Impact of the Pandemic on Company Marketing Approaches

The pandemic changed how marketers choose ways to promote. There are many options now, so they need to pick the best ones. Just following competitors isn’t enough. Marketers must choose methods that make the most impact on people’s limited time.

Glenn Burgess

The COVID-19 pandemic forced companies to swiftly adapt to new customer demands. This was especially evident in the marketing channels they embraced to engage with and sell to customers.

So, what exactly changed? The most recent edition of The CMO Survey highlights five significant trends observed from 314 marketing leaders in the U.K. We also provide our analysis and recommendations to assist marketers in effectively implementing these trends.

Companies are using more ways to connect with customers.

Around 61% of companies have started using more channels. This is seen in both business-to-business (B2B) and business-to-consumer (B2C) companies, but B2C services are leading with 77% using more channels.

Expanding channels has a benefit: people can now choose how they want to connect with companies. However, it needs a lot of work and money. Before starting, marketing teams should think about:

Will the new way attract new customers, take customers from rivals, or make current customers spend more?
Do the new channels fit with the brand and how customers feel?
Do all the ways of connecting show the same good things about the company?
Are the channels connected smoothly?
Do customers know why using different channels is good and how to switch between them easily?

Face-to-face (F2F) ways of connecting are still popular and effective.

Not many companies (only 6.7%) have made their face-to-face (F2F) ways digital. Most still prefer F2F. Additionally, about 28% of companies are starting new F2F methods.

Even though companies are becoming more digital, we thought there would be fewer F2F methods. There seem to be three reasons why F2F ways are still around.

First, people see around 5,000 to 10,000 ads every day. It’s hard to stand out in all that digital noise. So, sticking to F2F might help marketers reach people in unique ways.

Second, people feel tired from using lots of apps and screens daily. This tiredness increased a lot during the pandemic. So, many folks want more real human interaction because of this and the uncertainty of the past years.

Third, many companies see F2F ways, like stores, as places to learn about how customers act. They use fancy tech like IoT-connected stuff and tracking to learn what customers want and how they act.

We did find some differences in our study that could help you figure out if F2F ways are needed in your industry. Companies that make things are less likely to go fully digital. They’re also more likely to start new F2F ways (31%) compared to companies that provide services (22%).

Only internet-only companies aren’t starting F2F ways. New F2F ways are most common in real estate, retail, and communications. They’re less common in health care, pharma/biotech, and technology.

Companies are using social media for their brand more than before.

Almost half (45%) of companies are now using social media platforms to sell their products and services. B2C service companies are leading the way, with 61.5% of them doing so. In this category, real estate firms (100%), communications/media companies (82%), and retailers/wholesalers (70%) are at the forefront.

During the pandemic’s first year, social media platforms like Snapchat, Facebook, and Instagram had record-breaking e-commerce sales. Instagram introduced in-app checkout in 2020, which likely contributed to this trend by giving access to over 1.2 billion users scrolling through their social feeds.

The convenience of social messaging allows marketers to engage with customers in real-time and answer their questions. In 2022, more than half of U.S. adults bought something through a social media platform. A survey by Sprout Social revealed that 98% of respondents expected to use social media for future purchases.

Consider Scrub Daddy as an example. They’ve created a fun personality on TikTok and partnered with emerging social media influencers. This has resulted in billions of views, millions of followers, and increased online sales.

When we think about brands on social media, we often picture B2C brands. It’s true that these companies are more likely to sell on social media (58% of them do), compared to B2B brands (37%). However, B2B companies can also benefit.

Take Maersk, a Danish shipping company, for instance. They started a social media campaign over a decade ago to build their brand reputation. Surprisingly, 22% of their 850,000 Facebook followers turned out to be actual customers, even though they weren’t selling shipping services online at the time.

This led the company to naturally use this channel for feedback and follow-up sales. Similarly, 89% of B2B marketers use LinkedIn to generate leads. These numbers are likely to rise as younger, social media-savvy consumers move into management positions.

The direct-to-consumer (D2C) revolution is now underway.

A significant portion (24%) of companies introduced a direct-to-customer (D2C) channel in 2023. Among them, B2C product companies were at the forefront, with 41% embracing this channel.

Why are brands moving toward D2C channels? Firstly, and most importantly, D2C allows companies to directly learn about their customers’ online behaviors and needs – something that industries like consumer packaged goods (CPG) have typically missed out on. This firsthand data is becoming even more crucial due to increasing privacy restrictions on third-party data access globally.

Secondly, D2C enables companies to experiment with new strategies and gather valuable feedback. If used smartly, such experimentation can lead to more effective and efficient approaches.

Thirdly, D2C empowers companies to shape the customer experience with their brand. This holds particular importance for premium and unique brands that convey their benefits partly through the experience they provide.

Given these reasons, it’s no surprise that 55% of CPG companies have adopted D2C. B2C services have also made a substantial jump, rising from 15% in 2022 to 45% in 2023.

Tesla is a prime example of fully embracing the D2C revolution. The company directly sells its vehicles to customers through an online platform and a network of retail stores in major U.S. cities. By bypassing traditional car dealerships, Tesla gains control over the sales experience and pricing, which many customers find unfavorable.

Before entering this realm, companies should consider two key factors. First, do they have a strong digital presence to analyze and execute D2C strategies? This is vital because D2C models rely heavily on digital marketing, social media, and data analytics skills to yield positive results. Additionally, is the brand equipped with customer service structures to handle the probable increase in customer interactions from this direct channel?

To prevent partners from moving directly to consumers, a suggestion is for distributors and intermediaries to offer value-added services in areas like marketing, inventory, or logistics. Sharing customer data and analytics can also foster beneficial partnerships between organizations.

Another effective partnership approach is leveraging cross-category viewpoints to provide key partners with suggestions for new products, in-store advertising, promotion strategies, and even potential acquisitions. The core idea is to provide value!

Gamification is not being used to its full potential.

Using fun elements like rewards, points, and competitions in shopping and customer interactions, known as gamification, is predicted to grow from $9.1 billion in 2020 to $30.7 billion in 2025—a whopping 237% increase.

However, only a small 4.8% of marketers have integrated gamification into their digital channels for selling. B2C product companies (13%) and larger companies with sales of $10 billion or more (23%) are leading the way.

There hasn’t been widespread research on the impact of gamification on brand outcomes, but practical studies indicate that loyalty programs do boost the chances of customers picking a brand over rivals, being willing to pay higher prices, and increasing their spending. We believe gamification could enhance these effects even more.

The current low percentage of its use represents a missed opportunity for many companies. The key to successful gamification is a good fit with the brand’s identity & associations. For instance, Fitbit’s exercise challenges & friendly competitions help users get more from their devices, making them more likely to buy more.

The game also has to be engaging while being low-cost or free. If these aspects are missing, customers won’t participate. So, marketers need to know what makes their customers happy & use small tests to try different approaches and weigh the pros & cons.

Gamification is trickier for B2B companies. Our research shows only 1% of them use this tactic, compared to 13% of B2C companies. Starting with employees who interact with B2B customers, including sales teams, might be the easiest approach. Another option is to introduce gamification during often-dull webinars, potentially making prospects more attentive to sales pitches.

Think carefully and use new ways to connect in a smart way.

The pandemic definitely affected how marketers think about using different methods. There isn’t just one way to succeed. There are many ways to reach people now, so marketers need to pick the best ones.

Sometimes, businesses might want to join a certain way just because their competitors are using it. But people don’t have much time, so marketers need to carefully choose the ways that will make the biggest impact.