2020 has begun on a disappointing note with the outbreak of Covid-19, which has disrupted the global economy like no other with the trendline dipping with uncertainty. 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 also 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 four 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 include 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 industries under this group are – Social media (North America, Europe, India, Middle East), online shopping (Southeast Asia, Europe, Middle East), and 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).
How has customer behaviour changed?
Customer buying patterns and preferences have shifted since the last three months globally, and essential, functional, and emotional spending have taken precedence over luxury expenditure. Brands all over the world are tackling how to prepare and plan for such a world where customer preference and behaviour has changed drastically.
Here are some strategies brands are adopting to navigate their way during these times:
- Relook and examine the relevancy of their product in the post-Covid-19 world. 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 a 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.