COVID-19 is the primary focus of many businesses today, whether they are shutting down due to widespread distancing rules or trying to hire staff and ramp up production due to new demand. Other businesses are pivoting quickly, moving to create new materials such as masks, ventilators, and hand sanitizers for the fight against COVID-19. How is the pandemic changing the business environment for those who rely on ecommerce?
1. People Are Turning to Online Shopping For Essentials
Right now, consumers are stocking up on what they feel is essential or hard to come by. This includes items like medication, toilet paper, masks, and hand sanitizer. In fact, according to Adobe, "ecommerce purchases of the virus protection category of products such as hand sanitizers, gloves, masks, and antibacterial sprays have surged by 817 percent." This has also happened in a very short time period, meaning that although suppliers of these products are working quickly to fill demand, in some cases there have been shortages and corresponding higher prices for essential items.
Consumers are also acting to protect themselves and their loved ones. In addition to the items above, even those who have never done online shopping before are taking to the internet to order groceries. Pantry staples such as rice and beans are popular.
Right now, your job as a company is to be calm and clear and to provide key information to your customers. Even if you're not working in an industry that's considered essential, consider what value and security you can provide to your customers. Whether you're working at an accounting firm or in tourism, do what you can to support your community of customers in a calm and well-considered way, and they will be reassured by your thoughtful and supportive demeanor. Be honest, and be a resource.
2. Technology Is Supporting Videoconferencing and Remote Work
Cloud-based computer, videoconferencing, and hardware sales are up as people shift to working from home. The video conferencing company Zoom has seen a large rise in users, and Geekwire says that "in China, where the outbreak started, Microsoft has seen a 500 percent increase in Microsoft Teams meetings, calling, and conferencing, as well as a 200 percent increase in Teams usages on mobile devices." There is also a rising need for tech support as businesses and educators alike suddenly shift both their employees and their offerings online.
Companies that are already working remotely or with cloud-based products are ahead of the game here. If you're suddenly shifting to remote work:
- Be flexible with hours to ensure that you can retain employees. Some households don't have enough devices for all members of the household to participate in work and school at the same time.
- Increase access to tech support and devices for your employees.
- Consider having phone calls and cloud-based software in addition to videoconferences to reduce the amount of time people are in online meetings.
3. People Are Shopping Online to Beat Boredom and Connect
With many people stuck indoors, people are seeking ways to entertain themselves without leaving the house. This means that sales of items such as craft supplies, board games, and puzzles are up. While many people are turning to video games and streaming services to fulfill their desire for entertainment, there's also rising exhaustion with online technologies, since many people are using them during the day for work and for school. As a company, consider how you can meet the entertainment needs of individuals in a simple, frugal, and accessible way.
4. Frugality Is Key
While some people have employment, others have lost their jobs. According to CNBC, "economists at the Fed’s St. Louis district project total employment reductions of 47 million, which would translate to a 32.1 percent unemployment rate." Individuals in "high-contact" jobs such as hairstylists have been especially vulnerable to layoffs. For older Americans who rely on investment funds for their retirement budget, the volatility in the market has also been difficult. This means that while Americans are busy buying essentials, they have reduced spending in other categories such as restaurants, clothing, accessories, travel, and outside entertainment, at least while stay-at-home orders are in place. Many households may be impacted negatively for a long time, causing more lasting impacts on consumer spending.
In general, people are still browsing online, but they're not completing their purchases. If your business is experiencing this trend, you can work to:
- Create a more tempting offer.
- Capture emails earlier.
- Craft more individualized welcome emails to encourage people to make a purchase.
5. Companies Are Scaling Up At a Rapid Pace
If your business is growing during the pandemic, then you have other challenges with which to contend, such as difficulties managing your customer service requirements, sourcing supplies, and filling orders. Even if your products are in high demand, customer frustration can derail demand and damage your corporate image in the long term. In addition to working to train new staff or source more supplies:
- Be honest with your customers about your challenges and plans.
- Create new offers that are simplified and allow you to better navigate the complexity of consumer needs. For instance, you can create packages that are designed for a specific persona.
6. Remember Your Roots
Now is a time for innovation. As a business, you started somewhere. Maybe it was a long time ago, or maybe it was last year. Every day, businesses make the choice to innovate. They look at the data, and they create new products, offers, and opportunities for their clients. For some businesses, now is the time to reinvent themselves - to create new online offerings, new ways of working with their employees, new ways to reach out into the community, or new products to share. Your business may not have experienced this kind of challenge before, but you know how to be flexible and to respond to challenges and opportunities.
Plan for the Future
At the moment, everything is changing. Yet there's always a need to consider the future. As you shift to accommodate the new realities that COVID-19 brings, think about the future of your business. Use resources from the government and consider how you can adapt to this reality.
Across the country and around the world, people are anxious. Planning for the future of your business will help you, your employees, and your customers gain a deeper understanding of what to expect. At a time when it feels impossible to plan, planning becomes even more valuable to your business development, digital marketing, and ecommerce strategies, as it allows you to give your customers a sense of what is coming for your business in the future.
As you rethink your ecommerce strategy during COVID-19, we're here to help. At Connection Model, we understand digital marketing. Contact us today to see how we can help your business adapt to today's marketing realities.
Written By: David Carpenter
