Saturday, July 3, 2021

Post-Pandemic Boom: Tapping the “Conserved” Consumer Spending via Digital Services

According to global economists, such as Jan Hatzius, Goldman’s chief economist, the post-pandemic recovery will see a very high growth rate. Subsequently triggers game-changing events with far and long-term change in digital landscape, especially in digital/cyber security. 

During the pandemic lock-down, a huge lifestyle strain falls onto every citizen around the world, forcing a slew of adjustments in how we live and work. However, as the outbreak has progressed, such strain has gradually turned into a new behaviour bias more towards digital lifestyle. The most lasting consequence may be invisible: the marking of individuals coming of age during the pandemic era, similar to how the Great Depression and World War II marked their generations, with wide but difficult-to-predict impacts that may affect society for decades to come.

Over the past year, the one thing we have learned about COVID-19 is that for every two strides forward, there will be one step back, sometimes two, and occasionally three. Here are some developments, challenges and predictions that might be seen on the digital, business and commercial fronts in the coming years.

Seasoned Digital Behaviour + Spending Power Surge = Fast Tracking Recovery

Digital Behaviour: During the lockdown and social distancing period, entire populations relied on online methods to replace offline necessities. Now, digital behaviors have surfaced to the top of everyday life, and as people become more familiar and comfortable with the accessibility and convenience of doing things online - whether it be shopping, paying bills or signing up for new services. The digital behaviors built during the pandemic will hold and sustain as a new way moving forward.

Spending Power: The ongoing pandemic has caused varying chain reactions observed in many income groups across the board. The middle to upper income groups have taken up cash conservation practices during the pandemic, which in turn leads to higher levels of cash spending by consumers, post-pandemic. Businesses will need to focus or rebuild the marketing stack to be part of contextually relevant digital customer ecosystems to acquire a new pool of “seasoned” digital users. Consequently, encouraging businesses to  provide supplementary digital services, on top of their core products/services, depending on their customer base preference and behaviour.

As an example, in post-pandemic recovery, a pharmacy may offer a quick and easy medical insurance sign-up at the checkout counter to its customer base. Insurance underwriters would be able to capture customer buying patterns and demographic insights from the pharmacy to optimize the pricing, in real time. In short, digitally onboarding new customers for its partners in their digital ecosystem.

Digital Onboarding Will Accelerate Digital Services

As the depth of digital services grows, it is inevitable that personal information will be required to render digital services efficiently and and seamlessly. Fundamentally, the customer onboarding journey creates the first perception of customers towards brands’ thought process and focus on its customer. Adoption of Electronic Know-Your-Customer (eKYC) capabilities supports brands to deliver the digital onboarding journey that is seamless and quick.

eKYC is a set of  processes of identifying and verifying unique customers, using AI and deep learning algorithms, that complies with privacy acts and regulatory needs.

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