The Phases of Internet Business and the Role of COVID-19

The landscape of online business for local companies has evolved through four main phases, each building on the last to set the stage for today’s expectations:

• Informational Era: In the 1990s, businesses primarily used websites to display essential information. Engagement was limited, and websites were often viewed as online brochures.

• E-Commerce Boom: During the 2000s, large companies pioneered e-commerce, but cost and complexity kept many small businesses from fully participating.

• Social Media & Mobile Era: By the 2010s, social media and mobile technology allowed local businesses to engage customers and promote in-store visits through digital channels.

• Hybrid & Omni-Channel Era (Post-COVID): COVID-19 marked a pivotal shift. Overnight, consumer behavior changed as people relied on online shopping, curbside pickup, and digital engagement. Today, these practices have become part of the expected experience, blending online and in-person options seamlessly. For local businesses, this hybrid model is an opportunity to meet modern customer needs and expand their reach.

How COVID-19 Redefined Consumer Behavior and Expectations

The social and regulatory changes adopted during COVID-19 didn’t just bring temporary change; they permanently redefined consumer expectations. Customers now look for:

• Convenience and Flexibility: Shoppers expect to switch easily between online and in-store interactions. They want options like online ordering, home delivery, curbside pickup, and in-store browsing to fit their changing needs.

• Seamless Digital-Physical Integration: The most successful businesses today provide a cohesive experience across channels. Whether customers are shopping on a website, interacting on social media, or visiting in person, they expect a consistent, engaging experience.

• Multi-Channel Engagement: Customers are more likely to engage with brands across multiple platforms—websites, social media, email, and apps. Businesses that are responsive and visible across these touchpoints are better positioned to build loyalty and drive repeat business.

For local businesses, these shifts present an enormous opportunity. Embracing these changes can help them not only stay competitive but also leverage the hybrid model as a pathway to growth.

Strategic Approaches for Post-COVID Success: Turning Changes into Opportunities

1. Embrace the Right Level of E-Commerce for Your Business

• Online Ordering and Curbside Pickup: For businesses that aren’t ready for a full e-commerce operation, online ordering and curbside pickup offer manageable ways to capture sales from digital-savvy customers while still maintaining in-store interactions.

• Full E-Commerce Expansion: For those looking to expand their reach, investing in a full e-commerce platform opens doors to new markets and revenue streams. Full e-commerce allows businesses to engage with customers nationally or even globally, maximizing sales potential.

Opportunity: Adopting the appropriate level of e-commerce allows businesses to serve both local customers and a broader audience, meeting the demand for digital convenience without sacrificing in-person relationships.

2. Build an Engaging Online Brand

• Interactive Website Features: A dynamic website with customer reviews, product videos, and FAQs helps create a richer experience. Instead of simply listing products, businesses can use their websites as interactive hubs that bring the brand to life.

• Multi-Channel Engagement: Maintaining an active presence on social media, email, and other digital platforms keeps the business connected to customers. Consistent communication across these channels allows businesses to share updates, promotions, and personalized content.

Opportunity: An engaging brand presence online builds customer loyalty and keeps the brand top-of-mind, which can translate into repeat visits and recommendations.

3. Adopt a Hybrid Model to Meet Customers’ Desire for Flexibility

• Digital Showrooms and In-Store Pickup: Using the website as a “digital showroom” where customers can browse products, check availability, and reserve items for in-store pickup is a great way to integrate digital and physical shopping.

• Exclusive Offers: Offer online-only promotions and in-store perks to attract customers to both spaces. For example, exclusive discounts online and loyalty rewards in-store encourage customers to interact with the business across both channels.

Opportunity: A hybrid model offers customers the best of both worlds, combining the convenience of digital shopping with the personalized touch of in-store service. This flexibility can drive loyalty and increase sales.

4. Create Targeted Marketing Campaigns That Resonate Across Channels

• Short-Term Promotions: Use flash sales, seasonal campaigns, or “limited-time” offers to create excitement and bring in immediate traffic, both online and offline. Short-term promotions encourage customers to act quickly and keep them engaged.

• Long-Term Brand Building: Cultivate a strong brand identity through regular content and updates that speak directly to your audience. Building a recognizable and consistent brand can keep your business top-of-mind.

• Use Data to Fine-Tune Campaigns: Track metrics such as website visits, email engagement, and social media interactions. Data insights allow you to understand customer behavior better and adjust marketing efforts to increase effectiveness.

Opportunity: By combining immediate, attention-grabbing campaigns with a steady long-term strategy, local businesses can engage customers meaningfully and build a loyal following.

5. Explore New Business Ventures for Differentiation and Growth

• Collaborate with Other Local Businesses: Partner with complementary businesses to create unique joint offerings. For example, a bakery and a coffee shop could offer bundled products or shared promotions, attracting new customers to both businesses.

• Develop Branded Products: Consider creating branded products, such as custom journals, subscription services, or wellness guides, that reflect the business’s identity. Branded products can create memorable experiences and help differentiate the business.

• Pop-Up Events and Experimental Campaigns: Occasionally hold pop-up events or limited-time “guerrilla” marketing campaigns. These events create excitement, draw in new customers, and provide opportunities to test creative ideas.

Opportunity: Strategic ventures give local businesses a chance to stand out, deepen customer engagement, and open up new revenue streams. These initiatives can also help assess potential for expanded offerings in the future.

Conclusion: Building a Resilient, Hybrid Business Model for Long-Term Success

The consumer behavior shifts triggered by COVID-19 have created a marketplace where flexibility, digital integration, and hybrid models are key. For local businesses, adapting to these changes is no longer just a response to crisis but a strategic approach for future growth. By embracing the right level of e-commerce, building an engaging online brand, adopting hybrid models, implementing targeted marketing, and exploring new business ventures, local businesses can leverage these evolving consumer expectations to create lasting value.