Don't Diversify; Reroute (A COVID-19 Survival Tip)

When things are normal, your product sells. Customers come in, they buy, and they tell their friends. But then, a global pandemic happens (boom sound). And now, your customers can’t come in. They don’t buy. And they don’t tell their friends.

A lot of what we’re seeing in the business world right now is the same message: PIVOT! DIVERSIFY! ADAPT!

We like that last one: adapt. It means understanding what products/services and experience you offer, noticing that there is still a demand (maybe even a greater one), and figuring out the best way to get those things in front of your customer. In a way, it’s more of a rerouting.

Today we’re making the case for rerouting; why it’s a better business strategy than diversifying in times of crisis, and a few examples of what that may look like for your business. Interested? Let’s get going.

To Diversify or Not to Diversify: That Is the Question

When operating under “typical” circumstances, diversifying your revenue streams is generally a great way to create additional income from the skills or assets you already have. One way an agency like Flourish could diversify is to offer an online workshop or maybe produce a line of candles. The idea is that you’re expanding on the idea of your brand and casting a wider net in terms of your targeted audience. Good things, yes?

But in times like now - when a global pandemic has uprooted our day-to-day and displaced business owners into a state of panic - diversifying your business may not be the smartest short-term solution. To do those things we mentioned (create an online class, design and manufacture a private candle label) is to spend a massive amount of time and money with no true guarantee of success.

Will my customers be interested in what I’m selling?
Do I need to be able to reach a whole new audience?
Will I make enough profit to cover my time and energy?
Will this cause brand confusion?

Enter the second option; one that takes little time and energy to product and thrives as a short-term solution for your business: rerouting.

“The key to successfully rerouting is figuring out a way to bring as many of those experiences back to your customer. ”

— Erica Kelly

Rerouting Your Product and Experience to Reach Customers Differently

When you reroute a product or service, you’re figuring out new ways to bring what’s already worked well for your business to your existing customer base. The perks of this are obvious:

• You already know the product or service is viable.

• Your existing audience is already interested.

• Offering in a new way causes little to no brand confusion.

But remember: we’re not just looking to reroute your offering; we’re looking reroute as much as the customer experience as we can. Here are a few different examples:

Example 1: The Retailer

Let’s say you own a brick-and-mortar shop selling women’s clothing, accessories, and gifts. In a world of social-distancing, your repeat customers who once walked through your door are no longer, and you’re left with a store full of untouched merchandise. Now, it’s 2020. We hope that you’ve already moved a good majority of your products to an e-commerce store that is also linked to your Instagram shop. But even if that is the case, you’re still asking your customers to break their typical shopping habits. Habits are hard to break. Rerouting is what makes turns that break into a bend.

Here is what a typical brick and mortar business chain looks like:

When you take your physical store out of the equation, you’re left with a bunch of tiny product images on white squares, all vying for the attention of millions of online shoppers. Yes, your customer can still technically purchase your products, but what about the intangible things they also loved about your store? You cannot simply reroute a product or service; you have to completely reroute the experience.

Take a moment to jot down a list of the intangible products or services you offer as a brick and mortar retailer. These are the things that your customers love just as much as your physical products. A few might be:

• Free style consultations

• General browsing/discovering new brands

• Shopping with friends (the social aspect)

• Carrying a shopping bag around town (bragging rights)

• Smelling candles

• Trying on clothes

These are all things that your customer looks forward to that don’t involve actually purchasing your goods. The key to successfully rerouting is figuring out a way to bring as many of those experiences back to your customer.

Here is what a brick and mortar funnel could look like with the use of rerouting those products and experiences. Now, your store + website + social are just places where your products are housed. The real value-add is what’s shown in the middle: new methods of delivering the experience your customers love. If we go back to that list of intangibles, we see how they can become tangible through the use of those houses but also new methods of delivery such as email marketing, live video, and physical packaging:

• Free style consultations > Virtual stylist consults

• General browsing/discovering new brands > Daily live walk-thrus of your store

• Shopping with friends (the social aspect) > Virtual happy hours on IG Live with discounted product of the day/week

• Carrying a shopping bag around town (bragging rights) > Social “I supported” badge/post customers can share after purchasing

• Smelling candles > Candle matchmaker personality quiz on your website

• Trying on clothes > Consistent try-on videos using a wide range of body types

It’s not enough to simply get your product into the hands of your audience. Consider your shop as a holistic experience, identify the intangibles, and reroute those experiences using digital platforms.

Example 2: The Restaurant

Without busting out the diagrams again, we trust you understand the concept. A restaurant will rely heavily on curbside takeout and local delivery, but there are still missed opportunities when it comes to sharing the experience of your business.

Let’s use a seafood restaurant for this example. Aside from your peel-n-eat shrimp, fried okra, and ice cold beer, your list of intangibles could look like this:

• Sunset views of the marsh

• Local staff that feels like family

• Docking your boat at the restaurant

• Kids enjoying their paper menu

• Large oyster roasts

• Sipping your house margarita
  
  

Here’s what happens when we bring those experiences back to our customers in new ways:

• Sunset views of the marsh > Post photos of the view from your restaurant

• Local staff that feels like family > Have your staff handle deliveries; create video content to get to know them better

• Docking your boat at the restaurant > Offer boat-side pickup

• Kids enjoying their paper menu > Make the menu a printable PDF for customers to download

• Large oyster roasts > “Oyster Roast in a Box” packages with everything included for the ultimate experience (this includes shuck knives, aprons, and citronella candles)

• Sipping your house margarita > Share the recipe with your audience; offer pitchers to-go if legal in your state
  
  

“It’s crucial for your business to stay relevant and at the forefront of your customer’s mind right now. ”

— Erica Kelly

Example 3: The Hotel

Perhaps hit the hardest out of all three examples, travel bans mean empty hotel rooms and emptier destinations. Hotels, however, have possibly the most leverage when it comes to offering experiences to their audience. Let’s take a look at a few intangibles:

• Discovering a new city

• Being catered to by hotel staff

• Staying in a room of luxury

• Cocktails with a view

Now, it goes without saying that rerouting these experiences isn’t comparable to the actual thing. However, it’s crucial for your business to stay relevant and at the forefront of your customer’s mind right now. A few ideas on bringing those intangibles to your audience:

• Discovering a new city > A "City in a Box” subscription box featuring products from local businesses that align with your hotel.

• Being catered to by hotel staff > A concierge newsletter that delivers links to The New York Times magazine, tips on folding the perfect fitted sheet, and a lesser-known fact about your city (so your customers can plan a better trip when the time comes).

• Staying in a room of luxury > Shopping links to your bed linens, bath products, candles, or any other signature decor unique to you.

• Cocktails with a view > Virtual happy hour with your bartender, giving recipes for your audience to make alongside your staff. Give participants a discount off their first drink when they return.

The truth is brutal: some businesses won’t see the other side of this. Now is the time to exhaust all possibilities of serving your customers and bringing in revenue.

Did you find this article helpful? Have something you’d like to add? Leave us a comment below!