COVID-19 Mindset - Response, recovery and resurgence

TRUE GLOBAL INTELLIGENCE

COVID-19 MINDSET

RESPONSE, RECOVERY & RESURGENCE How the global pandemic is shaping UK consumer attitudes and behaviour

COVID-19 MINDSET

FleishmanHillard Fishburn

CRISES ARE NOT ISOLATED EVENTS. History shows us they are collective experiences that often distinguish one era from the next, forever changing the behaviours of all who lived through them.

Organisations and institutions are facing a grave challenge in COVID-19.

The UK government has been working to increase testing to better understand the scale of the virus’s spread in the UK, and to avoid pushing the NHS beyond its capacity to deal with its effects.

In the face of this unprecedented challenge, businesses, consumers, and employees have had to adapt to the new normal and grapple with how it will impact life in the long-term.

The challenge for businesses will be understanding how to adapt along with stakeholders, actively listen and then respond with empathy.

It’s not only about making prudent and at times difficult business decisions, it is also about communicating those decisions clearly through the crisis.

FleishmanHillard’s True Global Intelligence six-country study, COVID-19 Mindset: How Pandemic Times Are Shaping Global Consumers, unveils how the virus has reshaped our perceptions, behaviours, values and societies.

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COVID-19 MINDSET

FleishmanHillard’s researchers and social scientists in its TRUE Global Intelligence practice have used this truth to guide our study, because we believe our clients must be guided by it as well. If organisations are to manoeuvre throughout the crisis and plan for the future, they need intelligence that rises above one-off tactics and shortterm strategies and deals with this crisis as all of us are: as humans in a changed and changing world. As consumers and employees, as brands and employers, as stakeholders in one another with sometimes aligned and sometimes diverging interests.

We must understand what we expect of each other and how this crisis is reshaping our perceptions, behaviours, values, and societies. It is this foundational understanding of change that must drive decisions in order for organisations and their stakeholders to emerge stronger for this unfortunate experience. Until we possess that understanding, and unless we keep it current as the crisis continuously evolves, decisions about strategy and tactics are only partially informed.

As recessionary forces take over and businesses continue to address immediate disruptions, there are longer-term trends at play as the British public re-evaluate their relationships with brands, their employers, their country, and the very systems that underpin them all.

The virus and our personal and societal vulnerability to it have both shaken UK consumers’ faith in its institutions while also, in many ways, uniting the nation as it faces a generational challenge. And in facing this challenge, many have called into question some of the core values and beliefs that have guided them through their home and working lives. Regardless of the depth and duration of the recession we are now in, there will be no return to the status quo ante. Organisations that try will only demonstrate how poorly suited they are to the new era and will be met with resistance that threatens their ability to retain customers, employees and their license to operate.

People, in their multiple roles as stakeholders, have both immediate needs and long memories, and the companies that operate and communicate authentically for the long term will be poised to take market share and talent from those that fail as well as those that merely survive.

Ben Levine Director & Partner TRUE Global Intelligence, UK

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COVID-19 MINDSET

76%

FleishmanHillard Fishburn

of UK consumers say that their view of the world has been changed, and 69% their view of the country

90%

A return to “normal� life, according to the average UK adult, is 22 weeks away, and 39% are predicting it’s anywhere from five months to two years away.

65%

expect employers to be both generous and creative in mitigating the impact of the crisis on their workers, but 81% understand that some companies will need to undertake furloughs and lay offs

report the pandemic has changed the products and services they once thought were important and 59% intend for changes to their buying behaviours to continue when the pandemic is over

Over half

Half

of people say the crisis will change their future purchasing behaviour and 42% of people say they will buy from companies that took care of employees during the crisis

43%

of employees want new pandemic-imposed benefits to be made permanent

of people say the pandemic will change how they plan their finances and life decisions

How a company is taking care of its employees is the No. 1 driver of its reputation among consumers right now!

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COVID-19 MINDSET

FleishmanHillard Fishburn

HOW WELL ARE INSTITUTIONS PERFORMING? Employers score at the BOTTOM while government and schools are top of the class Q: Please rate how well each of the following are doing in their role in responding to the Coronavirus/COVID-19 crisis. % rating institution’s performance “excellent” or “great” Top three institutions bolded for global and each country

Global

U.S.

