As healthcare providers grapple to control the global coronavirus outbreak and business owners adjust to keep hold of their livelihood, the pandemic has also changed the digital marketing landscape drastically with more people staying home and connecting online.
Around the world, various governments are imposing various quarantine health measures that practices social distancing, hard lockdowns, and mass testing. With only businesses involved in essential commodities remaining operational during quarantine, small businesses relying on foot traffic such as restaurants, dental clinics, and other storefront industries are at risk in closing down, for good.
In the US alone, a Harvard Business School study showed that nearly 111,000 small businesses have already closed their doors permanently while a survey by Main Street America estimated 7.5 million small businesses will shut down if the coronavirus pandemic continues until the end of the year.
In the Philippines, the Department of Labor and Employment recently reported that 2,000 establishments have already closed down since the implementation of nationwide lockdown resulting in 70,000 workers displaced. Meanwhile, the Department of Trade and Industry also reported that 26% of businesses in the country have already closed as of July.
Not only the impact of the global pandemic can be felt economically, but there is also a massive shift in the digital marketing sphere as more people shop online and rely on online media platforms for news and updates.
Focus on digital essentials
According to a survey published by US-based multinational professional services company Deloitte last June, consumers are now more open to digital interfaces as well as more receptive to companies that are shifting to online business compared to pre-pandemic levels.
With the practice of social distancing and limited to restricted movement, businesses are forced to shift their gears to providing products or services online as their consumers now resort to e-commerce to buy necessities or goods. In addition to that, 62.3% of marketers highlighted the increased importance of digital marketing function since the pandemic started.
Despite the likelihood that overall marketing budgets will have an 8-10% budget cut post-COVID 19, digital marketing efforts will be receiving a greater share in spending moving forward with more focus on social and mobile. With social media seen to be critical in attracting new customers and retaining current ones during the pandemic, social media marketing and mobile marketing spending spiked at 70% and 74% respectively.
That said, chief marketing executives are now seeing a 62% increase on social media marketing budget and a 73% increase on mobile marketing over the next five years.
Invest on social
Moreover, consumers are seen to prioritize trusted relationships built with a brand over low price resulting in more deliberate purchasing behavior.
In the past three months, marketers have seen a 24% spike of social media’s contribution to the company’s performance.
There has also been an increase in getting active online to promote the company as well as reaching out to current customers with information. Building brand value via social media and retaining current customers has been a top priority by marketers during the pandemic.
Online influencers are also seen to be much more beneficial in connecting with the company’s target market audience and that smaller companies plan to invest on influencers in the next three years. Business-to-consumer (B2C) companies are seen to focus on online influencer activities via Instagram and Facebook while business-to-business (B2B) companies will allocate more on LinkedIn and in house company blogs.
Customers are also seen to be supporting businesses who are making good initiatives and engaging in support of social activism. 79% of marketers believe that customers are choosing brands that represent their values.
Close the communication gap
Customer-facing digital interfaces are also expected to be beneficial in the long run as more consumers shift to digital experiences. However, customer expectations are not meant due to inconsistency in each channel.
In a webinar held by Deloitte and California-based customer relationship management service Salesforce, marketing experts noted that 75% of consumers assume consistent communication across all departments of a company. However, 58% of customers reveal there has been uneven tone and voice when reaching out to a single company. In addition to that, 64% of the customers have to re-explain their concerns when reaching out to customer service representatives.
The said customer experience is important especially now that there has been an 18% increase in digital sales in the first quarter of 2020. Moreover, shoppers are using multiple digital touchpoints such as search engines, social media, and influencers before making a purchase.
Finding footing in the new normal
As countries emerge from this crisis and establishments begin to reopen, it is important that companies take advantage to adjust their buyer’s persona, revisit their customer journey, and experiment with new tactics and approaches.
In the country alone, companies are still hesitant to go digital due to various reasons such as lack of knowledge and skills to do digital marketing, misconception that they are not an online business, and the fear that going digital requires capital expenditure.
However, marketers are seeing opportunities brought upon by this pandemic to rethink the value of digital marketing not only keeping your business afloat but also in growing them more sustainably in a post-COVID 19 future.
If only companies are able to start shifting their focus on digital, then they will provide better customer experience, generate higher engagement, and build a loyal customer fanbase.
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