The pandemic is rapidly changing consumer behaviour towards online channels in Denmark, and the shifts are likely to stick once the pandemic eases. Mohamed Dabo reports on a lasting trend that is replicated across the world
Across the globe, the Covid-19 outbreak has led to major changes in business conditions for B2B and B2C companies alike – and Denmark’s experience applies to many other countries.
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Covid-19 will permanently reshape e-commerce as we know it, separating winners from the rest. The coronavirus-induced trend will make many companies struggle to survive in the short term, but bold companies that invest ambitiously and timely in their online business are likely to emerge as market leaders. That is the conclusion from Deloitte’s research into the changes wrought on the Nordic country by the global pandemic.
“Companies that invest courageously and timely in pivoting their businesses toward the behavioural changes can capture market shares and emerge post-pandemic as market leaders,” the report says.
In the changing business landscape, user experience is quickly becoming a key differentiator allowing brands to cut through the noise and create a unique value proposition for customers.
The challenges of Covid-19 in Denmark, and elsewhere, require commitment from the chief experience officer (CXO), who is responsible for the overall experience of a business’s products and services. User experience (UX) is quickly becoming a key differentiator in the modern business landscape, so the CXO is charged with bringing holistic experience design to the boardroom and making it an intrinsic part of the company’s strategy and culture.
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By GlobalDataThe Deloitte study proposes seven initiatives that are “critical for business leaders to act on now to successfully transition your business to the new e-commerce reality”.
1. Explore digital business model
Revisit the foundation of your business model to make sure it is still valid in the context of digital sales channels, profit models and the services that you can provide to your customers. The time is now to create the digital marketplace, introduce the subscription model or create the click-andcollect universe you have been considering.
2. Overinvest in digital marketing
Funnel your marketing spend toward the digital channels and media versus out-of-thehome platforms. Revisit both your paid and organic marketing (SEO) maturity. If you do not have the scale to invest competitively, find a suitable digital marketplace. Above all, strike appropriate marketing messages during and after the pandemic situation.
3. Strengthen the customer experience
Understand the path to purchase of your (new) online customers, and provide a simple and human-centered UX design to create delightful shopping experiences across devices leveraging the latest technological innovation. If you have physical stores, ensure that they are experience-led and digitally connected with your e-commerce channel.
4. Upgrade supply chain and fulfilment
Making your supply chain customer-centric will, for many businesses, mean catering for a stronger product availability, fast last-mile delivery and easy returns, raising the question of flexible warehousing (perhaps utilising your physical stores), logistics partnerships, and auto-replenishment models to manage profitability.
5. Strengthen technological platforms
Pressure-test your e-commerce platform, expand necessary capacity limits to prepare for an increasing consumer flow, and take the opportunity to invest in advanced analytics capability to ensure personal, timely and automated customer interactions and recommendations across devices.
6. Reinvigorate your organisation
New digital talent – UX, visual design, scrum and so on – will be needed, and many of your existing employees will not be able to adapt. Seize the opportunity to replenish your talent base, and invest ambitiously in your culture and digital ways of working, leveraging the latest corporate team and interaction platforms.
7. CXO management attention
Elevate e-commerce to the executive agenda in your business to ensure adequate attention and priority. CEOs and MDs should seize the opportunity to communicate clearly and strongly on the gravity of change needed for your company to emerge strongly postpandemic.
Ultimately, Covid-19 is not only transforming the way consumers shop, but also how they pay for their purchases. Since the start of the pandemic, many consumers have avoided cash transactions in favour of contactless card payments, as these require no physical contact with human or machine.
Consumers are also trying out new payment methods while purchasing from e-commerce websites, and tend to prefer those methods that have the strongest protection against fraudulent losses.
