How to Evolve Your Business Model as Times Change
Are You Prepared to Meet New Customer Needs?
Weāve been forging our way through uncertainty for a few months now, and I have to say: small business owners are resilient.
In a time of stress and sadness we pivoted, we adapted, and I hope everyone, their families and their small businesses are OK.
Iāve written a lot about managing your small business during the pandemic, from How to Pivot Your Small Business Strategy During the COVID-19 Crisis to How to Build a Crisis Response Landing Page.
Now, we focus on the next step: emerging from the coronavirus pandemic not only in one piece, but as successful entrepreneurs who have learned some valuable lessons.
As we move forward, itās obvious that some things are forever changed. In a recent survey, 81% of Canadians agreed that the crisis will create a new normal and have a lasting impact on society.
So as my province of BC, Canada starts to reopen businesses, itās time to look at your marketing and evaluate if it still makes sense to your target audience.
How to Define Your Customersā Needs
Letās go backā āall the way back to 1943, when Abraham Maslow proposed his hierarchy of needs. According to his theory, people are motivated to fulfill basic requirements (food, shelter) before they move on to more advanced ones (intimate relationships, sense of accomplishment).
During the coronavirus crisis, people were focused more closely on basic necessities like staying safe from COVID-19 and getting groceries. These differing needs may also have led them to buy things they wouldnāt normally buy, like lots of hand sanitizer or takeout food multiple times per week.
Maslowās Hierarchy of Needs Illustration
Some of the customer behaviour we saw during the pandemic may be here to stay, like:
Continuing to wear masks in crowded areas and washing hands more frequently
Thinking more carefully before buying āwantsā
Working/studying from home more of the time
Choosing brands that are the most empathetic and conscious
So ask yourself: how have your customer needs changed during this time? What are they expecting from you?
How to Evolve Your Business Model to Meet New Customer Needs
Just because weāre slowly returning to a ānew normalā doesnāt mean everyone is going to be hopping on planes and heading to big parties. Especially for those who have been personally affected by COVID-19, itās going to be hard to reintegrate back into society, so to speak. Ā
Here are a few ways you might have to pivot to meet new customer needs:
1. Maintain/increase communication around health and safety measures.
A large part of pivoting your business model will include how you communicate with your customers.
For example, salons and spas have been closed for months, and even once they reopen, consumers want to know what steps theyāre taking to protect their health.
Some clients wonāt feel comfortable stepping into a hair salon unless they know there are certain health measures in place.
Donāt be too hasty to remove your COVID-19 landing pageā or health and safety messaging from your website or Google My Business listingārather look at updating copy with new information to put your clientsā minds at ease.
A Vancouver hair salon sent out rules with booking confirmations.
2. Address new patterns.
If youāve started offering heat-and-serve meals, curbside pickup or telemedicine sessions to customers, they may expect that going forward.
This can be a good opportunity to take a closer look at what worked and evolve your business model accordingly.
If you donāt sell essential services, you may have to pivot your marketing strategy to approach different spending behaviours. Many people have been hit hard financially and wonāt have as much disposable income.
Others will have become accustomed to a new way of doing things. Similarly, to what I mentioned in #1, COVID-19 has changed the way that people consume certain services.
For example, a school may have to integrate more online learning into their model to attract students who are now used to and more comfortable with totally remote classes.
Many organizations are rethinking in-person conferences and other events. Will employees want to travel to huge convention centres to network with other attendees? Or, will they be happy with a virtual conference next year, too?
Douglas College uses something called Blackboard Community to deliver remote courses.
READ: 3 eCommerce Challenges & Solutions for Tough Times
Thereās no arguing this pandemic has led to increased internet traffic as people work, socialize, and entertain themselves online. But an increase in internet usage doesnāt necessarily translate into increased sales for your small business.
Many consumers are hesitant to buy, either because they arenāt sure when theyāll be able to use the service you sell, or because theyāve been laid off or have had their hours reduced.
Thatās why Iām sharing 3 eCommerce challenges and solutions to help you maintain and even grow as an entrepreneur during this crisis.
How Can You Best Meet New Customer Needs?
No matter how you evolve your business model, itās important to remember that meeting your customersā needs is an ongoing process. Whether itās two weeks post-pandemic or two years, always:
Listen, listen, listen. From monitoring your customer reviews, to sending out a questionnaire, itās never been more important to take your customersā feelings into consideration.
Listening on social media can also be a great way to āpulse checkā how your customers are interacting with your brand and content. Then, use what youāve learned to tweak your marketing strategy going forward.
Always be engaging. I hope youāve been doing this during the pandemic, but itās also critical post-COVID-19. People will still be spending lots of time at home in the near future, so create uplifting, inspiring and/or informative content for your website, social media accounts, paid ads and newsletters. Ā
Pay attention to changing trends in your industry and customer behaviour to guide your content strategy.
Hereās an example: during the pandemic, DIY was bigā āfrom home renos to crafts. Nielsen reported that sales of yeast were up nearly 650% from a year ago, as homebound folks baked up a storm.
So think about how your customers might be using your products or services and give them good content, whether itās bread-baking tips or how to get out of debt.
No matter what your company sells, communicating with and reassuring your clients is still paramount. And remember: your customers can tell the difference between a sales gimmick and authenticity, so make sure youāre communicating value every time.
So what comes after the crisis? Nobody really knows for sure. But by pivoting your business model as needed now, youāll be ready for whatever the future brings!
To your business success,
Susan Friesen
