The coronavirus crisis has only begun here in Hungary.
As opposed to the Chinese example, the European leaders have not stepped up together to combat the virus, exposing the whole of the European Union to a great economic risk.
In Wuhan, China’s most affected region, they managed to stop the spread of the virus in 2 months with a complete lockdown, but the economic damages are still enormous.
Economic analysts forecast that 9-12 months will be needed to restore the Chinese economy.
As for Europe, each country adopts different sanctions and makes different attempts.
Despite the efforts to forge a Union of the European countries, problems like the coronavirus crisis cast light on that the Union is neither united, nor effective.
I cannot say how long the EU will delay forming a unified front in the fight against the virus, but I’m sure that we are months away from the solution.
The current economic damages are insignificant compared to what is to come in the next months.
The economic impact of the coronavirus on Hungarian businesses
Previous crises have always brought new opportunities, new jobs, new technologies in their wake.
The crisis after this novel coronavirus will be different as people are urged to stay at home, if not locked in mandatory home quarantine for months.
As a result, businesses now have limited opportunities to sell products and services, or they can only make sales online.
This will bring about an increasing number of layoffs in the coming months.
Most businesses do not have funds to last for months, let alone for a whole year, and they do not want to risk paying salaries to employees stuck at home, because currently, business owners have no idea when and how they can start again.
What can business owners do in a situation when everyone’s afraid and no one wants to buy?
In my opinion, considering finances, executives have already done the most.
They have cut expenses. This way the average small business can survive 4-6 months.
But what will the future bring:
The return will be slow, painful, and difficult.
Everyone believes that after these 2-3 months pass, people will immediately start buying, and they will keep on spending their money where they left off.
But we forget that most businesses laid off their employees; these people are burning through their savings too in these same 2-3 months.
From now on consumers will not work to afford new clothes, electronic devices, cars, but to have something to put on the table.
So from the moment we manage to confine the virus (let’s say that the EU will act united from April), just like in China, the consumption rates will need at least 9 months to return.
In this tradeless period, it is best to rethink our business strategy and introduce new technologies that are not only efficient, but also involve minimal expenses.
What happens when the pandemic ends and the economy restarts?
The moment the economy restarts, businesses will try to win back their well performing sales people and will jump on every potential customer, as they have not made any revenue for a while.
However, this will raise the competition in sales to unbelievable heights.
From then on only the best, the most skilled, the financially strongest will be able to survive.
How to change your business’ communication and strategy to make yourself more competitive?
American researchers have scientifically proven that online purchasing behaviours have radically changed in the past 5 years.
Before making an online purchase, all customers, without exception, will read the online reviews and testimonials about your business. What happens next?
- Finding a good amount of reviews with positive experiences with your business or the product they want to buy will be reassuring and they will purchase from you instead of your competitors.
- If there is a lack of reviews and ratings available online on your business, or they are just not good enough, your potential customers will become hesitant. Then they simply close your page and search for your product or a similar one elsewhere, where they can find positive customer feedback.
A study in 2017 revealed that the average consumer reads 7 reviews before they trust a company with their money. That is 6 reviews more compared to the previous year. The data clearly shows that the importance of the customer reviews increases each year.
Have you ever made a reservation on Booking.com without looking at the ratings?
With this example, I’d like to prove to you that your decisions are also affected by customer reviews, even if it goes unnoticed.
Booking.com is the most popular booking site in the world and not only because it is easy to use, but also because after each reservation they ask the customer how they felt about the accommodation they chose.
The countless reviews are then published on their page, so future customers can see the latest experiences with the given hotel or accommodation.
And you go through the steps too: before booking, you check the hotel’s rating, you read through a couple of reviews and then, if everything meets your expectations, you make a reservation.
Your potential clients do just the same as you do on Booking.com.
They check your business’ or product’s ratings, and they decide if they will purchase from you or your competitor. This is why you must start collecting reviews and then publish them for your potential customers to see.
In 2020, customers crave first hand experiences and ratings
Me, you, any business that would like to be profitable in the future – we all have to follow the new trends.
THE NEW TREND: Collecting real customer reviews and publishing them on all channels possible
Positive reviews are the way to win the future customers’ trust.
Reviews impact not only the consumer behaviours, but they also strengthen your credibility. Reviews have the power to win the customers’ trust and compel them to contact your company. The customer interactions they generate will significantly increase your profits.
Build customer trust with real Google, Facebook, Tripadvisor or Booking.com reviews.
With Trustindex.io’s software you can easily collect hundreds of real customer reviews on your Facebook, Google, Tripadvisor or Booking business pages.
Then, you can simply publish these reviews on your website and webshop, and build them into your sales channels without a developer.
This way, your potential customers can always see a good amount of reviews of your product or service on your website. And if the reviews are positive, they will be more likely to buy from you, than from your competitors.
Start collecting reviews ASAP, and publish them on your website and webshop!