When external factors like a recession or a pandemic come to the fore, will your customers stay loyal, or will they begin to check out other brands?
A few different researchers have asked this question recently. All have found that volatility among consumers was at an all-time high. PwC, for instance, found that COVID-19 plus a turbulent economy have influenced buying decisions. PwC also found that consumers can easily find out where companies stand on environmental, social and governance (ESG) issues, and expect businesses to share their beliefs.
PwC polled 4,000 customers and found that recent events have shaken up consumer preferences. About 30% of consumers said they’re more likely to try a new brand -- and younger consumers are even more likely. Those preferences rise depending on the types of businesses you’re talking about. Some 44% say they’re more likely to try a new restaurant, 38% are open to new consumer goods, and 36% would try a new supermarket.
Of those polled, 26% said they stopped buying from a specific business in the past year. That percentage varied depending on the type of business.
Only 13% of respondents said they don’t consider the price when patronizing a business. But 53% said getting a good value was the top reason, and 30% said they like the benefits they get with a company’s loyalty program.
TapResearch and Aki Technologies completed a similar line of research and found 54% of those polled want savings on products, but online purchase availability (35.2%), availability of items at a preferred location, personalized notifications when items you buy have been restocked (26.6%) also play a role.
In short, consumers are more open to new brands than they have been in a while. Whether that encourages you or makes you wary depends on where you currently stand.