HomeMy WebLinkAbout091420 Packet Lodging Tax Advisory Committee Special Meeting
Monday, September 14, 2020 1:30 to 3:30 p.m. City Hall, 250 Madison St., 3rd Floor Conference Room
****The State of Emergency declared by Governor Inslee temporarily prohibits in-person
contacts with the public required by the Open Public Meetings Act and the Public Records Act.
The May 29, 2020 Public Health Order by Jefferson County Health Officer Thomas Locke also
states no in-person meetings are allowed. Council will be participating by teleconference****
Submit public comment emails to be read aloud (up to three minutes per person) to:
publiccomment@cityofpt.us or join in person via computer or tablet at http://joinwebinar.com
enter the 9 digit Webinar ID 532-630-139 or listen by phone only (listening mode only) United
States: +1 (631) 992-3221 access code: 582-896-426#
Local Dial In – (360) 390-5064 access code: 582-896-426#
I. Call to Order
II. 2020 Revenue Projections
III. 2021 Revenue Projections
IV. Priorities for 2020 4th quarter and 2021 budget
V. Chamber contract
VI. Adjourn
Next meetings: October 13, 2020, January 13, April 14, and July 14, 2021 from 3 to 5 p.m.
Mark your calendars and save the dates!
City of Port Townsend
LTAC Revenue Summarized between Gov't & Non Gov't Entities - YTD through the period ending:
Entity Type 2020 Proj 2020 YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011
Non Gov't $184,823.40 $134,670.33 $397,343.74 $385,369.43 $368,824.64 $360,091.31 $318,065.30 $279,527.10 $275,710.16 $251,051.72 $246,363.62
Gov't $55,176.60 $30,578.06 $166,672.78 $148,702.70 $139,678.42 $114,846.28 $125,793.98 $82,633.50 $90,971.98 $98,878.98 $103,806.18
Total $240,000.00 $165,248.39 $564,016.52 $534,072.13 $508,503.06 $474,937.59 $443,859.28 $362,160.60 $366,682.14 $349,930.70 $350,169.80
*Gov't includes:Boat Haven Fuel Dock / Port 2020 YTD % Collected:34.4%2020 YTD 2019
County Fair Assn of Jefferson County 2019 YTD % Collected:51.1%Other Gov't $8,851.94 $41,151.44
WA State Parks & Recreation Commission PDA $21,726.12 $125,521.34
Washington State Council of AYH Total Gov't $30,578.06 $166,672.78
Fort Worden Public Development Authority
August 31, 2020
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
2020 Proj 2020 YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011
LTAC Ten Year Revenue Trend
Total Non Gov't Gov't
City of Port Townsend
LTAC Revenue Summarized between Gov't & Non Gov't Entities - YTD
Entity Type 2020 YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011
Non Gov't $134,670.33 212,426.34$ 199,521.83 $193,588.20 $198,818.32 $164,637.02 $137,829.34 $137,879.36 $130,207.04 $127,459.14
Gov't*$30,578.06 75,560.44$ 72,455.98 $65,008.88 $55,852.32 $65,057.24 $27,814.98 $44,937.46 $48,488.74 $56,087.44
Total $165,248.39 287,986.78$ $271,977.81 $258,597.08 $254,670.64 $229,694.26 $165,644.32 $182,816.82 $178,695.78 $183,546.58
Boat Haven Fuel Dock / Port 2020 YTD % Collected:34.4%2020 YTD 2019 YTD
County Fair Assn of Jefferson County 2019 YTD % Collected:51.1%Other Gov't $8,851.94 $17,886.00
WA State Parks & Recreation Commission PDA $21,726.12 $57,674.44
Washington State Council of AYH Total Gov't $30,578.06 $75,560.44
Fort Worden Public Development Authority
August 2011 - 2020
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
2020 YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011
LTAC TEN YEAR REVENUE TREND -YTD
Total Non Gov't Gov't*
Lodging Tax Fund Preliminary 2019 Results, 2020 Projected, & 2021 Proposed Budget
FOR DISCUSSION PURPOSES 2017 Actual 2018 Actual 2019 Actual 2020 Budget
2020 w/50%
reduction April-
Dec 2021 Proposed
Revenues
Lodging Tax 508,503 534,185 564,313 540,000 240,000 324,000
Investment Income - 1,616 3,811 3,500 1,696 627
Total Revenues 508,503 535,802 568,124 543,500 317,232 324,627
Expenses
Recipient Expenses
Jefferson County Chamber of Commerce Visitor Center Operations 121,150 176,000 293,500 303,000 192,208 -
CP Communications & Advertising Marketing 146,268 161,991 - -
Winter Marketing Marketing 20,000 21,526 - -
City of Port Townsend Miscellaneous - Facility Waivers 6,835 9,040 - -
City of Port Townsend Performing Arts Study 10,000 - - -
NW Maritime Center Sponsorships - Wooden Boat 10,000 10,000
Arts Commission Sponsorships - Arts Events 10,000
Creative District Sponsorships - Grant
City of Port Townsend Sponsorships - Facilty Rental Waivers 9,600 10,000 -
Fort Worden Infrastructure 30,000 25,000 25,000 25,000 25,000 -
City of Port Townsend Big Belly Contract 9,810 10,300 10,300 10,300
City of Port Townsend Printing & Publishing - 3,500 3,500 -
Downtown Lighting Project Winter Lighting (tourism infrastructure)52,205 15,000 15,000 15,000
Downtown Lighting - Additional Funding Tree well lighting - 50,000 50,000 -
