8
Connected social distancing | 1 Connected social distancing Staying in touch with customers in the time of COVID-19 The golden age of consumption which started in the early 2000s and driven by advances in technology, has empowered customers to demand more from companies. Companies have sought to respond by deploying a plethora of technological tools as the first point of contact with customers. Customers demand more. Today, it is apparent that an unintelligent technological tool will fail to meet customer demands as superior customer experience is seen as a common distinguishing feature of market winners. Establishing and maintaining an emotional connection with the customer is fundamental to the sustainable success of any company. Companies must find ways to foster these connections with their customers, without whom there is no company. With the COVID-19 pandemic and the widespread adoption of new social etiquette rules particularly around physical distancing to combat the spread, the ability of a company to maintain the needed connection is made even more difficult with the increasing absence of physical touch points as a fail proof means of achieving the required emotional connection. In Nigeria, many brand-customer connections are built around physical interactions; with COVID-19, forging these brand-customer connections amidst minimal or zero physical interactions, requires the adoption of different forms of interactions. While there has been a steady rise in the adoption of digital based service offerings in recent years, the reality for many customer-facing companies is that customer relationships are largely developed through daily in-store interactions between customers and store employees. Although larger brands often supplement the in-person interactions with online interactions, the personal interactions and touch points are still key to customer loyalty for the most part.

Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

  • Upload
    others

  • View
    3

  • Download
    0

Embed Size (px)

Citation preview

Page 1: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 1

Connected social distancing

Staying in touch with customers in the time of COVID-19

The golden age of consumption which started in the early 2000s and driven by advances in

technology, has empowered customers to demand more from companies.

Companies have sought to respond by deploying a plethora of technological tools as the first

point of contact with customers.

Customers demand more.

Today, it is apparent that an unintelligent technological tool will fail to meet customer demands

as superior customer experience is seen as a common distinguishing feature of market winners.

Establishing and maintaining an emotional connection with the customer is fundamental to the

sustainable success of any company. Companies must find ways to foster these connections

with their customers, without whom there is no company.

With the COVID-19 pandemic and the widespread adoption of new social etiquette rules

particularly around physical distancing to combat the spread, the ability of a company to maintain

the needed connection is made even more difficult with the increasing absence of physical touch

points as a fail proof means of achieving the required emotional connection.

In Nigeria, many brand-customer connections are built around physical interactions; with

COVID-19, forging these brand-customer connections amidst minimal or zero physical

interactions, requires the adoption of different forms of interactions.

While there has been a steady rise in the adoption of digital based service offerings in recent

years, the reality for many customer-facing companies is that customer relationships are largely

developed through daily in-store interactions between customers and store employees. Although

larger brands often supplement the in-person interactions with online interactions, the personal

interactions and touch points are still key to customer loyalty for the most part.

Page 2: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 2

Identity Concerns:

Customer connections result in customer loyalty when customers choose to be associated with a business. A company’s

identity is tied to the activities delivered and results reported consistently. These may include corporate donations to the

fight against COVID-19 and offering complementary products and services to customers to help them cope better with the

current situation.

How have companies responded?

Zoom for example, offered public elementary and secondary schools in the US, Italy and Japan complementary access to

its teleconferencing services.1

In Nigeria, companies such as Printivo and Kiakiaprint have repurposed their print shop to manufacture custom-made

protective equipment for their customers.

Nexford University, an online education company, in collaboration with MTN and Sterling Bank, leveraged its platform to

provide free education, complementary data, discounted LinkedIn learning sessions, and webinars focused on the

emerging career opportunities in the market.2 This powerful partnership between the three organizations aims to upskill

customers to improve their job prospects as unemployment and layoffs reach unusual highs.

Some brands have missed the mark in defining themselves in the COVID-19 era. Clothiers that tried to spin the lockdown

as ‘the perfect opportunity to get dressed up’ and beer producer Molson Coors’s "Official Beer of 'Working' Remotely" ad

serve as cautionary tales.3 These messages were poorly received by customers because while the former showed lack of

empathy by pushing sales, the latter trivialized the struggles of involuntary remote work.

Redefining customer connections

New customer priorities have begun to emerge in the COVID-19 era; the definition and channel of customer connection is

evolving in turn. A look at different known companies reveals that connecting with customers in this COVID-19

environment is likely to be successful when a company addresses the following customer concerns:

• identity,

• safety,

• convenience,

• experience, and

• economic.

