The COVID-19 pandemic has drastically altered the ways in which institutions function in modern times, and businesses are no exception. As the economy plummets each day, millions of businesses are becoming extinct globally. The struggle to remain functional is even more challenging for a small business in a pandemic as it grapples with the effects of financial loss and other repercussions.
In these difficult times, there are several strategies which businesses are applying to remain operational. We at Brandmaximizers are supporting businesses in safely reopening their units. If you are interested in learning more about ways in which you can steer your business towards growth during the COVID-19 pandemic, here are some methods you may consider:
1. Retain existing customers using digital marketing technology
Forbes has revealed that gaining a new customer might be five times more expensive than retaining an existing one. Another research suggests that investing in customer retention by only 5% increases the chances of profit from 25% to 95%.
Considering present circumstances, a business would benefit more from utilizing its resources to retain a loyal, existing customer than acquire a new customer. People’s purchasing capabilities have changed due to the COVID-19 pandemic, and consumers prefer investing in businesses they have prior experience with. Businesses can use digital marketing tools and techniques to create offers that would appeal to their regular customer base. Email marketing, social media, and video conferencing technology can be used to deliver messages and engage with people virtually.
2. Give discounts and free offers on your products
You might think that this would hinder your business but that is not true. Demand for a platform like Zoom increased exponentially after lockdown and social distancing rules were enforced. Their customer base rose from ten million to almost 200 million in a span of a few weeks. The same trend was observed with Google Hangouts, Skype, and similar businesses.
Offering discounts or even free items give your current or future customer the incentive to get a sample of your product before making a full commitment to it. Although you will not make much revenue initially, you can have new leads and consumers who might make future purchases from your company. Netflix, YouTube Prime, and e-learning platforms like Digital Marketer offered some of their products for free initially and that resulted in extremely high user registration rates afterwards.
A recent survey by Entrepreneur revealed that 30% is a number that attracts most customers when it comes to discounts. As a business owner, you need to identify which product or service you should offer for free or at a discounted rate. This will enable in instantly generating some cash and attracting consumers who can be targeted again for profit.
3. Pivot your company on your strengths
Orienting your business to meet the needs of a world adjusting itself to challenges imposed by a crisis is crucial for survival. A business that offers ride-sharing services has been negatively affected by the COVID-19 pandemic due to obvious reasons. A grocery delivering company, on the other hand, is benefiting due to the rise in demand for its services.
The pivot for a business does not necessarily need to be the delivery service component. Rather, it is the identification of the company’s strengths and weaknesses, eliminating the weaknesses and developing the strengths to maximize efficiency. This would make a business adaptable and responsive to the community’s needs during an emergency. It also gives them an advantage over their competitors.
4. Collaborate with another organization
All businesses have their respective strengths and weaknesses. A situation like the COVID-19 pandemic can be used to build relationships with other companies by using one’s strengths to address the other’s weaknesses. Such a form of collaboration can also give rise to partnerships or co-ownership of a company.
For example, a struggling marketing firm can collaborate with an online learning platform to promote their courses using internal expertise. Likewise, a restaurant may collaborate with a transportation service to have their customer’s food safely delivered. The transportation company can also make a profit through this symbiotic association.
Large businesses are also using this method to help other businesses in the pandemic. Facebook recently invested billions of dollars in Jio, a telecommunications company based in India. Microsoft has come into agreement with the World Health Organization (WHO), and Business Insider has partnered with eMarketer.
This strategy can assist small businesses immensely if executed effectively. As a business, it is important to first identify your weaknesses and then find a company that can help you improve on this weakness. Finding the right partner is crucial for generating a greater return on investment. If your business is struggling due to the COVID-19 pandemic, it might help to incorporate the strategies listed above. If you are looking to reopen your business soon, make sure you are putting people’s health first by having these New Normal Essentials in the workplace.