City of Port Townsend Restroom Fund Reserve - -
City of Port Townsend Debt service transfer 100,000 125,000 125,000 125,000 125,000 125,000
City of Port Townsend General Fund O/H Allocation 9,361 12,838 9,908 21,824 21,824 15,833
Total Expenditures 443,614 541,395 545,023 563,624 442,832 166,133
Revenues Less Expenses 64,889 (5,593) 23,101 (20,124) (125,600) 158,494
Beginning Fund Balance 187,612 252,501 246,908 270,009 270,009 145,264
Ending Fund Balance 252,501 246,908 270,009 249,885 145,264 303,758
The Chamber of Jefferson County is submitting Y-T-D financials and projections for the balance of 2020 a
per dialogue with the City Manager of Port Townsend. The attached have been passed through the
Chamber Board of Directors and moved forward to the City of Port Townsend Manager and this
Committee with approval of the Executive Board.
Some negotiations for downsizing commitments and final costs for required consolidation projects
remain pending and the totals represented in the worksheet are provided with the best of intent and
information updated on September 9, 2020.
We started 2020 off according to plan and with some efficiencies in process that we anticipated would
affect some revenue that we hoped could be reassigned to additional Co-Op marketing efforts. The
Nimitz arrival in February gave a bit of a bump to all our businesses with over 5000 visits to the
community during their 3.5 day stay. Sadly, almost immediately post that, COVID-19 came into our
universe and the world changed.
Most of our Co-Op partners cancelled as they were cancelling the events for which their marketing was
targeted. We were able to cancel some of those ads and pick up the others. We had been selected
through a competitive process with the Port of Seattle for a 2020 Spotlight Ad which was a great
opportunity for us and Co-Op partners however given the pandemic traffic at SeaTac we were
fortunately able to cancel our participation for this year as did many selected participants who were far
enough into the calendar (we were Q3/Q4) to qualify for cancellation.
As a member of the OPTC marketing committee, I have been working to keep additional costs for all of
us minimized and currently remain in negotiations as to the final reduced dollar amount, we will pay for
2020. I have advised OPTC of their great value as a partner however funds will remain limited in the
immediate future and there will be no Fall/Winter campaign participation above and beyond our
contractual obligations. They are currently launching a multi-media Fall campaign. This is in alignment
with the $8M King County Q4 Tourism Recovery Plan. We have launched a “Staycation” plan here
through social, eblast and web that is meeting with positive response and documented in the marketing
report attached. “We all need something to look forward to. It is time to feel that feeling once again
because there is nothing more exciting than planning that next perfect getaway. Right now, exploring
our backyard safely is a way to support our community and when the time is right, we look forward to
welcoming back visitors, too” Explore PT!
In coordination with multiple discussions with the City Manager of Port Townsend and the Chamber
Board of Directors we have produced a consolidation plan for the VIC which allows us to remain at the
current plaza but migrate the Visitors Center into the Chamber facility at approx. 25%-35% of the
current footprint, keeping the “at risk” volunteers on hiatus and installing “chat” software to facilitate
staff response to queries. A 50% staff position has been dedicated to the VIC responsibilities outside of
marketing. Currently, visitor packets, maps, etc. are available outside the Chamber daily and have been
since the start of the state mandated closure. The iMap, itinerary building Chamber web project, has
been fully integrated and et with success on Enjoy PT and will assist in expanding VIC services to meet
audiences shifting priorities. The VIC, in a consolidated format, will be physically open as early as Phase
3 implementation however we have met and continue to meet the needs of all our visitors who reach
out to us in person, via phone, web or email since the start of the pandemic.
The financials attached show the Q4 plan in the “Yellow” column and the 2020 actuals as the second
column from left “projected”. The City LTAC funds are now and have been since my arrival in this role,
separate from the Chamber with the County LTAC program, a very small county business model also a
separate class from the Chambers Membership funding. We market all our businesses in all areas of
Jefferson County as part of our Chamber function, but not one area specifically with its own budget.
