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The Give and Take
With Walled Gardens
CORE
Balancing platform limitations, the customer
experience and performance transparency
CHALLENGE
YOUR
MARKETING
BELIEFS
ISSUE ONE
2020
Lessons From the DTC Revolution
Email’s Growth Potential
COVID’s Lasting Effects on Marketing
3. 33
COREIssueOne
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Epsilonepsilon.com
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Asthevirusswepttheglobe,brandschangedhowtheyinter-
actedwithcustomersduetosocialdistancingandstay-at-
homeorders.Consumerperspectivesaboutmakingpurchases
alsoshiftedwithfluctuationsinthestockmarket,skyrocket-
ingunemploymentandsupplychainissues.Asmanypeople
losttheirjobsandthosestillearningapaycheckworried
aboutfuturelayoffs,impulsepurchasingbecameinfrequent.
Messagesthatresonatedwithconsumersafewweeksprior
suddenlyfellflatandevenseemedinsensitive.
“SomebrandswanttousecampaignsthattheyshotinQ1,
thinkingiftheywait,theycanplayit,”saysAkiSpicer,chief
strategyofficeratLeoBurnett.“Butyouaren’tgoingtowant
toreleaseacommercialforyourvodkabrandwithpeopleata
raveanytimesoon.Everythinghaschangedintheworld,and
marketingneedstoreflectthebrand’svalues,whichhopefully
arerightforourcurrenttimes.”
COVID-19affectednearlyeveryaspectofmarketing
becausecrisesofthisscalechallengethecoreofbusiness
basics,saysTimothyCalkins,clinicalprofessorofmarketing
atNorthwesternUniversity’sKelloggSchoolofManagement.
Somecompanieswereleftunabletodoanysortofcommerce,
whileothersstruggledwithtoomuchdemand.“It’saveryrare
companythatcanusethebusinessmodelandmarketingthat
theyusedpre-pandemic,”Calkinssays.
Intheearlyweeksofthepandemicresponse,manybrands
pivotedmessagingandoffersasquicklyaspossible.Hotels.com
shiftedadswithitsmascot,CaptainObvious,frompartying
Adapttonewvirtualbehaviors
Asstay-at-homeandsocialdistancingorderstookholdin
thespring,customersreliedevenmoreheavilyondigitaland
mobileplatformsastheirsmartphonesbecamealifelinetothe
outsideworld.Newvirtualbehaviorsemergedandexpanded
asconsumerscompletedtheirdailytasksdigitally,suchas
curbsidepickup,telehealthappointments,onlineworkouts
andcontact-freedelivery.Andasmanypeopleworkedfrom
home,wenttoschoolonline,andconnectedwithfamilyand
friendsvirtually,videochatuseexploded.Thevideochatplat-
formZoomsawastaggering418%growthinadoptionratein
twojustmonths.
Inresponsetothesenewbehaviors,brandsproactivelyshowed
customershowtheyfitintonewroutinesandexpectations.Pizza
Hutrolledouttamper-proofseals,makingitapparentifanyone
hasopenedapizzaboxbeforeitgetstotheintendeddestination.
BeautybrandMACcreatedatooltoletcustomersvirtuallytryon
lipstickandeyeshadowsincetheycouldnolongersamplecolors
atamakeupcounterorMACstore.
Evenasphysicalbusinessesopenup,theinfluenceofsocial
distancingislikelytostaywithconsumerslongerterm.Many
ofthesenewbehaviorsmayturnintolong-termhabitsinstead
ofshort-termsolutionsexecutedincrisismode.“Youneedto
re-createthecustomerjourneyforthesetimes,andthenprior-
itizeinvestmentsbasedonwhatyoulearn,”saysBrianSolis,
globalinnovationevangelistatSalesforceandauthorofX:The
ExperienceWhenBusinessMeetsDesign.
Marketersneedtotakeafreshlookatwhatpeopleare
searchingfor,wherethey’regoing,whattheyvalueandwhat
they’refinding,Solissays.Inmid-May,forexample,“golfpush
carts”becameatop-growingqueryonGoogleassomestates
reopenedgolfcoursesbutrestricteduseofgas-poweredcarts.
Atthetime,Dick’sSportingGoodsrankedNo1.inGoogle
searchresultswiththetitletag,“GolfPushCartsforSale|
CurbsidePickupAvailableatDick’s.”