While some companies have emerged as exemplars of success (in meeting these emerging customer priorities) during

this COVID-19 era, others have struggled.

In the subsequent paragraphs we will explore each point of concern for customers, highlighting key differences between

successful and unsuccessful companies.

Page 3: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 3

Safety Concerns:

At the time of this publication, COVID-19 cases are still on the rise globally. To reduce the spread of the virus,

governments at different levels have instituted varying degrees of lockdowns and advised on specific social etiquette rules

including physical distancing and the wearing of masks. In addition, the level of awareness around the spread of the

corona virus among customers is high; resulting in a healthy level of conscious avoidance of in-person interactions among

customers.

Another important aspect of safety is safety of customer data. The boom in online transactions necessitated by prolonged

quarantines has increased the risk of cybercrime. Websites dedicated to phishing- fraudulently collecting people’s

personal information for mal intent - increased by 350% between January and March of 2020.3 Businesses that request

customers’ personal information like e-commerce and financial services are special targets.

How have companies responded?

Disney displayed leadership in customer safety by closing its theme parks as soon as large gatherings were declared a

coronavirus risk factor, and by selling Disney-themed face masks to encourage positive public health behaviour among

children. Revenues from these masks are likely insignificant in the big-picture economics of the Walt Disney Company,

suggesting the company’s motives are more altruistic than profit-driven. Norwegian Cruise Line, on the other hand, placed

self-interest above the interest of customers by urging sales agents to downplay the severity of the coronavirus in

communication with prospects and claiming that the virus was only viable in cold temperatures, hence signing up for a

cruise to the Caribbean was considered safe even at the time of growing concern about the spread of the virus. Today,

while Disney is struggling to keep its doors closed amidst growing demand to open, the Cruise Line narrowly avoided

bankruptcy by raising $2.2 billion in emergency funding from investors.5

To ensure the protection of customer data, it is important for businesses to take extra precaution as the current times

present an ideal environment for cyber criminals to strike. In response to the risk of customers falling susceptible to cyber

attackers, companies have begun rethinking and strengthening their customer data protection strategy. They have also

tried to educate their customers on best practices in protecting oneself from cybercrime. United Bank of Africa (UBA), for

example, sent out an email to their customer base to warn them of fraudsters posing as UBA staff or COVID-19 relief

officers.6 Further, companies should explain the steps they are taking to ensure customer safety and make themselves

available for questions as needed.

Convenience Concerns:

As the prolonged total or partial lockdowns continue, companies that develop creative ways to get their products in the

hands of customers will win their hearts and wallets. Options such as home deliveries that in the past seemed reserved for

a subset of customers have now become necessities for most customers. This underscores the need for innovation in a

company’s business model and delivery channels.

Page 4: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 4

How have companies responded?

Mega-retailer, Ebeano, for example recently added online ordering to its product suite. The retailer went a step further and

developed a purchase order flow chart detailing the step-by-step processes of placing orders, receiving orders, and

making payments in line with governments’ social distancing guidance. Although it is too early to tell the effects of this on

Ebeano Supermarket’s bottom-line, available social media customer feedback reveals that the change has been well

received by customers. The Twitter post announcing the launch of the newly created purchase chart flow was one of the

most liked and retweeted posts in the company’s recent history.7

Restaurants across Nigeria are prioritising customer convenience by innovating their business models. Fast food chains

like Dominos Pizza incentivise online ordering through online-only discounts and free delivery. Looking globally, tech giant,

Facebook is facilitating convenience in retail by updating its features to allow company profiles to double as storefronts.

The impact of this new product on Facebook is expected to be positive- analysts’ price targets reflect expectations of an

upside potential of 5% in Facebook stock in the coming months. 8

Experience Concerns:

Now is a time to show customers that they are more than a just a statistic. Showing care is central to enhancing the

customer experience in the current era. For example, genuine concern for the customer can be shown by modifying long-

standing sales and return policies to suit customers’ actual preferences.

How have companies responded?

One company that is getting customer experience right is the publicly traded American fast-food retailer, Noodles &

Company. The restaurant assured its customers that it will improve hygiene standards and provide contract employees

with two weeks of sick leave to disincentivize working while sick.9 Another example of a company getting the customer

experience right is American coffee and baked goods chain, Dunkin Donuts. In addition to strictly adhering to social

distancing guidelines, the company sent out a “We’ve got your back” message to customers, detailing modifications

across their stores to assuage customer fears of shopping in a pandemic.10 These included expanding curbside pickup for

customers and reducing hours of operation in store to allow time for deep cleaning and sanitation.

