Pivot!

In my last post, I briefly mentioned that COVID-19 has forced many businesses to pivot from their standard operations. Companies are forced to reconsider their strategies; some have shut down, while others turned to new products as a short-term solution to keep the operations going. Amongst many things that have changed during the pandemic, consumer behavior has as well.

It's important to understand that to survive, you, as a business, must remain fluid. What I mean by that is, be open to change. Be open to revisiting your current strategy and continuously redeveloping it. Yes, this will take a lot of work, but you will come out more resilient than ever.

So, first things first, break down your strategy into different steps. This way, you can always stop and adjust your course as needed. What do you need to do right now? Let's talk about consumer demand. Regardless of what line of work you are in, this pandemic has forced you to make some changes. Some companies pulled away from their regular operations and shifted towards essentials, making hand sanitizer, masks, paper towels. This immediate solution was necessary to keep employees employed, plants operating, and rent/lease being paid for. Now, this may not be an option for you, but you must think about what it is? Are you offering online services? Have you done the market research to see what your customers' needs and wants are?

Finding new ways to drive revenue is essential. The media are telling us COVID is here to stay for a long time. That is not a political statement; what is vital is that you understand how the media affects consumers' demand and behavior. Revisit your pricing and revisit your discounts and promotions. Contact a professional to discuss margins and pricing, or send me an email.

If you are unable to pivot, that decision can be detrimental to your business.

Top three consumer demand trends globally included groceries, household supplies, and home entertainment. (2) That's not to say these are the ONLY expenditures in the US, but that should speak volumes of what US consumers value. Now that you understand the demand let's look at some variations of it. There is consumption, which is what you use right away. And there is preservation, which is what you store for later.

With COVID-19, we now are seeing an additional variation. Work-from-home consumption, which is a rise in demand for certain products such as coffee and alcohol. This is expected to decrease once employment declines and people return to work. (2)

Next, let's look at your consumer behavior. We have entered a digital age, is your business prepared? Is your e-commerce platform set up? Is your website up to date? Now assess your weaknesses; what are your challenges and limitations right now, and how will you address them? Knowing how your client base behaves is crucial. Find how they shop and make your product more accessible to them.

This would be a perfect time to revisit your marketing plan.

And thirdly, have you taken a roll call of your loyal customers? Because now more than ever, loyalty really counts. You can change what you sell, but you must stay loyal to your brand. You must communicate with your customers. Transparency is crucial and more appreciated than ever today.

Studies show that your regulars are the ones that will, most likely, support your business during a pandemic:

Loyal customers are 80% more likely to download your app (1)

Loyal customers are two times more likely to subscribe to your emails and push notifications (1)

Loyal customers are three times more likely to engage with your social media (1)

Community is everything in business.

If you don't know how to conduct market research, send me an email, and I will be happy to share my contacts.

I also highly encourage you to subscribe to McKinsey Company, which posts relevant studies and consumer market data.

Thanks for reading!

Works Cited

Danziger, P. (2020, August 05). How has retail customer Loyalty FARED pre- And Post-covid shutdowns? Not well. Retrieved February 18, 2021, from https://www.forbes.com/sites/pamdanziger/2020/08/03/how-retail-loyalty-fared-preand-post-covid-shutdowns-not-well/#3d08aef514dc

Charm, T., Coggins, B., Robinson, K., & Wilkie, J. (2020, December 14). The great consumer Shift: Ten charts that show how us shopping behavior is changing. Retrieved February 18, 2021, from https://www.mckinsey.com/business-functions/marketing-and-sales/our-insights/the-great-consumer-shift-ten-charts-that-show-how-us-shopping-behavior-is-changing