Consumer Behavior

Consumers all about local business thanks to pandemic year

Photo by istock.com

June 28, 2021

Nearly half, 41%, of global consumers switched to supporting local retailers during the 2020 pandemic year and nearly most, 94%, plan to continue their support.

That's a prime finding of a Freshworks Inc. study regarding how the pandemic impacted Main Street businesses and the adoption of digital tools and technology.

The study polled 10,500 global consumers in partnership with Dynata, according to a press release on the findings.

The research suggests it will now be a business mandate for companies across all markets, sizes and industries to meet ever-rising customer expectations and deliver seamless delight through a range of in-person and digital channels.

"Main Street is poised for a breakout year as they lead the revitalized economy both in person and online," Girish Mathrubootham, Freshworks CEO and founder, said in the release. "We believe providing world-class digital engagement is no longer a nice-to-have but rather a business imperative to continue to delight customers no matter how they consume goods and services."

Additional findings include:

• Nearly half (48%) of global consumers said small businesses got better at customer service during the pandemic, by starting to offer online ordering (53%), delivery service (52%), and providing a better level of personalization (47%).
• One in three survey respondents called out innovations like improved websites (34%) and better digital supports like chatbots (33%).
• During the same period, less than a third (29%) of global consumers thought large businesses got better at customer service while most (71%) said large businesses stayed the same or got worse during the pandemic.
• Consumers plan to extend the local boom and say that post-pandemic they will prioritize spending on domestic and international travel (41%), eating at restaurants and bars (31%), and shopping for clothes and accessories at malls (30%).
• One in four consumers (25%) said they were extra kind during customer service exchanges during the pandemic, with India (42%), Brazil (39%), Singapore (27%) and the U.S. (26%) the kindest. Nearly two thirds of the respondents said when they feel like customer service is wasting their time, they are less likely to be understanding or empathetic.
• Over 70% of those surveyed said companies that grew during the pandemic should be giving back, with discounts and sales, lower prices or giving back to the community.
• Almost one quarter of consumers support "cancel culture," meaning customers or fans will stop supporting a company or person if they do something perceived as inappropriate or rude.

"Customers have been accommodating as companies navigated the challenges of the pandemic, but they are running out of patience — and have higher expectations than ever," Stacey Epstein, chief marketing officer of Freshworks, said in the release. "Our research reveals that customers seek superior experiences from companies regardless of size and that local companies are gaining an edge with quicker, more personal service that has been supported by digital technology. In the post-pandemic economic boom, we believe companies that delight their customers across in-person and digital channels will seize the lead."