Building Momentum Right: How SMEs can use the trends from last year to make projections for this year right
With 2020 in the books, the world is still in a state of tension and uncertainty. The COVID-19 pandemic, which has been front and centre since early last year, has caused a paradigm shift in the operations of Small and Medium Enterprises (SMEs) across the world, particularly in Africa.
Looking forward to 2021, trends fast becoming facts that proffer opportunities and solutions for SMEs that are bold and innovative enough to take them. In light of this, SMEs must understand that the past year has levelled the playing field in the rapidly-changing business landscape. There is a need to be proactive in establishing progressive strategies while preparing their business for the year.
Business Trends For SMEs in 2021
SMEs are pivotal to developing the economy and provide the best framework for a quick recovery because they are very flexible. Some of the trends that can benefit SMEs and help them in competing with larger organisations in 2021 include:
Lifestyle:
- Consumer trends– Consumer and business values will continue to evolve, making consumers become conscious shoppers. With growing concerns about climate change fast becoming a global movement, profit is no longer the sole metric for determining a business’s success. More consumers have become increasingly concerned with ethical practices. As such, businesses must incorporate sustainable practices at the workplace to maintain customers’ trust.
- Remote and flexible working– Several small businesses have to contend with the extraneous cost of office space. This is no longer the case for growing SMEs that have turned to remote and flexible working. Compared to their competitors, these businesses enjoy higher productivity. Flexible working present the opportunity to boost the economy by increasing productivity rate and decreasing unemployment.
Finance:
- Mobile transactions and cashless payments- The convenience of mobile transactions and cashless payments has led to a rise in seamless payment experiences. These transactions could be payments made in-store or online and mobile marketing. This will become a driving force in fostering customers’ trust.
- Alternative funding sources– More alternative sources of funding are made available to SMEs even as they continue to face challenges including debt management, tax payment, epileptic power supply, among others. These alternative sources are crucial to the immediate survival of SMEs. Some of these sources include peer-to-peer lending, grants, crowdfunding, venture capital, and fintech.
Marketing:
- Personalised customer experiences– This trend has seen massive sales increase and is starting to hit new heights. Consumers believe that the ability to modify goods and services will ensure that their needs are better met, and this has caused a strong inclination for personalised products. Utilising data processing and analytics will help SMEs understand and get to know their customers differently and then use that knowledge to enhance future marketing strategies. Incorporating this trend into a strategic plan will aid SMEs in retaining and maximising customer loyalty.
- Less content- Videos will continue to grow as there will be more push for less content in the form of videos. Videos will keep acting as a content medium and a bridge to other trends.
Technology:
- Augmented Reality (AR) and Virtual Reality (VR)– Small businesses will be important in adopting developing technologies, a powerful tool in driving brand awareness for SMEs. AR and VR will integrate into workplaces taking the form of networking events, trade show exhibitions, and others, making for an even more convenient experience. Innovative SMEs should take advantage of AR and VR to stand out from the competition and generate excitement among the audience.
- Artificial Intelligence (AI) and Data Analytics– AI will permeate small business operations with innovations that will give them a competitive advantage. Some of these AI innovations include:
- AI-based hiring process employs AI-based HR technology to automatically navigate countless applicants and find those that closely suit the desired criteria.
- AI-infused Customer Relation Management tools help small businesses generate leads and change marketing strategies almost instantly based on AI-driven customer analytics.
- Live Chatbots enable small business owners to keep doing business 24/7. These chatbots are present on websites to initiate communication with customers and help answer their questions. This feature helps in time management and in providing valuable feedback from customers that marketers use to track trends and improve decision-making
- Business intelligence where AI keeps an eye on the competitors and gathers vital information to make small businesses know what their competitors are doing.
- Social Media and Digital Marketing– Conventional public relations is being replaced by social media, which is increasingly prominent for marketers in the wake of COVID-19. There is increased competition as more businesses move digital and social media relations become important. Small businesses will spend more on social media adverts, marketing products directed at bolstering organic growth. However, care should be taken to emphasise brand awareness and build audiences across multiple channels whilst employing organic approaches like content marketing.
These trends are crucial to helping SMEs stay competitive and in improving their strategy within the year. By implementing the right innovations and trends, businesses will observe a noticeable difference in processes and growth.
