This year has been off to a rocky start. No question. The clock struck midnight and we all waved goodbye to 2019 and hello to a new decade, bright-eyed and excited to tackle a brand-new year.
Or so we thought.
National Positions has seen its way through economic rises and falls before, including the Great Recession of 2008, but 2020 had something new in store that even our seasoned team couldn’t prepare for or see coming: a near-complete economic shutdown.
So, like many of our clients and other businesses around the world, we knew that pivoting and adapting would be critical. We needed to ensure that our clients (and our company) would sustain and come out stronger in the end.
Though the pandemic is not over, we are beginning to see light at the end of the tunnel.
Make no mistake. We are not under any illusion that the worst is “officially” behind us—or the economy as a whole. There is more than likely going to be a residual wave, impacting us all, simply due to the nature of commerce.
There is cause and effect, and like ripples in water, the effect will be radiating for some time far beyond the lifting of stay-at-home orders.
But we (and you) are here to look at the reality so we can better prepare, get back on track, and focus on what we do have control over instead of putting our valuable attention toward what is out of our hands.
In this article, we are going to look at several predictions from the NP team and some important insights to consider as you look to the future. So, let’s jump into Business “Beyond” COVID-19.
Prediction #1: Unshakable Brands Will Come Out on Top (Paid Media)
We have seen a trend among our clients when it comes to investing hard dollars in digital advertising like Google and social media ads.
Those who have stayed the course are not only seeing success but are far more likely to surpass the competition and find themselves better positioned to grow faster once more areas of the country begin to reopen.
This is not to say that campaigns have not needed adjustment. For the most part, they did and still do. With such wild shifts in search, combined with a large group of advertisers (businesses) pulling back their marketing dollars, even machine-learning technologies that leverage automated bidding strategies are being impacted.
Keyword bidding, audiences, dayparting, etc.—everything has needed constant attention and adjustment—but those who were able to pivot, rather than pulling the plug, are seeing the positive impact.
Brands that have stayed in the paid search game are holding greater awareness over competitors that were forced to go radio-silent to cut costs. So, if the competition pulls out of paid search at the same time that more consumers are searching for goods online (because they must), we have a glut of demand (searchers) and less supply (advertisers).
This means that fewer advertisers are able to reach a larger portion of their audience—for a lower cost. That’s right, when supply and demand are flipped, we (and others) have seen lower cost-per-clicks (CPC) and cost-per-mille (CPM).
Prediction: So, based on the current data, we predict that advertisers who are able to keep their paid media going, even with reduced spend, are going to reap the benefits over the next 6, 9, or 12 months.
If you need any assistance in navigating your way through your bidding strategies and options—you can reach out to our National Positions paid media team anytime at Marketing@NationalPositions.com.
Prediction #2: Ecommerce Adoption & Diversification Will Have a Lasting Impact
When states like New York or California (where NP is headquartered) were given shelter-in-place orders, the shock to local businesses was like nothing we had seen before.
We’re now seeing that there is a common thread when it comes to those who have found paths for continuing operations—and some of these businesses have even found ways to thrive.
How? With ecommerce.
This pandemic has brought to light the fact that businesses of every size need to implement an ecommerce element into their business model.
The implementing, streamlining, and amplifying of ecommerce capabilities are giving businesses a lifeline right now. For those just tapping into ecommerce—doing so is actually showing them a new revenue stream they may not have previously considered.
Here’s an example: National Positions recently signed a new client whose sole business model was conducting in-person auctions. They found themselves in search of a new solution due to their inability (given the pandemic) to conduct these actions face-to-face. Our team is helping them establish and launch a completely virtual auction house so that they can not only resume business operations but also open auctions to new clientele who otherwise may never have had access to their auction lots. This business model shift may become permanent or an additional operation for future revenue streams for this client.
Prediction: Brands leveraging or introducing more ways to function in the digital ecosystem will be able to continue using these advancements as markets begin to reopen. They will likely be able to reach a much wider audience in the long term as well as the short term.