Economic Concerns:

Millions of individuals and small companies are currently facing financial strains because of COVID-19 induced

redundancies. To stay connected to customers, companies need to appreciate these working capital and income

challenges and respond accordingly.

How have companies responded?

Some commercial banks in Nigeria following directives from the Central Bank have displayed leadership in addressing

these issues by issuing payment moratoriums to SME clients to ensure their company survival and their ability to pay their

staff.11 Telecommunications giant, Globacom, is responding to its customers’ financial plight by discounting product prices

– Globacom recently rolled out the Stay Home data plan which gifts subscribers up to 20% additional data.12

Though the companies mentioned above continue to serve as examples in responding to the economic concerns of their

customers, some companies have not fared so well. Several supermarkets and pharmacies have been persecuted by the

Federal Competition and Consumer Protection Commission (FCCPC) for price gouging.13 Though the cost of these

companies’ legal battles with the FCCPC will be high, the cost of the lost goodwill from current and future customers will

be higher.

Page 5: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 5

Staying Connected During COVID-19

In spite of the varying schools of thought about the novel coronavirus – how to combat the pandemic, how the pandemic

will evolve or when it will end – most agree that a number of the changes brought about by the virus will linger for a long

time, with some becoming permanent. This implies that the current social etiquette requirements will persist for a time.

Being able to connect with customers while socially distancing is thus critical for company continuity. With what we have

observed to date and based on the customer concerns above, we opine that to build and maintain customer connections,

companies should consistently demonstrate these 5 elements:

1. Value-led interactions: One of the most important elements of customer connection is trust. Customers simply don’t

want to do company with a company they can’t trust. However, trust is earned over time through consistent

demonstration of the companies’ values in interacting with customers. These same values must shine through even in

the absence of in-person interactions.

2. Capabilities-based services: “Nemo dat quod non habet” is a popular legal rule that simply means “you cannot give

what you do not have”. This is applicable here as a company cannot connect with customers in a way that it is devoid

of what it has or knows. Thus, a company should leverage existing capabilities in interacting with its customers during

this period. Although this period is laced with uncertainties, appreciation of a company’ current ‘way-to-play’ would

provide some certainty around what promises to a customer a company can consistently keep.

Call-to-Action:

• Articulate and communicate your values as a company.

• Embed these values in all activities particularly the customer-facing activities.

• Monitor compliance with customer-facing activities.

• Address non-compliance accordingly.

• Provide support when needed.

Call-to-Action:

• Identify and articulate your unique value proposition (UVP) to the customer

• Define and list existing company capabilities to deliver on the UVP

• Embed these capabilities in all activities particularly customer-facing activities

• Monitor compliance with customer-facing activities.

• Address non-compliance accordingly.

• Provide support when needed

3. Digital-enabled connections: In these times, it has become increasingly difficult to maintain a strong in-person

connection with customers. In spite of this, companies must find ways to stay in touch and maintain valuable

connections. Even digital laggards are being forced to optimise their traditional ecommerce like websites and social

media platforms. For example, SaaS allows companies to maximise their market reach, while A/VR (artificial

intelligence/virtual reality) could be useful in bringing the in-store experience to the customers

Call-to-Action:

• Identify customer touch points

• Leverage digital technologies in maintaining contact with customers and delivering services

(maintaining in-store experiences).

• Monitor compliance with customer-facing activities.

• Address non-compliance accordingly.

• Provide support when needed homes.

Page 6: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 6

4. Clarity-laced messaging: The current uncertainty presents an opportunity to deepen customer loyalty. Clear and

open communication has never been more important. The coronavirus has brought ambiguity to our way of life and

companies should avoid contributing to the chaos as it pertains to their operations. For example, disruptions

causing delays in delivery and limits on quantity of purchase of in-demand items should be properly communicated.

Call-to-Action:

• Communicate what the company is about (reintroduce yourself)

• Communicate changes to ways of delivering the brand promise consistently (Customers should

know what to expect with the company)

• Monitor compliance with delivery

• Address non-compliance accordingly

• Provide support when needed

5. Agile-prevalent actions: The one constant thing about the novel coronavirus and its impact on our world is that new

findings are being made about how the virus works. As such, we should continue to expect new advisory guiding

societal interactions. To succeed, companies will need to rapidly adapt their activities as the guidance statements

are released while maintaining the quality of service delivery. An agile mindset, nimbleness and adaptability within

companies are necessary for the type of decision making necessary to weather the changing faces of the novel

coronavirus.

