition, investing in mobile first strategy and improving e-commerce options.
What are your marketing team’s top three priorities over the next 12 months when it comes to brand management? Rank three.
#4 Elevating our social media presence | #5 Engaging with voice of customer channels (e.g., third-party apps, review channels, surveys, etc.) | #6 Investing in content marketing to educate and engage customers | #7 Implementing/Expanding targeted advertising (i.e., email, social, SMS, etc.) | #8 Optimizing our SEO and other search presence | #9 Other (fill in)
n = 91
Adapting to changes in consumer preferences (31%) is the most commonly selected challenge for brand management over the next 12 months reported by marketers.
What do you anticipate your greatest challenge for brand management will be over the next 12 months?
Maintaining relationships with vendors/distributors 2% | Connecting with a shifting demographic of buyers 1% | Ensuring a consistent customer journey 0% | Balancing short and long-term goals 0%
Note: May not add up to 100% due to rounding
n = 91
93% of marketers feel confident in their organization’s ability to effectively manage their brand while driving marketing success and growth over the next 12 months. Not a single respondent reported feeling unconfident.
How confident are you in your organization’s ability to effectively manage your brand, while driving marketing success and growth, over the next 12 months?
Somewhat unconfident 0% | Very unconfident 0%
Note: May not add up to 100% due to rounding
n = 91
Question: In your opinion, what should marketers be doing right now to solidify their brand, and create a marketing strategy that can withstand a potential recession?
Marketing managers must correctly position the brand, products and services in the advertising they do, in order to capture the attention of many customers regardless of the circumstance.
Invest in boosting brand equity & credibility, build great relationships with your consumers & be prepared to take the hard decisions [with] products if need be.
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Respondent Breakdown
