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Covid-19 poll daily insights

Wednesday
April 1, 2020

  • Thirty-five percent of respondents continue to say sales are going up.
  • More brands say they’re seeing supply chain issues.
  • More brands continue to spend on ads.
  • Brands that sell non-essentials and offer free or guaranteed shipping are seeing increased sales.

 

Thirty-five percent of respondents, up seven percent from last week, say their sales are going up and consumers continue to shift most of their dollars to new essentials—toys and hobbies, health and fitness, beauty and cosmetics, housewares, specialty goods, and sporting goods.

Of the brands that say sales are increasing, 47 percent sell products in a new essentials category, which is the same as last week.

Are your sales being affected 4-1

What do you sell? 4-1

Up 14 percent from last week, 54 percent of brands now say they’re experiencing delays with their logistics provider or they don’t have access to their inventory.

Specifically, 69 percent of these brands said they’re experiencing shipping delays and several mentioned issues with getting raw supplies.

One brand said, “We’re seeing difficulties with our overseas vendors. The rapid uptick in sales velocity caught us flatfooted. We’re now having trouble keeping up with demand. Labor is now our number one concern.”

is your supply chain affected 4-1

Twenty-two percent of brands said they’re spending more on ads, up from 14 percent last week. Brands that mostly sell in higher-demand essentials and new essentials categories (beauty and cosmetics, food and beverage, health and fitness, office supplies) are increasing their ad spend.

Sixty-six percent of brands that are spending more on ads are also seeing increased efficiency, up from 58 percent last week. 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.

are you still spending on ads 4-1

Thirty-six percent of businesses that sell products in a non-essentials category reported seeing increased sales. Seventy percent of these businesses appear to offer free or guaranteed shipping, which is helpful for consumers in this uncertain environment.

Of the businesses in the non-essentials category that say their sales have increased, most have experienced several supply chain advantages during this time. First, 71 percent say they’re not experiencing any supply chain issues. Second, 71 percent report no shipping delays. Lastly, 100 percent report their website conversion rates have increased since last week.

Effective Marketing Moments

What’s working?

Positioning promotions. The Sleep Shirt, a business that makes sleepwear, updated their website to let customers know they have a care package bundle—a great offer during a time when we could all use some comfort.

The Sleep Shirt care package bundle

Communicating realistic expectations. Clif Bar & Company, a food business that sells energy bars, updated their website to include a banner that lets customers know about shipping delays due to their high order volume.

Clif Bar & Company website banner shipping delay update

Highlights:

Brands with increasing sales

How are they feeling?

Seventeen percent of brands with increasing sales have mentioned that, while their ecommerce sales are up, their retail partner or brick-and-mortar sales are down.

One brand looked at this as a hopeful opportunity: “Hopefully a lasting change in consumer buying behavior towards online food purchasing.”

Additionally, despite 63 percent of these brands saying they’re faring well with their supply chain, 29 percent have reported concerns about getting raw materials and labor to help them with their manufacturing and distribution.

One brand said, “It’s tough to bring a lot of new people into a warehouse where everyone is concerned about the virus.”

What’s working?

Brands continue to say email marketing and content development are working best for them.

Forty percent of respondents said personalized marketing messaging has helped them significantly during this time, up from 15 percent last week.

One brand said part of its messaging strategy is to send “personalized thank you emails to each customer from me, the founder. And I mean really personalized. I’ll look at their order history and comment on that and the item they purchased. It’s taking me forever, but it’s worth it.

Brands with decreasing sales

How are they feeling?

Brands with decreasing sales are feeling concerned about their current state yet hopeful about their future outlook.

  • 17 percent said they soon might be out of business
  • 23 percent said they’re hopeful and they think their business will be better once we emerge from the crisis
  • 77 percent said their website conversion rates have decreased from last week
  • 63 percent said their sales have decreased by 30 percent or more from last week
  • 59 percent said they’ve stopped or are spending less on ads

What’s working?

Thirteen percent of brands with decreasing sales said that working on or revising their ad strategy has helped them.

One brand shared that they are “changing from Google ad spend to Facebook and Instagram ad spend.”

Thirteen percent of brands said promotions are currently helping them, as well.

Brands with flat sales

How are they feeling?

Twenty-six percent of brands with flat sales seem hopeful that their business will become stronger, up from twenty-one percent last week.

Seventy-two percent said their ads are running as efficiently or more efficiently than they were before.

Shipping and supply chain issues seem to be posing less of a problem for brands with flat sales: 75 percent of respondents said they haven’t experienced any shipping issues while 41 percent said they haven’t experienced supply chain issues, either.

What’s working?

Email & Social media. Thirty-three percent of brands said that email and social media are helping them grow right now.

One brand said, “We’ve slowly upped our email marketing and implemented new flows. We’re also testing new content on social media, as well. Both, so far, have yielded good results.”

More resources for businesses affected by Covid-19