Prediction #3: Consumer Confidence Will Return (Slowly)
Like the changing seasons, just because winter is over on the calendar doesn’t mean the shorts go on and you hit the beach immediately.
The change in weather and temperature is gradual—and the same gradual process applies as we enter different phases of this pandemic. As communities, states, and the country itself begin to open and resume certain operations, consumers are not going to immediately switch from online purchasing and head directly back into retail locations.
There are many factors to consider: newly established routines, ongoing fears surrounding COVID-19, change in spending habits, etc. And this is not to mention that incomes in general have been severely impacted with over 30 million of our friends and neighbors out of work.
Like a stock market dive, rebounding will take time. And as has happened with any major event in this country—the crash in ‘84, the dot-com bubble, 9/11, and the 2008 Great Recession—consumer confidence and “regular” spending habits never simply snap back. Brands cannot afford to just wait for things to go back to normal. The post-COVID-19 world will, in fact, be a new one.
Prediction: Brands that approach the next 9-12 month with a rebuilding mindset are going to see far more successes than those who choose to “wait it out.” Consumer mindsets and confidence levels have been shaken, and moving forward strategically and adapting to this new mindset will be critical.
Prediction #4: B2B Focuses on B2C Pivot
As was noted earlier, the ripple effect is real regarding the shutdown, and nowhere is this truer than in the B2B space.
As businesses remain closed, the suppliers to those businesses are also impacted—food distributors, clothing manufacturers, maintenance teams, janitorial suppliers, and even marketing agencies like National Positions.
It is very difficult, if not impossible, for a business to supply anything to another business if that business is closed, especially if the product is a tangible or perishable one.
So, what are we seeing traditionally B2B businesses doing? Some are going B2C. Janitorial supply companies with mountains of toilet paper (soon to be our new currency) found that opening up to general consumers would help them unload excess stock. Local meat producers that usually supply restaurants have started offering direct delivery.
The quantity (per order) may be higher, but product is getting in the hands of those that need it.
We are seeing the same in other industries. B2B brands are helping fill the void left in the market from either panic buying or the increased demand of online purchasing. Depending on timelines, many of these B2B brands may have tapped into a new ongoing revenue stream by opening their doors to the B2C market and going direct to consumer.
Prediction: B2B brands that have traditionally been dependent on larger and long-term contracts may have a new market to add to their business model for the foreseeable future. For those with seasonal, perishable, or style-based goods, going direct can also lessen the financial impact due to product loss. Double win!
Prediction #5: Better Days Are Coming
Just as the sun will set and the moon will rise, in one form or another, we will come out of this to see better days. We are speaking with optimism as we continue to look through the lens of data—not blind hope or out of self-interest.
The real question is: How are you going to come back? Are you adapting now to sustain for future growth?
Will you find new ways to leverage ecommerce so all your eggs are not in one basket? Will your brand come out of this with something fresh to offer and with a whole new business model?
Or can/will you continue to wait for things to “go back to normal?”
Prediction/Fact: The only way to move is forward and the only way to progress and improve is through change. Brands that adapt and apply the lessons learned are the ones that will invest in greater marketing and brand diversification—and will likely be far ahead of the competition for the foreseeable future.
Moving Forward With You…
As a relatively small brand ourselves, National Positions understands the fear and confusion that is running through the minds of many business owners.
Every day of the week can feel like an economic and emotional roller coaster that you did not ask to be on and have little control over. This is why it is so vital to be laser-focused on what you do have control over. Everything else is just noise.
How can you pivot, adapt, and reach the customers who need you, your product or service, and your brand? These are aspects you likely do have control over, and this is exactly where your energy should go.
If you do need ideas, assistance, or any hands-on help, the team at National Positions has your back. Even if it is just a simple question, we encourage you to email us anytime at Marketing@NationalPositions.com or you can follow us and DM our team on Facebook, Instagram, or Twitter.
Keep pushing forward. We will see you on the other side.
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