The year 2020 ushered in many changes, chiefly due to COVID-19. People around the world adopted new habits for working, spending free time, and shopping. As restaurants, offices, schools, and stores closed, many increasingly conducted their lives online. In these early days where some nations already started with the vaccination process, there is hope for a return to normalcy, but some habits may change permanently. Online shopping, for instance, is here to stay.

Consumer Insights and the Conscious Shopper

Main changes in eCommerce in 2020 included the sheer numbers of consumers buying products online and the way they made selections. The rise in volume was quick; in April of 2020, online retail sales in North America increased 129% year over year according to Forbes. To benefit from this rapid rise of eCommerce, consumer insights marketing strategies are becoming more popular.

In 2020, consumers also changed the way they shopped. They were not in automatic pilot mode when it came to shopping, relying on the same brands to deliver similar products. Factory closings due to the pandemic, led to supply disruptions and scarcity of popular and necessary items. Shoppers often switched from time-honored brands to new alternatives because of supply disruptions.

In addition, the pandemic led to substantial unemployment and underemployment. Online shoppers no longer took affordability for granted and did more research and comparison browsing before making purchases. Finally, consumers simply had more time on their hands, since they were away from the office and school, to read reviews and decide which items to buy.

These new shopping habits are likely to have staying power because they provided significant benefits beyond the pandemic. Once consumers took the time to research options for less expensive items or more convenient delivery, they reaped the benefit of doing due diligence.

This means that companies can no longer take loyal customers for granted. Competition online has become more fierce and customer retention has become challenging. The key to success is not necessarily finding the right product first and marketing it to consumers second, but to first find out what kind of products customers want and need.

What Are Consumer Insights?

Consumer insights are data that are derived directly from the customers. The raw material of consumer insights are user-generated content which may include reviews, social media posts, and comments on websites. This content is analyzed and is assigned a rating according to the general attitude or sentiment.

After sentiment analysis, the ratings are converted into raw eCommerce data or consumer insights that allows what was originally qualitative data to be calculated in a quantitative form. Consumer insights are the key to understanding how customers feel about their brand and what they are likely to buy. The following are examples from consumer insights topics that were valuable to businesses in 2020.

Millennials and High-End Shoppers

During the pandemic, more people were shopping online than in years past. The most active online shoppers are millennials and high-income shoppers, according to a McKinsey survey. This consumer insight has strong implications for marketing efforts and product development.

If these shoppers continue to dominate online sales, gearing a strategy towards younger shoppers or focusing on premium products may be a good step forward for 2021.

Availability Is Essential

Given the scarcity caused by supply problems related to the pandemic, it is not surprising that customers identified availability as a high priority for brands. People surveyed by McKinsey in June of 2020 rated availability as a higher priority than convenience, value, and quality.

It is likely that the memory of scarce supplies will linger long after the pandemic has stabilized. Businesses should take note that, while customers take it for granted that their favorite products will be available if there is a lack of supply, they will be quick to express their dissatisfaction.

Businesses are likely to take precautions after learning the lessons of 2020. Having backup suppliers is essential given that customers who were once loyal will switch to another brand if items are not available. At the very least, businesses should provide compensation for the inconvenience in the form of free shipping or discounts if there are problems.

Concern for Hygiene and Safety

Along with availability, hygiene is also an issue many consumers might have taken for granted before 2020. However, the pandemic has raised awareness about washing hands and handling items in a way to prevent the transmission of viruses.

Restaurants now realize they have to follow strict hygiene protocols. In addition, there is increased demand for contactless services, such as delivery people dropping items off at the curbside or self-checkout in stores.

Businesses need to reassure customers that production and packing were performed in sanitary conditions with workers wearing gloves and masks. Even as the vaccine becomes more widespread, hygiene habits and priorities developed during the pandemic may continue long-term.

Listening to Customers

Consumer insights are a proactive way to stay a step ahead of trends. By listening to customers in their own words, through the content they produce online, businesses get a clear idea of what their customers want. The year 2020 has shown that companies should not take customer loyalty for granted. Customer insights provide guidance that will improve customer retention and revenue.