That said, the pandemic has caused us to migrate a great deal of Chamber staff time to running the VIC
in lieu of the volunteer pool and replacing a VIC staffer who sadly had to retire and leave the state due
to a serious illness just pre-Covid. Our new model will work for the rest of this year and we will be
looking at the relationship with the City for 2021 to determine how we move forward with the
Community Concierge program we would like to roll out that could greatly benefit tourism in PT.
Attached to this report is a .pdf of a US Travel Association web meeting a few weeks back that may
provide some additional insight into the current and future national observations of our tourism
industry.
We look forward to continuing our service to the City of Port Townsend though this crisis and assisting
our partners and businesses in the process and pivots necessary to revitalize our community.
REV LTAC Q4 Budget
CVB/DMO Consolidation
2020 2020 2020 2020 REV Q4 NOTES
Lodging Tax Revenue $550,500 $550,500 $550,500 $550,500 City Projection
Total Revenue.............................$550,500 $550,500 $250,000 $250,000 $240,000
Budgeted Projected
Actuals Low LTAC
REV
Projected
Actuals
Consolidation
Plan
High LTAC Low LTAC Consolidated Notes only column is September through December 2020
VIC Costs
VIC Occupancy $21,750 $21,750 $21,750 $21,750 $2,200 approx pending final Chamber lease renegotiation
VIC Operational Expenses $9,647 $9,647 $9,647 $9,647 $2,000
VIC Volunteer Expenses $7,600 $4,500 $4,500 $4,500 $300 recruiting, retraining, training
VIC Consolidation one-time $4,000 $4,000 migration technology, facilities, signage, electrical
Sub-total $38,997 $35,897 $35,897 $35,897 $8,500 storage restructure.copier system migration
Human Resources
VIC Staff $8,160 $8,160 $8,160 $8,160 $5,000
Payroll Taxes/Insur.$1,224 $1,224 $1,224 $1,224 $1,000
Administrative Oversight $15,000 $13,296 $12,000 $6,000 $3,000 transition, chat integration,ongoing social, film
DMO Com. Project Specialist $18,400 $9,200 $6,100 $6,100 $0
Staff coverage for VIC - Covid $79,910 $79,910 $67,800 $67,800 $0 included in Admin Fee
Sub-total $122,694 $111,790 $95,284 $89,284 $9,000
Advertising/Marketing Ann. Bud Ann. Bud Ann. Bud Ann. Bud Q4
PT brochures $4,300 $4,300 $4,300 $4,300 $0
Advertising (media ad buys, budgeted $39K)
Co-Op OPTC $0
WA Visitors Guide $2,500 $2,500 $2,500 $2,500 $0
Coho Magazine, Annual Co-op$7,500 $7,500 $7,500 $7,500 $0
Stand-Alone PT Advert.
Seattle Gay News $1,000 $1,000 $0 $0 $0
Local Media $2,500 $1,850 $1,000 $1,000 $0
PT Leader Getaway Guides $2,500 $3,343 $2,500 $3,343 $0
Seattle Met $2,204 $6,204 $2,204 $2,204 $0
Statehood $2,269 $4,269 $2,269 $0 $0
SIP $2,780 $0 $0 $0 $0
NW Adventures Magazine $4,320 $0 $0 $0 $0
Fall Campaign $3,400 $0 $0 $0 $0
Winter Campaign $6,000 $6,000 $0 $0 $0
SeaTac Spotlight $4,500 $0 $0 $0 $0
Sub-total $45,773 $36,966 $22,273 $20,847 $0
Collateral and fulfillment
• Printing pad maps, lodging inserts$4,000 $4,000 $4,000 $4,000 $0
Sub-total $4,000 $4,000 $4,000 $4,000 $0
Technology Updates
Web updates/social media $5,000 $6,200 $5,000 $4,000 $1,000
Digital marketing & maximize SEO$15,000 $15,000 $12,000 $10,000 $2,400
Video Content $1,500 $1,500 $700 $700 $0
Consolidation integration $1,200 chat function license and integraton
Sub-total $21,500 $22,700 $17,700 $14,700 $4,600
Partnerships
Visit Seattle membership $0 $0 $0 $0 $0
WTA membership $1,000 $1,000 $1,000 $1,000 $0
Olympic Culinary Loop $1,275 $1,275 $1,275 $1,275 $0
Sub-total $2,275 $2,275 $2,275 $2,275 $0
Contracts
Olympic Peninsula Tourism Commission$26,000 $26,000 $23,625 $21,625 $2,500
National Parks Program $3,400 $3,400 $3,400 $3,400 $0 updates/responses incuded in admin fee
Sub-total $29,400 $29,400 $27,025 $25,025 $2,500
General Marketing & Promotion Total$102,948 $95,341 $73,273 $66,847 $7,100
TOTAL EXPENSES:$264,639 $243,028 $204,454 $192,028
city has paid through June 2020 on contract
1
Heart+Mind PulseSM
Expectations, Emotions,
and Segments:
The Effect of Rising COVID-19
Cases on Consumer Confidence
July 2020
Mike Dabadie
CEO and Managing Partner
Pg. 2
Expectations
Three Quarters Expect a Second Shelter-in-Place Order
Pg. 3
Q: How likely do you think it is that the United States will see a second wave of coronavirus cases in the fall that shuts down the economy again and leads to new
stay-at-home and shelter-in-place orders?
