The outbreak of covid-19 which has disrupted the global economy like no
other with the trendline dipping with uncertainty. During these times, multiple industries
and business verticals have witnessed the effect of a shift in consumer
behaviour, both positive and negative.
Businesses across all verticals around the globe are reeling under the
impact of the global pandemic. Since most geographies across the world went
into a mandatory lockdown, a lot has changed in the way users interact with
businesses across various verticals.
Subsequently, the Coronavirus crisis and its impact on apps have been
unprecedented. While, some industries have seen a surge in user activity,
others are grappling with the irrevocable losses that have taken place in their
operations.
A global report published by MoEngage
and Apptopia reveals that while most app businesses are hit, others are
surviving and some even thriving amidst the crisis.
The study, covering data generated by over 1.5 billion app users using
over 60 mobile apps in 12 verticals, reveals that while some app verticals are
top losers viz travel & hospitality, ride-hailing, there are some big
gainers viz social media, video/ audio streaming.
The implications of COVID-19 on enterprises
The Impact Quadrant divides industry verticals in specific geographies
into 4 major categories, based on downloads and number of frequent users:
- Explosion: Industries that have seen
huge demand in terms of new user downloads and active users. Apps for this
group, such as video chat apps (worldwide), online shopping (North
America, India), health care (North America, Europe, Middle East), Media
and Entertainment (Worldwide), Social Media. (Southeast Asia) and real
estate (Middle East)
- Growth: Industries that have shown
rise in active users but not considerable rise in downloads. The industry
under this group is - Social media. (North America, Europe, India, Middle
East), online shopping (Southeast Asia, Europe, Middle East), food
delivery (Southeast Asia, North America)
- Slowdown: Industries that have seen
steep decline in both active users and new app downloads. The industries
that fall under this category are - Tourism and Hospitality (Global),
Movement (Global), Real Estate. (Southeast Asia, North America, Europe,
India) and food delivery (Europe, India, Middle East)
- Emergence: Industries that have shown promise with getting new users downloads but not active users. Healthcare (Southeast Asia)
What Next
Customer buying patterns and preferences have shifted since the last 3
months globally, essential, functional, and emotional spending have taken
precedence over luxury expenditure. Brands all over the world are tackling how
to prepare and plan their marketing strategies for the upcoming months this
year.
Here are some strategies brands are adopting to navigate their way
during these times:
- Relook
and examine the relevancy of your product in the post-COVID-19 world. This
is not business as usual. Add or tweak product offerings or pivot
depending upon the above assessment. Using the right products during these
times might be a game changer for businesses.
- Adapting
marketing communications that are relevant and helpful to your users.
Focusing on customer segments and making sure you are sharing specific set
of information, precautions and how-to guides could be a starting point as
currently, the objective would be to regain their trust for your products/
services respectively.
- Rethink
all your marketing budgets and focus on driving more business from
existing customers New User acquisition efforts have been put on the back
burner for now. Investors suggest planning for 3-4 months of zero revenue,
3-4 months of 30%-40% recovery, 3-4 months of 80%, and 80-100% of
pre-COVID-19 revenue after a year.
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