Why Businesses Should Innovate During Global Crisis

When a crisis hits your business, you can run away and shut-shop or you could use this time to innovate. But what can a business do when all seems to go off the tracks? And how should leaders take charge of a situation? 

Vassil Mladjov, Head of Growth, MoEngage, has a conversation with Elizabeth Shaw, Strategist, and CMO Advisor, about this paradox.

Here we have highlighted some of the most significant takeaways: 

Finding The Positives During a Crisis.

“We indeed lived through the housing crisis,” said Elizabeth. The COVID pandemic has been overwhelming for businesses, both large and small. But this is not the time to panic; this is the time to play to their strengths. 

During a crisis, it’s a common practice for brands and companies to first down-size on a marketing team. You often imagine that products and services need to sustain, and marketing is a back-burner requirement. 

However, this would be the right time to double down on marketing and ensure that more people know about you. Reach an audience and build a connection with the end-user today to avoid a massive cash burn. 

“Innovation is not a fad; it’s a strategy,” said Elizebeth. Think creative and tap into employees and the ecosystem, and find a way to shine. 

Digital Is the Strength 

As half the world is locked into their homes, it’s an unsaid rule that “digital” will be the most substantial need. To understand this better, let’s take an example of Macy’s, the clothing retail brand. 

A few months before any news of the pandemic had struck, Macy’s faced a financial challenge. They decided to lay off their digital team to retain costs. This move backfired when people started to look for digital options in the pandemic. 

As mall and retail outlets close down, the digital marketplace will become the new first-choice marketplace. Does this mean brands should not focus on retail stores? No, here is the solution. 

Companies must discover methods that blend both the in-store and the digital experience. For example, using a mobile application to palace orders with at-store pickups. Or using the application to check the inventory of the store, etc. 

Not just retailers, even fortune500 companies remained happy with their 2% growth rate each year. There was no requirement or pressure for the faster adaption of new technologies. This was not mismanagement; because the legacy of growth was on track for such large corporations.

Unfortunately, this is also not the time to go outside and knock on doors or set up pitch meetings. We need to stop regretting the lack of outdoor meetings and work on an alternative solution with tools like Zoom, Google Meets, and much more. 

“Companies that were supposed to be boots on the ground are moving digital-first hereafter,” explains Elizabeth  

Role Of Leadership 

Vassil Mladjov from MoEngage recollects something his buddy method about the COVID pandemic. This time is like a meteor strike; when the dust settles, the dinosaurs will be dead; and the rest will survive. 

Those who make it to the other end of this pandemic are driven massively by the company’s leadership. There are three types of leaders during a time of crisis — some taking steps actively, others copy or emulate, and the last group is just paralyzed. 

The leaders who will make the change are the ones who can innovate and think on their feet. The other example of a good leader believes in their team and knows how to harness and leverage their crew. 

Many leaders depend on looking outside the organization for solutions when a crisis hits. There is nothing wrong with this approach, but it should not happen without first looking into the resource of the company itself.

Elizabeth states the example of her time at Sephora Retail. The best ideas about marketing once came from accounting or real-estate departments. The people within the company experience the business each day and become the number one source for solutions. 

Many leaders also do not dive deep enough into researching a problem. They are fast to make changes, copy working concepts or build prototypes. 

Companies also need to remain flat, and everyone should be able to able to make decisions. The ideal example is Netflix. A lot of people on the core team have the same role as that of a director. This flatness helps keep the freshness of ideas in a business. 

Change Your Messaging 

“You have to look t consumer insights, if not now when?” said Elizabeth. “We don’t live in the normal times, and your messaging cannot be the same as it was a few months ago.” 

Companies running their campaign on auto-pilot need to hit the brakes and reconsider the brand’s voice online. The same calendar of content and posting will not work in the middle of a crisis. 

Vassil gives Airbnb an example who sent him an email about “we are in this together.” Getting that kind of email from a brand helps you understand that they have changed the message. 

The problem, however, occurred when he tried to cancel a booking on Airbnb. The platform took many months to refund his booking, which only confused the end-users. Do not spread the message of care and support if you are not ready to offer them yet. 

Companies also need to understand the placement of their ads and messages. Maybe the older channels will not work anymore. For example, running expensive hoarding boards on the freeway is futile since there are no cars on the roads to see it. 

Think of existing messages and derive what insights make the most sense and give the most returns.   

Lastly, they must also remain aware of the social-economical situations. These means do not push products that are sentimentally inappropriate to the users. 

Innovate Now, or Never.  

Marketing is not the same as it was many years ago. It is not more about the “four-Ps-of-marketing.” 

If you are looking to make a change in a time of crisis, here is some parting advice: 

•  A CEO has to be part of the brand new; the message must come from a person, and not just a company.
•  Lots of brand communication that says “We care,” but there is no follow-up. This trick is to stop. 
• On-time delivery is critical, personalization and empathy are irreplaceable. 
• Think creatively and take care of the team. 
• This is not the time to copy; it’s the time to innovate.