The year 2020 has not been fruitful for a multitude of reasons. First of all, it was COVID that took the world by surprise. Then, it was the economic slowdown that disrupted the everyday life of everyone worldwide. Further, millions of people lost their jobs due to the closing down of businesses. In short, the pandemic pushed everyone to the verge of a breakdown.
But that’s one side of the story.
On the flip side, demand for service-based businesses saw a steep rise. There was no longer a need for material goods, restaurants, holiday packages, electronics, or other luxury goods. Instead, consumers were busy looking for service-based offerings, such as health, education, and entertainment.
And on top of that, digital business transformations triggered the growth of service-based organizations by helping them to expand their reach even more. Want to know more about the reasons behind the sudden rise in the demand for service-based businesses during COVID? Keep reading, and you’ll find out.
Technology is Driving the Change
Outsourcing or offshore developmental centers are transforming traditional business models. Companies are collaborating with qualified service providers and expanding their consumer base to meet the demands of the consumers living in the age of “new normal.”
For instance, traditional taxi services were replaced by Uber, Lyft, and other similar options. In fact,the Uber Elevate team is creating a product “Uber Air” and is pushing to launch flight-on-demand services in Dallas, and LA.
It’s no longer about providers. It’s more about consumers’ needs and wants now. And with the growing scare of Covid-19, one can see a shift from traditional employment policies to facilitate growth.
The pre-COVID era was more about networking offline for creating business relationships. However, the pandemic shifted the focus of industries from being provider-centric to customer-centric.
Since no one wanted to risk losing customers, these companies recognized the importance of professional services, such as consultancy or marketing, to improve their overall performance.
So, businesses are using expert tips and are communicating directly to their customers using different online platforms. Plus, the evolving market trends are further pushing service-based companies towards the growing phase.
All in all, the change in business values and work ethics are attracting consumers to on-demand services even more.
Now that we have an understanding of the reasons, here is the list of service-based businesses that are booming right now.
Irrespective of the era or situation, no one can ever ignore medical or healthcare services. And with COVID-19, the rise of dependency is becoming even more.
Traditional doctor consultations are no longer the only option, unless its an emergency. Consumers are shifting to telehealth/telemedicine service offerings for day-to-day health care. Other than that, consumers are also inclined towards home healthcare services and home delivery for medications.
With so many theories regarding the spike of COVID cases, people are looking for deep cleaning and sanitation services more than ever. For instance, there has been a rise in pest management services across the globe. In fact, as per Technavio, the Global Pest Control Services Market will grow by $5.57 billion during 2020-2024.
Why? As people are more worried about their health after the episode of COVID-19, the demand for pest control management services is on the rise. Precisely why there is an increase in the booking for Phoenix, Mesa, Chandler, and Tucson pest control and management services. Similarly, other cleaning businesses are thriving equally to meet the consumer demands for a healthy lifestyle amid the growing concerns over pandemic.
As the world is moving towards a digital age, one can see an increase in the dependency on a multitude of online service offerings in this vertical. For instance, there has been a spike in demand for tech support, cybersecurity, website design, and software development services.
Simultaneously, businesses and consumers are looking for applications, web/mobile to support their work from home needs. Convenience and cost-effectiveness are the reasons that this industry is booming irrespective of such an economic slowdown.
Everything was on a standstill with lockdown measures to stop the progression of COVID-19. But one can’t ignore the need for essential goods.
So, all the prominent home delivery platforms changed their business model and collaborated with businesses to deliver essential goods. For instance, Amazon made sure to use their supply chain to meet the demands of consumers worldwide.
Hence, one could see a spike in demand for storage, distribution, and shipping of such goods. In fact, there was additional pressure on the trucking vertical of this industry for on-time delivery of such goods.
Although no one was in dire need of electronics or electrical goods, there was a need for sanitation products and other essential goods in sheer volume.
So, manufacturing plants which were into protective masks, ventilators, cleaning supplies had to put in extra force to meet the demands. And with borders sealed, demand for domestic manufacturing too added pressure.
All of this triggered the need for manufacturing services during a pandemic.
Everyone needs money to meet their day-to-day demands. And banks and other financial organizations make sure we have what we want. With the economic slowdown worldwide, everyone was dependent on banks for credit, liquidity, and depository services.
Plus, insurance companies too saw a significant rise in demand, for the simple reason that businesses and people felt the importance of preparing for extreme situations after this COVID episode shattered the world.
While COVID-19 has disrupted the world economy, many companies saw a steep rise in demand to meet the needs of consumers.
Jumping into 2021 will be tech-driven and consumer-motivated. From voice recognition, artificial intelligence, data analytics, to human marketing trends, adapting to the evolving market trends will only drive business growth.
Experts suggest that on-demand service-based offerings will rise significantly. It’s because COVID gave a different dimension to customer acquisition.
Simultaneously, the shared economy is expected to be the new normal. And with digital marketing already booming, attracting customers to your service offerings will require innovative and creative strategies.
Are you ready to adapt your business model to meet the demands of changing customer behavior?