In recent times, small businesses have experienced some of the most challenging economic conditions. The past year has shaken the world’s economic system and due to the restrictions imposed by the government on economic activities, many businesses have closed down in Nigeria.
Statistics indicate that the recession of many small businesses caused the total GDP to fall by 23% during the lockdown. According to data compiled by the Center for financial Inclusion, in Lagos State alone, since the middle of March when the pandemic hit, 9 percent of about 800 businesses sampled had closed permanently; the number of employees had declined by 51 percent compared to its high point from the preceding year; and 80 percent of surviving businesses had seen their profits decline.
It is unimaginable, the great losses that these businesses endured in 2020. The gravity of the situation is furthermore emphasized by the fact that many more businesses that were trying to stay afloat when the occurrences of the pandemic subsided are yet to recover from the impact of the sudden change in consumer demands and have now been thrown out of existence.
Despite the disruption in the flow of economic activities and needs, business owners are beginning to explore trends specific to their industry, which will aid their planning process in order to get the best out of current and future economic seasons. In addition, businesses have been forced to learn how to adapt to new and dynamic consumer demands under a short period.
The answer to the question of how those businesses that have managed to survive through the darkest times of the global economic crises and those that will emerge newly are going to contribute to pulling the economy back together lies in the strategies they embrace for sustainability. From case studies of some of the surviving businesses from 2020, here are 5 trends that emerged from the adaptive business-customer interactions, which many business owners can take advantage of in 2021.
Pivoting due to unexpected changes
The covid 19 pandemic has shown the world, and more specifically, small businesses, that the need to be able to adapt to the ever changing needs of customers has never been more important. In a time when consumer demand recorded a drastically accelerated shift, many companies that already had strongly recognizable brands and offerings, which were relevant to the needs of customers, came out even stronger from the pandemic.
Small businesses that seized the opportunity to pivot and deliver services that were more tailored to demands also recorded some stability in the heat of the pandemic and a heightened customer loyalty after the economy returned to some level of normalcy. Many more entrepreneurs and businesses that failed to adapt due to one reason or the other became part of the percentage of businesses that had to retreat into inexistence.
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The idea of pivoting is one that is therefore encouraged among business owners, in order to provide products, services and processes that are relevant to customer needs. It is the process of mapping out the aspects of one’s business that needs to be retained, improved upon, or changed entirely, to get the business driving towards a new and acceptable goal.
Pivoting usually involves planning and a willingness to entertain ideas that may previously have seemed unimaginable in the company’s culture. What pivoting does not mean, however, is the complete desertion of already established business strategies leading to a fresh start as this could mean trouble for the continuity of such a business.
Adopting a pivot strategy has proven to be pertinent to sustainability and then success. Business leaders have had to make small or gradual changes in the way they conduct business. Some of the pivoting strategies companies have adopted include but are not limited to expanding product lines, moving into new markets, attracting new customers, innovating business model and process and adopting new technologies.
Integration of Digital Solutions
The impact of the pandemic on small businesses that were solely reliant on brick and mortar models was unquestionably drastic and in many cases, devastating. In the darkest times of the pandemic and due to the social regulations, companies that did not to close down had to adopt the integration of an online presence, to drive continuity.
For many businesses today, even as the world is gradually returning to some level of normalcy, maintaining an online presence has become a priority. It is one trend that still continues to gain popularity and ever increasing acceptance.
The use of digital tools and strategies to drive sales is one that had been around before the pandemic. However, the occurrence of the pandemic has greatly catalyzed the adoption of digital alternatives. In order for businesses to stay in front of their customers, many more are increasing their use of digital tools. Findings reveal that more than 80% of businesses today are integrating digital solutions for business practices since the pandemic hit.
With the increase in the use of smartphones and the internet, Digital and mobile marketing has undoubtedly become one of the biggest trends to look out for. As a stunning five billion people around the world are embracing smartphone technology, the abandonment of this trend is not in sight.
From providing updated information to customers to sending customized greetings and offers, the use of digital tools to foster business process automation, has become an easy and direct way to reach customers.
Creating an excellent customer experience/service
In the wake of the pandemic, a plethora of information has flooded the social space. The influx of information has become more glaring as people now have some more time on their hands. This occurrence has led to people preferring messages to be more personal, and as such, businesses have had to find innovative ways to communicate personally, distinctly and clearly with their customers.
Many small businesses have opened up more personal channels through which their customers have can depend on close assistance from their customer service personnel, in order to make informed purchasing decisions and other transactional assistance. Many companies have had to tailor their services to customer needs and therefore personalize their experience. This strategy has been reported to lead to high engagement and will help with business sustainability on the long run.
Moving forward, businesses need to take some time to research their customers purchasing history in order to accurately suggest communication channels that would increase engagement and ultimately, sales of products and services.
Remote Work
Remote work and freelancing is a trend that we can say is here to stay. Judging from the fact that the pandemic has accelerated the worldwide acceptance of this trend, it is one that is likely to stay longer with work place culture, as many businesses have now come to appreciate the many advantages this style of work presents, while actively trying to work around the disadvantages to their favor.
From flexible schedules for employees to reducing cost of business operations for business owners, the benefits of remote work is one that businesses will continue singing praises about even after the pandemic.
In light of embracing remote work as the new normal, businesses also have to consider some challenges inherent in this style of work that need to be managed. Some ways to maintain good company culture while observing social regulations include; helping workers maintain work-life balance, checking on their health, providing professional support and fostering social engagements for motivation with regular use of virtual meeting platforms like Zoom, Google Meets or Slack
Growing a community around your brand
In addition to increasing social media visibility, building an online community is one way through which many small businesses are beginning to pull the loyalty of customers together to their advantage. Creating an online community around a brand has proven to help with streamlining the target audience, increase engagement and foster leads conversion. Many businesses that build communities around their brand usually position themselves as authorities and trustworthy professional that people can trust for expert opinion on a product or service.
Community members therefore tend to rely on the perceived authenticity and authority of brands, and as such, they become natural and unsolicited ambassadors.
Organizing webinars, presentations, live streamed interactions, workshops, masterclasses, online courses and soon are great ways to pull a community of like-minded people who are interested in learning more about what the brand has to offer.
With the increase in the number of people at home and the duration of time they spend while home and on their mobile devices, posting pre recorded and Live streamed demonstrations to a brand’s online community platform has also recently become a trendy way to engage customers.
This trend is gradually taking the lead in the many alternative strategies businesses are adopting to reach and engage new customers. It has become the informal link between e-commerce and social media and thereby presents an interactive shopping experience demonstrated by trusted brand influencers, or those whose expertise is respected concerning the product. Customers are therefore encouraged to buy a company’s product after asking the appropriate questions and observing its use and fit for their specific wants and needs.
Bio
Ireoluwa Bolajoko is an entrepreneur; the Co-founder and Chief Product Officer at Five Feet Outfits, which is a subscription based and sustainable clothing band for women. As an eco-conscious business developer, Ireoluwa takes pride in advocating for the building of environmental and socially considerate businesses. Her ultimate goal is to become an investor in environmentally friendly businesses.
As a graduate with honors from Babcock University with a degree in Agricultural Economics and Extension, Ireoluwa’s enthusiasm for entrepreneurship, sustainability, marketing, communication, and business writing have driven her to acquire certifications from esteemed online learning platforms like Havard University through edx, and University of Michigan through coursera.
