See how the Covid-19 Pandemic is Influencing Customer Buying Behavior

Last Updated: August 5, 2020By Admin

Infiniti Research, a leading market intelligence solutions provider, has recently announced the completion of its latest article on the impact of covid-19 on customer buying behavior. The article covers detailed insights into the key customer trends observed globally and strategies on how businesses can respond to changing customer buying behavior.

The novel coronavirus impact on various sectors of the economy has been dramatic. As the covid-19 continues to spread worldwide, customers are trying to stave off uncertainties by stacking up food and utility supplies. This has caused a big boost to online grocery shopping. However, the fashion and other luxury goods market continues to slide. As such, analyzing customer buying behavior and spending patterns are the way forward for businesses across various industries to gain a competitive edge in the long-run.

Impact of Covid-19 on Customer Buying Behavior

An accelerated shift from store to e-commerce in grocery

With the coronavirus outbreak, e-commerce platforms are witnessing dramatic spikes in sales, which is driven by new customers trying online grocery shopping. The government implemented precautionary measures such as store closure and social distancing are some of the major factors driving the e-commerce market growth.

Customers doing bulk shopping

A recent study from Infiniti Research shows that in the four weeks ending March 22, a record amount on groceries was spent at supermarkets across the world, especially in the European region. The unpredictable nature of the coronavirus outbreak is compelling shoppers to stock-up and buy in bulk. Demand for groceries has soared to such a huge amount that e-commerce giants are unable to fulfill customer needs and requirements.

Spike in shelf-stable products and depleting markets for fresh and exotic foods

The demand for fresh and exotic food items are declining and there is a rising demand for packaged or canned food products. This is because customers are not willing to take the risks of consuming items that may have travelled long distances and exchanged many hands with little or no way to prove their hygiene quotient. Owing to this changing customer buying behavior, retailers will need to conduct thorough market research and gather data-driven insights to efficiently plan their next moves.

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To achieve better sales and profits, most companies could be doing more to cultivate business from their existing customers. However, enthusiasm for customer-retaining strategies must not endanger sound customer-getting efforts. How companies balance the two is the big question. To intensify reaching old customers while still seeking new ones, for many firms, will mean changes in market analysis, planning systems, management incentives, and marketing and/or operations organization. In the rush toward growth, consumer marketers have tended to regard success as stemming from obtaining new customers while unwittingly minimizing the importance of satisfying old ones. It is time for more companies to distinguish between their getting and retaining functions, to assess the balance between them, and to remedy any deficiencies in customer retention. This process requires management to value the potential of current customers and to treat them in special ways to get them to keep coming back. Several major elements should be part of the new marketing mix for customer retention: Product extras Keeping customers frequently requires giving them more than the basic product that initially attracted them. Product extras for individual customers over time can play a sales-expansive role. Reinforcing promotions Product promotion works better when aimed at existing customers. If a marketer knows who these customers are, benefits can be obtained by giving them reinforcing communications. Sales force connections The sales force can play a decisive role in the customer-retention function. At a retail or service counter the salesperson is the focal point of the company's strategy and is the firm to the customer. Post-purchase communication A company must anticipate that some customers will encounter either minor or serious problems after purchasing. If the firm is not ready to hear and correct these difficulties, the customer may not repurchase or may cancel the the relationship. Whether company or customer is at fault, standby post-purchase activities can be instrumental in saving these customers.

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