The businesses born from a pandemic

Has COVID-19 sparked a rise in the side hustle economy?

The global pandemic has put the economy into turmoil. With around 9.6million job roles furloughed and over 190,356 made redundant as a result of COVID-19 and the subsequent economic downturn, many are waiting to return to work or are still seeking alternative employment.

At a time of such unprecedented uncertainty, with higher powers dictating our options when it comes to employment, some of those left in a state of limbo shrewdly made use of the extra time to reflect and seized the opportunity to create their own slice of income.

The rise of the side hustle economy

Even before the lead-up to lockdown, the humble side hustle was in the limelight. Millennials particularly have sought extra-curricular income to keep on top of rising living costs by launching an additional business venture on the side of their day job.

Back in 2018 Henley Business School estimated that side hustles generated around £72 billion for the UK economy. That number is only set to rise in the wake of the pandemic as a recent study conducted by GoDaddy cited that one in five people considered setting up a new business venture during lockdown.

One such millennial was Hinterlands Beard Oil Founder Josh Overton. While working full time as a Product Designer, he experimented with making organic beard oils in his spare time.

“Before the lockdown I made the beard oils primarily for myself and sold offline to a few friends occasionally.

Then all of a sudden, we all found ourselves stuck at home pretty much 24/7. Once the lockdown hit I decided it was long overdue to try and launch this as a side hustle for real.”

Making waves while flattening the curve

Whether it was pivoting an existing business to fit around the changing consumer needs during lockdown, or simply channelling a deeper creativity, many Living Room entrepreneurs have emerged from these times of crisis with new and forward-thinking ideas. Forming business strategies which have found relevance as a result of the unprecedented circumstances we now inhabit, many entrepreneurs who have launched a new business during the pandemic have carefully considered the very new set of consumer needs. During this time we have seen some truly astute individuals who have completely pivoted their priorities to react to a totally new age of customer experience.  

At a time of turmoil for the Events and Hospitality industry, Founder of Cock and Tail drinks, Fred Campbell flexed his business to launch a new cocktail delivery brand at a time when events were strictly off-limits.

“Customers are reviewing their priorities now and are looking to support those who are being creative or are pivoting their strategy in times of crisis. If you’re present and active on all your channels rather than waiting to see how things pan out you stand yourself in good stead for the longer-term simply by being proactive as well as reactive.”

Founder of Bunhead Bakes, a baked goods delivery brand serving South London, also found this new calling during the pandemic:

“I was delivering bakes and stuff to friends and family at a distance and then someone suggested I start selling them so I put an ad out on Instagram, my sister designed the logo and it’s just shot off from there really. Now I’m delivering sourdough buns and more to your door all across South London.”  

These businesses born during an economic downturn are said to be more resilient. Designed to thrive in times of crisis, they pave the way for the future of small businesses and often flourish in the long term. Here’s hoping the new wave of gritty, future-proofed small businesses are set to emerge from the ashes unscathed.

If you launched a new venture during lockdown, or you’re planning ahead with a new side hustle, check out how Coupay could help you take payments faster and securely with our smart bank transfer link.

How to future-proof your customer payment processes for Gen Z users

The world is making way for the new age of Gen Z customer. Just as marketing teams, software designers and customer service departments had to make way for the new demands of millennials entering the consumer space, it’s time to welcome Gen Z on a huge scale.

Reportedly set to make up 40% of all consumers as of 2020, Gen Z already have a bad reputation as screen addicts with super short attention spans. While this may be true in relative terms, as a generation who have grown up knowing nothing of a world without the internet, can we really be surprised?

What does the Gen Z consumer really look like?

The generation born after 1995 are known for being social-media-savvy digital natives. While they are often dismissed by older generations as being ‘double screeners’ or ‘always on’, it’s not just all about TikTok and Snapchat for these young consumers. They do their research when it comes to brands, they are an ethical generation who care about making change in the world and they are particularly health oriented, and technologically advanced.  

Ask Gen Z what a fax machine is, they are unlikely to know the answer. Born after the painful days of dial-up tones, MSN Messenger or the Nokia 3310, they will struggle to fathom how the world was once not in an always ‘connected’ state. They will however, probably be able to tell you the exact rate of deforestation in the Amazon and they’re also much more likely to part with their money on brands and products that have trusted eco credentials, are the most authentic and ethical on the market.

How to attract, engage and retain a Gen Z customer base

Set to represent 82 million people, making up the largest group in the US consumer population by 2026, Gen Z will undeniably introduce new challenges to the table, but rather than fear the influx of the new modern consumer, it’s time to just get to know your Gen Z audience. As the newest, brightest-eyed and bushier tailed members of the consumer landscape, Gen Z’s for the most part, haven’t formed loyalties yet in terms of their chosen brands. That mean’s now is the time to look at your business continuity, strategize to future proof your processes and pivot to attract and captivate your Gen Z audiences.  

Gen Zs, having grown up as true digital natives, surrounded by constant messaging and information, have developed an internal filter to help them drown out some of that constant noise. While they reportedly have an attention span of only 8 seconds compared with the millennials 12 seconds, this means you and your marketing teams have to be prepared for the extremely discerning, fast paced consumer behaviour of this new Gen Z audience.

Make sure your brand can withstand the rigorous research, and sometimes short patience of a discerning Gen Z consumer. This generation are cynical, and they are more likely to respond to personal recommendations of friends and family than they are to be influenced by traditional advertising methods.

What does a good customer experience look like for Gen Z?

With a reported eight second attention span, user experience for Gen Z audiences needs to be seamless, streamlined and glitch-free at every touchpoint. These young adults are the Connoisseurs of User Experience, so now is the time to truly fine tune your consumer contact points by future proofing your payment methods and processes, as well as your customer service and marketing endeavours.

When it comes to customer payments for example, you can be sure that your Gen Z customers will balk at the idea of having to manually input data or spend time painstakingly entering bank details online.

According to Business Insider, 75% of Gen Z consumers use digital payment apps or P2P apps, with contact-free payments apps such as Zelle and payment sharing platforms such as Venmo proving increasingly popular with Gen Z users in the US.  

Businesses with a high concentration of Gen Z customers are looking for new ways to take payments or introduce payment methods that are more engaging and friction-free for this short-attention-spanned audience. For example, letting agents in university towns across the UK are seeking ways to ensure that they can easily take recurring payments and one-off payments from their student renters in the manner that suits this younger consumer; quickly, efficiently and without having to input extensive bank details manually.

By implementing a Smart Bank Transfer payment method such as Coupay’s streamlined payment requests, businesses can receive payments online for free (or approximately 20p per transaction) and generally make the payment process more friction free and agile for customers, empowering them to make payments via their chosen device whether that be on the move, or at their desk.

With Coupay’s Smart Bank Transfer, customers simply click on their digital payment request, when, transported through to their own banking app, they can make your payment within four easy clicks. No muss, no fuss, and no bank detail entry needed. Take a tour of our Coupay use cases to see how you might future-proof your payment processes for the impending influx of Gen Z.