By Russell Phillips

You are about to embark on another great year for your business. You’ve hit many bumps and had many achievements in 2023, but you’re so laser-focused on your daily operations that sometimes you forget you must take a step back and reflect. This is why we’ve decided to help and narrow down a list of tips to help you and your business reach the next level. Aren’t you taking notes already?!

 

Digitalization and its perks

 

Digitalization is the process of using digital technologies to transform business operations, products, services and customer interactions. Digitalization can bring many benefits for small businesses, such as improved efficiency, reduced costs, better customer experience, increased sales and increased innovation. But what does that mean in the practical sense? Let’s take a look at an example closer to home.

 

The Little Flower Soap Co., a handmade-soap company in Michigan, used digital tools to transform how it brought together customers, data and processes. The company used a cloud-based platform to manage its inventory, orders, invoices and shipping. The company also used social media and online marketplaces to reach new customers and increase sales. The company also used analytics and feedback tools to understand customers’ preferences and improve its products. As a result, the company grew its revenue by 300%, expanded its market to 50 states and 12 countries and increased its innovation by launching new products every month.

 

Such an example is only a basic model showing how digitalization can help small businesses in their efforts to overcome challenges and achieve success. Digitalization is not a trend anymore, but it has become necessary for small businesses today. According to a report by IDC, digitalization can increase the GDP growth of eight vital global markets by an additional US $2.3 trillion by 2024. Therefore, you and your small businesses should embrace digitalization as an opportunity to create value for you and your customers.

 

People, people, people

 

Last but not least, and we can’t stress this enough. People are the nucleus of small businesses, and much more attention should be paid to the processes of hiring, training, managing and incredibly motivating and retaining them. There is no perfect formula for how this is done, but the fact is that this is particularly true for small businesses. This is because you face challenges such as limited resources, high competition and rapid changes in the market.

 

One of the main benefits of focusing on HR (and trust us, we know you probably have to do that role as well) and rewarding employees is that it can improve employee engagement. Employee engagement is the degree to which employees feel committed, satisfied and energized. Engaged employees perform better, experience less burnout and stay in small businesses much longer. To increase employee engagement, HR can offer competitive salaries or hourly wages, flexible work arrangements, health benefits, paid time off, recognition and rewards and opportunities for learning and development. Depending on your niche small business, you can add/remove to the list, but the bottom line is that they need to be treated well and feel appreciated.

 

If you do these things, then it can significantly reduce employee turnover. We all know that high turnover can negatively affect small businesses through things such as increased costs, decreased productivity, reduced quality and lower customer satisfaction. To reduce this, you can spend more energy in the HR section by providing clear employee expectations and goals, developing and retaining talent and addressing employee grievances. You need to create a positive working environment where people crave to come to work to be in their little community.

 

We’ve done the math: Investing in your people now will significantly save money in the long run and greatly impact your business’s longevity. So, save by investing in them before your competitor hires them and starts using their expertise. You’ve invested in their growth, so why not invest in their retention?!

 

Customer-centricity: An invaluable asset

 

Customer-centricity is a business strategy that puts the customer at the heart of everything. It means understanding who your customers are, what they want and how they feel. You can create products and services that meet their needs, deliver value and solve their problems by doing so.

 

Customer-centricity is crucial because it can help you achieve several benefits. For example, you can build trust and loyalty when you show your customers that you care about them and their feedback. Customers who are satisfied with your brand are more likely to stay with you, buy more from you and recommend you to others. This can increase your customer satisfaction and loyalty.

 

Another benefit of customer-centricity is that it can help you stand out from your competitors. By offering unique and personalized experiences, you can attract and retain customers who are looking for something different. This can give you a competitive advantage and differentiation. Another benefit of customer-centricity is that it can help you innovate and grow your business. By listening to your customers and understanding their pain points, you can identify new opportunities and create solutions that address their needs. You can also test your ideas with your customers and get feedback to improve them. This can improve your innovation and growth.

 

To become a customer-centric business, you need to follow some steps. The first step is to define your target audience and personas. You need to know who your ideal customers are, what they look like, where they are and what they do. You can use data and research to create personas representing your customer segments. The second step is to collect and analyze customer feedback. You must constantly communicate with your customers and ask them for their opinions, suggestions and complaints. You can collect feedback through various methods, such as surveys, interviews, reviews, social media, etc. You must also analyze the feedback and identify patterns, trends and insights. The third step is to implement a customer-centric culture and processes. You need to align your organization’s culture and processes with customer-centricity. You must involve your employees in the strategy and empower them to make decisions that benefit the customer. You also need to measure and reward customer-centric behaviors and outcomes.

 

The Triangle of 2024: People, customers and digitalization

 

There you have it, folks. The triangle we’re proposing should get you thinking so you can start taking action to accelerate your growth. It is, of course, easier said than done, but we’re also confident that a never-changing business will not be able to survive the industry currents. You are the mastermind of your business, so start the year right and formalize these tips into your strategy.

 

“Change is the only constant in life.” – Heraclitus.

 

Russell Phillips, a devoted outdoor enthusiast, crafts engaging stories around adventure and nature. His writing, inspired by his wilderness excursions, brings vivid landscapes to life, captivating readers with his unique blend of exploration and insightful recreation’s commentary.