How Digital Marketing turned the game in favor of commerce against Covid19
What could be the secret of some companies that multiply profits even in times of global crisis – Covid19?
It is an irrefutable fact that Covid19 has tremendously destabilized global socioeconomic development. For example, the International Monetary Fund (IMF) envisioned a possible reduction of 8% in Portuguese economic activity attributed to the pandemic. The Minister of Economy, Mário Centeno, confirmed the economy’s fall when revealing that the annual GDP registered a drop of 6.5% this year. The World Economic Outlook also forecasts an increase in the unemployment rate in Portugal to 13.9% in 2020. This analysis is subject to the 2019 study that indicated an unemployment rate of 8.7%.
So business is not what it was for most people. Regrettably, most companies have resorted to total closure due to the pandemic, and the Association of Commerce and Services of the Algarve Region (ACRAL) sees the trend in the Algarve region, where most entrepreneurs find themselves unable to continue their activity in the next 12 months. As a result, the Association is now in contact with the government to introduce measures that will ensure the rebirth of closed companies or reinforce those that find themselves in difficulties.
Well, to save what is left of its economy, the Portuguese government has recently drawn up a socioeconomic stabilization plan that includes:
- Universal Digital Education Legislation
- Special credit lines
- Extensions of the moratorium
- Income protection
However, as much as Covid19 has stalled economic growth, the pandemic may have accentuated a pre-existing but latent marketing strategy (e-commerce) for most companies. So it’s no surprise that some companies are actually doing great, even during these tough times, because of their initiative in exploring digital marketing strategies!
Since the Portuguese government openly expresses the desire to extend the measures to combat the second wave of the virus, perhaps it is time to present your business to an exclusive or mostly digital reality. Your business will thus have a great opportunity to take a leap forward in e-commerce and produce new results.
Major calamities bring conditions that affect our natural way of life and transform it into a system that, little by little, become the norm in society. It is a trend supported by twentieth-century history, when, for example, the aftermath of World War I introduced universal suffrage.
The Covid19 calamity acts as a catalyst for the significant transformation of lifestyles. E-commerce is not a new practice. He was there, but with negligible recognition for most companies. However, at this time, Covid19 and based on research by McKinsey & Company, there was an increase in the growth rate of e-commerce from 81% to 95% in European countries. Digital marketing will be the next step to be taken by most companies as a business strategy.
Why have people found convenience in digital marketing?
1. Work from home
Covid19 turned the office into a potential environment for contracting the virus. As a result, most non-essential offices were closed. However, companies that could apply digital techniques to their services and customer “engagement” made the necessary readjustments to work online from home. Working from home kept these businesses afloat, despite the restriction measures.
2. Online Shopping
Due to digital marketing, and during blocking, people could easily shop, for example, even from groceries, Shopping online became the only alternative for most people who could not visit stores.
3. Increases brand image
With the imposition of the blockade, most people were able to get distraction and entertainment on social media, as clubs and collective events are prohibited. Therefore, increasing your online presence also means increasing the visibility of your ads.
4. Better customer connection
Most companies that ended up closing their stores because of Covid19 and decreasing their online presence, have lost their customers by not providing their services. However, companies that were able to incorporate the digital marketing strategy were able to maintain contact with customers through an online platform.
5. Improved growth rate
The rise in online Shopping is taking businesses with online stores into an advantageous position and allowing a steady stream of revenue. Furthermore, with the improvement in customer service, there is an increase in the sales rate through the digital aspect, thus increasing the business growth rate to exponential levels.
While some of the changes brought about by Covid19 may be temporary, the paradigm shift in e-commerce will be the newly adopted way of doing business. It allowed the virtual reopening of most companies and prevented some companies from completely collapsing.
If you still don’t know how to introduce your business services in e-commerce, look no further because here at Webfarus, you will get the best digital strategies.