Note: At Channel Signal, we are aware of the worldwide concern over the Novel Coronavirus and the safety of the people. We are sensitive to public health concerns but we also recognize the concerns for our economy. Health and Finances are very much tied together as part of our overall wellbeing. Therefore, we have partnered with Prosper Insights to provide intelligence and foresight into how this crisis will affect business as it continues to unfold.
The Growing Concern
According to new consumer data released by Prosper Insight and Analytics, a leading consumer and retail research firm, the Coronavirus is having a significant effect on consumers and the retailers they frequent. 82% of consumers 18 years and older say they have some level of concern about the Coronavirus. This situation has created the first decline in consumer confidence since July of 2019.
For many retailers and brands this is presenting a new challenge over and above the ones they are already facing as American consumers change the way they shop, research and purchase. According to Prosper, currently 21.5% of consumers plan to spend more overall online but people who are “extremely concerned to slightly” about the Coronavirus, will spend 24.6% more online, on average.
Online Shopping in the Current Environment
The Question: Over the next 90 days (March, April and May), do you plan on spending more, the same or less than you normally would spend at this time of year shopping by Internet?
During this period, it is critical that both retailers and brands stay close to their customers. According to Paul Kirwin, CEO of Channel Signal, a company measuring online product reviews, brands and retailers who are able to make adjustments that reflect new customer behavior will be the ones that come through this current situation, possibly better than before. Those that believe things will return to normal will not fare well.
As the survey data indicates, the Coronavirus is pushing more people away from crowds and to the web. As they purchase, they will stay online and record their experiences through reviews. Channel Signal will be closely monitoring and reporting to our customers.