How important is brand loyalty given the Covid 19 pandemic?Fri Jan 15 2021. 3 min read
After almost a year of living with the ongoing coronavirus pandemic, we know that it has impacted at least some aspect of life for everyone. One area that has seen a large impact is how customers are shopping and spending money. Ongoing shortages at the outset meant that consumers had to be flexible. Brand loyalty has also taken a huge hit.
One of the reasons brand loyalty is affected is because consumer shopping habits had to change – pretty much literally overnight. While last winter people may have been able to go from store to store getting everything on their list, business shutdowns meant that their ability to shop was impacted. If you did a grocery pickup at your local supermarket and they were out of your favorite brand of flour, it was more likely you would try a different brand because that’s what was available. And it’s not just baking goods. Toilet paper, cleaning products, clothes, home décor items – everything changed. In an uncertain world, consumers looked for the best availability, value for their money, and convenience of purchase.
“A McKinsey report on consumer sentiment indicated consumers around the world have responded to the pandemic by engaging in different shopping behaviors. Convenience is now one of the main factors driving customer loyalty. “Certain companies have really been emphatic about making sure the process becomes convenient and COVID-friendly. Those are the companies that I believe are appreciated,” said Hyken.
Additionally, customers are holding on to their money in the face of economic uncertainty, and looking for greater value in those items they do purchase.”
It may take some time to see how everything settles back into some degree of normalcy, but it’s probably safe to assume that as consumers continue looking for the best value for their money, brands they may have been loyal to in the past will give way to trying different options for the sake of convenience, availability, and price.