Corona forces us to close one channel and increase the capacity of the other. All of the enterprising Netherlands had to change its channel distribution strategy. Are you going to make a virtue of this need?
Multichannel companies are closing their stores. At the same time, call centres and digital sales channels are working overtime. This can be disastrous for large and small entrepreneurs: suddenly, your revenue model collapses, customers no longer know where to find you, or your distribution chain is not set up for it. But a frequently heard statement these days is: “Never waste a good crisis.”
Multichannelers more resilient to change
In these strange times, the ‘real’ entrepreneurs come forward. Restaurants are focusing on delivery, grocery delivery companies such as Picnic and Albert Heijn have never been so busy and local, and sustainable initiatives are emerging everywhere that shorten distribution chains.
Companies that already had multiple channels before this crisis are more resilient to change risks. This works like a law of nature. Do you want a healthy sales ecosystem? Then diversify as many distribution channels as possible during and after a crisis. A diverse mix of distribution channels can more easily steer your customer in the right direction. Therefore, for traditional offline companies, there are opportunities with a view to innovative digital sales methods such as digital events and virtual appointments and showrooms. For pure online players, opportunities lie in a local physical presence. Successful brick and mortar examples of this are Coolblue in the Netherlands and Amazon Go stores in the United States. This, of course, depends entirely on your sector but experiment and diversify with your channels – then you will not only come out of this crisis more robust, but you will also be more resistant to the next one.
Use crisis time to carry out old plans
Economist and Nobel laureate Milton Friedman wrote in 1982:
“Only a crisis – actual or perceived – produces real change. When that crisis occurs, the actions that are taken depend on the ideas that are lying around. That, I believe, is our basic function: to develop alternatives to existing policies, to keep them alive and available until the politically impossible becomes the politically inevitable.”
In the light of this neoliberal economist, we can therefore think about accelerating our omnichannel and digitization strategies. So dust off those good plans, for now, is the time to carry them out.
Dust off those good plans, now you must carry them out
Needs change during and after the corona crisis
The corona crisis will end, but the trend it has shaped is likely to linger in consumer behaviour for a long time. Think, for example, of trends such as online education, online fitness programs and the insight that the whole of the Netherlands can hold meetings online.
Precisely what behaviour is formed is not yet certain for anyone. One of the expectations is that consumers will focus on high-quality social communication rather than materialistic or consumer marketing. In addition, past crises show that consumer confidence needs months to recover, leading to increased risk aversion. Longer decision paths, more guarantees and more certainty can help convince this new consumer to make that purchase now.
There will be more focus on financial, mental and physical health
In any case, from this crisis, we have all learned to wash our hands properly. But hygiene and preventive measures will not be the only issue during the crisis. It is expected that there will be more focus on financial, mental and physical health. This offers opportunities in new business and revenue models but also extra attention for transparency and empathy in your company.
After all, the relationship with the customer is now more critical than ever. So think long term. If you help the client to keep up his life’s work, then you have an ambassador for life.
