The Low Touch Economy is a business model which encourages little or no contact between people and prioritises the digitisation of the business. The implementation of this model has accelerated since the COVID-19 pandemic, that has affected the normal functioning of global markets. It has also led to changes in consumer behaviour, new health regulations and supply chain shortages. In this new and unknown context, the Low Touch Economy has proven to help companies carry on with their business activity and grow, even during the pandemic. From Minderest, we explain its benefits and how to implement it in your store or e-commerce business.
Benefits of the Low Touch Economy for businesses
On the one hand, adapting to the Low Touch Economy model has enabled businesses to remain open, despite health restrictions, and to be able to cope with capacity limits and infection control measures. Businesses with this methodology can introduce remote working and use exclusively digital channels for communication and operational management. In e-commerce businesses, all agents involved in selling articles can carry out their role remotely with specific software or they can also monitor automated processes. The notable exception to this rule is those responsible for product transport and distribution. In some cases, this development can even translate into cost savings.
At the same time, the combination of the changes generated by the pandemic and the transformation toward a low-contact economy has helped businesses discover new ways of doing business. These new business methods can increase profits and bolster greater consumer satisfaction. As we have seen, many shops or service companies have made the successful leap to e-commerce during 2020 and 2021. Businesses that had already begun digitisation have identified new trends that have allowed them to grow, such as the rise of professional online healthcare consultations, such as psychologists, new home delivery methods, or the development of new forms of online entertainment.
How to adapt your business to the Low Touch Economy
First, it is crucial to analyse the impact of the pandemic on the business, and account for possible fluctuations in profits, purchases, website traffic, etc. These different key indicators will help draw a map of the company’s current needs. From there, you can:
- Develop a strategy to include digital tools to be introduced and new protocols for both day-to-day and crisis situations.
- Analyse changes in user consumption habits and identify new opportunities to help expand your business, either by launching new products, or with new value-added services for the consumer, such as the new home delivery models mentioned above.
- Create new online channels to maintain seamless communication with potential customers. Since face-to-face contact has been reduced to the minimum, it is essential to have a well-optimised website and probably social media accounts. This will help you to stay in touch with your key target audiences and strengthen the brand image. Many online stores are inspired to start social commerce or sell via social media channels.
This digital transformation towards a Low Touch Economy is also the ideal time to integrate pricing software in your business to automate pricing management. These advanced tools help e-commerce businesses and brands adapt their prices to multiple market changes to maintain maximum profitability. They also contribute to the smooth running of the business by streamlining decision-making and promoting better stock and sales control. Together, these tools complete the digitisation of your business in a context of continuous change.