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COVID-19 has created 3 types of consumers – which one are you?
There’s no denying that COVID-19 has had a huge impact on the way consumers think, feel, behave and buy.
COVID-19 has created 3 types of consumers – which one are you?
There’s no denying that COVID-19 has had a huge impact on the way consumers think, feel, behave and buy.
A new report from financial services firm KPMG, A COVID-19 call to action for the Australian insurance and wealth sector, has compiled new research that indicates three types of Australian consumers have emerged in the twin health and economic crisis.
According to the report, “Many of the attitudes, behaviours and purchasing habits that consumers adopted during the immediate impacts of COVID-19 will become permanent as we shift to a new reality.”
With consumers changing their own behaviour and thought patterns, the onus will be on businesses to respond to changed attitudes and purchasing habits.
Here they are:
- Survivors
Ten per cent of survey respondents are “surviving” through the crisis – suffering significant financial impacts.
This group is likely to have lost their job or experienced a significant drop in income and is now reliant on government assistance.
These consumers have likely completely stopped their discretionary spending at this time, and tend to be more worried about their financial situation than their health at present.
- Preservers
Almost a third (32 per cent) of Australians have experienced some disruption to their financial circumstances due to COVID-19, with this group likely to have had their income impacted through either a reduction in hours or wages.
They tend to be reliant on some government support, and as a result, are likely to be spend-conscious.
- Those holding ‘steady’
According to KPMG, nearly six in 10, or 58 per cent, of consumers fall into this category.
These individuals have been able to maintain a “steady state” with little impact to their financial circumstances.
While they are less concerned with spending, KPMG has revealed that this group may limit discretionary spending anyway, given general uncertainty about the future.
Given their financial status has been maintained, this group may also be more focused on maintenance and preservation of their health.
Despite the ease with which KPMG could differentiate each type of consumers, it also highlighted that all three types of consumers displayed empowerment and more discernment of the insurance and wealth services with which they are choosing to engage.
All consumers are currently seeking better value and flexible propositions from financial services providers in Australia.
In addition, optimism is still prevalent: According to the survey, two-thirds of participants are confident or neutral about the likelihood of their financial position recovering in the next six months, despite economic indicators pointing to a longer-term recovery being needed.
KPMG also outlined a number of key trends being displayed by consumers that it expects to shape Australians long after the crisis does end.
These include: an increasing comfort around digital service provision and engagement with financial service providers, the placement of higher value on personalised connection, a renewed focus on health and wellbeing, a willingness to act for greater social good, and a “back to basics” approach to finance and investment.
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