SMEs Urged To Take Note That Acceleration To All Digital Will Increase

New Zealand SMEs are being advised to note that the cost-of-living crisis and accelerated consumer digital adoption are two trends that could significantly impact the success or failure of their businesses over the coming months.

Bejoy Jose, the director of Mello Technologies – a digital marketing agency and authorised Zoho Customer Relationship Management partner based in Auckland – said fear of Covid, even among those who have already had the virus, is moving customers to see the world as all-digital.

"Anybody who has caught Covid will tell you it's not something they want to experience again in a hurry, which is likely to limit people's desire to mingle.

"Couple this with the fact that the cost-of-living crisis will drive customers to spend more time online looking for better value for money. You have a perfect storm that will change how we build relationships and cultivate loyalty with customers."

Jose said that SMEs would want to change the digital model to enhance the customer experience – using technology to build relationships with the customer – but they also need to look for ways to reduce costs, achieve greater efficiencies and differentiate themselves from the competition.

Some strategies will stand local businesses in good stead over the coming months of consumer behaviour shift.

1. Customer focus

Most companies still put more focus on sales before the customer.

"Customer retention, loyalty and relationship building must become a priority. It's no good winning new customers only to lose them due to poor communication or a bad experience. Personalise your communications, stay in touch, be visible and respond quickly to engagements – a good customer relationship management system makes this easy."

2. All digital

Research shows that of UK consumers who had never made an online transaction, 49 per cent completed an online purchase during the pandemic. In the US, the number was 60 per cent.

"If you are a retailer, ask yourself what makes customers visit a brick-and-mortar store. Explore how you can replicate that experience online. Make sure you don't surprise your customers with unexpected costs like shipping – be upfront.

3. Make it easy

Up to now, many consumers have preferred to shop in person because it offers certain advantages. For example, they can see the price upfront, get instant gratification, somebody is on hand to answer their questions, and frequently there is a friendly, smiling face there to greet them.

"A good digital experience and strong communication are essential for thriving in a more digital-centric economy. Replicate the things consumers love about face-to-face, and then find ways to make it easy to buy; remove the roadblocks. Be swift."

Jose said 2022 and 2023 wouldn't be a return to business as we knew it before the pandemic. Now is the time to be thinking about new offerings, re-aligning messages, emphasising customer relationships and developing a clear understanding of how your customer behaviour is changing.

Source: https://thekeenfolks.com/consumer-trends-2022/

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