The Rise and Fall of Consumer Confidence in 2020

2020 has been a funny year as it started with great expectations, which quickly went downhill across the globe. As we entered March, many of us found ourselves in unprecedented times and whilst face-to-face interaction was out of the question for businesses around the world, we had to adapt and change our service processes. These changes were all a work in progress but whilst some excelled, others failed to do so. But what went wrong? We’re going to take look at consumer confidence in 2020 and the reasoning behind its fall and how it will rise again.

The Fall of Consumer Confidence in 2020

Lockdown was something people had not experienced before and this brought with it several issues for consumers and businesses alike. People still wanted to shop and did so online but very few businesses could keep up with demand and delivery services were not prepared.

Another big issue that presented itself was that service based businesses were under pressure to provide financial release or refunds, as holidays were cancelled and people found themselves furloughed or without a job.

The knock-on effects of these issues were that consumers lost confidence in businesses and this had to be rebuilt.

Some businesses that were successful were Deliveroo and Just Eat, although this is unsurprising given the nature of the business, they have both used data and the pandemic to better understand their customers and employees.

The way many companies have treated employees has also played a large part in the diminishing of consumer confidence. Consumers want to feel connected to brands in a similar way as they do to friends. Meaning having similar morals is important but unfortunately, for many businesses this is not the case.

Overall, it seems that branding and in-house activity has played a large part in the success or failure of businesses this year. The question now is – how do we build consumer confidence?

The Rise of Consumer Confidence Post-Pandemic

As we come out of the pandemic, businesses must adjust both their short and long-term strategies to ensure success. The rise in consumer confidence can only happen if consumers once again feel connected to your business. One way to do this is by personalizing the experience for customers. This can be difficult to do, especially with the california consumer privacy act that makes it more difficult for companies to hold customer data. There are ways around this, make sure to look online or contact a legal team to see how the business could personalize the experience without using consumer data illegally.

One lesson we can learn from the likes of Deliveroo and Just Eat is to understand your customers – how else can they feel connected to you? This shouldn’t be hard to do if you have a strong online presence, but if don’t then there’s still time to improve on this.

If you feel as though your business may not see 2021 due to your product offering or government restrictions, here are a few industries you may consider diversifying into.

  • Cybersecurity
  • Video gaming
  • Food delivery services

All of these industries offer a promising future and you can read more about them here.

If you are struggling with the pandemic then start to think about where people are at the moment and make the necessary changes to reach them.