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Covid-19 poll daily insights
March 24, 2020
- Continued increase in brands reporting sales going up
- Supply chain impacts are becoming more clear and getting better
- Increase in brands reporting cutting all ad spend, decrease in brands reporting spending less
For the second day in a row, more brands this week report sales going up than last week. The data is a bit noisy, so it’s hard to declare an official trend yet, but it appears that consumers are keeping their spends up and shifting their dollars to new essentials – housewares, toys & hobbies, health & fitness and beauty & cosmetics.
Fewer brands report anticipating issues with their supply chain, though more brands report delays from their fulfillment centers. We’re hearing many reports that manufacturing and shipping from China is ramping quickly and nearing normal capacity. We’re also hearing reports that Italian mills are completely shut down and American based fulfillment centers are slower than normal in fulfilling orders.
We’re seeing an increase in brands reporting that they are not spending any more money on ads and a decrease in brands saying they are spending less. As this pandemic persists, we’re hearing lots of reports from brands who are working on cutting all expenditures. Despite cutting, some brands aren’t certain it’s the best move. One CEO reported, “Right now we are cutting everything and not sure if this is the right approach.”
Effective Marketing Moments
Being human and asking for help. Pistol Lake, a minimalist men’s apparel company, was feeling the effect of the virus hitting the United States and wanted to boost sales. The CEO, Ryan Light, put out an honest plea to their customers on Facebook and in Email to buy things they had been thinking about but hadn’t yet pulled the trigger on; it worked.
Over night, sales skyrocketed to more than 6x their normal volume, helping infuse the brand with cash.
Connecting with existing customers. Jelt, a recycled belt brand, sent emails to their community thanking them for their support by offering a friends and family discount and sharing that they are open for business – these emails had higher than normal open rates and generated sales.
Brands with increasing sales
How are they feeling?
Brands with increasing sales generally acknowledge that times are good for them but aren’t expecting this to continue indefinitely. They’re expecting a dip at some point, but don’t know when.
One brand that sells firearms and supporting accessories is reporting sales are up 450%. Some days it spikes to 900% and other days the lift has been around 275%. For consumers who use and own firearms, they are clearly considering this category a New Essential.
Brands report that friends and family promotions are working well. We’ve heard reports of targeting engaged or repeat buyers through email and retargeting them with a specialized discount code is generating sales.
We also have heard that brands are using this time to reorganize their business to understand all of their resources being spent and what they can do to help cashflow. Specific actions include lowering interest rates on Credit Cards, asking for a stay of payments or applying for a disaster emergency loan.
Brands with decreasing sales
How are they feeling?
Brands with lower sales maintain their resilient stance – they feel they’ll emerge stronger than ever when this is over. That said, they’re concerned with consumer confidence. They perceive consumers spending less – though we know consumers generally aren’t spending less overall, they’re just spending on New Essential categories.
Focusing on engaging communities and growing email lists. One brand reported that engaging with their fans on social and showing the team behind the brand has helped. One brand that sells phone cases, had two employees host a “virtual BBQ” answering questions viewers have about the brand and giving discount codes to people who engage.
We also heard reports of a Klaviyo customer doing a product giveaway on a digital ad on Facebook to generate new email addresses. They’ve also created a website pop up with the same offer.
Brands with flat sales
How are they feeling?
Brands with flat sales remain optimistic that things will rebound but aren’t sure when. They’re less worried about the business and more about personal issues, like their family’s health.
Focusing on customer service and providing timely, exceptional experiences. Keeping a strong relationship with customers helps them have human connection but also keep those customers for life.