Building promotions to encourage customer loyalty post-Covid.

Changing shopping preferences

The effect of constant lockdowns and harsh restrictions have made quite a significant impact on the digital retail landscape as the frequency of online shopping rose tremendously. As Australia endured world record lockdowns, many consumers turned to online shopping. This shift in preference accelerated as more lockdowns forced businesses to shut down, enforce limitations on visitors, or go purely online. Those who were unable to, or reluctant to shift their delivery model suffered. 

Changing demand dynamics

Although many consumers managed to build their savings during lockdowns, those who lost their jobs have been more judicious in managing their tight budgets. At its peak unemployment reached a record high of 13.8% in March 2020 before dropping to 7.5% in June. 

When Victoria was hit with a second wave in August 2020, many more lost their jobs despite the economy later recovering. These factors all influence business confidence, and their investment decisions be it in hiring staff, expanding inventory, operating hours, pricing, and their belief in whether further lockdowns are expected.

New strategies for the new normal

All of this is to say, the pandemic’s negative impact on business operations comes as little surprise. 

In attempts to revive their operations, many businesses are looking for opportunities to re-engage lost customers, attract new ones, or rebuild their brands. The business landscape has shifted dramatically during the pandemic, and for somewhat worked pre-covid may not work where contactless, online shopping, click and collect, social distancing, and work-from-home are the new normal. As such, it is crucial for businesses to cater to the new demands established by employees, partners, and customers during Covid-19.

While everyone in Australia was in lockdown, purchasing behaviour of individuals changed. 50% of Australian consumers embraced new shopping behaviours whilst 30% tried out new brands. Many Australians, especially those over 45 years old, have adopted online shopping and will choose to shop online post-Covid. 

On the other hand, employees are looking for flexibility as the majority worked from home during the pandemic. Employees also prefer to ditch the commute and have the freedom to arrange their daily schedule. As restrictions are easing and employees can return back into the office, many are pretty reluctant and unwilling to go back to the “normal” working life pre-Covid. 

Working remotely has also enabled higher productivity as employees have more time to complete their tasks. Although it can come as a piece of good news to business owners, this has been creating a major burnout for its employees. Some have felt unhappy and unmotivated due to the stress from work, and basically the minimal zero work-life balance. As a result, many have had time to reconsider their priorities in what’s become known as “The Great Resignation.”

Keeping your business relevant

The key question is - how are businesses using existing and new tools to increase growth? It goes without saying that providing exceptional customer service helps in building customer loyalty and potentially increasing leads in the long run. If your budget allows, deploying a good AI system into your chatbots can help boost customer engagement by solving small enquiries and improving efficiencies. Good customer service contrarily helps to retain customers. Thus, ensuring employees are well trained, especially post-Covid, will also help smoothen the journey when transitioning back into offline channels.

Business owners are now in a race to improve current strategies to create positive cash flows. We have to take into consideration that not all changes imposed before, during and after the lockdown will work effectively. To increase cash flow short term, businesses are putting out promotions to increase customer engagement and profits at the same time. For example, Click Frenzy is an event for businesses to partake in to boost sales and brand awareness. 

Click Frenzy occurs twice a year, where many big and small brands participate and provide great deals and offer for customers to shop their collections. Participating in events such as this might shift inventory, drive subscriptions, and grow revenues in the short term. But will it build repeat business in the longer term? Each business must make its own assessment of whether its brand will be recalled by the customer for future purchases or Click Frenzy’s; whether they are bargain hunters or part of a longer-term brand engagement. 

Providing good customer service, offering deals and promotions, partaking in sales events to boost sales - these activities could potentially drive repeated transactions, but will they sustain and increase growth for future operations? 

At iGo, we believe beyond sales events the path to ongoing success is a well-considered combination of promotions and loyalty campaigns to first increase sales and then encourage repeat business. Talk to the promotional experts from iGo to find out how promotional campaigns and rewards can boost sales and future engagement.