Q: How likely do you think it is that your state will see a spike in coronavirus cases that leads to a second shelter-in-place or stay-at-home order?
22%
29%
23%
24%
30%
27%
20%
14%
5%
6%
Your State
United States
Extremely Likely Very Likely Somewhat Likely Just a Little Likely Not at All Likely
80% Likely
75% Likely
Source: Heart+Mind Strategies CV-19 Tracking; July 2020
Behavioral Changes to Life are Expected to Be
Permanent
Pg. 4 Source: Heart+Mind Strategies CV-19 Tracking; July 2020
7%
12%
17%
22%
27%
32%
3%8%13%18%23%28%33%38%43%
Ne
w
R
o
u
t
i
n
e
s
D
e
v
e
l
o
p
e
d
Routines Missed the Most
Eating/Cooking
Exercising
Connecting
with family
Connecting
with friends
Practicing
faith/spirituality
Learning
Balancing
work & home
Getting work
done
Educating
children
Entertaining myself
Travel
Pursuing hobbies
Parenting
Managing
mental health
Managing
physical health Using
technology
New Routines Forming That Could Last Longer
Pg. 5
Size of marker indicates percentage
of consumers who expect routines
to change permanently
Managing
finances 71% expect to have
some of these new routines
to change permanently
90% miss at
least one of their
routines
Source: Heart+Mind Strategies CV-19 Tracking; May to July 2020
Balance Wins Out
Pg. 6 Source: Heart+Mind Strategies CV-19 Tracking; July 2020
Smith believes we must balance public
health concerns with economic
concerns. A complete collapse of our
economy and financial systems creates its
own public health concerns.
Jones: We must put all of our energy and
resources into protecting public health.
If there are consequences of that focus, we
will deal with them after we have contained
the coronavirus.
54%
46%
Male
Gen Z
Young Millennial
Child at Home
GOP
Conservative
Moderate
Lower Income
Some are making a Trade-off: Rationally and
Emotionally; Attitudinally and Behaviorally
Pg. 7 Source: Heart+Mind Strategies CV-19 Tracking; July 2020
Likely that US will have second wave of CV-19
Likely US economy will shutdown again
Open the
Country/My State;
Lift Restrictions
88%
Even though Americans believe that a second wave will happen and
that the economy is likely to shut down again, some are willing to take
on more personal risk.
Q: When are you likely to do each of the following?
Work Is Expected to Return Well in Advance of
Childcare; Moms Growing Anxious and Stressed
7%
10%
21%
14%
13%
17%
25%
20%
20%
20%
19%
18%
17%
20%
14%
17%
16%
10%
Let kid return
to school
Let kid return
to daycare
Return to work
Next Week Next Month 2-3 Months 4-6 Months 7-12 Months More than Year
Pg. 8 Source: Heart+Mind Strategies CV-19 Tracking; July 2020
What Employees Expect at Work
Pg. 9
Source: Heart+Mind Strategies. Base: Qualitative Community (n=729)
Q. What are the required or ‘must-do’ practices you expect your employer to enact in order to protect your mental and emotional health and well-being, and that of your co-workers?/ Q. What are the ‘nice to have’ practices you would like to have your employer to enact in order to protect your mental and emotional health and well-being, and that of your co-workers? / Q. What are your responsibilities –NOT your employer’s responsibility -in the workplace in order to protect your physical health and safety?
Health and Safety Practices Must Have Nice to Have My Responsibility
Require wearing face masks ●●
Require social distancing ●●
Flexibility to work remotely ●
Provide temperature checks ●●
Frequent sanitizing –especially common areas ●●
Regular handwashing ●
Sanitizing stations/Hand sanitizer/Wipes ●●
Provide PPE ●
Provide safety/CDC guidelines ●
Encourage sick days/quarantine ●●
Plexiglass barriers between desks/customers ●
Reduce capacity at office/onsite locations ●
Provide gloves ●
Offer mental health days ●
Offer COVID-19 testing ●
Flexible work schedules ●
“Separate our cubes so
they aren't so close together or
add some type of plexiglass
barrier.Provide masks and
hand sanitizer. Clean and disinfect
the area regularly.”
