When we rang the doorbell in 2020, it is safe to say that almost no one could imagine the New Year practically on our doorstep. Covid-19 arrived like a monsoon. And with it a multitude of changes not only in relation to our life and work, but also in relation to the management.
Quarantines and bans became a lifestyle that forced companies to change the way they work. Office staff, sales reps, and other people who were deemed not essential started working from home. In-person meetings and sales pitches are a thing of the past and have been replaced by collaboration tools to make virtual teams more efficient.
Although we’ve been in the disruption caused by the virus for almost a year, the economic ramifications are being felt in almost every part of the world. According to a Harvard Business Review According to reports, the downside forecast includes a 13% to 32% decline in trade in goods, a 30% to 40% decline in FDI, and a 44% to 80% decline in international air traffic.
As the impact continues to unfold, one must ask: Could companies be better prepared, what lessons can be learned, and are there opportunities that could arise from this once-in-a-century global pandemic?
Covid-19 presented unprecedented business challenges
For the first time since the pandemic began, executives are more optimistic about economic conditions and the viability of their own business. One recently McKinsey Global Survey shows that more than half of the executives surveyed believe that global economic conditions will improve in the next six months, and they are equally confident that demand for their products will increase in the coming months.
While the outlook is hopeful, it does not mean that companies can or should return to the status quo. Many continue to fight, and some will follow in the footsteps of their predecessors by closing their doors permanently. In order to remain profitable, companies had to find new business methods, which in many cases means a different business strategy.
To illustrate this, the law and health sectors rely on language service providers (LSPs) for language interpretations on site. With the onset of Covid-19, the LSPs had to switch to remote interpretation almost immediately. “LSPs that did not have the technology to support remote interpretation lost nearly 100% of their sales overnight,” said Angelo Passalacqua, CEO of BURG Translations, Inc..
Regardless of whether they operate on a local or global level, the pandemic has made companies aware of the importance of being able to change their business model quickly to accommodate changes in purchasing behavior. For some companies, this has meant enabling customers to get what they need without leaving their car or even their home, others have started making much-needed products while others have moved from brick-and-mortar to e-commerce.
Don’t make the same mistakes twice
When looking back at how companies have dealt with the changes that have been imposed on them, two sentences come to mind: Business model resilience and Unleash innovation. “Now is not the time to take something for granted,” says Karl L. Buschmann, Executive Director at Chicago International Trade Club (ITCC). “It’s a new world of uncertainty. What is proven is no longer. “Many companies found this out firsthand when they had no choice but to reinvent themselves.
One example that we are all familiar with is gastronomy. Many institutions that have never dreamed of performing are now doing so with increasing regularity. It seemed to have happened practically overnight, with restaurants almost everywhere starting to offer roadside pickup and food delivery.
In the same way many manufacturing companies have retooled to produce equipment that was in short supply. From small furniture stores to large corporations like GM and Boeing, companies have made products to fight Covid-19, including ventilators, personal protective equipment (PPE), nasal swabs, and even field hospital beds.
If you are in an industry that is not suitable for roadside pickup, or if you don’t have a manufacturing facility to convert, you still have options to generate sales. One of the best ways to do this is to enter new markets.
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Now is the time to seize opportunities
As a result of the pandemic, e-commerce has grown massively, reaching online spending in April and May It’s $ 153 billion, up $ 52 billion more than retailers typically see in April and May, according to Adobe’s Digital Economy Index. “Whether B2B or B2C, cultures all over the world use everything online,” says Passalacqua. “Technology has made it easier for people to buy and sell overseas than ever before.”
Prior to the pandemic, many companies followed customer-centric strategies to build trust and loyalty. Since Covid-19, the difference between success and failure in these uncertain times can be to put the customer at the center of your actions. Providing a personalized online service is difficult under the best of circumstances, but the complications of selling in a foreign market are compounded.
“2020 is the year of the customer,” says Scott Snyder, founder and CEO of sale. Companies need to focus more on the customer experience. This assumes that things are combined earlier (person to person) and combined with today’s online shopping needs. “It’s about building rapport with a hybrid approach of automation and a personal touch,” explains Snyder.
When most people hear the word “e-commerce” they are more likely to think of B2C. However, this sales model serves B2B companies alike. Similar to your B2C colleagues, personalization plays a role in the B2B world.
To get the most benefit, B2B companies really need to understand their customers and their needs, ”says Dan Neiweem, Co-Founder and Principal at plane. “They need to approach their e-commerce strategy and digital portal much like a service-oriented company, providing both an online service and ongoing strategic human support and seamlessly merging the two.”
The results of a recent Avionos survey support these statements:
- 69% of respondents said they would make purchases between $ 50,000 and $ 150,000 online, and 35% would make purchases over $ 500,000.
- Nearly all B2B buyers (94%) report that sales reps generally improve their shopping experience.
- 51% of B2B buyers would prefer to interact with their seller more often.
These statistics clearly show that the B2B e-commerce market is ripe and waiting for those brave enough to take the plunge. However, there are some considerations to ensure your success. The Avionos survey also reports:
- 88% of buyers would turn to a competitor if their current supplier’s digital channel couldn’t keep up with their needs.
- Over half (52%) of B2B buyers say they don’t have product information on ecommerce websites.
- 57% have difficulty comparing products and prices through the e-commerce channel.
While none of these challenges are insurmountable, especially if you’re planning a national e-commerce rollout, there are other considerations as you expand globally. If your strategy involves globalization, you need to localize and translate your content to make the impression you want: web copies, blog posts, emails, videos, and SEO tags. That way, prospects can find you online and get the personal touch it takes to turn prospects into customers.
Don’t let an economic downturn hurt your business
“The business world doesn’t like uncertainty – it wants security and concrete plans,” says Buschmann. Whether you are faced with Covid-19 or another economic downturn, this is not the time to rest on your laurels. To keep your business running at maximum efficiency and profitability, there are a few things you should do during an economic downturn.
“First, you should review every source of income and look for problems and solutions that you can control,” says Passalacqua. “Second, be sure to hold team meetings to get an internal overview of what’s going on, get creative with new initiatives, and find people to help you get started.”
While the business impact of Covid-19 will continue to plague us for some time, those willing to take bold steps have seized new opportunities. It showed us how easily the internet is making geographic borders disappear and opening the door to business opportunities around the world.
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