How to adapt to the new low contact economy?

In .Business Design, .Customer Experience, Blogfest-en, Uncategorized by Baufest

In an article from the Board of Innovation, the concept of “low contact economy” (low touch economy) is used to define the crisis stage we are living through as humans, in relation to COVID-19.

Tuesday 27 - October - 2020
Baufest
economia low touch

This definition of the times approaches the new phase from the point of view of business and new behaviours showed by customers.

According to these analysts, forced isolation and social distancing restrictions will have a lasting effect, and the return to normality will take between 18 and 24 months.  

Understanding which customer trends and behavioural patterns will hold for the long term is a complex challenge. A study found that 65% of customers are delaying acquisitions and travels. A 52% say their purchasing behaviours will continue to change. And a 30% plan to purchase more online in the future.  

Facing this uncertain scenario, nevertheless, some guidelines seem clear. An investigation for example, detected that 80% of companies believe their main business model must be digitalized to remain economically viable. Incorporating security to the customer experience, especially for the short term, will be another motto. Companies will need as well to anticipate customer expectations and needs through adequate data management and analytics.

A 4 step plan

In such a context, the hypothesis of the article we invite you to read is that, given the crisis in public health unchains a series of replications which will affect the way in which customers and companies interact with one another, it is vital to rethink and redesign the value interchanged between organizations and customers.

To arrive to a viable strategy, the suggestion is that each organization designs a 4 step plan

Step 1: Evaluating impact

First thing is to analyze in detail every way in which the company itself felt the effect of the “low touch” economy. And then to understand the impact it had on their supply chain, industry, customers, and lastly, society in general.

Step 2: Developing a strategy

Given that history tends to repeat itself, the suggestion is that this step is intended to comprehend how similar economic crises came about in the past, particularly in the industry of the organization. Then, those teachings should be used to visualize the many potential scenarios that could occur in the actual context. And finally, ask what the organization could do to grow in each of those scenarios, and in which aspects of its portfolio it should support itself.  

Step 3: Move toward the offensive

Beyond the need to mitigate actual risks, there is a need to plan the following phase.  Many industries that have remained stable through decades are now open to take a turn. And fast moving and decision making organizations will be those to win in the end.

Step 4: Make it happen

In this last step, the recommendation is to profit from the new world order, to question all previous commercial normative. And,  for example, to try a more agile way of working executing weekly sprints with remote teams, or launching a new proposal or business model.

As it is concluded in the note we are reviewing, it is clear that uncertainty will remain. But opportunity will, as well. And even if no one can predict the future, it is possible to be ready for it. In this new reality, technology will be called in for multiple and essential input. At first, it will enable a more reticular analysis and extraction of information which will point towards innovation. And it will also help channel new proposals for customers, in a world in which secure and contactless operations will be a priority.