The COVID-19 pandemic has been impacting the world for more than 16 months now, and in that time, people have gone through several phases – binge-watching TV shows, trying new creative recipes, picking up new hobbies, online shopping… anything to entertain themselves while they are indoors during quarantine. Though much of the world is slowly recovering and beginning to look similar to a pre-pandemic world, many businesses are left feeling concerned about how a post COVID-19 world will affect their bottom line.
The good news for many businesses is that the next phase individuals will be entering has been deemed as “revenge spending.” The idea is consumers are transitioning from feeling restricted with what they can and cannot do, to now feeling a newfound sense of freedom. It’s time for your brand’s marketing to lean into the new phase to reap the amazing rewards that await your business.
The idea is consumers are transitioning from feeling restricted with what they can and cannot do, to now feeling a newfound sense of freedom.
Consumer Research studies have highlighted the great opportunity businesses have, due to revenge spending on the horizon. Even better, the upcoming revenge spending phenomenon won’t require massive adjustments for most businesses. Your branding, marketing architecture, and the virtual experience you provided through the pandemic will be largely what will enable your success in the future, as consumer shopping habits will remain relatively the same – just extremely amplified.
Consumers with disposable income are thrilled to be able to have a sense of their normal lives back, as seen in The Harris Poll recent surveys. Though not all consumers will take advantage of revenge spending, as some will still remain frugal, but for those that do intend to increase their spending post-COVID 19, note the top purchases they plan to make in their revenge spending are shoes, smartphones, going-out clothes, concert tickets, and sporting events. Dissecting those purchases relative to pandemic spending, they make sense: the shopping trends we’ll see on the horizon are all around the items or experiences consumers weren’t able to enjoy for over a year.
Though not all consumers will take advantage of revenge spending, as some will still remain frugal, but for those that do intend to increase their spending post-COVID 19, note the top purchases they plan to make in their revenge spending are shoes, smartphones, going-out clothes, concert tickets, and sporting events.
So, how can your brand reap the rewards of the upcoming revenge spending trend? Here are three key things that will be the catalyst your business’ success:
#1: Your brand
What worked for you during the pandemic, branding-wise, will likely be exactly what helps you be successful post-pandemic. Though purchased products may shift, consumers have really appreciated the convenience that came from the world becoming even more digital. Lean into the same convenience you offered during the pandemic, but ensure you take the time to do a brand audit so you can increase your marketing efficiencies. After all, more consumers will be looking for exactly what you have to offer. Putting in place actionable and measurable adjustments that you can make to your brand, will set you on a great path.
One of those steps should absolutely be how you articulate your story. Consumers will take much of their revenge spending locally as consumers are, more than ever, looking to support businesses with sustainable values, inclusiveness, and of course, great quality and craftsmanship. That is a shift in spending habits we saw through the pandemic, and the continuation is great news for business owners that are equipped and ready. As published on Warc.com, "according to research firm Kantar, COVID-19 has driven a surge in “localism” around the world, with two-thirds (65%) of consumers now preferring to buy goods and services from their own country", a sentiment being driven by supporting local communities and local businesses to boost the local economy, purpose driven which is buying from companies which have values that align with those of their own, and to some extent by concerns about the safety of imported goods. Ensure your brand’s story highlights who you are and what you stand for in preparation for this shift.
Lean into the same convenience you offered during the pandemic, but ensure you take the time to do a brand audit so you can increase your marketing efficiencies.
#2: Your products or services
Among your three adjustments should be which products or services you advertise (or how you describe them). Be sure your website and marketing specifically highlight the types of products and services that align with what consumers are likely to be interested in especially in post-pandemic, which is all about safely getting back “out into the world.”
Additionally, with so much planned spending, finding an effective way to keep consumers coming back to your site is key. Do so by offering bundles, incentives for purchases, rewards systems, or even pay it forward options - ultimately be human in the creation or improvement of your products and services. The goal is to make it convenient and worth-while for consumers to continue coming back to your brand.
Align with what consumers are likely to be interested in especially in post-pandemic, which is all about safely getting back “out into the world.”
#3: Your touchpoints
Along the lines of keeping your brand front, center and top of mind with consumers, is making your customer experience your top priority (another actionable change you may need to make). In stores, incorporate a touchless system that gives your customers peace of mind that your brand still puts their safety first. Online, maintain engagement with your customers in an easy-to-navigate way. According to PWC, "you won’t have many chances to get it right. One in three consumers (32%) say they will walk away from a brand they love after just one bad experience" and 86% will pay more for a better customer experience." You should be reinventing your customer service to position your brand to be the one that stands out among the rest. If your customer experience is unmatched, your brand will be exactly the place where consumers will take their revenge spending.
Maintain engagement with your customers in an easy-to-navigate way. You should be reinventing your customer service to position your brand to be the one that stands out among the rest.
We are nearing a post COVID-19 world, and when we do, your business needs to be ready to take advantage of all of the revenge spending consumers are excited to take part in. Using the three essentials shared, your brand will be well on its way to record sales.
Marqetr is a performance branding, integrated marketing and customer experience consultancy, helping C-Levels, professionals, small-medium businesses and corporate clients elevate their brands through strategic advisory and planning, as well as oversight on execution, measuring and reporting. Founded in January 2015 by Mawarni Adam, an award-winning brand builder and an experienced marketer, Marqetr which is headquartered in Kuala Lumpur, Malaysia with an office in Singapore, is rapidly becoming synonymous with brand, marketing and CX transformations, and change management. Powered by a panel of senior marketers from around the region, Marqetr aims to provide top-rated brand building and marketing transformations services for businesses of all types, at scale, with ease and accessibility.