New research from the Chartered Institute of Marketing (CIM) reveals that the majority of marketers (59%) are finding it harder to predict the fast-changing consumer priorities following the pandemic and this is causing concern over the future of the brands they represent.
The survey, which explores the views of 500 UK in-house and agency marketing professionals, shows marketers are concerned about the fitness of their business models. Nine in 10 (91%) believe their brand must evolve to keep operating and over a quarter (28%) feel there is even a need to radically overhaul their business model within the next decade in order to survive.
Rising consumer priorities
The research shows that the pandemic and rising inflation have increased consumers’ expectations of brands, with clear prioritisation of convenience, ‘value’ and ‘values’.
According to marketers, convenience tops the table of the fastest-growing consumer needs (83%), closely followed by value for money and environmental impact tied at second place (78%). Companies’ performance on diversity and inclusion is in third place (74%), followed by shopping locally (73%). Interestingly, having a physical store to visit is one of the least important consumer needs (38%), highlighting a notable shift towards online shopping.
Recently, a number of high-profile brands have redrawn their marketing strategy to target this consumer focus on ‘value’ and ‘values’. John Lewis Partnership’s transition from its popular ‘Never Knowingly Undersold’ to a focus on ‘Quality and Value’ demonstrates a direct response to consumer needs given rising inflation. However, for marketers and marketing to really demonstrate the value it can add, has to go beyond campaigns, it is the broader actions that sit behind the campaigns that will make the difference.
“We are living through extremely turbulent times; from the pandemic and the ongoing climate crisis – to rising inflation and most recently the Ukraine crisis. It’s clear from today’s results that consumers now expect brands to do more than just deliver value, but also actively engage with societal and political issues. If our industry is to really bounce back, marketers must invest time in getting to know their customers and carefully consider what matters to them most.”
The ways marketers can adapt
Four-fifths (78%) of marketers believe it is their role within their business to represent the voice of the customer, however, it is clear many are struggling to understand changing consumer habits. One of the ways professionals are trying to keep pace is through using new technologies – such as customer experience management tools that garner key shopping insights – with three in five (60%) investing or intending to invest in such tools.
Balancing the evolving needs of customers, meeting business objectives and, taking actions which address the enormous societal and environmental issues that the world is currently facing incredibly challenging, but one that needs to happen.