These days, most SMBs and VSBs believe that digital technology offers significant advantages for their company.
The more employees a business has, the more owners will view their digital transformation as an everyday essential for communications, internal organization, prospecting, customer relations and other critical tasks.
And yet, some SMBs and VSBs have delayed making their digital leap. Many feel restricted by heavy economic pressures and a lack of resources. These barriers are preventing business owners from implementing a strong digital strategy.
Cost represents the most cited barrier for SMB and VSB owners. Many companies overestimate the budget required to make their digital shift.
A lack of time and skills are two other commonly perceived obstacles. Business leaders think that going digital will be time-consuming and fear they’ll run into technical challenges.
The Digital Shift: Major Opportunities for Businesses
Despite the cited challenges, business owners say that new digital tools are having a positive effect on:
- Their communication and advertising methods
- Their ability to organize their company and monitor their business activity
- Their ability to manage sales and accounting data
- Their ability to pay employees and suppliers
These numbers double for companies with 20 to 49 employees.
The main goals for small businesses are:
- To increase their sales turnover and profitability
- To attract new clients
- To strengthen client loyalty
Upon going digital, more than 70% of all SMBs report revenue growth. Many business owners attribute a large portion of this growth to their use of digital tools. SMBs with a stronger online presence are more likely to experiencing increased sales than their peers who have yet to make their digital leap. Digital savvy companies are:
- 3x more likely to experience revenue growth
- 2x as profitable
SMBs already play a key role in the U.S. economy, employing almost half of the total workforce. By addressing the internal and external barriers faced by SMBs today, businesses may gain easier access to more digital tools. This will give them new opportunities to increase their size, productivity, profitability, and ultimately, their contribution to the U.S. economy.
85% of all SMBs report that digital tools have helped them improve their profits over the past year
Consumers are Ready Now
There is a significant gap between customer readiness and where SMBs and VSBs are at with their digital journey:
- 7 out of 10 consumers buy and pay online while only 1 out of 8 SMBs take advantage of online solutions.
- Before the second wave, 38% of French people were already using in-store Click & Collect options.
Companies are at risk of missing out on a high-potential market, leaving full reign for consumerism’s e-commerce giants.
SMBs who leverage advanced digital tools are more likely to experience customer growth than their peers who are further behind in their digital marketing strategy. Digitally advanced companies are:
- 5x more likely to reach new international customers
- 3x more likely to experience customer growth, which tends to be twice as high, compared to other companies who haven’t yet gone digital
Let’s Get Digital
Your digital transformation can occur in stages based on your activity and needs.
If you’re ready to simplify how you run your business, there are a number of digital solutions available for SMBs and VSBs, independent contractors and local store owners: online booking solutions, click and collect, marketing automation, SEO and more.
You can set up any one of these tools one by one at a reasonable cost. For a serene and seamless digital transition, Linkeo’s teams are here for you with your own dedicated technical expert and weekday customer support as needed.
To learn more about Linkeo’s solutions, click here.