Adapting to the Digital Landscape to Facilitate Greater Growth for Small Businesses
We currently live in a world that is run by technology and this reality has become even more apparent throughout the COVID-19 pandemic. In the early days of the pandemic, government policies and societal unease caused customer foot traffic to decrease significantly. Within this landscape, large corporations such as Apple and Amazon thrived both as a result of their large market share and established presence, but also because of their ability to adapt to reach customers' preferences digitally.
Despite this, according to the Wall Street Journal, one in five small businesses that were open in January of 2020 have stopped transacting entirely. The biggest challenges that small businesses have had to face are their losses on cost and/or convenience, which is due in large part to a lack of technology. As witnessed by the global market, businesses must make large investments in the digital space in order to succeed. Thus, digital transformation for small businesses is no longer aspirational-it’s foundational.
E-Commerce Platforms
As a result of the pandemic, the market is unveiling a strong and profound shift from brick-and-mortar to online purchases. This is largely because the ability for customers to purchase goods through an online platform has created a greater sense of convenience through quick processes which allow customers to purchase items in a short amount of time from the comfort of their homes.
As the demand for a digital presence has increased, small businesses are granted the opportunity to grow exponentially and maximize sales in a way that is cost effective. Online platforms allow small businesses to increase visibility from customers who are looking for a specific product in order to increase market exposure and produce greater revenue. Additionally, businesses can reduce the operational expenses that accumulate from wages spent on labor or leasing properties by developing an online presence, thereby fully maximizing profits. For instance, a small business that sells all organic and natural packaged foods should consider selling their product through an e-commerce platform such as Thrive Market, an online marketplace for natural food products, which provides a competitive edge with a vast amount of tailored customers.
While brick-and-mortar is far from gone, the digital market is playing a dynamic role in how society shops. Therefore, the rise of digital sales is key for the growth of small businesses in the future to come.
Digital Marketing
Transitioning into the digital sales space would be ineffective without strategic digital marketing techniques. While selling products through an e-commerce platform initiates market exposure, it is not enough to gain the customer base that is necessary for a small business’s growth.
Although businesses may look for traditional forms of advertisement such as print ads and coupon mailers, the use of digital marketing opens up a vast marketplace of targeted customers. There are two powerful strategies that every small business should integrate: search engine optimization (SEO), and social media marketing.
SEO is the process of optimizing online content to improve a business’s search engine ranking when potential consumers search for a particular keyword. When consumers use a search engine such as Google, a sophisticated algorithm determines relevance by “crawling” the content of individual websites. The algorithm seeks websites with high-quality content and or websites that include the relevant search words. The optimization of a small business’s website allows for a cost-effective strategy that targets website users who are actively looking for products and services that are sold by that business. As it may be difficult to optimize a business’s website to attain maximum exposure through searches, small businesses should consider partnering with a marketing agency that will provide quality results and higher efficiency.
Like search engine optimization, social media marketing is a vital strategy for small businesses to attract customers, because over 70% of shoppers use social media to help inform their purchase decisions. Users rely on social media to connect with companies, whether through highlighting a positive experience or gaining perspective through uploaded content. Overall, utilizing social media sites such as Facebook and Instagram creates greater brand awareness and higher rates of conversion, making social media marketing an increasingly important strategy for small businesses.
As our society develops more of a reliance on technology, small businesses must adapt to the digital landscape. Digital transformation is crucial for small businesses seeking to limit major operational expenses and provide efficiency internally all while maximizing customer retention and user experience.
As a social impact initiative, Rem and Company also offers free consulting services and resources to small businesses and nonprofits impacted by COVID-19. Our pro-bono consulting teams provide small businesses with the opportunity to identify and prioritize issues facing their business, propose innovative strategies, and facilitate execution. If you are a small business or nonprofit in need of assistance, learn more about how we can help.