Online strategy in B2C businesses

Last week we discussed about the impact of this pandemic on the Packaging industry. One of the elements we mentioned was the change of consumer's behavior and its impact on the online industry, and therefore in its suppliers, like packaging manufacturers. Well, I would like to speak today about Digitalization, and more specifically about Online Strategy, as I recently read in Expansion.

If you remember, as a consumer, the first stage of the confinement revealed some shopping changes in certain groups of consumers. Personally I am an online shopper for all that I can, but I saw groups of people trying the online shopping whether they probably would never done it before if it wasn’t necessary...my parents for instance! According to statistics, in Spain there was an initial boom for basic needs (Food, Beverages, etc) while at the same time some other categories dropped down, mostly the not necessary goods. Tourism, 12% of our GNP is one of the most affected sectors and online is one of the main approaches in this industry. Indeed not everything sold online is positive, as we also experienced a boom in online bets, and this is a delicate topic as the access to the youth is not as controlled as it should. So if we want to boost or re boost our Online activities, what can we do? There is a number of strategies we all can follow and that I will try to explain hereunder.

Choosing the right online platform is the first step. My advice would be to go step by step because you don’t need very powerful platforms when starting a business. Sometimes you will not even need a real online shop with its own web and payment platform, though you can find in Internet several options that offer you a simple platform to run your e-business. Take a look today at restaurants in Spain: they still cannot open so most of them opted for the take-away and home-delivery options. Well, with just a WhatsApp message for the orders and Bizum for the payments you can operate without creating a big online shop, enabling them to operate quickly and react to the impact of the crisis. I am not saying that, if you plan to remain online, you shouldn’t invest in it, I am just proposing you a way to being efficient.

Focus on your current portfolio of customers. I think we have mentioned it before but it is more efficient to focus and care about your current clients than go for new ones if you don’t look after the first ones. Probably if you are loosing clients there are things to change, otherwise you will as well lose the ones you just made. Have you thought about informing your current customers that you are now operating online? It’s something very simple and obvious but believe me most of offline business haven’t done it yet. My wife and myself have been able to enjoy two very nice dinners of our favorite restaurants thanks to their online ordering and home-delivery...it’s not the same but it helps!

Keep an eye on the market. It’s not because your shop in closed that you don’t have to watch over your competitors, and any change that may affect you, such as demand, regulations, etc. I would even say that it’s not because your shop in closed that you cannot do business online or even at all, especially if your are selling services more than products. I have some friends running gyms that cannot welcome their students anymore in their clubs and have opted for one-to-one classes, even at clients home! If consumer needs are obviously changing you should keep an eye on them. For instance in Spain people are profiting this confinement to refurbish their houses, or learning new activities (cooking, music)...that means new business opportunities!

New business opportunities. The “New Normal” will change our lives, definitely...nothing will be as it used to be anymore. We mentioned above the changes in Restaurants and Travel industries and I am sure that we will not go to bars and restaurants the same way we did. The new regulation for restaurants, where they only can open partially their lounges (33% to 50%), will have an impact on our perception as consumers of these places. They are supposed to be moments of celebration, not just having a meal under a glass screen, in an empty place and served by waiters who look more like a CBRN soldier! What can you do if you have a restaurant to recover the experience people are supposed to have in your place? Well, Digitalization can help a lot to give back to your commensals part of this experience, through AR or VR, IoT, etc.

Open your mind and your business. Diversifying risks is one of the mantras of every businessmen in times of crisis. Be creative and open your mind to new opportunities that should come by exploring new consumer segments, new markets (what about Internationalization), new sales channels, etc. Regarding your customer basis it’s time to review your targets and segmentation: maybe you were focusing the Premium market but consider that with the impact on employment and economics of the crisis probably your consumers will not be able to make the same spend. Should you resign? Not al all! You just need to redefine your Value Proposition and focus on the groups of consumers that may be less touched by the crisis or even change the USP itself to accommodate to the new reality!

Digitalization is not easy and it’s certainly not the panacea for every issue, but one thing is sure, it’s worth it to try if the alternative is to disappear. Take this moment as an opportunity, not just to react to current difficulties, but to build the business of tomorrow. The World has never learned as fast about anything, ever...and we have to use this knowledge to prepare the future!