COVID-19

4 Ways Consumer Behaviors Are Changing And 2 Ways Your Business Can Adapt

The Coronavirus is changing consumer behavior and it’s important that you understand these changes and adjust your business practices accordingly. Twenty Over Ten, CMO Samantha Russell shares some insight.

Video Transcript

Today I want to talk to you about four short-term behaviors that we are seeing amidst this crisis amongst all consumers and two tips for how you can make sure your business survives and thrives in this environment. So first just think for a minute about the major incumbents that we see across many different industries. Those players often have a really hard time transitioning their business when things change at a rapid pace. So today Macy’s announced that they will be furloughing almost all of their workers. They are not set up to really reap the rewards of having an entire population buying digitally. Their digital footprint is nowhere near as strong.

So this is normal-we see this all the time. If we look back in history when there were ice harvesting Barrons selling ice, they didn’t see the transition to people creating whole factories for creating ice. And then from there, those companies didn’t see the advent of that home refrigeration and icemakers right in your own home. And so people continued to miss out on these incredible shifts that can happen sometimes over a long period, sometimes overnight and their business isn’t able to survive.

#1- People Right Now Are Very Risk Averse

So let’s talk about what’s happening today in our current economy and some of the psychological effects that we’re seeing on all consumers. So the first one, and I have four, is that people right now are just very risk-averse. We see a lot of businesses not wanting to hire, we see each individual household wanting to curb their own spending not knowing if their job could be on the line. And people just being very risk-averse. And that will probably carry over for a while. The psychological effects of this will last.

#2- People Right Now Are Very Germaphobic

The second thing is right now more than ever, and for good reason, people are incredibly germaphobic and that is going to most likely continue right. After we witness something like this with the current Coronavirus, it’s not like when this ends we’re automatically going to go back to our old ways. We are going to continue to think about before we go to a large gathering or a huge public event. We are going to make sure to wash our hands and I think people for a while at least will tend to want to do more things digitally.

#3- People Will Transition To Everything Digital

This leaves me to point number three-a huge transition to all things digital, whether it’s foregoing a trip to the grocery store because you can order your groceries online and have them delivered to your home right. So a transition to everything digital. Whether it’s working out from home, getting your groceries delivered. Yes, some of those things you’ll continue to go back to doing the way you did before, but a lot of these behaviors are going to carry over.

#3- People Right Now Want Value

And that leads me to point number four which is a focus on value. So right now when there is so much unknown and uncertainty about the future, about your old job, your income, the amount of money your family will have in the months to come, if anyone will be laid off, people are incredibly focused on value. What can I get for the dollar that I’ve earned? And that will continue to carry over as well. A lot of psychologists talk about that a recession or a depression that people go through doesn’t end when that ends, psychologically we carry it with us and even pass some of those values down to our children and we’ve seen this historically in the past with people who went through the great depression, passing a lot of those cost-saving behaviors onto their own children. So those are four ways that the current crisis is impacting us.

2 Ways Businesses Can Adapt- Go Digital And Provide Value

Now let’s think about how we can take the mindset that we know investors have and make it so that our business can thrive going forward and survive this economic downturn. So the two tips I have for you actually come straight from those behaviors. Number one- make everything digital. And number two-focus on value. If you do these two things, your business will be very well positioned to withstand this and thrive in the future. Head over to blog.twentyoverten.com. We have tons and tons of tips for you on how to host effective webinars, how to launch social media strategies that build organic, qualified leads, how to send email marketing campaigns and build up your list. Everything you need to know about how to prospect in this digital world.

You also want to think about how you are connecting with your current clients digitally. Do you make it very easy for them to get their quarterly statements and reports in a digital manner? Do you make it easy for them to just book a time on your calendar for your quarterly check-in call? All of those things for your current clients should be digital as well.

In terms of focusing on value, there are a few things you should do. Number one- make sure that all of the fees you charge and what people get for the price their paying is incredibly easy to find and visible right on your website. There’s been a lot of talk about this in the past-should you disclose how you’re paid, what fees you charge. I know it can be overwhelming, we have a great blog post all about how to display fees on your site and some great examples of advisors who are doing this. But you want to get specific about what you charge and what the value is that someone gets for working with you.

Another thing I highly suggest you consider doing is going to a subscription-based model at least for some of the planning parts of what you do. Having a subscription-based model is becoming incredibly popular across all industries.  It can be automated, so again going back to that digital mindset. And having that ARR, that annual recurring revenue for your business really allows you to know in advance how much money is going to be coming in the door every month and to survive these types of economic downturns and weather the storm.

So again, I’m Samantha Russell from Twenty Over Ten. I hope these tips are helpful to you. Please subscribe to our YouTube channel for even more tips. We release a new video every week that is just here to help you run your business better and if you have any questions at all, don’t hesitate to ask. Stay healthy and stay sane.


About The Author

Namisha Goel

Namisha is a Content Creator at Twenty Over Ten, passionate about fostering community growth. A Bollywood enthusiast, she loves to travel and hopes to experience all seven wonders of the world.

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