With the onset of the second half of 2021, times worldwide are still tough. COVID-19 has impacted almost every industry and vertical at every level, from large enterprises to SMEs.
In the UK, 80% of SMEs reported stable or rising revenue in 2019, but one year later the same number said revenue was declining, according to a McKinsey report. The same report found that 60% of UK SMEs were expected to close permanently by April.
Fear of contamination and lockdown has complicated matters for complex businesses and those that depend on the ability to perform services in person, which has propelled the transactions in large numbers online. From their bank balances through digital customer portals to the use of ordering programs, consumers have been forced to adapt to remote service delivery, and there is no going back.
Although it needs a pandemic to move it online, consumers are enjoying the convenience and speed of digital services too much to give it up again once the crisis is over. A global study by Braze found that 29% of consumers would buy more online after the COVID-19 pandemic, and the main reason for this was convenience, not health issues. While the study focused on physical goods, people are unlikely to feel differently about service delivery.
Under an increasingly digital customer base and a contracting economy, businesses have no choice but to diversify. From the perspective of an agency, strengthen your services, then strengthen your business, make you more resilient and open up more revenue streams by delivering more value to your clients.
But successful diversification can be challenging. Here are some points to keep in mind to diversify your services and strengthen your market ownership as the small business ecosystem recovers in 2021.
Work to your strengths
The first step is to assess your existing skills and abilities so that you know what you are already offering and where your strengths lie. By mapping your existing pluses, you can identify areas where you can outperform your competition and transform the skills into a new service.
You also need complete knowledge of all your assets so that you can look for ways to use them differently. Some assets, such as data, can be converted into a new service without significant capital expenditure.
By diversifying into new service offerings, you can expand your revenue stream, but by focusing on areas where you excel, you can do so more effectively, increase your profile among existing customers and establish a strong reputation that attracts new customers.
Understand customer demand
After evaluating your own business, the next task is to research your market. The trends are changing at the speed of water, so you can not assume that your customer base still has the same needs as they had a year or even six months ago. Researching customer demand helps to reveal new diversification opportunities.
For example, if your clients include attorneys, this sector could create a new demand for help drafting health and safety guidelines that did not exist before the pandemic. Improving the customer’s experience is a strong diversification method that contributes to the value you provide to customers and increases their loyalty, thus increasing resilience.
A PWC study found that consumers do willing to pay up to 16% more for the same services if accompanied by a better CX. Meanwhile, it 77% of consumers say they recommend a business that provides personal service, and 42% will pay more for a friendly and welcoming experience.
If these are things that can help your customers, you’ll probably see a bigger demand.
Forge effective relationships
One of the easiest ways to diversify is by creating reseller partnerships, which enable you to deliver a whole new set of services to your customers for minimal expenses.
You can also create value-added merchant partnerships by adding your own twist to enhance the white labels before selling them. Your partner has the expertise and you have the commitments so they see increased sales and you get a percentage of the deal.
Reseller partnerships are an easy way to diversify, enabling you to add a new revenue stream and / or expand into a new market without hiring new staff, buying new equipment or acquire new skills.
Do not exceed yourself
Stay close to your core skills while diversifying. The key to successful diversification is to expand and not explode.
Marketing agencies can use for example a platform like vcita’s xperts to offer training and training in the use of lead-growing automation and other business management tools, in addition to your existing do-it-yourself services.
By diversifying this way, you can deliver better CX to increase customer acquisition and retention because you will share knowledge you already have and open up new revenue streams without balancing your business stability.
Convert services into products
Digital service providers should also explore the possibilities of converting services into products or assets. For example, web designers can sell high quality template websites, or create online courses that guide new solo entrepreneurs to build their own business website. Business consultants can compile white papers that explain how to choose the right data visualizations, along with their existing services that guide SMB clients through their data.
The diversification in this way offers entirely new revenue streams while helping you turn online. This way, service providers who are struggling to transfer their services without personal interaction may be able to sell digital products online.
This approach to diversification not only offers new revenue streams, but can even help some agencies stay afloat if their ordinary business world is cut off.
Smart diversification is the way to recovery
The new ecosystem after COVID forces agencies to diversify to increase revenue streams, add new markets and sometimes compensate for a business model that is no longer possible in a digital world.
By assessing your strengths and market requirements, creating new relationships and product offerings, and staying within your existing skills, service agencies can improve their resilience and long-term profitability.
Source: EIN Presswire