The ancient Greek philosopher Plato said that necessity is the mother of invention. This phrase could not be more true of recent times, with hundreds of businesses forced by COVID-19 to rethink their operations to survive this unprecedented situation. Hospitality businesses and retailers are among the industries that have been greatly affected by government measures tackling the virus outbreak. While no one knows what will come next, there is no doubt that online channels will gain market share and become more popular than ever among consumers.
Hospitality businesses
With restaurants forced to close, these businesses will continue to see an increasing decline unless they find alternative ways to operate. The UK government has granted permission for pubs, cafes and restaurants to operate as takeaways, as well as making use of food delivery, helping ease small business owners during this challenging time. Therefore, small businesses may look to diversify their business model and expand it by leveraging digital channels.
National restaurant chains such as Leon have shifted their business model and have now included very much in-demand pantry staples and fresh produce to their offering in certain locations, appealing even more to stressed consumers. Furthermore, online delivery platforms such as Just Eat have waived sign-up fees for new restaurants joining their service, as well as reducing commissions for independent businesses for 30 days.
Setting up a professional website with the help of pre-built WordPress themes can take as little as a day to go live. Social media platforms are great tools to spread the message, allowing you to target local communities or a wider audience. On top of that, the government is strongly advising against cash payments, favouring contactless card payments and telephone payments. The World Health Organisation suggested that banknotes may be spreading the virus as infectious COVID-19 may cling to the surface for several days, indicating that cashless transactions could be safer for both customers and business employees.
Retail businesses
At the moment, non-essential retailers have been forced to close as a measure to contain the spread of COVID-19. As a result, this is an interesting time for eCommerce; research from IPSOS Mori in regions affected by COVID-19 showed that 50% of Chinese consumers and 31% of Italian consumers are shopping online more frequently. In the US, grocery apps saw a record number of downloads in March according to app analytics company Apptopia. Selling online seems to be a solution for retailers with retail locations closed. Product categories that saw a whopping boost during the COVID-19 quarantine include health and safety products, shelf-stable pantry items and digital streaming. Research from the marketing agency Within indicates that subscription services saw a significant upwards trend in both revenue and conversion despite the coronavirus effect.
While eCommerce is not a one size fits all solution, today it’s more accessible than ever to start selling online with pre-built webshops and user-friendly shopping cart solutions such as Magento, PrestaShop and WooCommerce.
Takeaway
Businesses and customers alike are striving to adapt to these strange times and change their lifestyle as a result. As a small business owner, you are facing unparalleled uncertainty while trying to remain operational and cater to your customers’ needs. Based on your industry and business model, your response to this constantly shifting situation will vary. We hope this article has given you some useful insight into the potential that can spring from embracing digital channels, so you can continue your business and serve your customers the best way you can.
We’re on a mission to provide businesses like yours with card payment solutions to navigate you through this challenging time. Reach out to our team for a payment package tailored to your unique business needs.