COVID-19 has changed everything, and the impact will be felt in every aspect of our lives. You can’t stick their head in the sand or “fake news” your business back. The greatest impact isn’t in the bankruptcy of businesses of every size, in every sector and in every part of the world. COVID has taught consumers to demand digital. Research is ongoing, but Harvard Business School has already found that consumers expect retailers to meet them where they are – online and McKinsey has a study that shows that retailers must embrace agile operating models that account for consumers’ digital appetites, their expectations of omni-channel selling, and their desire for information/data processing.
Digital “transformation” is no longer reserved for “consultants” to the Fortune 1000. Every business must acknowledge and develop a digital strategy to succeed in our post-pandemic economy.
Many of the changes that businesses must accept were already coming, but the pandemic accelerated the rate of the changes and has compressed a decade’s worth of change into one year. This article outlines these changes and ways businesses can take advantages of them.
Just a Cup of Coffee
On Sunday morning, my wife and I used to walk to the local coffee shop with our dogs, order a drink, and casually start our day. It’s been a tradition for years. COVID changed that. At first, the shop was closed altogether. When it reopened in June, we were excited to get back to our routine. That is until we saw the line, a chalkboard sign recommending their mobile app, and people “in the know” skipping the queue to get their hot, fresh caffeine without the frustration of standing in line. Now, we’re just as likely to make the coffee at home before walking the dogs or placing a mobile order and driving to the shop.
COVID drove the creation of new traditions and routines.
I do appreciate the ease of the mobile ordering, skipping the line, and the speed of contactless payment. But with out COIVD, I would still be walking in. I’d order and pay in person, and wait for my dark roast.
Consumer behavior (B2C or B2B) in every industry has changed. COVID has stimulated (forced in some cases) innovation that has disrupted traditions. And we’re just getting started.
From movies premiering on streaming services and ordering your favorite brown drink for delivery to the retail disruption of financial models and the use of non-currency value to complete a transaction, COVID has put the consumer in control of the business relationship more than ever before. This control is driven by technology.
Going digital is no longer a differentiator. Its mandatory.
Digital… or Die
Going digital doesn’t mean that every business needs to have ecommerce, a shopping cart, a mobile app or an AI chatbot. While all of those applications have a real, and important, role in many industries, going all-in on digital is more fundamental than that.
Research is already emerging that both consumers and competitors are expecting technology to play a bigger role in our personal and professional lives.
Business owners and executives indicate that their businesses must embrace new technology models to remain competitive. According to McKinsey, digital adoption has leaped ahead “several years and that many of these changes could be here for the long haul.”
That said, going digital in some instances can simply be replacing the fax order form with an online web page or replacing “call for an appointment” with a self-service calendar that customers can use to set their own appointment. RMDS does recommend that business be backward compatible and not “force” the use of any technology. For example, if someone isn’t comfortable with a self-service calendar, provide a link to call or contact to the business so the consumer can set the appointment. Going digital should allow businesses to be more inclusive by allowing consumers to engage the way they want to.
The greatest opportunities for businesses to go digital are in customer interaction. Consumers demand digital solutions. We buy online, engage virtually, and become brand loyal through online channels. Customers use social media for client and technical support, we transact through digital payment methods, and expect delivery of both digital and physical products without hassle. In the last 12 months, consumer demand for digital interaction has increased by 41% to 65%. And there is no indication that consumers have any willingness to return to pre-COVID models.
Double Down on Digital
Businesses with a physical presence have seen the most dramatic technological impact due to COVID. There are many reasons – from social distancing to free delivery services – but the bottom line is we’re doing business online. From cycling classes and tele-medicine to our favorite burger, COVID has primed consumers for click-and-order. Adobe’s Digital Economy Index shows that grocery purchases are up 25 percent and overall online purchases are up 14 percent when compared to pre-COVID periods. This move to digital interaction presents opportunities for:
- Search marketing – with consumers buying online, it has never been more important to be found online. Search and social media platforms are the foot traffic of the future.
- Engagement – whether it is email, online app, or website, consumers are looking for brands to meet them online. Nike China recently developed a virtual workout offering to its mobile community and saw an 80% increase in usage.
- Breaking down the digital divide – We’ve heard the term “omni-channel” for several years. COVID has made it a reality. Innovative retailers are converting brick-and-mortar experiences. You can find livestream click-and-order opportunities, virtual consultations with sales representatives via video conference, and VR / 3D modeling. All are readily available to bring consumers into the business, all from their couch.
Just like my mobile coffee order, these new solutions are changing consumer behaviors. These new behaviors differentiate brands and create barriers to competition.
Digital Diversification
One blue horizon for businesses is the creation of digital first solutions. Consider that over 45% of US consumers have picked up a new hobby during COVID. Don’t forget that over 85% of consumers go online to search for information about topics of interest. Whether you are the afterschool program limited due to space restrictions or the chiropractor that can’t meet patients, digital products provide a light at the end of the COVID tunnel.
There are many types of digital products that allow businesses to sell expertise in a digital format that consumers are willing to buy. Courses and eBooks are staples in the content marketers’ playbook and allow for produce once, sell many times business models. Content innovations like Cameo and online memberships, convert digital access and influence from clicks to clout in ways that have real value today. We’re already seeing next generation digital possibilities. You can find real-time experts (how many real-time tax experts does any one business need…), gamification of content, and virtual happy hours that help us connect. All at the click of a mouse or a swipe of your thumb.
The key is that digital is a tsunami that can’t be stopped and it isn’t going back in the bottle. To succeed you must be willing to adapt and take advantage of the new opportunities created by the digital revolution. The one thing we know for certain is that digital is a wave that everyone needs to ride.
If the idea of digital tsunami seems overwhelming, know that you don’t need to go it alone. We’re in this with you. If you need a little help, just drop us a line, anytime.
Best Regards,
Ed Bardwell
President
Rainmaker Digital Services