How is COVID-19 Impacting User Acquisition for B2C Businesses?

The COVID-19 pandemic caught most brands off guard. However, those with an established digital footing could brave the crisis a lot better than others. For marketers, the most impactful method to enhance business is robust user acquisition.

But the question is: has user acquisition become more challenging after the pandemic? What can brands do differently? What companies remain unmoved by the shift to digitization? Some of the industry leaders sparked a discussion with MoEngage to share their pearls of wisdom. 

Below are some of the most prominent highlights from this conversion about user acquisition for B2C businesses during the COVID-19 crisis. 

Observations On User Acquisition After COVID-19

The pandemic has changed the way users come to a brand today. One of the noticeable changes has been the rise in organic traffic with user acquisition. Since more people are looking for solutions online, brands must make themself present. 

According to Lomit Patel from IMVU, It’s always good to go with a high-level and more confident channel of user acquisition, rather than being partners for the sake of it. This is a time to rework the existing strategies and imply those options that work for the brand in the current times. 

For example, the cost of influencers has come down during the pandemic. Since these creators have lesser work, they are willing to settle for content creation at a slimmer budget. An intelligent choice would be spending more on this aspect today. 

The advantage of this approach is not just about cost savings. A brand that is yet to experiment with influencer marketing can test the waters at a lower cost and understand if this influencer model or individual works for the brand.  

Some brands also use this time to increase the user acquisition budget.  This rise is because the money also feeds into the organic fronts like creating content, social media activations, and much more. 

Brands should also use AI and Machine learning to study user trends and spending patterns. This information is essential as the crisis is the single most significant cause of changing spending habits. Brands should also understand that the users might not have the same income or savings today. 

Lastly, reinforce your product’s market fit. This practice is the easiest way to drive organic traffic to a brand, especially when everyone is on their phones. 

To further understand the changes in customer acquisitions, let us consider these practical examples: 

The Advantages of Social Platforms

Eating out is one user habit that drastically changed after the pandemic of 2020. While many stay indoors because of lockdowns, others do not wish to venture outside out of fear or discomfort. “Now, new consumers are at an all-time high because they are always online,” said Vandana Chaudry of Deliveroo. 

Before the pandemic, users had a dedicated set of restaurants they would visit. It would be a limited selection based on their taste, comfort, and proximity. Today users have a mobile application to book food and have the time to surf options and try out new places. 

One sector that has seen a slight dip is premium and top-end restaurants. Users fail to see the vanity of ordering from these places without enjoying the dine-in experience. 

Single-order values have also taken a rise in the pandemic. Since more people are at home, they tend to order for the whole family. 

The challenge for most brands today is to retain these clients. While the crisis helped them acquire the users, they must find innovative methods to ensure they do not leave after the cities open. It’s about creating a habit change now. 

Customer Acquisition for Entertainment

It’s safe to agree that UA has taken a spike in the field of entertainment and social platforms. Lovoo, for example, a dating application based on meeting groups, has seen a massive surge in users. 

According to Saket Toshniwala, Head Of CRM, Lovoo, engaged users are now inviting more people to the platform. As social lives in the outside world suffer, users are creating impressive inner circles on social platforms. 

Creators and artists like DJs and musicians call people onboard apps to perform gigs, which could be an excellent outlet for brands.  

While in such times, the cost turnover is the same as before; it’s a time not to let the active users drop. Companies should aim to reactivate dormant users too. Lastly, it’s imperative to perform app store optimization to the current times for the best source of organic traffic. 

Digital Banks and their Unique Benefits for User Acquisition 

There are also some industries like Digital banks that maintain the UA. While digital banking is a more convenient option in these times, it’s yet to gain popularity. However, this would be a perfect time for a change. 

The crisis also brings a lower spending power for the user; thus, the banks are having trouble with not making enough spending. This user behavior is why customer acquisition and retention should be the priority. 

Final Thoughts

As more users spend hours on their phones, digital markers have never been better to invest time, money, and strategy into user acquisition. All the methods above would make an excellent fit to achieve this.