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Covid-19 poll daily insights

Friday
April 10, 2020


 

Fewer brands this week say sales are increasing—43 percent versus 46 percent last week. Consumers still seem to be shifting their dollars to new essentials—toys and hobbies, health and fitness, beauty and cosmetics, housewares, and sporting goods.

Of the brands that say sales are increasing, 41 percent sell products in a new essentials category, down two percent from last week.

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What’s trending?

For the fourth day in a row, pet food brands continue to report their sales are up. And as of the most recent survey (April 10–12, 2020), brands in this category say they’re also experiencing the following:

  • Eighty percent said there are no issues with their supply chains.
  • Sixty percent said their sales have increased since last week.
  • Sixty percent said their conversion rates have increased since last week.
  • Sixty percent said their ad spends are more efficient than before.

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Up eight percent from last week, 50 percent of brands now say they’re experiencing delays with their logistics provider, or they don’t have access to their inventory.

Specifically, 58 percent of these brands said they’re experiencing shipping delays, and several mentioned issues with getting raw supplies and packaging containers.

One brand said, “I’m working on accessing packaging components for items we sell, and almost every one of our vendors is currently sold out.”

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Effective Marketing Moments

What’s working?

Realistic expectations, human empathy, and teamwork. Naturenates.com, a provider of raw honey products, updated their website with a message from their CEO to let customers know they’re working as quickly as possible to meet the increased demand for food at this time. The message reassures customers by highlighting specific safety precautions the brand is taking to deliver quality products. My favorite part of the message, however, is the special tribute and thank you to the Naturenates team—without them, navigating this situation would be impossible. The messaging is both human and reassuring.

Naturenates increased demand message
Naturenates increased demand message

Keeping customers informed. Petco, a pet supply and food store, updated their website to include resources for pet parents. These resources come endorsed by the trusted “Petco Pet Wellness Council, an “independent coalition of leading experts in animal health and veterinary science.” With so much uncertainty surrounding the coronavirus, these resources are a great way to keep customers informed and pets healthy.

Petco resources for pet parents

Highlights:

Brands with increasing sales

How are they feeling?

Many brands with increasing sales believe they will see a sizable—and potentially long-term—increase in revenue generated by their online business once the stay-at-home mandates are lifted. This is especially telling and illustrates how we may see a greater shift away from the in-store experience and towards ecommerce.

For some brands, this change poses new challenges…

One brand said, “I think it’s possible that [we’ll see an] increase [in] our online presence and customer base, BUT we may have to temporarily discontinue or get rid of products that we have trouble sourcing components/materials for.”

For others, new opportunities…

Another brand said, “The online side of our business may end up being stronger than the in-store side when we re-open. It will be initially anyway. Perhaps this will also [create] a longer-term trend of [increased] online sales.”

As you continue to grow your email list, you’ll want to personalize your marketing to keep your audience engaged. Check out our guide to creating advanced segmentation with Klaviyo.

What’s working?

Brands say email marketing, Facebook ads, Instagram ads, and Google ads are what’s working best for them today.

One brand said, “Paid Social and [Search Engine Marketing are] both working. Almost all our channels are working. Email opens [are] higher. Non-brand [paid search] is challenged a bit, and [we’re] really avoiding anything that isn’t a clear winner rather than experimenting. [We d]ouble down on the winners constantly.”

Another brand said they’re having success using Facebook ads that promote landing pages of their products. If you’re able to do the same, you may see higher ad conversion rates too.

Need help creating highly-targeted Facebook advertising audiences? Start with Facebook’s lookalike algorithm. For tips on how to create effective Facebook audiences, check out our help center articles:

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—depending on when coronavirus will end.

One brand said, “If it ends by June, then the impact will not be so bad [since] we are a swimwear brand, and the summer season will still be available. However, if [the] summer season is canceled, then we will be hit very hard and could risk making no profit at all.”

Another brand said, “I think ultimately, we’ll get back to normal. [I] just don’t know if that’ll be next month or next year. I get less optimistic it’ll be over quickly each day.”

Some brands are also re-evaluating what they’re selling.

One brand said, “[We’ll] have to be flexible with our product offering, and switch our assortment to lower-price-point items. [We’ll] also have to offer free shipping and more frequent discounts.”

Another brand said, “[We’re] focusing on our community [and] our VIP customers. I think that businesses have to reinvent themselves [by] creating more valued content and products for this time.”

For tips on how to create VIP customer lists and other types of segments, check out our guide.

What’s working?

Brands with decreasing sales said that engaging existing customers, focusing on internal matters, and cutting overhead expenses are what’s helping them during this time.

One brand said they’re “taking advantage of the little lull in sales to put time and effort into the back end, [focusing on their] website, emails, [and] social media [presence].”

Another brand said they’re “building inventory, refining business processes, [and] assessing expansion into vertical-related markets.”

Brands with flat sales

How are they feeling?

Brands with flat sales are unsure about their future outlook, but are currently concerned that their customers may not have enough money to buy their products.

One brand said they’re worried they will “not be able to make sales because a lot of [their] customer base may be out of work.”

Another brand echoed this and said, “People will be more conscious about how they spend.”

Some are seeing activity on their site, but no purchases. One said, “Today, I have many people looking [and] more cart and checkout abandonment. I am wondering if they are just window shopping for later.”

For tips on how to increase conversion rates through signup forms and how to set up checkout and abandoned cart flows in Klaviyo, read our guides:

Others are trying to adapt their messaging and offerings to align with the current situation. When asked what they’re concerned about, one brand said, “Obviously sales, but also changing our content/sales and promotions to reflect how our customers are living now.”

What’s working?

Brands with flat sales said that staying in touch and communicating company updates with their customers through email and social media was working for them the most.
One brand said they are “staying present on social media and letting [their] customers know [they’re] still running with no delays on shipping.”

For tips on how to stay in touch with customers and continue to build relationships, check out our help articles:

More resources for businesses affected by Covid-19