It’s no secret that shutdowns, enhanced safety measures, and labor shortages have hit Canadian small businesses hard.
But it’s not all bad news.
A recent survey found that a majority of Canadians (77%) plan to spend more money at local businesses, retail stores, and restaurants than they did before the pandemic. Canadians, especially millennials and Gen Z, are also seeking out local BIPOC- and LGBT+-owned businesses to support. This creates new opportunities for small businesses — including minority-owned businesses, who were particularly hard-hit by the pandemic — to connect with new customers.
Meeting customers in the “next normal,” though, means tailoring your offerings to Canadians’ post-pandemic needs and finding ways to future-proof your business in case of upcoming shutdowns. Here are 7 tips that can help.
1. Expand into e-commerce
Canada’s e-commerce market is one of the fastest-growing in the world, and is projected to rise to $3.7 Billion (USD) in 2023, up from just over 2.5 Billion in 2019. As a result, e-commerce will become increasingly essential to connect with customers and expand your business.
Of course, one option is to create your own custom e-commerce site, which allows you to offer a custom experience tailored to your unique needs and customer base. However, Canadian small businesses willing to sacrifice customization for faster onboarding have other options to consider. These include:
- Website builders: These all-in-one platforms offer website hosting, site-building, and e-commerce support, so you can easily launch an online store through one service. Because pre-built website options don’t require coding, they’re quick to set up with little tech expertise. However, without custom coding, your site options may be limited.
- Online marketplaces: Large, online platforms — like Amazon, Walmart Canada, and Best Buy Canada — allow sellers to upload products and sell directly. Using an existing platform makes it easy to start selling online, but you’ll need to follow the terms and conditions of each marketplace you use.
- Social media marketplaces: Platforms like Facebook Shops and Instagram Shopping allow you to connect with customers on social media.
As you start selling online, let your e-commerce strategy grow as your business does and expand into other forms of digital marketing, like email marketing and blogging, to support your business.
2. Start offering virtual services
Launching your e-commerce site can help bring in more income — and so can diversifying your business via online-only offerings. Luxury brands turned to personal shopping to help them survive the pandemic, and businesses in other sectors can also benefit from offering virtual services.
Look for ways to offer remote-friendly services that meet the needs of your customer base and fit your brand image and expertise. Services like personal shopping sessions, online courses, and consulting can all add to your bottom line even when your brick-and-mortar business temporarily slows down.
3. Make curbside pickup permanent
Offering curbside pickup was essential during the pandemic. Now’s the time to consider making it part of your long-term strategy for shoppers who prefer not to browse in-store.
If you haven’t already, highlight that you offer curbside pickup services on your website and social media. Then, create a curbside pickup FAQ covering essential information, including:
- When and where curbside pickup is available.
- What proof of purchase customers need to bring to pickup.
- Whether masks are requested or required.
- How customers should contact you to initiate the pickup, or ask questions.
Ensure your staff is familiar with your curbside pickup policy and trained to create a great customer experience.
4. Upgrade the in-store customer experience
Times of disruption may decrease your foot traffic, but also offer an opportunity to create unique customer experiences in-store.
Upgrade (and upsize) displays that showcase new products, best-sellers, or seasonal offerings to help customers find products they’ll love and aid in social distancing. Or consider transforming part of your location into a product showroom to create an immersive experience that will drive sales.
Finally, look for ways to create bespoke customer experiences with private shopping sessions or events that might not be feasible once business picks back up.
5. Keep customers coming back
Repeat customers are essential for a healthy business, since improving customer retention by just 5% can increase revenue by 25 to 95%. And in times of disruption that impact consumers’ shopping habits, you need a plan to keep customers coming back.
Encourage repeat business by brainstorming subscription-based offerings. Retailers might consider a monthly or quarterly subscription box, stocked with seasonal products, or offer memberships that net customers a small discount on purchases.
Reward your best customers with a loyalty program, and consider offering future-use coupons at the point of sale, so shoppers keep coming back. As you build your email list, re-engage customers with exclusive discount codes, send helpful content to help shoppers get the most from their purchases, and stay in touch with newsletters announcing key promotions and launches.
6. Create urgency to drive sales
Customers tend to tighten their wallets in times of disruption, so use scarcity to drive demand. Shoppers hate to miss out on a deal: nearly half (45%) of customers say they’re more likely to buy or learn more about a product if they feel it’s harder to find or if they worry it might sell out soon.
Tap into the urge to buy by promoting seasonal and limited-edition products. Seek out new limited-edition products that might appeal to your customers, and showcase items that are selling fast.
At the same time, drive sales with limited promotions, such as 1-day sales and limited-time discount codes. Consider offering exclusive codes, such as codes limited to members of your loyalty program or customers who found you via social media. At the same time, use scarcity to drive customer loyalty by allowing your best customers to pre-order items or pre-shop your sales.
7. Maintain strong relationships with suppliers
Relationships keep your business strong, and that’s especially true in times of disruption. Diversifying your supply chain — and maintaining good relationships with your suppliers — can help minimize the risk of a disruption and potentially help you negotiate more favorable payment terms to help you weather the storm.
Navigating times of disruption can be difficult, but shifting your business practices to keep up with consumer demand can help your business come out stronger in the end.
This article is intended for general informational purposes only and does not constitute legal advice or an opinion on any issue. It should not be regarded as comprehensive or a substitute for professional advice.