For SMEs the commercial challenge has been largely a demand crisis as customer needs, behaviours and expectations have been forced to change. There have been potentially momentous shifts in buying patterns and channel usage which are likely to persist beyond the end of the pandemic.
The move to online distribution channels is well documented but, there has also been a move towards locally sourced goods and services. The way customers expect firms to engage with them has changed fundamentally and led to some great innovations. These include restaurants sharing recipes online with their clients or providing ready made meals.
Customers have generally been understanding of a company’s inability to provide a seamless service and next day delivery in the current environment. It is likely that these expectations will return but, we are seeing a greater value based on other qualities such as their ethos, support of local initiatives, CSR performance or their commitment to the environment.
Commercial resilience for SMEs, post pandemic, will therefore require a full understanding of the “New” post Covid-19 customer in your industry. This may present quick wins for some firms, such as those involved with telemedicine, online delivery services, workplace digitalisation technology, etc. However, for many SMEs, we expect them to have to review their business models and potentially adapt their customer proposition in order to thrive.
Market intelligence and rigorous strategic analysis will be a critical component in assessing the appeal of your current customer proposition to the Post Covid Customer.
The SMEs that get this right will weather the current economic doldrums and set themselves up for success as the economy recovers.
