Small business owners, take note: how technology can save your business
The world has changed in unimaginable ways this year. While some are relishing the opportunity to relinquish office space, small business owners anxiously await the reopening of their doors to a new outside world. As we are left wondering when things will return to “normal” — we must consider how businesses can evolve to survive and take advantage of an increasingly digital world.
You can weather a storm, but not an ice age. And it’s time that small and medium businesses adapt to what may be permanent changes in consumer behaviour.
Technology needs to be central to business plans going forward, and this means leveraging the right platforms and partnerships to do so. We’ve seen this in recent headlines with Walmart and Shopify. One would think the established organization has every resource possible available to them, yet they find success joining forces with a more technology-forward one. Both partners play to their strengths and create something both innovative and not easily replicated. In this regard, Canadian small businesses are falling behind.
The world has moved digital and will continue to evolve, creating new opportunities for small business owners to better attract, engage and understand customers, regardless of whether they are in-store or online.
As the legendary Wayne Gretzky says, we need to go “where the puck is going to be, not where it has been.” Today’s puck is digital and it’s engaging consumers in a more sophisticated way than ever before.
The good news for small businesses is that the barriers of entry have all but been removed as modern technology advances. A smarter, stronger and seamless digital presence has been democratized for the average small business owner from a cost, set-up and ease of use standpoint. It’s just a matter of finding these technology partners who understand the unique challenges and needs of small businesses. Those that take advantage of smarter digital platforms will significantly grow their businesses without wasting money on expensive advertising, and do so by ensuring every marketing dollar invested today, delivers a profit tomorrow.
Levelling an uneven playing field
E-commerce used to be something that was out of reach for the average store owner, but modern technology solutions have significantly increased accessibility for just about anyone. Shopify paved the way for this in Canada, when they made it frictionless for entrepreneurs to sell online without needing to pay someone tens of thousands of dollars.
As much as Shopify has made it easy for anyone to master e-commerce and move their shop online, the challenges for brick and mortar businesses remain. The local grocery store, coffee shop and gas station still need in-person customers for them to exist.
What we’ve seen in platforms like SkipTheDishes for restaurants or Square for cashless payments, is that it is easily accessible, and effortless to manage technology, which helps small businesses to not only survive, but significantly strengthen their relationships with customers and increase the amount of dollars being spent daily at their stores.
The goal for any small business owner should be to understand their customers’ motivators and behaviours so they can focus their strategy accordingly to increase foot traffic, provide an enjoyable buying experience, encourage word-of-mouth sharing and, ultimately secure return visits. Tech innovation can answer all of these, and it’s time that merchants of all sizes take advantage of it, so not to advertise blindly, but to better reach and reward their customers.
Here’s where I see technology heading to help local businesses thrive in a digital world:
1. Personalization tools that work online, will be brought in-store
Customers want personalized experiences that speak to their unique interests, habits and lifestyle. In order to understand their preferences, local stores must understand the customer and what drives them in-store and sequentially, make a purchase. This means less ambiguous digital ads designed for the masses and more insight and response to what is unique to each customer at any given time. In turn, this will allow for the delivery of the right offers and incentives for each customer and help predict the future needs and wants of returning customers.
2. Frictionless earning of rewards and participation in loyalty programs
Businesses simply having a loyalty program is no longer enough value for customers. Nowadays, customers covet a seamless experience for how they spend, save and earn rewards on a daily basis. While Canadians belong to multiple loyalty programs, they rarely use them. There are too many cards and apps to track and manage, all with their own unique rules and points systems.
However, technology is now making it easier for consumers to make smarter spending decisions and instantly receive cash-back on every purchase. Local businesses can manage a digital rewards program on these same platforms that consumers use daily to shop and save, eliminating the inconvenience of carrying a card or managing several apps. Best of all, customers can support local businesses and get rewarded from neighbourhood stores they otherwise may not know about, as soon as they pay, all from one app. This creates a frictionless experience that small businesses can now be part of.
3. Doing away with one-off solutions in favour of an ecosystem of interactions
Being a part of a larger network of an online marketplace and rewards ecosystem enhances the customer experience to discover new brands and try new things. This can create further synergies with complementary products and services. For example, someone leaving a yoga studio would likely be interested in a protein shake or health conscious offerings from an organic grocery store. If a neighbourhood coffee shop is near a gas station, why not incentivize a customer to fuel up at both? In the current state of loyalty programs, businesses cannot deliver contextually relevant offers from their singular app or one-off punch card.
4. Harnessing real-time data and targeted offers that continuously improve
What good is a loyalty program without understanding what’s working, how much new revenue it brings and if it has generated new customers? This granular level of data and insights does not have to be limited to large enterprise or e-commerce solutions. The local corner store should also have access to know what offers keep the cash register ringing, and what incentives keep customers coming back. For every dollar invested in customers through a rewards program, small business owners should know how much of that is incremental profit, which otherwise would not have been realized.
The loyalty and rewards programs of the future will automatically deliver these insights, ensuring to stick with what’s working, and adjust what’s not. Having real-time data grants merchants the ability to optimize their incentives and rewards programs on the fly, keep their offers fresh, and help their business grow on auto-pilot, with no additional guess-work.
Going beyond the traditional consumer value system
What I want for small business owners to take away from the current state of our world and economy is that partnerships are key. Finding the right technology company is important — it allows businesses to focus on their craft while the partner provides a powerful, cost-effective solution, which delivers immediate ROI.
At Neo Financial, we’re reimagining everyday spending and saving for Canadians, with a platform that not only removes high banking fees associated with credit cards and high-interest savings accounts, but provides the most rewarding experience possible. This includes exclusive cashback offers from hundreds of local stores, earned automatically when customers pay with their Neo Mastercard. It’s everyday spending, saving and rewards — all in one.
We believe in creating value for Canadians in neighborhoods across our cities, by simultaneously creating value for small businesses, especially brick and mortar.
Neo for Merchants provides a modern and cost-efficient way to reach and reward consumers, as they discover better ways to spend smarter from the places they love. This includes making it easy to deliver the right offer and incentive at the right time, with rewards personalized to any customer’s daily routine, location, and immediate needs. Rewards that only get better over time, the more our members spend and save with Neo. Our platform also means gaining insights into the rewards programs delivering the most value, for both the business and each of their customers.
Small businesses are the pillars of our community. It is vital they remain visible to customers and deliver the experiences expected from bigger brands and e-commerce, but with a local flair. That one-of-a-kind service, high quality product and convenient neighbourhood location, which can now be matched with smarter marketing and rewards, is what will finally bring our local businesses successfully into the 21st century.
