You’ve probably already heard that eCommerce will grow significantly due to the COVID-19 Coronavirus. You’ll probably also agree that this is a rather general statement and one that needs some clarification.
We have analysed countless articles about things that have happened within the eCommerce domain in China, Italy, and the U.S. over recent weeks and want to share all the most relevant findings all in one place.
As the virus continues, Australia seems to be next in line with the extreme policy precautions of self-isolation and social-distancing. As a result of that, we want business owners to be reactive and triple down on the best channels of sales and consumer acquisition to sail past the storm.
Before we begin talking about Coronavirus in more detail, it’s worth acknowledging that this has happened before – eCommerce has been here before. Alibaba and JD.com, both grew significantly through the SARS crisis in 2002 and 2003.
So what can you do?
There are THREE Facts You Should Know Before You PANIC and Pause Your Digital Marketing During the COVID-19 Pandemic
1. Billions of consumers across the globe are staying home (SELF-ISOLATION) and avoiding stores and shopping plazas. MOST OF THEM ARE SPENDING MORE HOURS ONLINE THAN USUAL. Reach them NOW while they’re becoming accustomed to a new reality. According to industry insiders, e-commerce companies such as Flipkart, Amazon, Wish and our very own chain of supermarkets Woolworths and Coles have witnessed about a 20-30 percent spike in online orders as customers are avoiding visiting crowded places like retail-stores and shopping centers.
2. Over 3.5 billion people are online these days (out of the world population of 7.7 billion) and a huge percentage of them WILL be buying goods and services ONLINE over the next several months OUT OF NECESSITY, and out of boredom depending on their financial status. Your business should be reactive in building a website and establishing any type of online presence can be leveraged post COVID-19
3. Although there has been some worry about a recession, many economists say the fundamentals of the global economy were STRONG before the pandemic and are EXPECTING A QUICK RECOVERY, especially in CONSUMER SPENDING. In China where infection cases are dropping, luxury goods companies have already seen an 85% sales increase which they are calling “REVENGE SPENDING”. Our advice is to cut unresponsive marketing and run retargeting campaigns on intent-based-sales (meaning, closing the deal with people that are already searching for you or your product online).
“If you can keep your head when all about you are losing theirs”
— ‘IF’ by Rudyard Kipling (1943)
Many of the smartest business people we know are what some would call CONTRARIANS. When conventional wisdom advises one thing, they often do the exact opposite. Although the ‘herd mentality’ may seem to make sense, the logic behind it falls apart when you see lemmings running off the cliff.
The challenges we all face today are a great example. While some are panicking or “going dark” to wait it out, true entrepreneurs are DOUBLING DOWN and taking advantage of the fact that more consumers are stuck at home and spending billions of dollars online than ever before. There are 3.5 billion people online globally and a vast percentage of them are in SELF-ISOLATION. Right now.
Consider this as you mull over whether to pause or charge ahead with your digital marketing plans:
Ad spend has dropped, opening up lower cost CPC, CPM, and key word rates. We’re experts at managing marketing expenditures to get maximum ROI. Now is a GOLDEN OPPORTUNITY to see EXTRAORDINARY RETURNS.
Humans are optimists. Most consumers are moving ahead with their lives and REWARDING themselves and their families by BUYING PRODUCTS and SEVICES to distract them from the boredom and anxiety of waiting for the virus to go away. We have a PROVEN TRACK RECORD of marketing to consumers across Australia and around the world.
The global economy is highly competitive. Many of your competitors have likely CLOSED DOWN, LAID OFF employees, TURNED OFF their marketing and RETREATED to their homes. They are panicking or hiding their heads in the sand. Others, such as yourself, can choose to TAKE ACTION, MOVE FORWARD, and FILL THE VACUUM with your CONTINUED INTERACTION with prospects and customers. You will emerge the WINNER, those who go dark will LOSE.
As the coronavirus continues to spread in Australian., there have been signs already of changing consumer behavior. Self-quarantines and emerging consumer worry about public places will provide opportunities for the e-commerce business to thrive over the next few months. As consumers turn to digital options as a means to circumvent physical shopping environments, the change in behavior may impact your business for the best. Consumer behavior is influenced by technological advancements, but also by environmental, economic and sociological factors, all three of which are evident with the current COVID-19.
The punchline here is; if you re running ads and you need another set of eyes, we would be more than happy to give you a hand in finding out where the opportunity lies.
And if you’re a physical business looking to take the leap on digital marketing and e-commerce there has never been a time for you to do so.
“In the Midst of Chaos, there is Opportunity”.
— Sun Tzu (from the Art of War)
If you would like to talk over a FREE 30min Discovery Call, we would love to shed some light on our ‘GO VIRAL AND WIN’ campaign specifically designed to scale online business amidst the tragedy of the Coronavirus.
We can all win together.