HOW MARKETING IS CHANGING POST-COVID
Fuqua School of Business, Duke University Survey
Customers prioritize trusted relationships. The highest percentage of marketers surveyed expect customers to focus more on “trusting relationships” with brands and companies than on low price, despite the economic downturn. 79% of CMOs believe customers are paying closer attention to the social activism, outreach, and investments of companies during than pandemic, and will reward brands that represent their values with greater loyalty in the long run.
Online and digital are essential. According to the survey, online sales have grown 43% between February and May 2020, accounting for 19.3% of all sales (and a whopping 26.1% of sales at companies with fewer than 500 employees). The necessity of doing business online has made consumers significantly more open to digital offerings and experiences – a shift that marketing execs believe will persist even after the pandemic recedes. This suggests digital marketing efforts will command a greater share of total marketing spending moving forward, even if overall marketing budgets shrink 8-10% next year, as many of those surveyed expect.
Social media is a critical brand-building tool. As marketers prioritize building brand trust and loyalty to attract and retain customers, companies are increasingly using social platforms as an important engagement tool. 84% of respondents report using social media for brand building and more than 54% have used it for customer retention during the pandemic. That’s reflected in a 74% increase in social media budgets since February – a jump from 12.3% to 23.2% of total marketing spend. That reflects an important shift in the perception of value of social media among marketing leaders, reversing a skeptical trend that’s persisted for the past few years.
Improvisation and resourcefulness will lead to success. The COVID-19 crisis caught everyone by surprise, including marketers. The economic havoc has already resulted in a 9% reduction in marketing jobs with more likely to follow, suggesting departments will have to do more with less. The pandemic also drove home the importance of agility and resilience in the face of unforeseen events. Most marketers in the survey considered themselves and their organizations unprepared for the events that transpired and expect to invest more in training to develop improvisational (pivoting) skills, creative thinking, innovation, and managing uncertainty within their workforce.