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Covid-19 poll daily insights

Friday
March 27, 2020

  • More than 28 percent of respondents continue to say sales are going up
  • Trending: for the fifth day in a row, more brands say they’re seeing issues with shipping
  • More brands say they’re spending more on ads

 

For the fifth day in a row, more brands say sales are going up this week versus last week. Consumers seem to be shifting their dollars to new essentials—toys and hobbies, health and fitness, beauty and cosmetics, housewares, and sporting goods. They also seem to be shifting dollars to an emerging niche group of non-essentials including, but not limited to, alcohol, CBD products, religious accessories, loungewear, sleep-aids, clothing for online gamers, and identification devices for first-responders.

Of the brands that say sales are increasing, 41 percent sell products in a new essentials category and 50 percent sell products in a non-essentials category.

are your sales affected 3-27

what do you sell 3-27

Up two percent, 40 percent of brands now say they’re experiencing shipping issues. Specifically, two brands shared that shipping is not only delayed, but it’s also now costing a premium.

Additionally, of the brands that say they’re experiencing issues with shipping, 56 percent also say they’re having issues with their supply chain, either because a factory is closed or their suppliers are temporarily pausing production due to reduced staffing.

percentage of brands seeing an increase in shipping delays 3-27

is your supply chain affected 3-27

Twenty-two percent of brands say they’re spending more on ads (up from 12 percent). Brands that mostly sell in higher demand essentials and new essentials categories (beauty and cosmetics, food and beverage, health and fitness, office supplies, toys and hobbies) and niche non-essentials categories (religious accessories, CBD products) are increasing their ad spend.

Brands that are spending more on ads are also seeing increased efficiency. Their cost per 1,000 impressions (CPMs) are down and cost per click (CPC) is flat or down, resulting in their return on advertising spend (ROAS) trending much higher than normal.

ad spending 3-27

 

Effective Marketing Moments

What’s working?

Reworking your business to help a cause. New Balance, an athletic footwear and fitness apparel company, has dedicated a portion of their U.S. factories to develop, manufacture, and deliver face masks to hospitals, and the brand updated their website to share this information with visitors.

New Balance email

Communicating shipping expectations. Baked by Melissa, a brand that sells cupcakes, updated their website to let their customers know that their shipping hasn’t been affected and that customers can still place and receive orders as usual.

Baked By Melissa website shipping update

Highlights:

Brands with increasing sales

How are they feeling?

Brands with increasing sales say they’re feeling optimistic about the future.

One said, “Business is still strong as long as we’re able to ship out of our warehouse.”

Several brands have also reported that this time period could potentially help them grow bigger. Another brand said, “We will have increased our market share.”

What’s working?

Brands say email marketing to existing customers is working best for them today.

Several brands have said that finding peace, practicing patience, and being grateful have helped them find strength during this time.

One brand said they’re “feeling grateful to have an online business right now.” Another brand said, “We’re blessed to be able to run our business from home.”

Brands with decreasing sales

How are they feeling?

Brands with decreasing sales are feeling anxious about their current state and uncertain about their future outlook.

  • Eighty percent have reported that their website conversion rate has decreased from last week.
  • Sixty-three percent, up from 36 percent last week, say their sales have decreased by 30 percent or more from last week.
  • When asked what they’re most concerned about, 16 percent said paying their employees.

What’s working?

Twenty percent of brands with decreasing sales said that engaging customers on social media channels, like Facebook, has been working well.

One brand said, “Interacting with people on social media creates a bond and that transfers into sales.”

Brands with flat sales

How are they feeling?

Brands with flat sales remain concerned about their supply chain. While 40 percent have already seen issues with their supply chain, another 30 percent said they expect to see issues within a few weeks.

What’s working?

Twenty-five percent of brands say they’re using email to help them engage with consumers and sell through this time.

But the majority (62 percent of brands) are still unsure of what’s going to help them and where they should focus their efforts during this time.

More resources for businesses affected by Covid-19