The coronavirus pandemic has had a major global financial impact, with the outbreak affecting the performance of millions of businesses worldwide. It has also been a great agent for change, with many organisations forced to alter their practices in order to adapt to what is increasingly being described as “the new normal”.

The immediate consequences were that high-street stores had to close as enterprises shifted all their attention to online sales. And although a lot of premises have now reopened, the Covid-19 outbreak has prompted what could prove to be a permanent shift in the e-commerce landscape.

Advertisement

So, what exactly have the changes been, and how have businesses adapted – in some cases to survive, and in others to thrive?

An increase in online sales

A recent survey from Accenture revealed that e-commerce is gaining a number of new customers, with shoppers planning to increase online purchases by 160% during the pandemic. And it looks as though some of these new habits are here to stay, with more than half (51%) planning to continue to order via mobile apps.

Meanwhile, 42% will carry on using kerbside pick-up and similar numbers (41%) will still use chatbots even once the pandemic is over and we can move around more freely. A separate study from Visa shows that almost eight-in-10 (78%) of consumers have changed the way they pay for their products, with many of them opting for online and contactless methods in light of the outbreak.

What does this mean for businesses?

Of course, online-only enterprises like Amazon have seen a huge surge in demand, although logistical issues such as a lack of delivery drivers, especially during the pandemic’s peak, led to longer wait times for consumers.

And other businesses have had to adapt in different ways. Those without an online presence have had to try and swiftly establish one, while those for whom e-commerce only drives a small portion of revenue have had to commit greater resources to developing their customer loyalty programs and other marketing strategies in order to retain their existing base and reach a wider audience.

The importance of customer loyalty programs

In the wake of Covid-19, it could be argued that customer loyalty programs are more crucial than ever. With face-to-face transactions on the decline thanks to a combination of social distancing guidelines and a pre-existing shift towards online shopping habits, being able to reach consumers on a personal level is vital.

Studies show that loyalty program members contribute 43% towards annual sales, and satisfied customers are likely to stimulate further business as they extol the virtues of a company’s product or services to their friends and family.

There are numerous examples of excellent loyalty programs – such as Pulse Boutique’s ‘Pulse Perks’, which increases user-generated content and encourages engagement on social media. Or there’s Mirenesse’s tiered program, which offers a range of benefits as reward for a small monthly fee.

One of the keys to creating a successful loyalty program is making an individual feel valued. By collecting customer data, companies can personalise their marketing strategies and ensure their consumers feel a part of something. In a time where we’re all feeling a little distant from each other, that’s a quality that could prove priceless.