Identifynewcustomerperspectives
Consumerprioritiesarechangingasaresultofthepandemic.
Thewaypeopleinteractwithbrands—andhowtheyview
themselvesasconsumers—isfundamentallydifferentthan
itwaspre-quarantine.Spicerhasseenthreemajorshiftsin
consumerism:
•Home:Peoplearespendingmoretimeintheirhomes,
whichhasbothpracticalandemotionaleffects.Aconver-
sationSpicerhadwithSamsungcenteredonhowpeople
arerethinkingtherolethatproductssuchashomeappli-
ancesnowplay.Notonlydoappliancesneedtowork,but
peoplehaveotherconsiderationsaswell,suchas:Ismy
washingmachinequietenoughtohaveaZoomcallinthe
nextroom?Doesthevacuumcleandeepenoughtoremove
germs?Whereareappliancematerialssourcedfrom?
3BrandsThatGot
ItRightEarlyOn
Adidas
Notonlydoesitshashtag#HomeTeam
perfectlyalignwiththebrand,it’sa
fittingshoutouttoourhomebound
times.Adidas’Q1pandemicsocialmedia
campaignshowedsportscelebritiesat
home—almostallincasualclothesand
settings,justlikeus!Thebrandreinforced
theimportanteducationalmessage
ofstayinghomewhilealsohelpingits
customersconnectwiththeirheroesand
feellessalonewhilequarantining.
GuitarCenter
Byquicklyaddingonlinelessonstoits
productofferings,GuitarCentertook
advantageofthenationalmindsetof
settinggoalsforself-improvement
projectsduringstay-at-homeorders.
Throughsocialmediaandemail,
theretailerstayedincontactwhile
encouragingpeopletomakemusicat
home.Andforthosenotquiteyetready
tolearnnewchords,GuitarCentershared
musicalvideosofpopular,professional
guitarplayersforinspiration.
OrientalTrading
Intheearlydaysofshelteringathome,
orientaltrading.comofferedfrazzled
consumersanswers:howtokeepkids
busy(artkits),celebrategraduateswhile
socialdistancing(yardsigns)andhome-
school(scienceprojectmaterials).The
brandgetsbonuspointsforpickingupon
thetrendofdrive-bycelebrationparades
byshowcasingcar-decoratingkitsfor
birthdaysandgraduations,aswellas
waysforkidstothankfrontlineworkers,
onitsFacebookpageheader.
“Everything
has
changed
inthe
world,and
marketing
needsto
reflectthe
brand’s
values,
which
hopefully
areright
forour
current
times.”
—AkiSpicer,chiefstrategy
officeratLeoBurnett
withfriendstoeatingpopcornalonewithabottleofhand
sanitizer.PaneralaunchedPaneraGrocery,enablingcustom-
erstobuyhigh-demandgroceryitemsitalreadystocksinits
restaurants—suchasbread,produceandmilk—alongwith
soupsandsandwiches.Inanefforttohelpparentswithkidsat
homefulltime,TimeforKidsmagazinegaveanyoneaccessto
its2020digitaleditionsforfree,andAmazonPrimeprovided
kidswithfreevideocontent.
Whilemanybrandsmadeshort-termchangesduringthe
initialcrisis,companiesmustnowlooklongertermandbuild
thefoundationtostayconnectedwithcustomers.According
toanarticleintheJournalofAdvertisingResearch,brandsthat
reducedadvertisingspendduringrecessionsdecreasedsales
revenueoncetheeconomypickedup.Ifhistoryshowsthat
brandsthatcontinuetomarketduringdowntimeswilllikely
comeoutahead,whataretherulesofengaginginaworld
wherethe“nextnormal”isstilltobedefined?
Yes,it’sadifferentworld,but“thesearenotunprecedented
times,”SimonSinek,authorofStartWithWhyandTheInfinite
Game,saidinacompanyvideoonYouTube.“Theinventionof
theinternetputmany,manycompaniesoutofbusiness—the
oneswhocouldnotreinventtheircompaniesfortheinternet
agebutratherdoubleddownontheoldwaytheydidbusiness,”
heexplained.
Theopportunityistoshiftfromsurvivalmodetoreinven-
tionmode,tofocusonwhatwillbeinsteadoftryingtopreserve
whatwehad.
