Based on Deloitte’s the latest 2017 survey and report. A vast array of digital tools are available for small-to-medium sized businesses (SMBs) to connect with their customers and grow their business, but it can be hard to keep up with new technologies that are constantly emerging. For 70% of SMBs, digital technology decisions are made by the owners. With many competing responsibilities, it is important that they have the right information when making digital decisions.
The business environment is rapidly changing, with the shift to digital technologies happening even faster than expected. SMBs expected face-to-face sales to decrease from 45% in 2015/16 to 37% in 2020/21. In fact, this predicted decline has already largely occurred three years early, with face-to-face interactions now making up 39% of SMB sales.
It’s not just technology which is changing, but also customers of these SMBs. 47% of SMBs ranked ‘changing customer expectations’ in their top 3 business threats in five years’ time, making it their top perceived future challenge.
In some ways, SMBs are ready. Almost half of SMBs report a good knowledge of their customers and can target them based on previous interactions. However, there is still significant room for SMB improvement, with only 1 in 5 businesses regularly using social media, and with 70% having no system or only a basic system to record and analyse sales, marketing and customer service information.
There are clear benefits for SMBs from the adoption of CRM software to keep track of their customers and transactions. Firms with CRM systems have on average 44% higher revenue than those with no system or basic systems.
A majority (59%) of SMBs without CRM programs said that their “existing system is good enough” as the reason for not upgrading. When businesses are very small, with few employees and limited transactions, they may think they know their business and customers well enough individually to not require a strong system of record keeping. SMBs need to overcome their fear of change in order to reap the digital dividend, drive growth, and scale properly.
However, businesses that upgrade to a CRM system have experiences that are overwhelmingly positive. While 28% encounter some challenges and successfully manage the transition, 95% of businesses which upgrade ultimately experience benefits. In a digital environment that continues to evolve more rapidly than expected, a decision not to change, or to ignore digital benefits, is effectively a decision to fall behind.