No one can predict the future, but that doesn’t means brands can stop planning for it. As we finally close the longest and strangest Q2 most of us have experienced to date, many of us are ready to survey the landscape and figure out how to move forward. Yes, it’s all in flux. True, we’re not on the other side of this thing yet. And yeah, none of us knows what comes next. That’s why now is the time to reach out and talk to people and listen to what they’re experiencing, doing, and wanting.
Samantha Foster Bergeron is an expert qualitative researcher, strategic consultant, founder and principal of Uncover Research, a strategic qualitative research consultancy. She has a long history of developing innovative methods to uncover consumer insights and inform brand strategy and product development. She has strong insight into leading consumer motivations across segments and life stages, having partnered with Fortune 500 brands including Amazon, Starbucks, Facebook, Levi Strauss & Co., Gap, Target and Sephora as well as younger brands including TaskRabbit, Olly and Pax Labs.
Samantha is someone who’s been in front of real customers asking real questions. We asked her to hop on a call with FUEL portfolio companies to share the insights she’s gleaned about how people are reacting to COVID, which categories are most primed for innovation, and what key themes she’s starting to see emerge. The talk was, well, riveting. It was our first real look at changes to consumer behavior in the wake of this pandemic. We also asked Samantha for practical advice on how brands can run their own research to meet the challenges and opportunities of tomorrow.
You can watch the full interview below:
Changing consumer behavior by segment
While it’s true that most people in this country have been profoundly impacted by COVID, the reality is that people are experiencing it in very different ways. Samantha’s research has revealed four distinct segments.
Group 1 is mostly coastal, affluent, and highly educated. They listened to the science and hunkered down, because they felt it was the right thing to do but also because they could. It was easy for this group to seamlessly transition to working from home, their kids already had devices and attended schools that were better equipped for remote learning, and they have the means to have everything delivered. This group will be the slowest to return to normal. They’re making changes to their lives - such as selling city homes - that more people might make if they had the means. If you’re in this group, it’s very easy to believe everyone is acting in the same way. In reality, it’s a relatively small segment of people.
The largest segment, Group 2, is made up of the “normal” people who generally do what they’re told. They may or may not believe in the threat and are anxious to return to “regular” life, but they follow the rules and are looking for guidance from the authorities on what to do next. They still shop in big box stores when they can, but will be slow to return to restaurants and movie theaters because they’ve been told it’s risky. Fatigue is definitely setting in with this group and there is a lot of pent up consumer demand.
Essential workers comprise Group 3, the most vulnerable, heartbreaking segment we discovered. The whole world was told to stay inside to protect their health, and this group was told to go work for minimum wage at a grocery store so that everyone else can stay healthy. There’s no going back to normal for this group because they never stopped their “normal,” - they never sheltered in place. They’re feeling angry, disenfranchised, and scared of getting sick and getting their families sick. This group needs to feel as though they are being taken care of; there’s a lot of fear here.
Group 4 is made up of the “anti” people - the people who think the whole thing is bullshit. They think we’re all followers, they don’t want to be told what to do. But interestingly, they also aren’t going to restaurants, they aren’t traveling by plane. They won’t admit to being scared, but they aren’t doing the very risky things. They tend to be conservatives living in traditionally conservative places.
Three key early themes
While the reactions to COVID have been dramatically different, there have been some common themes that have emerged throughout the segments. For every group, the sudden scarcity around basic necessities really shook people. Not being able to get items like toilet paper didn’t just inconvenience us, it really rattled us and changed our perceptions of how secure we feel in this world. That type of scarcity is not something we’ve faced before on a society level, and its effects will linger. Another common theme - people really missed human connection. People missed their friends, their churches, just being with other people. Finally, every segment reported that there has been some positivity to this experience. This long pause caused many to reflect on their lives and reevaluate how they spend their time. Most have really enjoyed spending time with family.
Consumer trends
No doubt every industry will change, but the research shows that one category is going to be dramatically transformed - how people work. People are reluctant to return to the way things were before, with many reporting they don’t plan to go back to the status quo. The new reality of remote working offers big opportunities for brands to innovate. There’s room to add value to individuals working from home looking for better modes of collaboration, and a pronounced need to support companies as they figure out how to support workers in this new construct. The research makes clear that people are looking for direction, and they want their companies to figure things out for them.
Tied to remote working is one of the biggest questions on the minds of parents today - what can be done about childcare? With this being the single most important factor for getting people back to work, there's a big opportunity for innovation in this area. One thing is clear from research respondents - no one is figuring out childcare, everyone is waiting for it to be figured out for them. Again, this attitude of “just tell me what to do.”
Healthcare and wellness are primed for sweeping change. With people feeling very disempowered around healthcare - they’re being told what to do and reacting to it - there’s a lot of frustration and confusion around this area right now. Likewise, mental health is a rising concern. People feel like they’re always “on” and only doing things marginally well - with no vacations, no breaks. There’s a lot of uncertainty around the future. Parents with school-aged kids are getting pressed and single people are dealing with new levels of isolation - people are having a hard time. There’s also been a rise in people thinking more about holistic wellness - a trend we’re mostly seeing in the way people eat. Eating at home more has made some people decide to invest more time, money, and energy into food.
Grocery delivery is another interesting category. With some people spending more money on higher quality ingredients and others looking to save money, there’s a lot of variance in grocery behaviors. One thing seems certain - that “stock up” mentality is here to stay. People are going back to the stores, but shopping less frequently for more items. There’s suddenly a huge opportunity in helping people stock up. There was a very clear pendulum swing in the early days of shelter-in-place, with everyone suddenly relying on grocery delivery at once. This is when we saw every major delivery service let people down. Things just didn’t work. People couldn’t get deliveries quickly, or couldn’t get the items they wanted when they finally could get a delivery. The costs weren’t the same, the pricing wasn’t clear. In short - many brands just blew it. This was the opportunity to convert thousands of customers to delivery and it didn’t happen. As a result, big box stores like Wal-Mart and Target became the saviors that supported everyone through a pandemic. The experience left many needing to feel more in control.
Brand response
The brands getting applause for being heroes are the brands that have just done something. It’s inaction that’s offensive to consumers right now. Some kind of visible action - how you’re keeping your workers safe, which organizations you are donating to - goes a long way. People are paying attention, and we’re all looking for ways to feel better. Brands that are helping us move forward in a more positive direction help us feel more in control. This is a time for companies to innovate, to pivot, to change, to make a splash, because everyone's watching to see what’s going to change. There’s a lot of openness from customers now.
What brands need to know to conduct their own user research
There is so much that’s unknown right now about what consumers want and need, which makes this a crucial time for brands to learn more about their customers. You don’t need a bunch of bells, whistles, and budget to do consumer research, but you do need to know two critical rules:
Plan to use the research before you actually get it. Having a very tangible plan in mind for what to do next elevates your research from “interesting information” to something that can actually move your brand and/or product forward. For brands with smaller user bases, talking to a group of non-users that looks like your users both demographically and psychographically will help you avoid annoying or exhausting your own customers with too many questions.