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A new normal defined by discontinuity

Dr Nick Baker Chief Research Officer 04/06/2020

Right now, everything is different… two in five of us have seen income decrease, one in five has been furloughed and job security has declined for a quarter of us (24%).

The question for many organisations across the US and beyond is 'where are their customers on this change curve?'

A shock like this, of this magnitude, in the way it has impacted all facets of our lives in business and at home will create a discontinuous shift. As the crisis began to hit in March:

  • Airlines for America, an industry trade organisation that advocates for major US airlines, asked for $50 billion in assistance from the federal government through $25 billion in grants, $25 billion in low-interest loans, and significant tax relief (which includes a $4 billion return for taxes they’ve previously paid)
  • US President Donald Trump invoked his authority under a Korean war-era law, the Defense Production Act, with regard to 3M’s N95 respirator masks.
  • Home delivery retailers and box schemes like Riverford saw demand skyrocket over the last week due to the coronavirus outbreak and have closed to new customers with waiting lists stretching into the tens of thousands

The transition to a new normal is far from over and the shifts which are currently forming are changing how we live, how we work, and how we use technology will emerge more clearly over the coming months.

In the US, the world of contactless commerce could be bolstered in ways that reshape consumer behaviour forever.

Juniper Research reports that contactless payments will triple to $6 trillion worldwide by 2024, from about $2 trillion this year, as OEM mobile wallet transactions increase and banks expand the use of contactless cards.

The question for many organisations across the US and beyond is ‘where are their customers on this change curve?’ Are their prospects going to be further attracted by swifter progress on contactless adoption and mobile payments or is this less of a priority for their brand?

Institutions that see opportunity for reinvention in this crisis, that embrace the challenges it brings and that make the most of better insight and foresight, as the world evolves, will disproportionally succeed.

Comprising 60,000 interviews every year, BrandVue Financial Services is a daily tracking survey of customers at the UK’s top 220 financial services brands operated by Savanta.

Covering retail banking, loans, credit cards, insurance, mortgages, investments and FX, the BrandVue dashboard gives you clarity on exactly what drives brand performance in the marketplace and how to improve it.

The current crisis will reveal not just vulnerabilities but opportunities to improve the performance of businesses. Insight and foresight will power recognition of these opportunities as well as guide how to exploit them and provide customers enhanced experiences and solutions or products which meet their currently unmet n

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