TheCOVID-19
pandemicledto
aseismicshiftin
consumerbehavior.
seismicshift
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COREIssueOne
•Nostalgia:Changegivesrisetoanxiety,andanxietytriggers
consumers’nostalgiaforhappiertimes.“We’relookingfora
bitofnostalgiaintheshowsandcontentwe’reconsuming,
downtothekindsoffoodwe’rebringingintoourhomes,”
Spicersays.“Thatcomfortandnostalgiabecomeanew
essential.”Withashifttomoreshelf-stableproducts,people
arerevisitingbrandsthathaven’tbeenintheirpantriesor
freezersforquitesometime.Spicersaysthatifthosebrands
focusondemonstratingtheirvalues,they’remorelikelyto
stickaroundinthosehomeslongterm.
•Self-reliance:Thetypicalconsumeristakingonmore
responsibilityfortaskstheywouldnormallyhiresome-
onetodoforthemoroutsource.Peoplearebeingmore
creativewithmeals,astripstothegrocerystoreand
restaurantsbecamerisky.Manymenarecuttingtheir
hairathome.Willpeoplecontinuetopayforthese
services(diningatrestaurants,gettingtheirhaircutat
abarbershop)afterdiscoveringtheycansuccessfullydo
itthemselves?Asconsumersrealizeeverythingtheycan
accomplishthemselves,brandswillbepushedtoactively
showwhytheirproductorserviceisvaluable—andulti-
matelywhyit’sworthpayingfor.
Theconsumerpointofviewshiftsconstantly,butin
pre-COVIDtimes,brandscouldnormallypivotonsmaller
scalestomakeadifference—likeofferinggluten-freeoptions
ormakingcontentavailableonstreamingplatforms.Coming
outofthepandemic,peoplearethinkingabouttheirroleas
consumersdifferently,whichwillforcebrandstomakelarger
fundamentalchangestoanticipatenewconsumerneeds.
Startfromscratch
Brandsnowhaveanopportunitytoreviseandrebuildtheir
relationshipswithconsumers.
Physically,peoplearenowondevicesandnetworksthat
weren’tpreviouslycommingled—suchasworkcomputers
onhomeIPaddresses.Additionally,moreindividualsinthe
houseareonthoseWi-Finetworksacrossdevices,making
uniqueidentificationcomplicated.Moreexistentially,people
arecravingrelationshipsandconnection.They’relikelynot
expectingbrandstofillthatneed,butanybrandthatdoeswill
berewardedforitsefforts.
“COVID-19isgoingtoaffecttheplatformsyouuse,the
contentyoucreate,theoffersyoudesignandcampaignsto
supportthoseoffers,”Solissays.“Essentially,youhavethe
opportunitytostartfromscratchandbuildthosetouch-
points,hopefullyinvestingheavilyinartificialintelligence
andmachinelearningacrossthejourney.”
Butthestakesarealsomuchhigher:Thegapbetweenhit
andmisshasgottenwiderinthistimeofincreasedsensitivity
andanxiety.
Rothy’s,adirect-to-consumerbrandthatsellssustainably
madeshoes,announceditwoulddonatefivedisposablemasksto
frontlineworkerswitheverypurchaseinAprilandimmedi-
atelyreceivedbacklashfromcustomerswhoviewedthepolicy
asaself-servingploytodrivesales.Rothy’squicklyresponded
witha“we’relistening”messagethatannouncedtheendof
thepurchase-to-donateprogramandacommitmenttosimply
donate100,000masks.
“Ifempathywasonceamarketingstrategyformessaging,
it’snowamandateforbrands,”accordingtoSpicer.However,
empathycan’tcomeacrossasfeigned.Mostinboxesarestuffed
withfaux-caringemailsfromeverybrandconsumershaveever
orderedfrom,offeringtheircondolencesbeforetheytalkup
theirexcitingnewpromotion.
Manybrandsturnedtogamificationasawayofproviding
somethingfunandvaluabletoconsumers.Diordevelopeda
cardgameforpeopletoprintoutandplaywhileinisolation;
Chick-fil-Agotkidsinvolvedbyprovidingmusicandlyrics
tothesong“Rockin’Robin”andsharingrenditionsonsocial
media;andCanva,agraphicdesignplatform,offeredafree
(andpersonalized)versionofbingo.
