The crisis doesn’t leave out any industry or business, and its impact varies with locations, industry/business nature and scale. Therefore a look at statistics and current trends before making adaptive changes is necessary.
Many argue that online-based is the best business type in this pandemic, but it does depend on specific situations.
First we will examine 3 main external factors that affect your business during social distancing:
It’s no wonder customer behaviors are different in a crisis. But how have they changed? The article about the Overview of Digital Marketing during Pandemic has answered this question. Customers now favor locality as it’s generally safer, more affordable and convenient. Brand discovery via social media becomes a reinforced habit, making companies put more effort in online reputation management.
What’s more important here is these changes may mean new customer segments for your company. For example, older generations have flooded into eCommerce channels since the outbreak, asking for strategic changes from management.
The battlefield was crowded, now it’s overflowing. New competitors are joining because their original business can’t overcome the restriction of social distancing and lockdown. Just think of how some hotels, restaurant chains and beauty spas have switched (temporarily?) to provide essential goods during this time.
In sum, the pie is now put in front of more hungry eyes, and the decreasing customer loyalty just adds insult to injury. Get ready for an even more fierce competition.
According to a research of Ernst & Young about the pandemic impact on supply chains, it covers “all automotive and nearly all (97%) industrial products companies”.
The supply chain doesn’t only suffer from lockdown and social distancing but also from the greater imbalance between supply and demand.
And if your company operations are related to factories’, the situation is grimmer with harsher requirements about “physical spacing, contact-tracing and more personal protective equipment (PPE)”.
Another external factor to consider is the influence of your stakeholders on your business. Think about changes in the interests and priorities of your shareholders, investors, vendors, and partners, and take it into account when it comes to decision making.
After scanning the external situation, it’s time to look inside your company. Some departments will suffer more than others, but it’s wise to leave none out of your examination.
There are 2 key factors:
Some companies, especially giants with a long history, apply a lot of traditional processes. These generally require going to the office, multiple steps (sometimes bottlenecks), more time to process and make changes.
This gives smaller businesses a competitive advantage in crises as they can respond much more quickly. But they can’t compare with giants in terms of resources.
The International Labour Organization (ILO) suggested “restructuring for recovery and resilience” in response to the pandemic.
You can follow ILO’s comprehensive guide to make appropriate restructuring decisions for your business in this time of pandemic. In general, it requires consideration, transparency and due diligence during the process.
Do you know that customers expect brands to “look after their employees first and foremost” during the pandemic? Results from a Kantar report about consumer expectations during pandemic has showed that 78% want businesses to care about their employees’ health, while 62% vote for flexible working conditions.
If your business is online-based or technology-focused, moving to working from home may not be much of a trouble. But it’s another story to the rest. From preparing tools for employees (laptops, access to systems, teleconference accounts, etc.) to managing performance and well-being, you need a structured approach for it to last long.
Now that you have a 360 degree view of your business case, it’s time to make appropriate decisions in this time of the pandemic.
This is not a new trend, but the crisis has made it a must. To go digital, consider the following aspects:
Digital marketing has become the main communication channel between a business and their customers during a pandemic. If you haven’t built a digital marketing foundation pre-pandemic, it’s impossible to focus on all disciplines at the same time.
In such cases, follow the three-step guidance:
Step 1: Study the statistics and trends of online marketing in pandemic.
Step 2: Review your current business and marketing situation, including your goals, progress, resources, budgets, etc.
Step 3: Ask for help from experts. Look for a trusted digital marketing agency that offers multiple all-inclusive services. This isn’t the time for trial and error. And you’ll save a lot of resources by outsourcing the technical task to experts.
This is mainly about developing your eCommerce site and mobile app among other online shopping channels. Also, pay attention to the supply chain if you provide tangible goods.
Many businesses have started this retail strategy before the pandemic and it’s paying off.
During the pandemic, your business can try to expand commercial channels via online means, delivery and marketplace partners.
Don’t focus only on brand-owned touchpoints, invest in non-owned ones also. The downside is reduced control, but you will increase your reach and exposure. Just remember to keep 3 key channels under your full control: your physical store, website and mobile app.
Re-evaluate available positions to put them into the most suitable category: work-from-home, office-only and best-to-outsource. Remember to review performance management processes and metrics to make sure they are aligned with this big change.
Information security is crucial in your move to digital. Don’t try using unregulated sources or platforms for lower costs, as one misstep can cost you the whole business.
The goal here is to get things done more quickly during the crisis, but not to trade long-term growth for short-term benefits. Here are 3 ways to increase your agility or responsiveness:
Customer values don’t stay the same in crises. Consider these points to provide your (new) customers with unique values:
According to IPSOS research in 2020, people want brands to actively communicate helpful information, and give them a sense of security and positivity in the messages.
The pandemic has brought about an advantage to businesses with an active online presence. But over time, the advantage will lose its charm as others are quickly catching up. Don’t wait to make changes, and think far so that your business after the pandemic can still grow strongly.
The pandemic has wreaked havoc in communities and businesses. It is crucial for company management to make wise, informed and considerate decisions to keep their business afloat and even thrive during crises.
This guide provides an overview picture of key points for business consideration before any action in the pandemic. Try to apply them to your specific situation and think about prospective impact.
No matter which changes you make, “shift to digital” will be one of those as the inevitable business development. In this big move, eCommerce and digital marketing are indispensable to managing and growing business during the global pandemic.
If you’re unsure how to leverage these powerful weapons, On Digitals is proud to be your trusted partner through this bumpy road to your flourishing future.
