2020 Trends – Sales channel face massive disruption – Covid-19 Update
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Earlier this year we wrote about the trends we expected to see in 2020 regarding disruption to business sales channels. At the time it was unclear what the impact of Covid-19 would be. It is clear now that this has caused seismic shifts in all industries and has radically reshaped consumer behaviour. This has been further complicated by the decision of governments to order the closure of non-essential businesses. As governments and health organisations take measures to slow the spread of Covid-19, businesses are adapting by adopting new sales channels and creating new offerings to cope with the impact. We believe this is accelerating the trends we covered in our earlier article. All businesses will need to look at their sales and distribution models to build a platform for future growth.
Covid-19 has impacted all aspects of life, and channel trends have not been exempt. We predicted a rise in businesses creating omnichannel platforms in 2020 both within B2C and B2B business environments. The changes in customer behaviour and the increase in technological adoption were accelerating before the pandemic hit. Since lockdown the speed of change has dramatically increased.
Direct Sales to end customers are rising:
There has been a substantial shift from offline to online as a result of the Covid-19 pandemic, accelerating the shift from face to face interaction towards digital communications, with consumers and companies choosing direct digital channels over traditional channels, including a new style of online shopping featuring multiple touchpoints for consumers. Direct selling through digital channels will aid companies meet both changing customer needs and the needs of continued social distancing measures. To expand their virtual presence, companies will need to assess their capabilities and then determine how best to expand them.
With the majority only just starting to reopen, offices closed and supply chains disrupted as a result of governments’ orders to close all non-essential businesses, many companies have struggled to sell their products while companies selling directly to customers have thrived. The coronavirus pandemic is forcing many businesses to move to a multi-channel or omni-channel model including direct sales, broadening customer contact and interaction.
Increased use of AI:
The pandemic is rapidly scaling the use of technology. Automation will allow businesses to deal with supply chain disruptions and higher volumes of order more efficiently. In addition to this, the automation of simple interactions using live agents and chatbots can handle more complex or urgent enquiries. Empowering people by routing them to an AI service accelerates their call resolution, reduces frustration, and improves satisfaction. As costs for AI reduces even small companies have access to technology that can, if implemented well, improve customer experience and contact. It is, however, essential that AI systems process this data effectively allowing customers to connect with business seamlessly and flexibly.
Customer experience:
Consumers are spending significantly more time online as a result of the pandemic; businesses are having to accommodate the massive shift into digital channels. A focus on omnichannel delivery provides customers with a uniform experience across various touch points. Enabling uniform customer experience across multiple marketing channels helps to build brand consistency and loyalty.
A customer’s experience with a company can have significant impact on their sense of loyalty and trust, particularly in times of crisis, companies are likely to increase their engagement with changing preferences and innovate at a higher rate to accommodate these. Companies that capture all customer data, not just that of survey respondents, will gain a more accurate view of customer needs and expectations. With these insights, they can provide more meaningful interventions to sustain and build customer confidence while increasing customer lifetime value and reducing cost to serve.
Once lockdown restrictions are lifted customers will return to physical buying experiences, however many of the behavioural changes arising during the pandemic will become the new norm. As such customers will come to expect choice in the way they buy and interact with their suppliers.
Real time data for personalisation:
The disruption to channels has caused a shift in new search patterns, with new trends emerging at an unprecedented level, increasing the need for data analytics and reports. As a result of the pandemic businesses will need more data advances to stay in contact as a result of social distancing. As such businesses will leverage data analytics to provide important services, regardless of conditions. Machine learning, big-data analytics and artificial intelligence will help manage the challenge of this shift in consumer behaviour.
Before the pandemic, digital leaders were using data to optimize customer experience, gauge satisfaction, identify foot traffic trends, and generate purchase recommendations. Winning retailers are moving beyond surveys as a mechanism for customer input and toward near-real-time tracking of consumer trends and behaviour shifts. With the rise of digital in recent months, companies will have even more dynamic data at their fingertips, and they can use these data to extract immediate insights.
Data Security and privacy:
With more and more people signing up for online accounts and working online, the need for data protection, security and accountability is increasing. Due to the fact that companies will be expected to store a lot more user data, it will be necessary for companies to adopt more secure ways of handling this.
Since the pandemic hit, the media has highlighted new challenges appearing as a result of Covid-19 for both people working from home and businesses operating e-commerce platforms, including experience with internet bandwidth issues, increased migration of organization data to personal devices, hackers taking advantage of the current climate and greater security exposure due to implementation of new ways of continuing business.
The new normal:
The Covid-19 pandemic will speed the adoption of omnichannel as the ‘new normal’ for both everyday life and business emerges. Customer expectations will evolve and expectations will change. Companies will need to provide attentive and efficient long-term customer experience with access to seamless navigation across all channels. In order to achieve short and long-term success throughout Covid-19 and beyond, mastering this will prove essential. Businesses that focus on customer experience and respond with agility and innovation in their channel experience will fare better and strengthen their ties to customers.
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About Where Now Consulting Ltd: Where Now Consulting is a management consulting company that focuses on helping its clients to grow and compete. The company offers a range of consulting services, including business turnaround and performance improvement, formulating market entry strategies, mergers and acquisitions, joint ventures and alliances, and sales and distribution strategy and management.
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