What is the low-contact economy and how to take advantage of it

The Covid-19, besides causing a global health crisis that has forced us to be confined for weeks, propelled the low-contact economy or "Low Touch Economy". These are products and services that help us avoid risks in times of pandemic, but, above all, make our daily lives much simpler. That's why they will stay with us even when the virus is just a bad memory. This lifestyle is here to stay, and it's already consolidating. The post-pandemic world will be an economy formed by new habits and regulations, determined by reduced interaction and rigorous hygiene standards.

In fact, the pandemic has accelerated a transformation that already had a great influence on how we relate: common actions such as distance buying, payments via smartphones, online training, and digital signing thanks to blockchain are examples of low-contact economy that were used before the virus appeared. In fact, the services we offer at Inversa, for both investors and companies, do not require any kind of contact, and we have been operating for a couple of years. Previously, it was about eliminating physical barriers and facilitating consumer experience through intuitive and accessible platforms. Now, health measures limit meetings, travel, capacity... so contact on common surfaces must also be minimized to avoid contagion and achieve customer comfort. In this new context, many companies, regardless of their size, have been forced to change their business model to adapt it to the "new normal" and to the new habits of consumers. This new model is an opportunity in the midst of uncertainty and has shown that entrepreneurship is still possible even though priorities have changed. In fact, such situations foster creativity, thus generating innovative products and services such as drive-in cinemas, virtual museum tours, or online meeting platforms. They avoid crowding and touching common surfaces, but they also eliminate physical barriers while generating business.

Rapid adaptation to change is essential

According to Board of Innovation, the firm that coined the term, it will take several months to return to normal, so we can't wait for time to pass. It's important to act as soon as possible, developing medium and long-term strategies to stay afloat in the face of the health crisis.

They recommend paying attention to new behavior habits, as they bring new needs. The survival of many companies depends largely on their ability to adapt to changes and to find new business opportunities. Industries that adapt faster are successful, especially those that bet on innovation. While there are digital resources to transition to a low-touch economy, we face a huge challenge: catching up with the digital modernization that we have neglected. A natural trend is the reduction of total office size, restaurants, and infrastructure, while homes are more adapted to telework. The money saved by dispensing with the office and other infrastructures can be invested in digital transformation to keep up with the new needs of customers.

In this context, governments, companies, and even religious centers that have best adapted to the new reality are those that had already begun their digital transition. Digital native businesses, without physical branches, that allow the consumer to meet their needs without leaving home or contacting another person, have been the undisputed winners. A great example is Netflix, which for a couple of years has positioned itself as a threat to traditional cinema. As a result, while the film industry has been almost completely paralyzed in the face of the crisis, Netflix has continued to grow. But let's focus on the present to drive us towards the future and emerge victorious, or at least with the least possible damage, from this pandemic. Not being able to see your customers physically means more effort to offer the same level of trust and understanding. Basic recommendations

• Continue to engage with customers through digital events in streaming, chatbots, webinars, newsletters and even old-fashioned mail correspondence. There is a variety of free tools to work with, such as Zoom, Twitch, YouTube, live videos on Facebook or Instagram, etc.
• Digital marketing offers a variety of options, such as social media and email marketing. This way, we continue to stay close to our users, whether to communicate our actions or to sell/promote products.
• Sales through online stores.
• Use of virtual or augmented reality to demonstrate product features without the need to see them in person.
• ... etc.

As we can see, there are countless opportunities within the Low Touch Economy. And yes, there is a forced readjustment of our society, but it is the perfect opportunity to explore new areas of growth and innovation. In just a few months, the world quickly adopted a series of new habits, demonstrating that we are completely adaptable to new adversities.

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