U.K.

China

S. Korea

Italy

Germany

National government

47%

34%

50%

79%

43%

39%

37%

State/Provincial government

42%

44%

34%

70%

32%

39%

34%

Local schools

41%

50%

41%

67%

25%

32%

33%

Pharmaceutical companies

41%

34%

45%

66%

35%

39%

27%

Local/city government

39%

41%

31%

70%

28%

35%

28%

Retailers

38%

34%

43%

58%

13%

32%

45%

Local businesses

36%

42%

38%

62%

18%

29%

25%

National media

33%

32%

28%

72%

19%

24%

24%

Local news media

31%

34%

25%

64%

15%

21%

27%

Major corporations

30%

28%

22%

66%

28%

21%

17%

Employers

29%

30%

28%

58%

14%

19%

24%

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COVID-19 MINDSET

THE ROLE OF REPUTATION

ON THE ROAD TO THE NEW NORMAL Irrespective of your circumstances, the one thing uniting people right now is a desperate desire for things to return to ‘normal’.

The discussion of what that normal will look like has dominated the media and in our research it’s also an issue that is top of mind for the people we interviewed.

The economy will need to be a priority. This crisis has exposed the fine line many walk to remain financially secure and so it is imperative that we do all we can to safeguard those who depend on jobs returning and the economy bouncing back.

However, this is also a time when those with the luxury to pause and reflect should do so.

Given that most people surveyed felt that a return to normal life was at least 22 weeks away, companies should be considering how they want their actions to be viewed when we do have the benefit of hindsight.

Many of those we interviewed felt that a company’s treatment of its employees reflected on the nature of it as an organisation and that would impact on their own purchasing decisions.

As that is the case, companies that put their employees first and act with compassion and humanity are those that we will reward with our loyalty.

The majority of people want to see companies uphold real values, show their Purpose and invest in a better future. This is a time that will lead to complete transformation for many companies and organisations as they are forced to adapt to survive. Taking stock of the situation, understanding the change your audiences will expect and using this time to create a plan to get to the other side will strengthen the companies that plan for the future.

Recovery is likely to be slow and hard, it remains my hope that the time we have we use wisely to create a society that we can be proud of.

Steph Bailey Managing Director, Corporate

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COVID-19 MINDSET

Navigating consumer marketing through the crisis:

WHY BRANDS MUST STEP UP TO THE PLATE The coronavirus pandemic has cast its shadow over the world; its impact felt not just in the rawest epidemiological sense but politically, socially and economically too. Surrounding us is a world that looks, acts, thinks and feels different. Getting behind that shift and understanding the thought processes at play as paradigms reconstruct is crucial.

What is clear is that coronavirus is a huge concern for consumers and apprehension about the virus and its impact dominates thoughts, with 84% of consumers reporting a concern for their own health at this time and 73% a concern for their financial situation. Emotion, of course, has a bearing on consumption and consumer insight confirms that a re-set of spending habits is on the way, with over half of consumers saying the crisis will change their future purchasing behaviours.

63% OF CONSUMERS agree that companies should stop

advertising any non-essential products until the coronavirus emergency has passed The relationship between consumers and brands then is in flux, placing unprecedented pressure on the status quo. Importantly for PR practitioners the crisis appears to have changed the way consumers want brands to communicate with them. Nearly two-thirds (63%) of consumers agree that companies

should stop actively marketing or advertising any non-essential products or services until the coronavirus emergency has passed; a crude sell will be received truculently.

However, there remains considerable opportunity for brands to engage in more subtle forms of communication that PR, as a discipline, is inherently suited to. Analysis of consumer data elucidates further that nearly half of consumers don’t want to hear about the crisis from a company unless it is about something they are doing to help ‘me and others’ through this crisis. People-centred, purpose-led messaging then is the order of the day; this is exactly the type of nuanced, subtle story telling that PR is best at.

For those brands that are more reticent to step up to the plate, the danger of not subtly communicating brand purpose to consumers in this crisis is palpable; after all, 78% of consumers hold the scathing assessment that major corporations are not doing well in their role in responding to the crisis. The message then is clear; in the face of this crisis fortune will favour those brands that delicately communicate the right messages, in the right ways to the right consumers.

