The rise of a pandemic has brought on uncertain times for all industries. Revenues will continue to steadily decrease with many commercial and public spaces closing in an effort to slow down the spread of Covid-19. Companies that are shifting their activities online are expecting their loss in footfall traffic and sales to be compensated by online activities, as social distancing is encouraged worldwide.
However, a report conducted by Morgan Stanley analysts showed that this online conversion is not enough to mitigate the decline in overall customer spending. Businesses should leverage these quieter times to strategically plan the next few months, so that they are prepared for the inevitable economic downturn currently being led by a global health crisis.
Strategic planning as a competitive advantage
The first step is to cut unnecessary costs. With better margin headroom, you have the ability to tackle more challenges and more capacity to grow your business, while competitors desperately try to stay afloat. Building a solid cash reserve will allow you to continue to invest in critical areas of your business, finance marketing campaigns and operating costs, allowing you to drive business growth and increase market share even after the economy turns sour.
You must then determine which area of the business you intend to grow post-crisis and have some of the preliminary work done by investing in it now. Having the necessary investments in place allows you to be agile in your response to unexpected changes as the economy conditions improve, allowing you to focus on accelerating your growth rather than looking for funds. One area that companies heavily invest in prior to an economic downturn is in advanced technologies and analytics, as they create performance opportunities during a time where operational efficiency is heavily impacted.
Staying one-step ahead with data
Diminishing footfall traffic in public spaces and the usage of its services adds pressure onto already-thin margins for commercial property owners, emphasizing the importance of effective decisions for operational efficiency. The key to unlocking these efficiencies is data, which is why digital technologies and analytics are a crucial investment for companies to make.
Companies that have completed the preliminary work by investing in it early can quickly obtain accurate and actionable insights that will allow them to grow their revenue margins, while avoiding expensive technology investments at an already vulnerable time. More accurate and comprehensive data can be translated into better leasing strategies, operations and marketing that improves visitor traffic flow, optimizing the visitor experience and your revenue per square foot.
Predicting demand with AI video analytics
One digital analytics tool that is rising in retail is AI video analytics, as it offers more accurate counts than traditional technologies (e.g. door counters, wifi, and beacons), while giving new visibility into visitor journeys within a physical space. With more comprehensive and accurate visitor insights commercial property owners, including office buildings, retail stores and shopping malls, can develop better data-driven strategies to effectively increase revenue and rapidly generate ROI across various business objectives. When it comes to comprehensive and accurate AI video analytics, C2RO’s privacy-aware and biometric-free AI video analytics solution, Perceive™, comes to mind.
C2RO’s solution allows commercial real estate and enterprise customers to leverage their existing surveillance cameras to understand how visitors engage and behave in their physical spaces by analyzing their demographically classified journeys. With better visibility into how visitors navigate your physical spaces, you can identify inefficiencies in your operations and issues in security, allowing you to improve visitors’ experience. Moreover, the newly captured insights in physical spaces can be combined with customers’ digital footprint, allowing for a 360-degree view into visitor behavior to build effective marketing strategies that create a unified visitor experience.