The rise of consumer power: who’s really in charge of your success post-Covid?

With lockdown restrictions continuing to ease in the UK, businesses are navigating their path back to growth. But while enlightened CEOs have already set the strategic direction for ‘building back better’ post-Covid, who’s really in charge of driving your success?

If your answer to this is, “my customer” you’re already a front-runner. Why? Because the pandemic has led to collective displacement. Everybody’s doing different things at different times in different places – and there’s no going back. This is a reversal of the natural flow of humanity. Our ancestors from pre-historic times to pre-internet times used to have to go out and get things. First to hunt, more recently going out to the shops, for education, for work, for entertainment. Over the last 12 months, thanks to the widespread digitisation of consumer services accelerated by Covid, we’ve learned that everything can come to us.

Consumers, citizens and even your employees expect to operate on their own terms today, no matter the channel. Whereas quality of service used to be a differentiator, now we all expect ‘great’ as the minimum standard. We desire ease, simplicity and joy with every interaction we have - be it the supermarket where we shop, the health clinic where we go for our vaccination, the training we’re required to undertake at work . . .

This is a psychological shift which businesses need to grapple with. And with lockdown easing further we’re on the cusp of a new phase of potential growth. Some people will be perfectly happy continuing their lockdown rituals, shopping online and spending their weekend binge-watching back series of Line of Duty. Others can’t wait to get back out there – to shop, socialise, get back to the office, travel…. Businesses that are ready to, quite literally, pop up in front of customers will be in prime position to boost their recovery.

Having a clear purpose beyond making a profit matters: a purpose that will positively impact people and the planet. Our latest research shows that organisations who deliver great experiences out-perform peers in profitability by at least six times when they solve for customers’ needs around a purpose. And 80 per cent of consumers say that purpose is at least as important to them as customer experience when making a purchase. The decision has gone beyond price and quality to factor in origin, reputation, impact on health and impact on the planet. And with a new-found curiosity around provenance, post-Brexit we’ve also seen more brands promoting their “made in Britain” credentials.

Is this a blip? While there can be a “value-action” gap where consumers say what they think you want to hear in a survey - for example, “provenance matters more than price” – the gap is closing. We’ve been researching consumer reactions and buying behaviours every month during Covid and increasingly customers say they want to buy sustainable products, shop more locally, are curious around provenance – and these sentiments continues to rise.

With customers demanding more accountability from brands around sustainability, inclusion and diversity, and how their data is used, we’ve seen businesses respond by offering new services. Brands are becoming visible facilitators helping customers improve or simplify their lives, rather than merely transacting with them. For example, when I make a purchase on my credit card my bank pings me a text. I’m happy for my bank to use my data this way because it helps me keep on top of my spending. Pre-Covid, established banks were starting to lose out to digital start-ups like Monzo, who shattered the traditional banking model. Smart incumbents have started picking up the cues that the new breed of banks nailed very quickly and are now delivering on those to retain customers.

In addition to offering new services and experiences, we’ve seen some very creative marketing campaigns as brands demonstrate their understanding of how customers are feeling right now. For example, Tesco ran an ad campaign asking customers to “pop into your local” as pubs started to reopen, as they knew that when pubs were closed, many people replaced that experience with buying alcohol from the supermarket instead. Rather than being a risky move, this endears customers to Tesco and flips perception that they’re the “big, bad wolf” taking business away from pubs. Another wonderful, seemingly counterintuitive, example is from IKEA. On Black Friday last November, rather than discounting furniture they offered to buy back old items from customers to resell in store in support of the circular economy.

What will ultimately define the winners and losers is how businesses collaborate with their customers to help them transform their lives. This isn’t transactional, and it’s about pushing beyond providing a brilliant experience. It’s about listening to your customers, understanding what they are looking for, and working in partnership with them. That’s how the front-runners will emerge from Covid ahead of the pack.