Reacting to the COVID-19 pandemic through digital connectivity with customers: the Italian experience

Abstract

The COVID-19 has deeply impacted the firm’s competitiveness because of the restrictions that limited the relationships with existing and new customers. The pandemic has pushed firms to rely on digital technologies to redefine business processes as well as customer relationships and marketing strategies. The digital technological portfolio firms may rely on to face the COVID-19 related challenges spanning from the established web-based technologies to the more recent Industry 4.0 tools related to the fourth industrial revolution. In this regard, the paper aims at exploring which digital technologies allowed firms to positively react to the pandemic to overcome their constraints in managing the market relationships. Based on an original qualitative analysis on 26 Italian SMEs carried out during the first Italian lockdown in 2020, the paper identifies three strategies in the use of digital technologies to support customer relationship management and market expansion. It emerges specifically the strategic importance of web-based technologies (videoconferencing, CRM and e-commerce) to support firm competition and performance through customer interactions and digital experience, advancing the literature on firms’ reaction strategies during turbulent and crisis times.