It’s no secret that the pandemic continues to pose challenges for business owners; with businesses now able to have their stores open but feeling the weight of supply and demand issues. SMEs make up 99% of the UK’s economy, meaning the effects have and continue to be widespread, with the country’s GDP dropping by 25% in just two months during the first lockdown.
Square has been working with its sellers – which span business owners of all sizes – on how to overcome the common issues facing UK businesses at the moment. In particular, looking at how SMEs can benefit from the adoption of technology. It’s important that all businesses play to their strengths by utilising the technology available to them in order to continue to run, adapt and grow. Here are five possible ways to boost your business’ resilience by Kaushalya Somasundaram, Head of UK Payments Partnerships & Industry Relations at Square.
Get creative – utilise multiple revenue streams
The last few years have shown that businesses can’t always afford to rely on one stream for their income but need to be versatile with their business model in order to appeal to a wider range of customers. While e-commerce has boomed over the pandemic, Square’s Future of Retail report shows that during lockdown many businesses were able to continue generating demand by being creative with their product offering. A great illustration of this is London-based artisan bakery Today Bread which diversified its product offering over lockdown to include masks and jams alongside its primary products of bread and pastries.
Community is key – build relationships
Establishing your business in the community is a great way to build local presence, while supporting members of the community. Over the course of the pandemic many businesses have made it a priority to give back to their community and find a way to support vulnerable residents. In fact, the same report from Square found that 95% of retailers intend to continue with the community engagement initiatives that they’ve implemented. This is also supported by residents themselves, with 43% of consumers wanting to see businesses donating supplies to community organisations and charities. It is important to ensure these local relationships are designed to be long-term and sustainable to successfully build trust and genuine alliances.
Embrace the digital world
With our Future of Retail data showing that 97% of UK consumers make an online purchase monthly, it’s important to establish an online presence. This doesn’t just include a website but also harnessing the power of social media, which is increasingly becoming more commercialised and is a popular way for businesses to attract consumers to their brand. Our insights showed 73% of UK consumers are buying products from social media, illustrating how powerful it is for connecting consumers to their favourite brands. Businesses should look for ways to go beyond the conventional and use tech to strengthen customer relationships and to ensure they never miss a sale.
Reach customers wherever they are
Omnichannel is becoming vital for businesses that want to ensure they’re offering a great experience for all customers. In an age that prioritises convenience, it’s important that as a business your brand is found in the places where it’s most likely to be accessed or needed by customers. Tech gives businesses opportunities to connect online and offline experiences so products can easily be found and purchased. This provides agility, giving busy customers choice when it comes to how they use your services and ultimately encouraging brand loyalty.
Streamline your logistics
Automation is your best friend as a business owner. According to McKinsey, teams spend 20% of their time on tasks that could automated. This creates operational inefficiencies which can be prevented by automating tasks so that services and goods can be delivered at a faster speed to clients. Square research shows that 71% of businesses are looking to automate their inventory management which will allow them to track payments and stock with the touch of a button. Such tools save valuable time, freeing business owners time to focus on other important tasks.
In this fast-changing world of uncertainty businesses can never be doing too much to future proof themselves and strengthen their customer offering. Consumer trends are constantly changing as spending habits shift, and so to offer the ultimate customer experience, business owners must stay ahead of the curve.