"I am responsible for my
health,for making sure my
area is clean and sanitized
even if the cleaning crew has
already done so during after-
hours.I'm also responsible for
washing and sanitizing my
hands on a regular basis.
Wearing a mask is my
responsibility regardless if my
employer requires it or not
to keep me and my fellow
workers safe."
Masks Usage by Country: US at 73%
Pg. 10 Source: BBC YouGov
Attitudes vs Behavior:
Our observational
and ethnographic
results suggest that
consistent mask
usage is no more
than 50% in the US.
Pg. 11
Expectation Section/Q&A:
1.Communicate What to Expect
2.Be Realistic and Honest
3.Manage
Pg. 12
Emotions
-1
-6
-6
-6
-6
-7
-8
-8
-8
-9
-11
-14
-14
-24
-27
-27
-31
11
2
-11
Getting Better
Getting Worse
Concern for others
Concern for Others Down Significantly; Security,
Social Order, Freedom are Worse
Security
Social Order
Freedom
Productivity
Sense of Belonging
Well-Being
Accomplishment
Enjoyment
Tolerance
Inclusiveness
Peace of Mind
Fulfillment
Self-esteem
Satisfaction
Success
Happiness
Pride
Dependability
-10Pg. 13 Source: Heart+Mind Strategies CV-19 Tracking; June to July 2020
Pg. 14
Feeling that I belong Social Order
Feeling safe
and secure
Having peace of mind
Having high self-esteem
A feeling of personal pride A sense of happiness
Caring for future generations
A feeling of self-confidence
A sense of freedom and choice
I feel healthy
A sense of accomplishment
A sense of pride in my country
A feeling of being a good parent or
family member
A sense of well-being
Negatively Impacted
No Impact
Positively Impacted
Please indicate the extent to which the coronavirus pandemic is currently impacting each of these.
Source: Crosby Textor May to June 2020
Human Needs and Values are Being Compromised:
Safety, Freedom, Peace of Mind Taken Away
Source: Heart+Mind Strategies CV-19 Tracking
Division Is Widening As Controversy Reigns
Pg. 15
0%
10%
20%
30%
40%
50%
60%
Q: Overall, would you say the outbreak of the coronavirus is bringing our communities and the people in our country closer
together and making us more unified, or is it driving us further apart and making us more divided?
Bringing Us
Closer Together
Not Making A
Difference
Not Sure
Driving Us
Further Apart
March
2020 July
2020
Source: Heart+Mind Strategies CV-19 Tracking
Inequality Issue is Real to Americans: It’s about Human
Mistreatment Assessed Against a Moral Framework of
Systems Injustice
Pg. 16
•81% -Believe we need to continue making changes to treat Blacks equally to
Whites
•74% -Support protests following Floyd’s killing
•69% -George Floyd incident sign of broader problems
•67% -Believe criminal justice system favors Whites
•67% -Believe racism is a big problem in our society today
•57% -Believe police more likely to use force against Blacks
Source: Heart+Mind Strategies CV-19 Tracking; June 2020
African Americans Express Positive Emotions;
Whites Negative Emotions
Pg. 17
33%
23%
60%
43%
38%
34%
47%
31%
0%
10%
20%
30%
40%
50%
60%
70%
Hopeful Optimistic Concerned Worried
Caucasian African American
Q: Please select the words below that best describe the way you feel right now in light of current events.
Source: Heart+Mind Strategies CV-19 Tracking; June 2020
Are Boycotts and Punishing Brands More Likely
than Rewarding a Brand?
Pg. 18
Source: Ad Age July 2020
•While people say they want to do the
socially good thing, if they do not see
enough benefit for themselves, they will
revert to what’s best for them.
•Is their decision going to make enough of a
difference if others aren’t also making that
decision? #FOMO can cause doing what’s
socially acceptable.
•Behavioral data shows that it’s more likely
consumers will actually avoid
brands/causes that don’t align with their
values vs going out of their way to reward
brands/causes.
•Punishing a brand is more likely than
rewarding a brand.
