How Technology is Helping SMEs Navigate Tough Economic Times
In the past year and a half, the Reserve Bank of Australia (RBA) has been raising interest rates to control inflation, leading to an economic pinch that Australian consumers are starting to feel. As sales slow down, small and medium-sized businesses (SMEs) are finding ways to leverage technology to create sustainable growth.
Jarrad Brownfield, Square Australian Retail Product Marketing Manager, asserts that SMEs are doubling down on technology to maximize efficiency, do more with less, and create new revenue streams. As we navigate these unpredictable times, technology is becoming a game-changer, and omnichannel selling is quickly gaining momentum.
Omnichannel Selling: The Way of the Future
Omnichannel selling involves having a dual presence – selling both in-store and online – and catering to customers across multiple channels. It provides an opportunity for businesses to create new revenue streams and improve the agility and resiliency of their business.
According to statistics from Square Australia’s Future of Retail Report, 43% of retailers believe scaling their online shopping experience is essential to their business operations. Additionally, 54% say that social media channels account for the majority of their annual sales revenue.
To ride the wave of omnichannel selling, SMEs need to take advantage of technology that can help them run their business more efficiently. Below are some of Brownfield’s top tips for SMEs eager to leverage technology:
Unify Your Trade: Complement your physical store with an online presence that harmonizes with your brick-and-mortar store, and use the same technology provider for both channels.
Embrace Retail-Specific Technology: Adopt retail POS software for easy access to your entire sales picture; use additional features for equipment management, inventory, billing, and customer engagement.
Reward Customer Loyalty and Encourage New Buyers: Squareup.com offers loyalty and marketing tools that live directly within your in-store and online checkout experience, meaning that you can provide rewards, promotional offers, and increase product sales through a central hub.
Don’t Forget About Social Networks: Through omnichannel commerce, you can sell on social media, a channel that is now responsible for 54% of retailer’s annual sales revenue. As customer touchpoints increase, ensure that the technology partner you choose creates a fast and efficient checkout process, so no sales opportunities are missed.
Preparing for Tough Economic Times
If the RBA had started raising interest rates a year earlier, we might have seen consumers reacting sooner to cut back on expenses. However, 2022 was a boom year for household spending on goods and services, and in almost all categories, sales increased. Even in February of this year, despite the rising cost realities, sales were still booming.
With strong job and wage growth and a healthy savings cushion, consumer confidence remained buoyant until rising costs started hitting home, at which point SMBs began to feel the pressure from all sides. With declining sales, staff shortages, and own inflationary pressures, it became evident that SMEs would need to work smarter to capture their share of the market.
Brownfield noted that technology is becoming an essential component in businesses seeking to scale and stay competitive. However, for most SMEs, expense concerns are a real obstacle to harnessing the full potential of technology. To help small businesses navigate these tough times, Squareup.com has taken a holistic approach by offering the latest technology at an affordable price point.
Conclusion
As we prepare for tough economic times ahead, SMEs are seeking ways to tighten their belts and become more efficient. Businesses are turning to technology to unlock sustainable growth and introducing sustainable business practices by selling online, using social media to reach customers, and adopting retail-specific technology.
The value of the right technology cannot be understated as it is a strategic element of business that can help streamline operations, reduce costs, retain customers, and boost productivity. It provides an opportunity for leverage, efficiency, and growth, enabling small businesses to stay competitive and survive economic hardships. Fortunately, the right technology doesn’t have to be costly, making it accessible even to small businesses facing budgetary constraints.
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It’s been over 12 months since the RBA started raising interest rates to combat inflation, and consumers are really starting to feel the pinch.
Amid slowing sales, SMEs are turning to technology more than ever to help unlock sustainable growth.
Preparing for difficult times
If the RBA first started raising interest rates in May 2022, you might be wondering why it takes so long for consumers to tighten their belts. In fact, 2022 was a boom year for household spending on goods and services, which increased in almost all categories. and the sales were still booming in february this year.
Until recently, strong job and wage growth and, for many, a healthy savings cushion have helped keep consumer confidence afloat. But at this point, the rising cost realities are hitting home. As consumers brace for potentially tough economic times, SMBs are coming under pressure from all sides by decline in salesstaff shortages and own inflationary pressures.
Then again, when the going gets tough, the tough really get going. According Jarrad Brownfield, Square Australian Retail Product Marketing Manager, SMBs are rising to today’s challenges by doubling down on technology. At the heart of this trend, he says, is the desire to maximize efficiency and “do more with less” while creating new revenue streams.
Tips for selling online
As far as Brownfield is concerned, there’s no question that omnichannel selling—selling in-store and online, wherever your customers are—is the way to go. After all, “our Future of retail report showed that 43% of retailers say that scaling their online shopping experience is one of the most important aspects of their business operations.” he says.
With that in mind, here are some of his top tips for SMBs looking to capitalize on this trend:
1. Unify your trade
“Complementing your physical store with an online presence is an effective way to grow and build resilience,” says Brownfield. “However, many businesses can fall into the trap that their physical and online stores don’t communicate with each other, creating an unnecessary administrative burden.” To avoid this common pitfall, he recommends using the same technology provider for your in-store and online POS, or making sure they integrate easily.
2. Embrace Retail-Specific Technology
Purpose-built retail POS software gives you easy access to your entire sales picture, Brownfield says, as well as useful extra features essential for running your business. For example, equipment management tools, inventory, billing, and customer engagement.
3. Reward customer loyalty and encourage new buyers
Brownfield recommends using loyalty and marketing tools that live directly within your in-store and online checkout experience. Doing so provides you with a central hub for sharing rewards and promotional offers, and increasing product sales, he says.
Do not forget about social networks
Omnichannel commerce means not only complementing your physical store with an online point of sale, but also, increasingly, selling directly through social media.
“In fact, we learned from our Report on the future of retail that 54% of retailers say that social media channels account for the majority of their annual sales revenue,” says Brownfield.
However, one important point to keep in mind is that any online checkout process your customers use should be simple and frictionless.
“As customer touch points increase, it’s crucial for retailers to ensure their technology partners are creating a fast and efficient checkout process so no sales are left on the table,” says Brownfield.
Tough times may be ahead, but that just means SMEs have to work smarter to capture their share of the market. By selling online and through social media, you can create new revenue streams that help increase the agility and resiliency of your business.
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