The effects of COVID-19 have accelerated the adoption of digital processes. As people increasingly rely on technology to work, play, and stay connected, new digital habits are taking shape. While many countries move through different stages of recovery, now is the time for businesses to reset operations, set a new direction, and think bigger to meet emerging digital expectations. We focus on helping companies understand shifting consumer needs so they can prepare for the future and respond to early signs of recovery.
Below, we examine the core digital consumer habits that have emerged so far and how your business can adapt to this new normal.
How faster adoption of digital processes is changing consumer behavior
Search insights from Google Trends show consumer behavior turning increasingly digital. Given lockdown measures in many countries, and the reality that people often could only connect with others outside their household via digital channels, this trend is unsurprising. What stands out is how quickly a wide range of online services have been adopted and embraced.
Now is the time to reset your operations, set a new direction, and think bigger so your business meets new digital expectations.
Consumers will continue to shop online more than before
During lockdown, the internet became the default purchasing channel for many consumers. Since early March, global interest in searches for online shopping and buying online roughly doubled. In the UK alone, online shopping rose by 22% compared with March and accounted for 30% of retail sales in April. Google mobility reports indicate it could take a long time for foot traffic at physical retail locations to return to pre-pandemic levels. These mobility reports show trends for different place categories—retail and recreation, grocery stores, pharmacies, and transit stations—often remaining below January and February levels in many countries. Industry data similarly confirm that footfall in stores in markets such as the UK, Italy, and Sweden remains below 2019 levels.
Changing needs have created new digital habits
Although e-commerce adoption has accelerated, retail is not the only area seeing a digital shift. During lockdown, consumers increasingly turned to the internet for activities they previously did in person or less often online—virtual product trials, online classes, trivia nights, customer service live chats, and virtual fitness classes. Search interest for these activities rose worldwide, reflecting broader changes in how people meet needs across many parts of their lives.
Whether transactional, educational, or personal, users are turning to digital channels across many aspects of life. As a result, consumer expectations are no longer limited to past experiences; they now demand higher digital standards. That’s why businesses of every size and industry must accelerate digital adoption and reshape operations to meet customers where they are and deliver the experiences they expect.
Businesses must embrace digital transformation to keep pace
A recent McKinsey report shows that nearly all organizations—both established companies and newer ventures—are changing business models to become more digital in direct response to shifting consumer behavior caused by COVID-19. Last year we reported that best-in-class digital marketing could add up to 20% incremental revenue for brands and reduce costs by up to 30%. At that time, BCG research found only 2% of businesses were true “multi-moment” marketers, with most companies still in earlier stages of digital maturity.
That research identified six factors for achieving digital maturity. With rapid digital transformation now a necessity for many organizations, these factors are more important than ever. They are:
- Connecting first-party customer data across diverse touchpoints,
- Aligning marketing objectives with unified brand goals,
- Automating tasks and personalizing messages to maximize impact,
- Forming strategic partnerships that support shared marketing goals,
- Training and hiring for advanced data science and analytics capabilities, and
- Maintaining cross-functional, agile teams with an embedded testing-and-learning culture.
The full report breaks down each factor in more detail and provides actionable guidance for businesses ready to move to the next stage of digital maturity.
Remote work is here to stay
While many companies plan phased returns to the office where local regulations and safety permit, more flexible work arrangements are likely: 23% of employees report wanting to work from home more often. This trend increases the need to digitize internal operations so teams can continue working remotely without disruption. It also drives demand for home equipment and office technologies such as video conferencing software—Google Meet’s daily peak usage grew by 30 times since January, for example.
Reset, set a new direction, and think big: The time to transform is now
As your customers and workforce spend more time interacting and working through digital channels, transformation across all areas of your business becomes a more urgent priority. Delivering the experiences customers expect where they are and ensuring your operations remain effective long term are both crucial. Here are four practical approaches worth adopting.
1. Reset by understanding your customers’ needs
Consumer behavior is changing rapidly and in unpredictable ways because of the pandemic. Advertisers must understand what customers are searching for and which retail categories are accelerating to adapt offerings accordingly.
2. Move quickly to set a new direction and stay agile
COVID-19 forced many companies to rapidly tailor campaigns to deliver the right message at the right time. Some businesses pivoted entirely into new areas in response to shifting demand. Being fast and agile during a crisis not only pays off now but also prepares marketers to handle future changes more effectively.
3. Analyze your first-party data responsibly
First-party data—collected through CRM systems and other touchpoints—can be a crucial asset for improving digital marketing, adapting to the new landscape, and building solid foundations for the future. These data are unique to your business and reveal clear insights about your customers and the products or services they want. By creating transparent value exchanges with customers, you can leverage first-party data responsibly to improve online experiences, strengthen relationships, and drive more conversions and higher returns.
4. Think big and redesign your business model
In a dynamic environment, many advertisers will focus on short-term fixes to immediate challenges. As we move into recovery, now is the time to think bigger and use those solutions as building blocks for a redesigned, more agile business model. Automation, in particular, can help capture changing demand more efficiently and extract greater value from marketing spend.
Just as the pandemic accelerated our use of technology, technology can accelerate recovery. For businesses that haven’t fully adapted to the digital world, taking this step may feel daunting, but technology offers a chance to make the essential shifts required for future success. There is still time to reset, choose a new direction, and think big. The moment to transform is now.