Wednesday, May 6, 2020

Business Adaptability

How is small business adapting to COVID19?

NOTE: Since this article was posted it has been updated with new information.
 
When governors issued stay at home orders and business closings it was a shock to say the least. Businesses were deemed essential or non-essential, the latter being ordered closed for the foreseeable future with no re opening date. Small businesses of all sizes and industry are desperately hurting. It’s interesting to see how businesses have adapted to either reach their customers while closed or try to keep customers while operating under restrictions.

Businesses that provide personal services such as salons and barbershops do not have much choice. Restaurants were given a reprieve in that they could provide take out or delivery. Some businesses that were allowed to stay open are still seeing a decline in sales. People are just not going out. Even these businesses have had to become creative to develop more customers. One of the new buzzwords is contactless. Companies are using that description to reassure customers that you can obtain products without having to meet someone face to face. Businesses like hardware stores have begun offering curbside pickup to encourage shoppers that may not want to go inside the physical store. Ecommerce has increased especially for stores that are closed and have had to find other sales outlets.

A contactless marketing coup has been Little Caesar’s pizza portal. They offered in store contactless pizza pick up before contactless was a thing. They quickly adjusted marketing with the new terminology to point out their system of pizza delivery. Other delivery pizza companies are ensuring drivers wear gloves and masks, and leave the thermal delivery bag outside the door for the customer to retrieve the products. In addition to deals and sales there’s been other creativity to entice customers. Restaurants are offering ingredient kits to make your favorite menu item at home. Bakeries are selling cake and cupcake decoration kits. Gardening and craft projects, the list grows everyday of small businesses adapting to new marketing schemes.

What about when the restrictions ease? When everything reopens how are businesses going to change to reassure customers that it’s safe to patronize? As we’ve seen with the beaches around the country, when there’s a reopening some people are going to come out droves. Others will wait a few days or weeks to see what happens. And others may not return to restaurants and at all. A Washington Post-University of Maryland poll of 1,005 people found that Americans are wary to return to restaurants and retail.

Retailers will have to demonstrate what sanitization and distancing procedures are being taken to reassure customers that it is safe to visit. The stores that are open now are taking measures to sanitize. Grocery stores are limiting shoppers and installing shields at checkouts. Restaurants are limiting capacity and reassigning staff to compartmentalize duties to one person-one task. Other types of retail are installing shields, social distanced queue markers, and ramping up contactless pay devices. Others that didn’t normally wear gloves are now. And, of course, everyone is wearing masks. Store signs use to read-No Shirt, No Shoes, No Service. Now, No Mask-No Service!

Patrons have to know what is being down to ensure their safety. Receiving communications as to the efforts and seeing the physical efforts, employees wearing masks, limited capacity, shields at points of sale. all this goes a long way to reassure customers that they will be safe when shopping.

Some companies that sell services and some product based are able maintain operations by allowing employees to work from home. How will that change? Will companies move towards or relax work from home rules? If you’d Goolged the word zoom in January 2020 the search results would have been much different than they are in May 2020.  Now instead of the online dictionary definition (a more likely result) the first return is the website for the online video conferencing company. “Zoom” quickly became synonymous with web meetings. Japan’s business culture is having great difficulty with work from home. As technologically advanced as Japan is their business world is steep in tradition, requiring in person transactions and paper documents. 

What will go away and what will return to pre COVID? Sanitizing wipe downs, gloves, masks, and register shields will probably stay. Will we shake hands to close a deal? Or will elbow bumps be the new social norm of greeting and accords.

The deeper we go into the economic shutdown news of businesses adapting is breaking everyday. Here are a few approaches to rethinking how we do business. 

Still operating drive-in theaters are seeing a boom and entrepreneurs are looking to open new drive-ins. Music promoters are experimenting with drive-in concerts where venues will allow.

In addition to drive thru, Chick-Fil-A expanded curbside and added another feature. When the food is delivered to your car, it is carried inside of a plastic container. The customer then lifts their food bags out of the container. 

LYFT issued guidelines to reassure riders how they are ensuring clean and safe rides. https://www.lyft.com/blog/posts/lyft-launching-health-safety-program
A video of how Dutch restaurants are protecting employees and customers was released. https://m.youtube.com/watch?v=kz3oi4WIKl0