Coronavirus Shifts Consumer Behavior- Insights to Businesses

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Over the past several weeks, normal life across the globe has been on hold in a way that has never been seen before and no one could have predicted this COVID Play. As the pandemic continues, day-to-day life has changed everyone down to simplest and least considered parts of daily living. 

In this changing world, it should come as no surprise that consumers have changed to adapt to it — in big and small ways. Now the consumers will shift the spending pattern to the places where they feel comfortable transacting; which is now, then online, and social physical distant with re-entering the physical world to transact or engage in Virtual commerce.

I am trying my best to highlight the ways consumers have become slightly different people over the past several weeks.

First digital to only digital – First digital consumers have transformed into only-digital consumers who are entirely dependent on online channels to shop, work, work-out, bank, worship, eat, entertain, stay connected socially and interact into healthcare services.

 Enthusiastic home cooks – While all restaurant interaction has transformed to online, interactions has sharply dropped off as consumers are using all those groceries they stored up; leaning towards learning to cook meals at home. 

Back to board games – Consumers have discovered a deep and enduring love for puzzles and board games. Now they are buying more board games and puzzles than sporting goods. 

Attraction for saving– Across the globe, consumers at all income ranges are becoming better money savers, as they attempt to keep more cash on hand as the COVID crisis wears on.

Growing uncertainty – As the crisis goes for longer durations, the economic impacts on consumers will be drastically high. They will be left with very less cash available to pay the bills before dipping into savings. In addition, they are extremely concerned about losing their jobs.

Focussed shopping – Consumers are still shopping! Though now with much different focus based on necessity alone. Few times more consumers are buying cleaning supplies than clothes and few times more buying medical supplies than home furnishings.

New digital attempts – Due to this pandemic shift, consumers are willing to try new things online, especially in healthcare and grocery. Most remarkably since they’d been the greatest blockers in the digitization of Business. 

More health-conscious – Most consumers are seriously thinking about COVID-health threats and extremely concerned about the coronavirus spreading to family and friends.

Finally, this COVID crisis is being defined by four distinct consumer behavior. 

• Type 1 -Consumers representing this (“Cutting”) segment are spending less across all expense categories as the pandemic impact.
• Type 2: Consumers representing this (“Clam”) category are continuing to spend as normal. 
• Type 3: Consumers represent this (“Save and store“) segment, indicating that they feel doubtful about the future.
• Type 4: Consumers in this (“Hide and spend“) segment are spending more.

The ultimate key to being successful is to understand where your typical consumers fall within the above categories, analyze and focus on the customer’s well-being and understand the exact behavior shift to plan your business strategies. 

“Fine-tuning to a new normality, where adaptability & flexibility are critical standards, will be essential as consumer behavior changes.”

About Author:

Manickavel Muthusamy

Entrepreneur, Co-Founder & CEO

Expert Solution Technologies Canada Inc.

Toronto, Canada

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Bio -Manickavel Muthusamy is the CEO & Co-Founder of Expert Solution Technologies Canada Inc. An Entrepreneur with in-depth understanding of Sales & Marketing of IT Services, Outsourcing and Global Delivery, worked with leading MNCs in multiple geographies including India, Canada and USA in his career spanning over 22 years. Currently owning a software firm in Canada helping Small & Medium Size business with a wide range of accounting technology solutions & services