Source: Heart+Mind Strategies
Pg. 19
Emotion Section/Q&A:
1.Values: Individualism &
Collectivism
2.Humans, Systems, Moral
Frameworks
3.Being Authentic
Pg. 20
Segments
New Consumer Segments Stable Over 15 Weeks
Pg. 21
Anxious WorriersConcerned RealistsHopeful Optimists
23%54%23%
64% Male
60% Reopen now
50% Kids at home
+12 Trump over Biden
Young Millennial, Silent
Strong positive emotions
Travel: Risk Takers, Faint
Signals
50% Male/Female
50% Reopen now/Stay closed
Skew Multicultural
+1 Biden over Trump
Gen Z, Gen X
Balance of emotions
Travel: Cautiously Curious;
Moderate Signals
80% White
69% Female
67% Stay closed
23% Unemployed
+22 Biden over Trump
Older Millennial
Strong negative emotions
Travel: Wait and See; Needs
Full PermissionSource: Heart+Mind Strategies CV-19 Tracking July 2020
Hopeful Optimists Highest in Mountain/South
New England
(16%)
Mid-Atlantic
(21%)
South
Atlantic (22%)
East North
Central (20%)
East South
Central (25%)
West North
Central (19%)
West South
Central (22%)
Mountain (23%)Pacific/West (20%)
Most Hopeful Optimists
Moderate
Fewest Hopeful Optimists
Showing % Hopeful Optimists
Source: Heart+Mind Strategies CV-19 Tracking July 2020Pg. 22
Concerned Realists Everywhere, Central Highest
New England
(44%)
Mid-Atlantic
(40%)
South Atlantic
(44%)
East North
Central (49%)
East South
Central (46%)
West North
Central (54%)
West South
Central (49%)
Mountain (52%)Pacific/West (45%)
Most Concerned Realists
Fewest Concerned Realists
Moderate
Showing % Concerned Realists
Source: Heart+Mind Strategies CV-19 Tracking July 2020Pg. 23
Anxious Worriers Highest Northeast and Coasts
South Atlantic
(34%)
East North
Central (31%)
East South
Central (29%)
West North
Central (27%)
West South
Central (29%)
Mountain (25%)Pacific/West (35%)
Most Anxious Worriers
Fewest Anxious Worriers
New England
(39%)
Mid-Atlantic
(39%)
Moderate
Showing % Anxious Warriors
Source: Heart+Mind Strategies CV-19 Tracking July 2020Pg. 24
COVID-19 Emotional Response Segment Index By Region –Too
Optimistic?
Pg. 25
New England
(43.2)
Mid-Atlantic
(45.7)
South
Atlantic (48.6)
East North
Central (49.3)
East South
Central (53.0)
West North
Central (52.0)
West South
Central (51.9)
Mountain (54.7)Pacific/West (47.6)
Optimism
Moderate
Worried
Showing Emotional Response Index
Source: Heart+Mind Strategies CV-19 Tracking July 2020
Worker Segments: Corporate America Response
Pg. 26
0%
10%
20%
30%
40%
50%
60%
2-Apr 9-Apr 16-Apr 23-Apr 30-Apr 7-May 14-May 21-May 28-May 11-Jun 9-Jul
Business has work to do to consistently engage and engender trust among stakeholders.
FairGood/Excellent
Bad/Terrible
Q: Overall, how would you rate businesses and organizations in their response to the coronavirus crisis?
Source: Heart+Mind Strategies CV-19 Tracking
In Contrast, Federal Gov’t Trust Declines to
Lowest Point
Pg. 27
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
% Trust Completely / A Great Deal
State Gov (-2)
Fed Gov (-2)
Local Gov (-4)
66% confused by
messages from federal
government
March
2020
July
2020
Source: Heart+Mind Strategies CV-19 Tracking
18%
15%
33%
20%
15%
Total
None at all Trust a little Trust somewhat
Trust a great deal Trust completely
What Impacts Trust In Employer?
Source: Heart+Mind Strategies. Base: All Qualified Respondents (n=1,009) / Employed (n=571)
Q. How much trust do you have in the following sources of information? / There are many things that may impact trust in your employer. For you, which of the following have the most impact on the degree of trust you have in your employer?Please
rank your top 3 choices.
Trust in employer as a
source of information
Pg. 28
35% Trust
Completely/
Great Deal
Building Trust
Pg. 29
Segment Section/Q&A:
1.New Segment Applications for your Brand
2.Keep Curiosity Alive –Journey Planning
3.Building Trust
1
Heart+Mind PulseSM
Mike Dabadie
+1 202 870 1234
mdabadie@heartandmindstrategies.com
THANK YOU
Pg. 31
Appendix
Pg. 32
Implications:
Our Top 10
Pg. 33
1. Nothing is settled yet. We are not in a
“new normal” yet. Don’t plan and don’t
communicate like it is.
Manage expectations.
Pg. 34
2. Adapt and act. Don’t be afraid to fail with
some. Thoughtful action matters right
now. You have a real window to innovate -
seek opportunity and not only to manage
risk. Start Recovery Planning now.
Pg. 35
3. But keep your eye on the long-term
impact. Short-term, quick fixes are not
enough.
Pg. 36
4. Your focus should be on adapting to
“living with the virus” rather than
“surviving”. Consider how that framing
shifts the way you see your role in the
solutions you deploy.
