1.1 Understanding Your Turnover Gap

A massive change in people’s behaviour!

A massive change in people’s behaviour

During the lockdown, there has been a massive change in the mindset of people, which is expected to remain even after the pandemic. People started to value every moment of their time, who they spend it with and doing what. In particular, there has been a shift in the way people perceive every single moment spent with people they love and in taking care of themselves.

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A massive change in people’s behaviour

During the lockdown, there has been a massive change in the mindset of people, which is expected to remain even after the pandemic. People started to value every moment of their time, who they spend it with and doing what. In particular, there has been a shift in the way people perceive every single moment spent with people they love and in taking care of themselves.

Consumers now seek mindful experiences that can help them achieve this and fulfil their new needs. With millions of countries in lockdown, people found themselves immersed in a whole new range of digital platforms, offers and tools. It comes with no surprise that around 60% of the world population is now made of digital users. Zoom and Google Meet became the new favourite places to connect with family and friends, social media the best place to get inspired by others and e-commerce skyrocketed to levels never seen before.

Businesses across the world were forced to adapt in almost no time to these sudden changes in consumer behaviour, with many succeeding but also many failures.

Take some time to reflect

After taking quick emergency decisions during the lockdown, many businesses found themselves in a completely new position almost no one has experienced before. As all activities suddenly ceased, businesses found themselves in an unprecedented situation: they were alone with themselves. As scary as it sounds, this was the first occasion they had the time to reflect on their activities and understand more in-depth their customers' needs.

Even after the lockdown, businesses are investing more time in making the right decisions, to ensure their products, services and activities are addressing the new customers' needs. Before starting to plan your recovery then, take some time to reflect on the position you are in now.

In particular, reflect on three things:

What has changed in 2020?

Think about all the things that have changed and that have affected your business in 2020. Think about the factors that have impacted directly your business, such as the lockdown restrictions, government regulations and change in consumers behaviour.

What has been confirmed?

After months of lockdown and a massive switch in people's mindset, what are the behaviours you have seen consolidating in the past year? Which consumers behaviours you see

What is the new direction?

Based on the things you experienced, what are the consumer trends you see emerging in your customers? Which trends you are not directly observing but are on the rise for similar businesses? Think about the future direction your business can take leveraging these factors.

The Social Impact

The COVID-19 outbreak has slowed the pace and changed daily life for many consumers, and this is having a profound impact on the way we view personal hygiene, health and how we engage with our communities, friends and families.

People are embracing technology more than ever to support all aspects and consequences of isolation. There is also positive evidence to suggest that this crisis will build communities, rather than separate them.

Source: Accenture

According to recent research from Accenture about the impact of the pandemic on consumer habits, even in stabilizing markets, despite perceived health risk is shrinking, economic concerns persist.

This reflects a strong change in consumers habits. According to the research, 33% of consumers having less disposable income in comparison to pre-pandemic levels, 32% had a similar income whilst 26% experiencing higher income levels.

With 9% of people having less free time now than before the outbreak, consumers tend now to make more efficient and mindful choices whilst shopping and have a strong propensity to do it digitally. The rise in the consumption of local products is another big trend which is rising quickly.

Even if less relevant compared to the beginning of the outbreak and despite the phased reopening of some markets, health concerns remain relevant, with consumers remaining reluctant about visiting public places. Hygiene concepts and practices  with visible evidence most important.

As a business, how can you tap into these trends? Whilst developing your recovery plan, try to focus on the following:

1. Conscious products for the conscious consumer

As consumers are making more conscious choices, focus on those products, services or experiences that are really helpful and relevant for your costumers. With consumers having lower-income and less free time, try to increase the perceived value and quality of your offering whilst maintaining the same level of price.

2. Health and Safety

Whilst selling your services, focus on the safety regulations you are putting into place, how safe your product is for your consumers and the care you put into addressing

3. Local demand

Whether or not local customers were already your focus before the pandemic, take the opportunity to leverage more into local demand, providing products that are authentic, unique and address the needs of your local community.

4. Digital and e-commerce

If you didn't embrace it already, evaluate the potential of digital channels and e-commerce to promote and sell your business. Adopting a strategy around digital channels, such as your own website, social media or third-party e-commerce platforms could be not only a lifesaver for your business but also an investment for the future.

5. Efficient consumer experience

Whether you operate online or offline, try to provide the smoothest and efficient experience possible for your customers. With consumers having less free time and making more mindful choices, try to focus on those products or services that are easy to deliver and offer clear benefits to your customers.

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A massive change in people’s behaviour

During the lockdown, there has been a massive change in the mindset of people, which is expected to remain even after the pandemic. People started to value every moment of their time, who they spend it with and doing what. In particular, there has been a shift in the way people perceive every single moment spent with people they love and in taking care of themselves.

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