The dynamics of consumer behavior in recent times has given rise to the redefining of the concept of ‘Switching Economy’ that is fast changing the way SMBs strive to do business – in simple terms, this concept deals with the constantly changing spending and buying behavior of consumers and its repercussions on the revenue potential of SMBs.
According to Accenture’s 2013 report titled Global Consumer Pulse Survey, consumers are 29% more likely to switch companies than ever before. The report also states that there is a potential $1.3 trillion of revenue at play in the U.S. market represented by the switching economy. This has proved that consumers are raising the bar of their expectations when it comes to their buying ability. The digital landscape has given consumers the ability to decide on the type of device to use for making a purchase as well as when and where to make them. And this is exactly where SMBs need to change their dynamics of business propagation.
Propagate the ‘Unique’-ness
The need of the day thus lies in tapping into the potential that this digital landscape offers for SMBs. Nearly 56% of the consumers accept the fact that their range of choice in brands have increased dramatically over the last 10 years. It has therefore become highly pertinent that to capture the attention of a potential consumer, every SMB owner needs to highlight the ‘unique’-ness of their product and/or brands. The way you showcase to the way you sell, all needs to have certain uniqueness to it – an edge that could push you over your competitors.
Another point that any SMB owner needs to work on is the retention of old customers. The Accenture reports also states that over 28% of the US consumers feel very loyal towards the brands they use while 32% of them would consider recommending these brands to others. This supports the notion that while SMBs must always strive to acquire new consumers, retaining their existing ones is extremely important.
The digital landscape offers retail SMBs the option of using digital devices in the creation and management of relationships. Accessing consumers and their preferences has become quite easy and these should be used to serve consumers with more tailor-made services. Also, creating a seamless experience that enables customers to flow easily across different channels, whenever and however they choose to, is important on the part of any retail SMB.
The higher a retail SMB’s visibility on mobile devices and on social media, the better prospects it has of capturing the attention of the potential consumer. This allows direct and dynamic interaction of retail SMB owners with their potential customers, creating a trust that is invaluable.
Changing the dynamics of business is the only way that any retail SMB can tap into the potential a switching economy creates. Understanding consumer behavior and changing the rules of the game will enable retail SMBs to create a bigger consumer base and also help in their long-term sustainability.