AfterMath

The Rumblings

From subtle murmurs to sudden booming shifts, the marketing and advertising landscape changes on the reg. Check out our perspectives on what’s shaking things up.

Erosion Of Loyalty (Part 2 of 6): The Impact Of COVID-19

Rollercoaster economy

HOW COVID-19 CHANGED LOYALTY

The Price of Loyalty  

COVID-19 caused major shifts in the economy. Not only did individual households suffer, but companies did, too. Some were forced to cut staff and some struggled with shortages of goods and products due to disrupted supply chains.

New Realities For Marketers

  • Varied values make it more difficult for brands to pinpoint their audiences. 

  • COVID-19 forced our hand into digitized isolation, eroding our sense of community with quarantine restrictions, event restrictions and shutdowns. 

  • Physical and traditional spaces have been changed by the pandemic and people turned to digital communities to compensate. 

  • The shared content we consume connects us more than our geographic location. 

  • The inflation rate continues to set new records along with high unemployment rates and many households in tight financial situations. This made people seek cheaper options since their go-to brands were no longer affordable. 

HARSH REALITIES DEEP DIVE

The growing purchase hesitancy with consumers has created new challenges for marketers to connect and appeal to their audiences. Many marketers had to deploy a good value-added reason to get people to spend their hard-earned money. The reality in times of financial uncertainty is that many people will actively limit their spending.

Restricted Spending: External reasons that keep consumers from spending 

Inflation has surged since COVID started, leading to higher costs in many industries

Supply chain issues strained purchases for popular brands, forcing consumers to look for more affordable or alternative options

Many things being closed or shut down kept people from their usual spending habits

Mindful Spending: Internal reasons that keep consumers from spending

Had to sacrifice brand preferences to buy at a lower cost based on the greater value

Halted impulse purchasing from financial hardships from job loss, sickness, or other factors

Check out our last installment Erosion Of Loyalty (Part 1 of 6): What Erosion? and look out for our third installment of the Erosion of Loyalty Series on Thursday, October 20!

Have questions about keeping your marketing from eroding?
Talk to Mike Pocci, Executive Director/Connections at mpocci@teamaftermath.com.

Research & StrategyAfterMathLoyalty, Trust, Disconnect, brand loyalty, customer loyalty, covid