What’sheretostay
BecauseCOVID-19affectsconsumersdifferentlyacrossstates
andgeographicareas,brandmarketersshouldcarefullythink
throughhowarangeofconsumerswillreact.Howwillyour
campaignplayinbigcitieslikeAtlantaorNewYorkandin
smallertownsinruralareas?Andhowdoyoushiftthemessag-
ingbasedonlocation?
Concernoverhealthandsafety,especiallypersonal
contactandlargegroups,willlikelyremainwithusfor
monthsandpossiblyyears.Whilesomepre-COVID-19
behaviorswillreturnatsomepoint,manyofthechanges
thatoccurredduringthepandemicarelikelytobecome
permanent,especiallynewhabitslikevideochatswith
family,telehealthvisitswithdoctorsandvirtualworkouts
athome.
Movingforward,Solisadvisesmarketerstolookatthejour-
ney—notjusttheindividualtouchpointstheyrepresentfora
completeoverviewofthecustomer’sexperienceandwhereto
addvalue.“Thisisanopportunitytobeopen-minded,think
differentlyandallowyourselftonotknowalloftheanswers,”
hesays.“Duringthesetimes,organizationsneedtomostofall
findmoreopportunitiestobemorehuman.”
Brandsshouldlooktobuildtheirinfrastructureand
futureproductstosupportthislikelypermanentshiftto
usingvirtualplatformsandoptionswhenpossible.Even
withoutmandatorysocialdistancingguidelines,many
consumerswillcontinuetofavoronlineactivitiesdueto
theconveniencefactor.
Thecornerstoneofmarketinghasalwaysbeencreating
connectionswithcustomers.Thepandemiccreatedanew
worldwhererelationshipswithbothpeopleandbrands
becamemoreimportantthanever.Bycloselymonitoring
ever-shiftingcustomersentimentandpriorities,andleverag-
ingtoolstorampuppersonalization,businessescanleavethe
crisiswithnewlong-termcustomers.
“Whateveryousoldbeforehasanewcontext,”Spicersays.
“Whatdoesyourbourbonlooklikewhenthereisnobar?
Everyproduct,everybrandhastodoabitofrecontextual-
izingtheirproductinthisnewenvironment.There’swork
tobedone.”
ThePhasesofthe
NewEconomy
Thecurrentstateofoureconomyisnewand
unusual,saysBrianSolis,globalinnovation
evangelistatSalesforce.“Boththeeconomyand
thevirusputbusinessinaplacewithoutadefense
mechanismoraplaybookonhowtorespond,”
explainsSolis,whoreferstothecurrentshiftsas
the“noveleconomy.”“Thisiswhyweseedifferent
approachesaroundtheworldwithchaosand
competingadvice.”
Solissaysrealistic,productivemarketers
craftedathree-phaseframeworktonavigatethis
noveleconomy.
Phase1:Survive
Leadersrespondedtothecrisisbyreacting
andaddressingimmediateproblems,suchas
adoptingcontactlessdelivery.
Phase2:Alive
Brandsacceptedthedisruptionasthenewnormal
andstartedbuildingafoundationasbusiness
shiftedfromshocktostrategy.Manyfocusedon
buildingrelationshipswithconsumersbyoffering
opportunitiesforengagement—evenifthey
weren’tdirectlytiedtotheirproductsorservices.
Phase3:Thrive
Nowit’stimetomovefromrecoverytoresilience.
Businessesshouldstartproactivelybuilding
infrastructureforthenoveleconomy.
COREINSIGHT
Historically,crises
bringoutcreativity
asbothcompanies
andconsumers
meetnewneeds.
DuringtheGreat
Recessionof2007–
09,forinstance,
withmanypeople
outofwork,money
wastight.This
gaverisetomore
direct-to-consumer
brands,whichcut
outmiddlemen
tomakeproducts
easiertogetand
cheapertobuy.
Whatwillyour
transformative
movebe?Tolearn
moreaboutDTC
brands,goto
page42.
“Thesearenotunprecedentedtimes.…The
inventionoftheinternetputmany,many
companiesoutofbusiness—theoneswhocould
notreinventtheircompaniesfortheinternet
agebutratherdoubleddownontheoldwaythey
didbusiness.”
—SimonSinek,“TheseAreNotUnprecedentedTimes,”YouTube
