Finding Opportunities after Covid 19 crisis

Protect your core revenue and take care of your customers now

Although there is no proven playbook for this moment, past crises are instructive. Retention is the first step. The American composer Stephen Sondheim once wrote, “To get what you want, better see that you keep what you have.” Listening to and meeting your core customers’ needs is foundational. What sets apart those that will thrive in the aftermath is their ability to anticipate market shifts and react and adapt to new customer needs in real time.

We offer three clear actions for leaders:

 

Create visibility into a fast-changing environment

Historical models and data are no longer useful. Ongoing and localized insights into shifting customer situations, behavior and demand patterns are crucial. Look for unexpected trends and assess new leading indicators, like public health data.

 

Reimagine services to meet evolving customer needs

The ability to quickly tailor existing products, offerings and services to new consumer needs is essential. Prioritize the right customers and prepare an investment plan to rotate to digital, make digital human and team for last-mile distribution.

 

Establish a nimble (and virtual) operating model

Customer treatment strategies, messaging and offers should evolve with behaviors. Reassess customer contact and adopt an innovation mindset to capture opportunities. Avoid being trapped by legacy costs and investment allocations. Repurpose assets to enable new business models by assessing existing investments, pricing strategies and physical assets relative to local conditions and demand.

Find new growth paths next

The future will belong to the prepared. While it might sound counterintuitive to spend time today identifying the new growth paths, lessons from the past two recessions suggest companies that balanced growth and cost management outperformed their competition in the aftermath.

To be ready for what’s next, prioritize three goals:

 

View your business through a customer lens

This crisis offers a unique chance to build trust with customers and reset around their needs, including how they want to buy and receive service. Be careful not to be seen as exploiting the situation, even as a byproduct of responding to more demand.

 

Rethink your channels and ecosystems

Business model flexibility is crucial. Decouple the core to allow for unencumbered new models and governance. Ecosystem partners that allow for experimentation and rapid scaling will be key. Look at adjacent businesses and study how they're adapting to the current situation. Pursue unique opportunities to acquire assets, IP and talent in the search for new growth pathways.

 

Define a portfolio approach to invest wisely in what’s next

Economic downturns require portfolio-minded investment decisions. Apply a hedge fund mindset across your business units, brands, functions and key partnerships. Evaluate how consumer experiences are delivered to prevent investments from being trapped in an individual silo. Reconsider alternative pricing and payment models. Apply new demand-sensing capabilities to inform key investment decisions.

 

What one lesson or experience do you wish to share related to the above.?