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Covid-19 poll daily insights
April 7, 2020
- Forty-four percent of respondents continue to say sales are going up.
- Trending volume: for the sixteenth day in a row, health and fitness brands continue to say their sales are going up.
- More brands say they’re spending more on ads.
Forty-four percent of respondents, up thirteen percent from last week, say their sales are going up. We saw early on that consumers were shifting their dollars to new essentials—toys and hobbies, health and fitness, beauty and cosmetics, housewares, and specialty goods—but it appears that they’re now spending their dollars again on non-essentials, particularly apparel and accessories. Many apparel and accessories brands have reported their sales going up (for 13 days in a row).
Of the brands that say sales are increasing, 40 percent sell products in a new essentials category, down 10 percent from last week, and 50 percent sell products in a non-essentials category, up six percent from last week.
For the sixteenth day in a row, health and fitness brands continue to report their sales are up. And as of the most recent survey (April 7, 2020), brands in this category say they’re also experiencing the following:
- Eighty percent said they’re having no issues with their supply chains, up from 60 percent last week.
- Seventy percent said they haven’t encountered any shipping delays, up from 60 percent last week.
- Thirty-three percent said their sales have increased since last week, up 33 percent from last week.
- Thirty percent said their conversion rates have increased since last week, down from 40 percent last week.
Twenty-six percent of brands say they’re spending more on ads, up five percent from last week. Brands that sell in new essentials categories (beauty and cosmetics, housewares, health and fitness) and some brands that sell in non-essential categories (apparel and accessories) are increasing their ad spend.
Seventy-one percent of brands that are spending more on ads are also seeing increased efficiency, up from 50 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.
Effective Marketing Moments
Creatively expanding business to align with current events. Rothys.com, a sustainable footwear and accessories company, updated their website to let customers know how they’re helping with coronavirus relief efforts. They’ve taken three steps: They’re creating masks, partnering with other manufacturers to create similar items, and donating $20,000 to Direct Relief efforts.
Empathetic marketing messaging. Figs, a company that sells premium scrubs, lab coats, and medical apparel for men and women, recently launched their new coral collection scrubs. The tone of the messaging in their video is both playful and empathetic during this time, which was likely appreciated and recognized by many.
In the video, they depict a woman who is running for coffee, saying that what was once an emergency now “seems pretty silly” and there are “bigger things to worry about” right now. FIGS empathetically positions their product, ending the commercial with “thankfully, awesome scrubs still aren’t one of them.”
For tips on how to be human and transparent in your brand communications, watch this webinar.
To learn how to communicate with empathy during this time, check out this article.
Brands with increasing sales
How are they feeling?
Many brands with increasing sales say they think this time has been a boon to them, but don’t expect it to last due to what they sell.
A toys and hobbies brand said, “I worry about a decline in sales once people can spend their money on things outside their home.”
A food subscription brand said, “Once it’s all done, I assume our sales will decline slightly since I’m anticipating that people will be wanting to go out to restaurants more often.”
Brands say email marketing, Facebook ads, promotions, and content development are working best for them.
One brand said that “being more direct and providing helpful content” to customers was helping them succeed during this time.
Another brand we spoke with said that being scrappy, resourceful, and relying on their community for marketing, packaging, and awareness through word-of-mouth has helped their “unit volume grow 10x.”
Brands with decreasing sales
How are they feeling?
Brands with decreasing sales are feeling concerned, yet hopeful for the future.
Many brands said they remain concerned about their cash flow, with several brands wondering if they’ll be able to pay their expenses with their sales down.
When asked what was concerning them right now, one brand said, “How long the business closure will last, and if my reserves will be enough to keep the rent and overhead costs paid until it ends.”
As for the future, many brands are optimistic and believe they’ll rebound and come out even stronger than before. One brand said, “We will have more customers since we’re spending to acquire customers cheaply.”
Brands with decreasing sales said that engaging their existing customer community through email has been working well for them.
One brand shared that they’re “personally reaching out to clients and doing product deliveries to them.”
Another brand said they’re “continuing to send out emails.” And they added that emails are “primarily where [their] sales are coming from.”
Brands with flat sales
How are they feeling?
Bands with flat sales are concerned for their employees’ health and worried that their business won’t have enough sustained revenue to pay the bills.
They have mixed feelings about their future outlook. Many are unsure about what the future holds, while others believe it will change how consumers shop.
One brand said they expect to have “more competition for online advertising and a switch from traditional retail to online from those late adopters.”
Another brand said, “We might not have physical retail at the end of this.”
Need help moving your brick-and-mortar store to an ecommerce business? Check out this guide.
Word of mouth. Many of these brands reported that word of mouth and keeping in touch with their customers were working well for them at this time.
When asked what was helping, one brand said, “The very high touch engagements I’m having with my customers (i.e., sending consistent emails, hosting [Facebook] lives, updating social media, [and] trying to just not ‘sell’ but add value in other ways) [are working well].”
Another brand said “working closely on [their] top customers and organizing in-person shopping appointments” is helping them.