With 68% already feeling price increases, how do you avoid a price war and find growth in unpredictable times?
Last week we asked you about your increasing fears of uncertainty as we see unexpected economic consequences emerging from the pandemic. We questioned if you were sure every element of your brand strategy was right? And we provoked you to consider that now is the time to lean into your audience even more. So what can you find out from your consumers that will be relevant in these changeable times?
We know price is the topic of conversation right now, and unless we look beyond the driver of price, the near future will result in a price war with your competitors.
The question is: how can you grow and retain consumer loyalty in these unpredictable times that consumers are already feeling?
“With the current state of affairs in America (coronavirus), I am not sure how it will affect my life in the future (work, school for my children, etc).”(US consumer)
The three key drivers at play for any product or service are convenience, value, and connection.
Convenience in the pandemic drove more and more people to online shopping. People’s lives and behaviors also changed during lockdowns so product usage may or may not have changed with it. And what does convenience mean for people during uncertain and changing times? What does convenience look like in your category with transitions at a global and local scale? And with 63% of US consumers thinking it will get better in the next 6 months, does this mean indicate a shift in behavior?
Value needs to be dialled up significantly during a turbulent environment for pricing, both for yourselves and your customers (our research shows 68% in the UK are already feeling price increases). What is valued in your category, about your product? What benefits do you need to communicate better? What are you providing/or can you provide that makes your product/brand stand out from the competitors beyond price? What do your audience care about that will drive them to purchase, and is this/will this catch their attention on pack in a real-life situation? We can help you identify the ‘value’ unmet needs, and optimize your value proposition and communication.
Connection is linked to emotional drivers. Loyalty is most easily lost during change and challenging times (within food and homecare, 57% (in UK) claim they will cut back on buying branded goods). So it’s vital you stay close to your audience to tap into their emotional drivers (the constant and the changing), to enable you to increase their emotional drive to purchase.
We can tap into these three key elements across your product lifecycle, from category to innovation, through to communication within the market. Complete consumer clarity will help you make better decisions for right now and into the uncertain future.