The world won’t be as it was before. People have changed their habits and daily routine, and now companies have to deal with revenue decline, new consumer behaviors and an unknown future. In few months many things have changed, e-commerce and online shopping have grown, people have started working remotely, and they will for a little while, and almost any form of entertainment from museums to concerts has disappeared. We are assisting to big changes that are going to stay for long time, if not forever. In these uncertain times, companies are trying to identify new consumer attitudes, behaviors and purchasing habits. There are services and products that no longer work in the current environment and consequently companies have to find creative ways to pivot and offer products and services that work.
You have to act fast. This is mandatory.
But how can you identify new business scenarios and trajectories?
You need to align your business with the new reality.
Here are few tips that help you align your business:
Check your financial health: First, if you haven’t done yet, you need to address your financial situation, monitor and manage your cash flow to guarantee stability. In case of financial instability, you should review expenses (e.g. marketing, advertising, investments…), and optimize resources.
Assess your customer base: It’s extremely important to stay connected to your customers. Who are they? Monitor and understand what they need and what they want. Test the market on a regular base; new habits will be created (e.g. from going to Starbucks to drinking premium coffee at home), pay attention and be prepared. Consumer behaviors are continuously changing and shifting, so be ready to offer what people want.
Execute new business models: I’m a big promoter of flexibility and adaptability. During this pandemic it is more true than ever, traditional business models don’t work, therefore assess your current business model and see if it’s still relevant and suitable for this new world, think about how you can adapt and design new business models. Do you have capabilities that can be used in this new contest? What does the market needs and wants? Investing in agile teams is an option? How is your supply chain?
Review your forecasting models: Forecasting works best when you have historical data and the future is seen as an increment of the current market. During the coronavirus many forecast models are not longer accurate. This pandemic has disrupted both demand and supply and forecasting won’t get you any valid insight for the long term.
I believe market research and consumer behavior are more important than ever during this pandemic. Invest in an internal and external analysis. This is a full checkup for a fresh start.