Pg. 37
5. Macro to micro matters. Needs and
reactions can vary widely. Understand
the segments that matter in your sector
how you need to adapt in delivery in
different situations.
Pg. 38
6. Most of the country will take a concerned
realist approach to the crisis (54%). The
rest will emotionally respond in polar
opposites -anxiously worried OR hopefully
optimistic. This has been the only constant
in our data. Find your people on this
spectrum and adapt accordingly.
Pg. 39
7. Discover how the fundamentals of the
human journey are changing right now
in your space (needs, process, and
expectations). Map solutions against the
role your brand can play to help people
pursue what they are after in a way that is
unique and authentic to who and what
you are.
Pg. 40
8. Acceleration to digital is obvious. But it
isn’t that simple. And it doesn’t work for
everyone, especially generational
realities. Consider the full experience as
you rapidly deploy. Both matter.
Pg. 41
9. Anger is building. Know where your
employees stand. Increase listening
posts and provide safe and meaningful
outlets for civil dialogue. We’re missing it
in most of our institutions. Fill that gap.
Pg. 42
10.We are facing big issues we won’t
solve. But there may be ways to boost a
sense of belonging or a respite for
peace of mind in the slice of life you
control. Find ways to meaningfully help
people feel understood.
Do it. Don’t say it.
18%
29%
31%
10%
Before COVID-19 I worked primarily
from a home office and still do
I shifted to working from home full
time due to COVID-19
I work primarily at the physical
location of my employer
I work primarily outside of my home
at various employer or customer
locations
Pg. 43
Where Employees Are Working
Work environment
Source: Heart+Mind Strategies. Data base: Employed or Looking (n=662)
Q. Which of the following best describes your work environment? / In your current line of work, how often do you work in a traditional office setting, including your offices of your employer, clients or vendors?
47%Working From Home
Work From Home more likely
among College Graduates, 100k+
Income, Gen X, Males 35-54
Source: Heart+Mind Strategies. Base: Employed (n=571)
Q. Please select the words below that best describe the way you feel right now in light of current events.
-1
-2
-4
-4
-10
-16
-18
-18
13
13
6
6
6
5
3
3
2
0
0
Getting Better
Getting Worse
How Employee Values Are Shifting
Freedom
Social Order
Security
Peace of Mind
Enjoyment
Happiness
Well-Being
Inclusiveness
Sense of belonging
Tolerance
Productivity
Fulfillment
Dependability
Success
Pride
Satisfaction
Accomplishment
Self-esteem
Concern for others
Pg. 44
Employee sense of
Accomplishment, Self-
Esteem, Pride
stronger than public at
large.
Less intensity of loss of
Freedom, Peace of
Mind, and Security.
47%45%
58%
40%
35%
40%
30%
17%
7%
11%
22%
12%
19%
12%9%
4%4%
32%
55%
61%
69%
74%
68%
75%
68%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
UK USA Australia
Government Response to Coronavirus
How well or poorly do you think each of the following groups are responding to the coronavirus pandemic?
Following another
week of intense
media scrutiny, the
British
government
continues its
downwards slide
for its response to
the pandemic. On
the other hand,
Australia’s response
rooted in managing
expectations
especially from the
fires experience.
Source: Crosby Textor.Pg. 45
April
2020
June
2020
Healthcare Tops List of Most Important Issues
Total Trump Voters Biden Voters Undecided Voters
Healthcare 41%33%51%37%
Economy 34%38%28%40%
Jobs/unemployment 28%30%23%28%
Race relations 23%13%32%20%
Government corruption 18%20%19%20%
Education 16%16%13%14%
National security 15%23%10%17%
Immigration 15%24%8%7%
High cost of living 14%12%14%15%
Crime 14%17%10%15%
Income inequality 13%9%16%12%
Environmental issues/climate change 13%7%19%12%
Guns 9%7%13%11%
Federal debt/deficit 9%10%7%9%
Criminal justice reform 9%5%11%18%
Gender equality 7%8%7%6%
Abortion 7%11%4%9%
Foreign relations 6%7%5%1%
Judicial system/courts 5%6%4%5%
Corporate corruption 5%5%5%5%
Fears about Coronavirus
For each of the following, please select which aspect of the coronavirus pandemic worries you the most, and which
aspect worries you the least.
People have strongly refocused their concerns on
the economy, but core fears have remained in place
despite some uptick in economic outlook.
Source: Crosby Textor.