Call-to-Action:

• Open channels of collaboration between employees and employers

• Create a safe environment to test novel ideas (innovate with minimal disruptions)

• Recognize and reward innovation

As said by Winston Churchill, “never waste a good crisis”. The challenges of COVID-19 presents us an opportunity to

better understand and appreciate the true nature of interaction and collaboration. By adopting and deploying these 5

elements, companies will move beyond a transaction-based relationship and deep connections with their customers will

emerge and remain.

The winners in our marketplace will be companies who proactively turn singular customer interactions into long term

customer loyalty by staying in touch with customers even amidst our current social distancing.

Page 7: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 7

Notes

1“Zoom for Online Learning Updates: Expanded Access for Schools”, Zoom, availaibe at https://blog.zoom.us/how-to-use-

zoom-for-online-learning/

2Interviews with MTN and Sterling Bank

3“Hershey, Coors pull ads to avoid coronavirus insensitivities”, Marketing Dive, available at

https://www.marketingdive.com/news/hershey-coors-pull-ads-to-avoid-coronavirus-insensitivities/573927/

4“Cyber-crime during the COVID-19 Pandemic”, United Nations Interregional Crime and Justice Research Institute,

availaibe at http://www.unicri.it/news/article/covid19_cyber_crime

5“Norwegian Cruise Line Raises Over $2 Billion After Warning Of Possible Bankruptcy”, Forbes, availaibe at

https://www.forbes.com/sites/sergeiklebnikov/2020/05/06/norwegian-cruise-line-raises-over-2-billion-after-warning-of-

possible-bankruptcy/#7f2d40622b87

6Interviews with UBA customers

7“PrinceEbeano, Twitter post, March 23, 2020, 11:47 a.m., available at

https://libguides.dickinson.edu/citing/chicago/nontraditional

8“Facebook Shop a No Brainer for Advertisers, Says 5-Star Analyst”, Yahoo! Finance, availaibe at

https://finance.yahoo.com/news/facebook-shop-no-brainer-advertisers-190700846.html

9“COVID-19 Update”, Noodles & Company, availaibe at https://www.noodles.com/covidupdate/

10“Our Response to Coronavirus (COVID-19)”, Dunkin’, availaibe at https://www.dunkindonuts.com/en/covid-19

11“Circular to Deposit Money Banks and the General Publis on CBN Policy Measures in Response to the COVID-19

Outbreak and Spillovers”, Central Bank of Nigeria, availaibe at

https://www.cbn.gov.ng/Out/2020/FPRD/CBN%20POLICY%20MEASURES%20IN%20RESPONSE%20TO%20COVID-

19%20OUTBREAK%20AND%20SPILLOVERS.pdf

12“Glo launches Stay Home Data Plan, offers up to 20% more data”, Glo, availaibe at https://www.gloworld.com/ng/latest-

news/glo-launches-stay-home-data-plan-offers-up-to-20-more-data/

13“The FCCPA And Price Gouging Amidst the Covid-19 Pandemic in Nigeria”, Lawyard, availaibe at

https://www.lawyard.ng/2020/05/12/the-fccpa-and-price-gouging-amidst-the-covid-19-pandemic-in-nigeria/

Page 8: Connected social distancing · 2020-07-09 · Connected social distancing | 5 Staying Connected During COVID-19 In spite of the varying schools of thought about the novel coronavirus

Connected social distancing | 8

Author

Mary Iwelumo

Advisory Partner

PwC Nigeria

[email protected]

© 2020 PricewaterhouseCoopers Limited. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers Limited (a Nigerian limited

liability company), which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

As part of our PwC Cares COVID-19 intervention, we have set up a Knowledge Hub with insights to

support businesses and governments in their response to the impacts of COVID-19

Visit our COVID-19 Content Hub at www.pwc.com/ng/covid-19

Access COVID-19 Resources on PwC Nigeria's Tax 247 Mobile App available on both Google Play

Store and the Apple App store

www.pwc.com/ng

Ada Irikefe

Associate Director, Experience Centre

PwC Nigeria

[email protected]

Ifeanyi Nnaji

Senior Associate

[email protected]

Zinat Raji

Associate

[email protected]