The spread of COVID-19 has dramatically changed our world. Business leaders are working to address immediate impacts to their organizations and adapt to new policies and social norms shaping how we interact. The impacts of the global pandemic and evolution in consumer behaviors will be lasting, as will the technology and process evolutions that emerge in its wake. Leading product management for a tech and AI company within the automotive and insurance industries, I know how consumer behavior can shape business innovations. Companies that were at the forefront of digital engagement will be the pacesetters and shapers of the future.
We know this through experience and history, which has a lot to teach us about the pivotal role crises play in driving innovation. Global events for more than a century offer examples of innovation and flexibility — many born from necessity — that changed the trajectory of businesses. During the Spanish flu of 1918, the need for an automated telephone system, the ideal luxury to keep in contact at a distance, revealed itself. The Spanish flu exposed a massive vulnerability: The phone system was too reliant on human operators working side by side in close quarters. The yearslong pandemic powered demand for the phone and the need to accelerate its automation as technology refactored and replaced a system built around manual connections.
Crises historically have changed how companies operate and what they offer. During the Great Depression, business leaders were nimble at adapting to new consumer needs and fears and government responses. Sears was able to prosper thanks to its low-cost home appliances. Merrill Lynch built a reputation on honesty at a time of widespread distrust for Wall Street. And, IBM secured a data processing contract with the federal government to manage the new Social Security system. This contract was outside IBM’s core business, but the company understood its survival would require flexibility. That government contract ultimately afforded IBM the expertise and funding to build the mainframe computer, making it the leader of a new technology era.
All of these crises not only propelled innovation, but they also shed light on businesses that had the foresight to adapt and reshape customer expectations. The companies that responded to the moment were the companies that defined the new normal and emerged as leaders of a new market.
I expect the same will be true of the coronavirus era, and we’re already beginning to see it impact industries around the globe. Zoom, for example, was lauded for the workplace and has now infiltrated our homes and become a new cornerstone for personal connections and family time. What video service will emerge as a leader is unclear, but what is becoming clear is that video can be a personal means to connect or to help in the digital adoption — across generations — as we see older generations adopting video in greater numbers to see grandchildren and friends and to stay connected during today’s crisis.
Social distancing has accelerated the pace of digital adoption across a wider range of demographics than ever before, making all kinds of business possible despite shelter-in-place measures. According to Apptopia, app downloads in March for Instacart, Walmart Grocery and Shipt surged by 218%, 160% and 124%, respectively, compared to February’s traffic. During that same period, telehealth visits surged 50%, according to research from Frost & Sullivan.
The insurance industry offers another example. Rethinking how they operate and leverage technology, as well as responding to consumers' new needs, is allowing many in the industry to accelerate through change and maintain strong relationships with their customers.
For instance, photo technology and analytics have empowered consumers to initiate a notice of their loss event remotely using their smartphone. And AI, which can be applied to those photos, seamlessly advances the insurance claims process, generating an automated prediction on vehicle repairability, enabling virtual inspection and even an initial AI-powered estimate, which is checked by an experienced human. These technologies are helping the insurance industry deliver business-as-usual services while helping to keep policyholders safe and moving.
The investments these industries are making will pay off, not just in navigating social distancing and the challenges of this unprecedented era, but by empowering them to lead the new market as it forms and customers come to expect the ease of these digital, self-directed experiences.
Moments of great change like this often expose the pretenses that we can live without and streamline cumbersome experiences. Do we have to provide a written signature and interact with a service worker to get access to food? Do we have to go to the doctor's office for routine visits? Do we have to wait for an insurance adjuster to conduct an in-person inspection so that we can file a claim?
It turns out we might not have to. The convergence of mobile technology, AI and IoT makes systems faster, more efficient and easier for customers to navigate. It also paves the way for a new vision within tech innovation: hyper-personalization for your customers. This is what is on the horizon.
My advice to business leaders is to ask yourself what you want your business to look like as you emerge from this crisis. Will you be leading by pushing innovations forward and reestablishing normal? Will you be ready to respond to a growing consumer base that is ready, and perhaps preferring, to engage with you digitally?
Companies have the rare opportunity to rethink old systems and processes and build for the future. If you've been planning to adopt digital solutions to improve your customer experience, now is the time.
