Edited by Julia Hanna and Jen McFarland Flint; illustrations by Rose Wong

The novel coronavirus did more than disrupt jobs, supply chains, and financial markets, says HBS professor Rohit Deshpandé. The pandemic has also upended how companies must engage with customers: “Customers’ desire to be safe in the current environment has resulted in volatility in purchases and productivity, resulting in a net economic crisis that has not been witnessed by anyone alive today.” To engage customers in this new abnormal, Deshpandé offers the following principles.

Grow your digital footprint.

“Companies need to adjust to the new reality that customers prefer not to come into their stores. B2C firms must enhance their delivery and pickup options and provide incentives [such as rewards points for using a mobile app] to customers to recognize them for using these options,” Deshpandé explains.

Invest in future relationships.

B2B firms that make special accommodations for customers in need today could reap the benefits of long-term loyalty. As an example, wedding website theknot.com is providing financial assistance to vendors such as caterers and flower companies to help them get through the current drought of in-person events.

Be human.

“Firms that connect emotionally with customers and employees are expected to perform better than firms that just connect physically.” Dettol soap’s #HandWashChallenge generated billions of views on TikTok; since the pandemic began, its sales have increased globally by 62 percent.

Be human when it comes to money.

The same principle applies to customers facing financial hardship, says Deshpandé, who encourages firms to initiate crediting and financing, deferral of payments, new payment terms, and renegotiation of rates to those in need.

Don’t wait.

“Firms need to proactively reach out to potential and current customers about products and services, digital and delivery options, health safeguards, and payment plans,” Deshpandé advises. “Whether demand has declined or increased during such unprecedented times, all firms and organizations need to ask, What is my minimum viable strategy going forward during this period?”

Rohit Deshpandé is the Sebastian S. Kresge Professor of Marketing. This spring he will co-teach a new MBA field/project-based course, Arts and Cultural Entrepreneurship.

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