The impact of the pandemic on business

CEOs around the world are facing the reality that business will be anything but normal in the coming months as the impact of the coronavirus pandemic continues to grow. While revenues have already been hit in the short term, most entrepreneurs are still confident that their businesses will make it through 2020, according to a new study on the business impact of the COVID-19 outbreak. When you heard about the beginning of the coronavirus epidemic, you probably did not imagine that the situation would escalate as far as it has and how little it actually takes for our normal to change into a completely different situation, against which we can do nothing. The coronavirus thus hastened the start of a new recession and brought major falls in global stock markets and crypto markets. Although many countries have come to the aid of citizens and entrepreneurs, this crisis will definitely have consequences on the economy itself.

The impact of the pandemic on the way we work

With the pandemic came stricter control with self-isolation and the closure of some companies that are unable to move their business online. Technology companies that offer digital services and whose employees have already practiced working from home experienced the least change. Such people do not have major problems with work and organization, in case they can still provide their services. If your company has not yet dealt with online work and there is an opportunity to digitize part of your business, we recommend that you do so as soon as possible. Companies that are able to adapt quickly are the leaders in emergency situations. Online shopping has started to grow and this trend will continue. Consumers will prefer to go to the mailbox instead of going to a physical store. The shift of consumers to online shopping due to the pandemic could give online retailers more sales. With the right approach to the user journey, customers will remain yours, even after the pandemic. Such a surge in demand for online shopping could overwhelm logistics providers and workers, potentially forcing companies to rethink their order fulfillment and delivery strategy, including potentially slowing down express shipping strategies to keep up with rising demand and keep their workers safe.

The impact of the pandemic on payment

The adoption and use of cashless payment are increasing worldwide. In response to the pandemic, the World Health Organization (WHO) recommended that consumers make contactless payments rather than cash as a means of limiting the spread of the virus through microorganisms in cash. Some countries have taken this recommendation a bit further: South Korea, for example, quarantines and disinfects all cash received from the central bank for two weeks before releasing it back into circulation. This type of increased instant spending could accelerate the mass adoption curve of digital payments as people get used to paying digitally. A potential drop in visits to bank branches could test banks’ digital capabilities and satisfaction with the digital experience, especially for first-time users of digital banking services. As a result, banks will have to work to simplify their online interfaces by introducing call centers or online educational materials that instruct customers on how best to use the channels to manage their funds.

The impact of the pandemic on advertising

The pandemic also has consequences for advertising itself. Out-of-home (OOH) advertising has the most negative consequences due to distancing and isolation measures. Consumers in countries with a higher number of coronavirus cases are avoiding major public places, which will affect advertising in public spaces. Many cultural and industry events have also been canceled or postponed over the past few weeks, from Facebook’s F8 developer conference to the NBA season and the Olympics. Canceling major events can cause advertisers to miss out on normally reliable, high-profile opportunities that may have kept some companies in the business. The spread of the coronavirus is likely to increase the use of digital media around the world as people spend more time at home and interact less in person. Social networks could have the greatest social benefit as people turn to these platforms to connect with friends and family who may be overseas. The use of streaming video content platforms such as Netflix and YouTube is also increasing, as people seek more online entertainment now that they are at home. Perhaps as you read this article, the leading platforms are already preparing some subscription add-ons and benefits for consumers.

An ideal time to digitize your business

If you still haven’t digitized your business, we advise you to do so as soon as possible. A huge range of services can be offered online if you have a bit of an innovator or creative in you.