How does Digital Transformation affect SMEs?

People and businesses all over the world benefit greatly from digital transformation, Small and Medium-sized Enterprises (SMEs) will have more opportunities to grow better, though. So, what exactly digital transformation is, and how can they transform SMEs?

Digital Transformation will look different for every company due to the specification of each organization so it can be hard to pinpoint a definition that applies to all. However, in general terms Digital Transformation is the combination of technology into every area of businesses which fundamentally changes your business operation and the value that you deliver to customers. It is also a cultural change that requires businesses to continuously improve themselves to adapt to the quick changes of current status. This sometimes means walking away from long-standing business processes that companies were built upon in favor of relatively new practices that are still being defined.

One example of Digital Transformation is bringing artificial intelligence into your service organization. AI-powered chatbots that answer simple customer inquiries serve as a welcoming presence on your website, reducing the time customers have to wait to reach an agent.

Another case study is The Home Depot, which has been very successful, in late 2017 the company decided to adopt a more expansive digital transformation strategy. Their goal was to enhance the online shopping experience and provide customers with the highest quality products and best resources through a seamless process across all channels. Home Depot plans to invest $11 billion over three years to improve both its in-store and online shopping experience.

For SMEs, digital transformation offers appealing advantages that can result in a game-changing battle position, such as:

Digital Solution simplifies and improves the working process and operation of SMEs by making it easier for both customers and employees to access the information they require, increasing productivity while saving time and money.

Cutting-edge technologies such as AI provides the SMEs with the capability of understanding customers and anticipating their behavior, thereby supporting in measuring customers’ interaction and sales forecasting.

Let us look at predictive analytics tools as an example, these AI tools based on customers’ purchase history to predict their demand in the future, from which suppliers can respond promptly or further to their needs. This also helps develop and expand new trends, new customer needs.

Suppliers can apply these predictive analytics tools in Email Marketing Strategy. By tracking customers’ purchase history, suppliers can predict how long it will take for a customer to use up that product. When that time comes, suppliers will email customers with information about related products, which is not only a great way to help increase sales, but also makes customers feel they are “taken care of” ”, from which loyalty to the business will be improved.

“Companies will need to use data to improve agility and power innovation, accelerate AI to drive growth and unlock new opportunities through ecosystems and partnerships” (EY: How can technology at speed create competitive advantages?).

Data is a strategic asset that helps companies learn about their customers and employees by the second. One of the most significant advantages of moving digital is the ability to track and analyze data gathered through digital marketing campaigns.

Almost all businesses can use data to optimize their operations. Companies use insights from data and analytics to speed up innovation. In fact, it’s their number-one method of doing so, ahead of re-engineering and automating processes and streamlining hierarchy. And while companies generally understand the value data brings to their business, digital transformation leaders really get it: 83% are using data to help them innovate faster, compared with only 70% of digital transformation laggards (EY research survey).

Customers can now access general information and SMEs’ services information more easily than ever before with a single click thanks to digital. By Digital Transformation, SMEs can collect customer information and analyze their behavior using tools such as feedback collection and data analytics.With that information collected, SMEs can improve omni-channel offering, deliver services and provide new channels for interaction with customers. If you are new to digital transformation in contacting with customer, here are some suggestion:

• For B2B sales teams: digital first means replacing cold calling with social selling. Your customers are already active in social media and that’s where you need to be. Instead of waiting for the customer to contact you, you will need to reach out to them, build a relationship and help educate them. You can do this by sharing relevant content and your expertise as part of a solution to their problem.
• For marketing teams: digital first means reducing your spend on offline marketing activities, such as direct mail, billboards and TV ads. Your customers want (and expect) highly targeted messages, which can only be achieved through a data-driven marketing strategy. Now, you need to use digital channels to implement search engine marketing, account-based marketing and email marketing strategies.
• For customer service teams: you’re no longer restricted to waiting for the phone to ring or a fax to come through. Digital first is not just about being reactive. It’s about being proactive in the way you help your customers, who use a wide range of channels to seek out support. Social media, reviews sites, forums, and communities are all now part of the customer service ecosystem.

Do you have an idea to transform your business? A working product or platform that requires new features and maintenance on a regular basis? Or perhaps you’d like to form your own development team to work on your own product? A digital partner would be a wise choice because it is less risky and produces more predictable results.

Spirit Labs is a full-stack software development company with extensive experiences in delivering cutting edge solutions that can help companies get started with digital transformation. It is not just about technology experts but also the partner who understands SMEs business to provide the appropriate digital solutions.

Don’t hesitate to contact us and share your ideas to turn your businesses into the digital era with us.