2021

After a year like no other, how will consumers behave in 2021? Marketing Week spoke to a selection of Top 100 marketers to see how they are planning for the coming months

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By: Morag Cuddeford-Jones

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By Steve Hemsley

To plan effectively, brands need an integrated view of their data across different channels, in order to unveil meaningful and valuable insights. However, Salesforce’s report says only 36% of marketers regard their ability to leverage data for key marketing activities as excellent, with 46% rating their ability as good and 14% as poor. At Britvic, Barwell is concerned that much of the information collected from 2020 may be unreliable. In response, his team is combining 2019 with 2020 data to obtain a more accurate picture of what trends were accelerating before Covid-19 and which ones have emerged during the pandemic. “If the vaccines are successful then the on-trade [pubs and bars] will be fully open. It is about planning for the first half of 2021 versus the second half,” says Barwell. “We do not collect a lot of first-party data, but we do continuous tracking and work closely with retailers to get a sense of the underlying and genuine trends.”

Raj Kumar, Aviva

What the pandemic has done is make consumers demand trust, safety and authenticity from organisations and their brands. Darain Faraz, director of brand marketing for LinkedIn and also a Top 100 marketer, reports an increase in conversations among marketers on the platform about how customers are openly championing brands that have taken action to help society, local communities, the environment and the economy. “Our research reveals that business leaders are approaching innovation differently due to Covid-19, with two-thirds now focusing on delivering products and services with a social or environmental purpose,” says Faraz. “A similar number believe that emphasising their overall purpose will help them to connect with customers on a deeper level. And 71% acknowledge there is a greater expectation from customers to take action on the big issues of the day, with more than half (55%) looking to support initiatives that have a direct impact on local communities over global causes.”

“We’ve adjusted our content strategy to realign around what’s important to clients.”

Samantha Burns, KPMG

“I don’t see the move to digital changing because, once people switch and get used to banking digitally for six or seven months, they tend to stay with that channel,” Markey says. “There is still a place for face-to-face and telephone, but during the pandemic many older people, for example, have switched to digital.” Brands in most sectors are offering support and advice in real time during the pandemic and consumers will expect this level of engagement to continue in exchange for their loyalty post-Covid. “How do we help customers at the point when they need us most?” says Markey. “There has been a huge realisation that the service you provide is a representation of your brand. This means marketing, customer experience and customer service must continue to work closely together.” Pettifer adds that brands must double down on digital this year but ultimately embrace a hybrid digital and physical marketing push with an emphasis on innovative and meaningful experiences. “There’s no replacing our need for human connection, so marketers will have to rethink the entire transaction experience,” she says. “The customer experience will continue to change in real time but we must continue experimenting to find new ways to stay connected and engaged.”

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In the financial sector brands have to work hard to demonstrate their purpose. It is also a sector where uncertainty can wipe millions off the value of people’s savings, pensions and investments, and hit confidence. It is crucial to understand future consumer behaviour and prevailing attitudes. Another Top 100 member, Pete Markey, CMO at TSB Bank until he takes on the same role at Boots UK shortly, admits brands have no idea how consumer confidence levels will be affected by the new Covid lockdown, or when the furlough scheme eventually ends and vaccines are rolled out. Salesforce’s vice-president of marketing for the UK and Ireland, Jo Pettifer, says brands must implement data-driven agile marketing strategies to meet the shifts in consumer behaviour. “Personalised, empathetic engagement has never been more important, and requires deep insights,” she says. “Marketers are shifting how they source and manage customer data and ramping up the use of technology like AI to make the most of it. Innovation and real-time engagement are crucial, with digital transformation being a critical part of future business success.” AI is certainly helping brands automatically predict what products and services customers need, for example. Salesforce’s 2020 ‘State of Marketing’ study reports a 186% increase in AI adoption by marketers since 2018.

Consumers will also behave differently in 2021 depending on how healthy their personal financial situation is. Some people will have more disposable income this year because they have saved money from working at home, while others will be struggling to pay their bills. “Brands have to serve the needs of these different groups. An individual’s customer journey will depend on the relationship they have with you,” Markey argues. The charity sector, for example, relies heavily on its customer relationships, and brands that depend on the generosity of the public are looking for any positive trends that can help them plan for this year after a disastrous 2020. The British Heart Foundation reports income down by around 50% as the pandemic meant closing its 700-plus retail outlets for months on end and fewer sponsored events, such as the London to Brighton Bike Ride, which raise millions of pounds every year. Director of fundraising, marketing and engagement Carolan Davidge – also in the Top 100 marketers – says the challenge is to ensure donors do not get out of the habit of giving. “We have seen behaviour change, but it is essential we convey the message that we still need people’s financial support,” she says. “The whole shift to more goodwill, empathy and community means our marketing plan for 2021 needs to demonstrate how we make a difference on a local level.” She adds: “We are a community brand and people experience the work we do in their own lives. Consumers visit our bricks and mortar stores in large numbers, but we need to look increasingly at the digital space and we are selling more on platforms such as eBay.”

BHF has plenty of data to measure consumer behaviour, but data generation was hit in 2020 because footfall in its shops was much lower. Davidge says the brand is keen to invest in gathering more attitudinal data to provide additional insight. The charity has been collecting information via a Covid-19 hub, which was added to its website. Davidge agrees with Markey that people’s spending power and attitude to giving in 2021 will depend on their personal financial circumstances. “We need to target those who are behaving differently and saving money. Maybe they are working at home more and not spending so much on coffees and sandwiches?” she says. “We will also do more work around lotteries because people tend to give more if there is something in it for them in terms of a potential prize.” Consumers changed just as the world changed in 2020, and marketers must latch on to any reliable trends and data they can to help them plan effectively for the year ahead.

Brands must be able to build trust with authentic communities because successful brands don’t just pitch, they have conversations and listen, says Pettifer. She cites the 1.5 million-strong Trailblazers community of customers that are using Salesforce’s technology in pioneering ways. It helps to build short- and long-term client relationships, and empowers members using the gamified platform Trailhead, while online forums enable members to connect and network. “2021 is uncertain, but what we can predict is that the biggest successes will come from the organisations that adapt and innovate fast. Continuing to embrace new technology and ways of working is an absolute must as we move out of the pandemic.”■

At soft drinks giant Britvic, whose brands include Robinsons, J2O and R Whites, chief marketing officer Matthew Barwell has launched the Mission 2025 initiative to delve into what has and hasn’t changed when it comes to consumer behaviour. “The digitalisation of consumers’ lives will continue and there will be more focus on wellbeing and climate change. We know there is a desire among shoppers to be healthier, consume less sugar and they want premium products,” says Barwell – one of Marketing Week and Salesforce’s Top 100 most effective marketers. “When it comes to planning, we are being agile in the short-term while still looking long-term. We are focusing on quarterly rather than annual goals and reviewing what channels we use, how and when.”

Short-term business agility is still required

Last year’s data will be an unreliable gauge of behaviour

Consumers want purposeful innovation

Empathetic engagement can recover consumer confidence

Consumers have got used to digital – and brands must meet them there

Polarised consumer finances will influence spending

Brands need to replace and rebuild data from physical retail

Brands must build relationships with engaged communities