Joel Herga Consumer Media Specialist

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COVID-19 MINDSET

FleishmanHillard Fishburn

PREPARING FOR RECOVERY Businesses and business leaders that thrive will be the ones that...

1. KNOW THAT COMMUNICATION IS NOT A LUXURY DURING A CRISIS. Communication is how companies show their humanity, mitigate fallout from unpopular but necessary choices, and leverage their achievements to stand out in a marketplace that is going to grow more fiercely competitive as available market share grows.

2. ACT AND SPEAK RESPONSIBLY WITH THE NEEDS OF CUSTOMERS AND EMPLOYEES FIRST IN MIND. True responsibility is about everyday actions and communications. Employees and consumers are prioritising what companies are doing to support them, keep them safe, and give them the information they need to manage their lives in this crisis. New products, services, and donations are a lower priority.

3. ACTIVELY MANAGE THEIR REPUTATION. Reputation is either an asset or a liability, and people are primed to remember what occurs during a crisis, especially the negative. When this is over, every business’s reputation will predominantly be the sum of the choices they make during the crisis and the way they communicate them.

4. ANTICIPATE AND PLAN FOR THE FULL RANGE OF POSSIBLE OUTCOMES. We don’t know what changes will prove enduring, but we know some will and that stakeholders will fight for their interests.

5. CREATE A RESEARCH PROGRAM TO CONTINUALLY MONITOR THE OPINIONS AND BEHAVIORS OF THEIR STAKEHOLDERS. Data are more essential than ever – experience alone is not enough to drive decisions when no one has experienced anything like this before.

Attitudes and perceptions are highly fluid right now, and the winners will be the ones with upto-date, direct-from-the-source intelligence.

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COVID-19 MINDSET

FINAL THOUGHTS In the face of any immediate crisis, both consumers, public, and private intuitions are forced to adapt in order to stay the situation.

In the UK, the impact the crisis has had on the British public will and could have both immediate and long-term effects. It has caused consumers to reconsider the products and services they deem important. It has meant more Brits are saving more money for the future than normal. It has changed their view on the world generally and, for many, it means rethinking their approach to decision making and planning. It’s not just discretionary spending and saving that has been re-evaluated. Employees expect that the flexibility and benefits they’ve been afforded during the crisis will and should continue after it’s done. Further, the public will be watching how businesses respond and act during these times, taking note of companies that look after their employees, help serve the public good over capitalising on it, and communicate in an honest and authentic way.

FleishmanHillard recognises and the British public know there is no path to meeting the wants and needs of every consumer and worker.

Companies have made hard decisions already, and they’re going to have to make more.

There’s no avoiding that, and the choice before companies is fourfold: • To anticipate change or be subject to it • To be truly data-driven in the midst of the unprecedented • Who and what to prioritise in making the tough decisions • What kind of communicator they want to be – reactive or proactive Together, these are choices about who businesses want to be when the crisis passes, because they’ll be the sum of the choices they make now. Those leaders who recognise the need to communicate those choices – to explain and even defend them – will emerge with more loyal employees and customers, and a stronger reputation for having done what’s hard. That’s what leadership is, making and owning the tough choices.

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COVID-19 MINDSET

METHODOLOGY TRUE Global Intelligence, the in-house research practice of FleishmanHillard, fielded an online survey of adults 18 and older in the following markets from March 30 to April 3, 2020. Data has been weighted by gender and age in all markets.

The margin of error is ±2.9% and higher for subgroups.

Sample Size

Margin of Error

n=6,566

±1.2%

US

n=1,119

±2.9%

UK

n=1,123

±2.9%

CHINA

n=1,057

±3.0%

SOUTH KOREA

n=1,043

±3.0%

ITALY

n=1,092

±3.0%

GERMANY

n=1,131

±2.9%

TOTAL

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COVID-19 MINDSET

FleishmanHillard Fishburn

TRUE GLOBAL INTELLIGENCE

CONTACT DETAILS Lyndsay Haywood Director of Business Development & Marketing M +44 (0)7816 758316 E lyndsay.haywood@fhflondon.co.uk

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