Relative Support and Impact Differ for Corporate Initiatives
Pg. 48
Support Rank Impact Rank
Require training on racial discrimination for law enforcement agencies.1 1
Authorize state attorneys general to investigate and hold accountable departments engaged in a perceived pattern of practice or abuse.2 2
Encourage greater integration between law enforcement and mental health experts so that police can avoid escalation when responding
to medical, mental health, or welfare calls.3 5
Encourage and support individual learning and growth on racial discrimination and related topics 4 7
Have companies and brands take action to reduce social and racial injustice.5 9
End practices written into current police union contracts, including allowing officers to receive paid leave or paid desk-duty after being
charged with a felony offense and prohibiting civilians from having the power to discipline, subpoena or interrogate police officers.
6 3
Encourage companies to increase diversity initiatives 7 11
Curtail police union political contributions so that they have less influence over local policy makers who are supposed to provide
oversight 8 13
End 'stop-and-frisk' policies that allow police to temporarily detain, search and question people on the street.9 6
End Qualified Immunity, which is legal doctrine in United States federal law that shields government officials, and specifically law
enforcement, from being sued for discretionary actions performed within their official capacity.10 4
Establish Universal Basic Income, which provides a set monthly payment to all Americans regardless of their income level.11 8
End the federal funding program that encourages police department purchase of military grade equipment 12 10
End asset forfeiture, which are programs that allow local law enforcement agencies to seize and keep assets (money, cars, guns)
recovered during arrests.13 15
Consumer boycotts of companies and brands that do not proactively take action to reduce social and racial injustice.14 14
Eliminate police unions 15 12
Eliminate traditional police forces and replace them with community task forces 16 16
0%
10%
20%
30%
40%
50%
60%
70%
80%
0%5%10%15%20%25%30%35%
Most Impactful
Su
p
p
o
r
t
Supported but
Less Impactful
Less
Supported and
Less Impactful
Supported and
Impactful
Eliminate traditional police forces
Consumer boycotts
End asset forfeiture
Curtail police
union political
contributions
Company Diversity
Initiatives
Companies and brands
take action
End police
department purchase
of military equipment
Eliminate police unions
Establish Universal Basic Income
Training on racial discrimination
Individual Growth
and Learning
End Qualified Immunity
End 'stop-and-frisk' policies
Revise Police Union
Contracts
Authorize state AGs to
investigate and hold
departments accountable
Mental Health/ Police Integration
Less
Supported and
Impactful
Total Population
Support and Perceived Impact
Source: Heart+Mind Strategies CV-19 TrackingPg. 49
Underlying Forces are Shifting
Ideology
41%Conservative
37%Liberal
13%”Hard” Moderate
Universal Basic Income
56%Support
18%Neither
26%Oppose
Pg. 50
Support Universal Basic Income by Ideology
46%Conservative
72%Liberal
53%Moderate
Source: Heart+Mind Strategies CV-19 Tracking
We can last in isolation only 2-4 more weeks.
How much longer do you think you can remain in isolation for without seriously compromising your physical and/or mental health? Source: Crosby Textor.
Most believe they have about 2-4 more weeks of isolation in them before their mental and/or physical health is seriously
compromised.
0%
5%
10%
15%
20%
25%
16+151413121110987654321
More WeeksUKUSAAustraliaIndiaHong Kong
Pg. 51
Source: Crosby Textor
Uptick in Personal Travel
Q: When are you likely to do each of the following?
5%
8%
4%
11%
10%
9%
10%
13%
13%
12%
13%
17%
19%
20%
16%
16%
15%
19%
17%
18%
20%
20%
21%
19%
15%
36%
29%
23%
20%
30%
Personal trip by
plane/train
Biz trip by
plane/train
Personal trip by
car
Biz trip by car
Public
Transportation
Next Week Next Month 2-3 Months 4-6 Months 7-12 Months More than Year
+4
+6
+6
Source: Heart+Mind Strategies CV-19 TrackingPg. 52
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Next Week Next Month 2-3 Months 4-6 Months 7-12 Months More than Year
Biz trip by car Biz trip by plane/train Concert Sporting event
Q: When are you likely to do each of the following?
Pg. 53
Cu
m
u
l
a
t
i
v
e
%
June 21+Dec 20 -June 21Oct 20 -Dec 20Aug 20 -Oct 20July 20
Expected Biz Travel Reaches Majority in
October: Manage Expectations
Source: Heart+Mind Strategies CV-19 Tracking
Research Methodology
Pg. 54 Source: Heart+Mind Strategies CV-19 Tracking
•Online, US national survey of n=1,000
•US adults age 18+
•Weekly field starting in March 2020; field Tuesday-Thursday
•Unless otherwise noted, the most current data in this presentation is from
July 7-9, 2020
Contact
Pg. 55 Source: Heart+Mind Strategies CV-19 Tracking
•Mike Dabadie, CEO and Managing Partner
•+1 202 870 1234
•mdabadie@heartandmindstrategies.com
•Other reports from our tracking can be found on our CV-19 website:
•http://heartandmindstrategies.com/covid-19/