There’s No Returning to ‘Normal’ Radical Digital Shift The COVID-19 crisis has accelerated behavioral shifts that were already in progress. Internet use is up 70% since the crisis began, and demographics which previously relied on physical retail stores or non-online business models are being forced to digitize. In March, online retail sales grew by 74% in average transaction volumes compared to the previous year. Customers are seeking out and interacting with External factors like budgets and industry- businesses more today than a month ago. This specific impacts from COVID-19 will inevitably is at least partially due to the fact that stay-at- affect sales cycles, but the data suggests home orders and business closures have moved businesses have an opportunity to attract many transactions online out of necessity, but it and engage interested customers and buyers shows that, for now, buyers are still looking to provided they can reach them where they engage. are: Online. Building and expanding digital capabilities is key to success in this new Mobile apps, for example, experienced a sharp environment; new customers and users on rise in usage in the first quarter of 2020, with new channels are more volatile and current new installs of apps rising as high as 132% models are unlikely to fit. That’s before taking over the same time last year, according to into account the rapidly changing external Adjust. Business apps that connect employees circumstances that will alter behavior. or help with productivity have seen a huge rise, with sessions —the frequency with which users actually open apps— climbing 105% from "Customers are seeking this time last year. Users are also opting for premium versions of business apps to help out and interacting with ease the transition to working from home, with businesses more today than revenue events that track purchases rising over 75%. Food and drink apps saw a significant a month ago. This is at least increase in sessions, up 73% from this time last year, as restaurants are forced to turn to partially due to the fact that takeout-only. Entertainment apps have also stay-at-home orders and trended higher, with installs rising 55% over the same time period. business closures have moved However, deal creation volume is down, a many transactions online decline that will impact most businesses’ sales out of necessity, but it shows forecasts. Responses to sales outreach have decreased too, suggesting that sales strategies that, for now, buyers are still need to be adjusted to reflect the current looking to engage." buying reality.
The Digital Imperative for CMOs | BCG Page 7 Page 9