Founder of Woo Brand Research, an agency focusing on driving positive business outcomes through the power of market research and strategy.
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How do we evolve as a result of life-altering events? With the past three years having led to so much change, it’s important for marketers to get into the mindset of consumers in order to target and develop effective road maps when planning for 2023.
After all, the pandemic taught businesses that an appreciation of context and rapid response are critical. Meanwhile, our economy, culture and society continue to evolve at a rapid pace, with seismic shifts in our communities, our buying habits and our lives.
The function of insights has undergone a shift, moving from being “micro” to “macro”; insights are arguably less focused on product features and competition differentiation because of a need to redefine whole categories.
Covid has transformed attitudes and behaviors. Besides that, rising costs and political unrest, the Black Lives Matter and Stop AAPI Hate movements, and the war between Russia and Ukraine all shape our perspectives. It’s crucial for marketers to take note.
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To help unpack the consequences of all this, we conducted a study in partnership with Vox Media and IW Group that encompassed 5,000 consumers aged 13 to 75, representative of the U.S. population. The goal was to uncover the human truths lying under the values that transform our behaviors in disruptive times, including the ways in which consumers behave and relate to brands.
We identified three broad groups that are either “Covid,” “we” or “me”-driven, depending on internal and external factors. For the Covid-driven segment, the overarching need is to feel secure and safe—even now after the worst of the pandemic. The we-driven segment is by far the largest and is predominantly comprised of millennials. For this group, it’s about doing what’s best for all, including being open to change and putting life on hold for the greater good. The me-driven segment is more individual-focused and has largely upheld their pre-pandemic values while, overall, the vast majority have now permanently adopted at least some of the behaviors and habits picked up during this period.
So what should brands be mindful of when planning for 2023, and what perspective shifts should marketers themselves make?
Human Truth 1
Despite all the turmoil and division in the world, our research showed that, as a society, we still care about others—our communities and the world around us. In fact, 54% of those we surveyed—equating to around 180 million people in the U.S.—are predominantly focused on the community. With a rise in activism and social causes among some segments during the pandemic, this is now a feature of life.
It’s also clear that corporate social responsibility and a brand’s stance on social issues have become increasingly important and should be a priority for marketers. Take Patagonia: Its corporate activism is a large part of its brand identity, with company founder Yvon Chouinard having pledged that its profits be used to combat climate change. We found that there are specific cohorts for which brand values are the principal driver of purchase decisions; for some, values even take precedence over price.
Our results echo research by Harris Poll, which found that “82% of shoppers want a brand’s values to align with their own” and that 55% said “they would pay more for more sustainable products.”
Human Truth 2
At times like these, consumers want to feel that businesses are sensitive to their challenges and needs. It’s critical that brand communications do not come across as thoughtless or careless. Empathetic messaging is particularly important when seeking to connect with younger audiences. For example, when Selena Gomez founded Rare Beauty in 2020, she decided to donate 1% of all sales to tackling mental health stigmas and providing community resources. As reported by Allure, “a large part of Gomez’s fan base is Gen Z and over 40 percent of that population has experienced increased mental health struggles during the pandemic.”
Remember that, like what happened to millennials during the Great Recession, recent events have had profound effects on younger people’s shopping behaviors and how they perceive brands. Pew Research found that “about seven-in-ten Americans think young adults today have a harder time than their parents’ generation when it comes to saving for the future (72%), paying for college (71%) and buying a home (70%).”
Of course, make sure your messaging is always tailored to your target audience. For some, a focus on self-love will connect, while we found that some segments respond particularly well to uplifting messaging. For many others, socially focused messaging about the community and bringing people together lands well.
Human Truth 3
Audiences want to feel that brands are respectful of their unique identities, so make sure you acknowledge and include multicultural consumers in your narratives. Given the ongoing divisions in our society—from systematic racism to Asian American and Pacific Islander hate—our study showed that certain segments with a more ethnically diverse makeup are specifically seeking out brands that exemplify diversity and inclusivity. This plays a huge role in brand loyalty and support. For some, it holds more sway than price. Similarly, Deloitte found that “57% of consumers are more loyal to brands that commit to addressing social inequities in their actions.”
Final Thoughts
The impact of life-altering events is pronounced and herein lies an opportunity for marketers who respond appropriately. Certainly, the metaverse affords opportunities for businesses to offer younger demographics experiences they otherwise wouldn’t be able to have due to barriers such as income. New digital channels, formats and worlds provide a means to interact creatively while communicating brand messaging on values through live interactions and gameplay. Similarly, it is possible to leverage TikTok to convey values and relatability—something that is especially impactful for younger audiences.
Above all, understanding your audience and the aftermath of recent events is critical. Finding our way as humans, let alone as marketers, is an increasingly complex task.
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Author: Angela Woo, Forbes Councils Member
