M&A activity in the second quarter of 2020 continued to decline, with $336.8 billion over 2,025 transactions. This is a substantial decline from the record activity seen in recent years which the report calls “the canary in an M&A coalmine.” Quarter over quarter declines were 41.1% and 24.2% for deal value and count, respectively, compared to an already slow Q1 2020.
The Problem: Prospects Sit In Your Pipeline Too Long Many service providers often have a single, all-inclusive service that’s presented as a binary choice: hire us for the whole service or don’t hire us. Because these services are typically important and consequential (e.g., wealth managers help save for retirement, lawyers defend against lawsuits, architects design […]
We’ll admit: this is an uncomfortable subject to raise. Many of the people reading this will fall into one of two groups: (A) marketers who are struggling, in many cases because marketing budgets have been slashed, and (B) business operators who are up against the wall, many of whom see “severing a finger to save the hand” as the best available option.
For businesses that have experienced the need to cut nonessential spending due to the losses caused by the pandemic, marketing is usually one of the first areas to go. However, taking a deeper look sheds light on why investing in marketing is a good idea, if possible, during tough times.
The Harvard Business Review found that companies that cut marketing costs faster and deeper than their rivals later have the lowest probability (21%) of pulling ahead of the competition once times improve.
If your business slashed its marketing budget, take time to look at the sources and reasoning in this article to think about bringing it back. Keep in mind that anything that is put off now, will need to be rebuilt later. Being able to adapt your marketing to the post-COVID will benefit in the long run, since your new strategy will already be built out.
The New Normal for Business and Marketing Strategies As businesses around the country try to assess what’s next after the big Shut Down, many are realizing that it won’t be “business as usual”, not just because of the reopening guidelines imposed by the government, but because customers and clients may not feel comfortable reentering the […]
Now that many of the worst-affected states are beginning to reopen their economies, we are all realizing that the post-pandemic world will be very different than it was just a few short months ago. We can expect increased government intervention as a result of the huge stimulus and bailout payments, and greater emphasis on promoting “an economy that serves all Americans”. According to the authors, the seismic shift to a contact-free economy will be seen in three areas in particular: digital commerce, telemedicine, and automation. All businesses need to rethink their business models and the name of the game is resilience. Companies will have to build, or strengthen, backup and safety plans, step up succession plans, and expand work-at-home capabilities. The good news is that the authors also anticipate some positive outcomes as a result of these changes. Sales Renewal is talking to a number of our clients on how they can adapt their businesses for success in what is being called the new normal.
While the cultural shift during the pandemic has been tremendous, there are many facets that are likely to become the new normal for businesses and their marketing strategies in the future.
Businesses should not look at this time as a temporary normal that they can come up with some quick fixes for, but as a permanent shift for the future. There will be a new way of doing things and the business models and marketing strategies will be different – it’s already changing every day.
With people staying at home more often than ever, virtual has become the new standard. Video calls and online communication are more normal and saving consumers time, setting them with a new expectation of how they can communicate with companies and firms. For example, having a video meeting with a professional service instead of visiting their office, can be more convenient and efficient for a consumer – something they might want to keep doing in the future.
The reality is that people are developing new ways of doing things and new expectations are being set. Many companies will need to have a substantial online presence to meet their consumer’s needs. Is your business in line with adapting to the new virtual landscape of consumer behavior?
4. Reallocate labor flexibly to different activities.
For example, in response to a severe decline in revenue, more than 40 restaurants, hotels, and cinema chains optimized their staffing to free up a large share of their workforces. They then shared those employees with Hema, a “new retail” supermarket chain owned by Alibaba, which was in urgent need of labor for delivery services due to the sudden increase in online purchases. O2O players, including Ele, Meituan, and JD’s 7Fresh followed this lead by also borrowing labor from restaurants.
5. Shift your sales channel mix away from face-to-face towards new channels
For example, cosmetics company Lin Qingxuan was forced to close 40% of its stores during the crisis, including all of its locations in Wuhan. However, the company redeployed its 100+ beauty advisors from those stores to become online influencers who leveraged digital tools, such as WeChat, to engage customers virtually and drive online sales. As a result, its sales in Wuhan achieved 200% growth compared to the prior year’s sales.
Personalized marketing is tailoring your marketing message to an individual. Personalization ranges from personalized video to personalized emails to customized product recommendations and everything in between! With the advancement of technology, customers now expected personalized or customized marketing messages. Read on to learn how to do it right.
It seems obvious that developing a clear marketing strategy – one embraced by all internal groups – before deploying a slew of marketing tactics can drastically improve the success of your marketing program. However, many new product marketing launches don’t reach their full potential because of a breakdown in communication and a lack of focus. The most effective path to a successful launch includes identifying clear goals and objectives, and zeroing in on consistent positioning and messaging.
This article posits that there has been a fundamental shift in the way brands are perceived and the value they provide. But why? Blame increased consumer skepticism, the “millennial mindset”, the importance of value over status, or the increasing power of community to provide help and insights, but whatever the cause, brands must understand what is changing so they can adapt. The author proposes some new guidelines brands should follow when shaping their strategies, communications and behaviors to face this new reality. While some may already be part of your brand strategy, others are worth calling out, specifically: a) be sure to find and communicate your brand’s meaning and purpose, b) participate in communities; they are critical to brand acceptance, and c) customer service can be a brand-defining attribute. Read the article for more fascinating insights.