COVID-19 is changing business models

CHAPTER ONE

Nobody doubts that COVID-19 has
had a massive impact on businesses

Every department of every company has been forced into unprecedented territory. No industry or area went untouched. In our survey, every respondent reported that the pandemic has had an impact.

Interestingly, a quarter of these said the outcome had been positive.

Although the immediate changes have been dramatic, they can still seem like a temporary blip – surface-level disruption to the normal ways of doing business.

Many think that the unrecognizable landscape of today will eventually return to its pre-COVID ways.
Our research, however, suggests otherwise.

Only 15% of companies say that their business model will remain the same over the next year – with one in five (20%) saying it will change dramatically.

COVID-19 isn’t just causing businesses to make minor adjustments – it is fundamentally changing how they operate.

48%

of businesses operating in the tech / software sector are much more likely to say that COVID-19 has positively impacted their business.

How exactly are things set to change?

To understand exactly how much upheaval our clients expected, we asked them about several aspects of their organization.

Unsurprisingly, businesses expect the most change when it comes to how people work. Remote and flexible working is set to become more commonplace. Almost all businesses (97%) expect changes here, with 62% predicting a significant shift.

Our clients also expect big shifts in how they take products to market. This was the next most impacted area, with 36% expecting significant changes and less than one in 10 believing there would be none.

Meanwhile, only 21% expect significant changes to their actual offering, and only 7% anticipate big shifts in their pricing.

In other words, businesses are likely to change how they reach their customers, rather than their fundamental proposition.

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COVID-19 is a common catalyst to digitization

Respondents detailed their plans to focus more on online spending and digital channels. Two topics rose to the top:

Topic one: A digital sales team

Businesses and marketing teams are looking for new ways to demonstrate products and services remotely. Initially, this shift was a necessity. Now, many think it affords benefits in the long term, even once restrictions are lifted.

We will need to stimulate initial interest and take customers through the sales stages in a more virtual world… I believe this will provide huge new opportunities for us.

Topic two: Decline in physical events

Businesses are set to reduce their focus on events to a greater extent than for any other channel. It will be interesting to see whether this is a short-term phenomenon, or whether ‘digital events’ continue into 2021 and beyond. Many businesses seem to expect the latter.

We were very heavy on physical events, but I expect us to be far more digital to be able to reach with more precision and be more measurable. COVID-19 has accelerated this.

Have you taken FULL advantage of new interactive ways to connect with your customers?

91%

of marketers expect changes in the way they take their products to market.

While changes were initially imposed by COVID-19, those in strategic and marketing roles clearly see them as more permanent.

Why? Because stakeholders think these changes offer an opportunity to make new efficiencies, and because they believe customer expectations will shift.