3 Steps small business owners need to take now for Future Growth post Covid-19

The impact COVID-19 will have on the small business sector in the UK is top-of-mind amongst economists, government, the media and the general public. Fiscal stimulus is being provided by the government and the communities that support these businesses are rallying to help them. And whilst there rightly is great concern for the future of independent merchants, retailers, restaurants and more, there may also be an opportunity for change. 

While securing economic assistance and doing everything possible to maintain cash flow is certainly priority number one for small businesses, adapting operations to best serve customers through this time is also critical. There will be certain shopping behaviours that are adopted now by necessity that could very well become part of the ‘new normal’ on the other side of this. We may find that, suddenly, customers are asking for alternative methods of transaction and interaction. Businesses that traditionally relied on mostly in-store, cash-based transactions such as newsagents and market stalls might now need to accommodate more digital and online forms of payment. Delivery options that may never have seemed necessary will become the norm.

While disorienting and seemingly overwhelming at first, this economic situation may, in fact, present an opportunity. If small business owners take great care now not just to survive but to also smartly evolve, they can be better positioned for future growth. Here are three steps they could take now.

Customers first

Small business owners don’t need to be reminded that their customers are their lifeblood. Servicing them and engaging with them at the highest levels is more important now than ever. Businesses have an opportunity to instill greater levels of customer loyalty and retention going forward by not only reassuring they’re doing all they can to keep them safe and healthy, but also adopting and adapting to accommodate changed shopping and payment preferences. 

We’re being advised by our governments and The World Health Organization to wash our hands after coming into contact with cash, so consumers will be looking for other ways to pay. Shops can play their part by encouraging and educating their customers about the contactless payment methods they have in place. And when customers do choose to use cash or chip and pin, make sure staff are trained on keeping payment terminals clean and that they also wash their hands after handling any cash.

For businesses who have never considered or have only given a passing thought to reward or loyalty programs, now may be the time to do so. With the average sale size value going up, merchants should consider introducing these programs to retain spend during this time. And if they do, be sure to do so both in-store and online. Which brings us to…

Think omnichannel 

While the in-store experience and direct interaction with consumers is paramount for community businesses and small retailers, the way they engage customers online may now (and forever) be even more important. The world will be changed in many different ways on the other side of this crisis, and most are predicting that customers who hadn’t yet embraced the full online shopping experience will do so in the changed landscape to come. For that reason, it’s more important than ever that small businesses and merchants excel at their e-commerce game – enhancing what exists or introducing the omnichannel experience for the first time. 

The omnichannel experience has already become an expectation for today’s consumers, with 48%of crossing back and forth between digital and physical interactions with companies. That is likely to increase at an accelerated pace as an after-effect of the current health crisis. Customers who have never before even considered going online to shop for basic goods and services are doing so now in droves. And while some will only do so temporarily until the crisis lifts, many will adopt the e-commerce experience as their preferred method of purchase. 

For this reason, merchants need to be prepared. They need to consider the online user experience more than ever before, to ensure it is refined and seamless and keeps customers engaged. Small businesses that have only ever had a ‘storefront’ online presence, should consider expanding and enhancing to include more e-commerce options for their customers. Including…

Delivery: The new normal? 

Already on the rise, omnichannel grocery services are seeing a wave of new demand in response to safety concerns and social distancing efforts. . In the UK, online grocery sales are expected to surge by more than a quarter this year as the coronavirus lockdown prompts more families to shop from home. Supermarkets have had to ramp up their online offerings and logistics, Sainsburys its number of slots by 75% a week and Tesco has more than doubled its number of delivery slots, including click and collect to 1.2 million a week. It is widely accepted now that the current demand surge for food pickup and delivery is likely to remain long after the immediate crisis has passed. 

So, if you’re a small merchant and have never considered delivery of your goods and services, now is certainly the time to do so. Whether this is through providers that offer delivery services like Royal Mail or Deliveroo, or staffing up their own delivery workers through partnerships or direct hiring, adding delivery can be a great way for small businesses to gain new customers, especially from those who may not have shopped with them in the past. 

Communities across the UK want to help and support their local, independent businesses – especially now. While it might seem ludicrous to think that the newsagents or local pharmacies can compete online with the likes of Amazon, the loyal customer base those businesses have built over decades will stick with them if given the chance to do so. By embracing some of the practices suggested here, they might not just survive in the new normal. They may very will thrive.