2020 was a harsh reminder for businesses to never get complacent. COVID-19 forced businesses to get up to speed with new tech overnight. Some companies thrived, others survived, but many couldn’t adapt fast enough and shut down. So what was the major decisive factor between success and failure?
Technology.
46.6% of UK workers were working remotely in April 2020. The companies already using video conferencing and instant messaging tools adjusted to the “new normal” fast. But those that weren’t were left playing catch up.
Businesses are having a similar conversation again in 2024. A new wave of AI tools broke into the mainstream last year. And once again, tech is on the mind of every business owner. And if it’s not, it should be.
Trying new technology always feels risky. It takes time, money, and effort. And results aren’t guaranteed. But the reality is business is always a game of risk. Investing in technology is a risk, but so is using the same technology for the next 24 months.
As we’re in the infancy of a new wave of tools, it’s a good time to weigh up the pros and cons of adopting technology for small business efficiency.
The pros of adopting technology for small business efficiency.
1. Get ahead of the competition.
Domino’s Pizza launched an app in 2011 that let customers order from their smartphones. A fast food app was unheard of back then. Domino’s orders shot up overnight and the rest of the fast food industry was left playing catchup.
Technology gives you the chance to separate yourself from the pack. And being without a team of world-class developers is no longer an obstacle. No-code platforms like Bubble, Softr, and Glide make it possible to build world-class apps without a development team.
2. Boost productivity.
A typical sales funnel looks like this: attract leads, onboard leads, sell, and provide aftercare. But every business owner knows that it’s not as easy as it looks. Speed, accuracy, and personalisation are difficult to perfect. There’s plenty of room for error as people move through your sales funnel. It’s a lot of work.
We only have so much productivity each day. And so much of it is spent on tedious tasks that don’t help you grow. Technology streamlines tedious tasks – freeing up time, money, and headspace to focus on tasks that help you grow.
3. Better communication.
A recent UK study found that the biggest cause of stress for employees is failure to communicate effectively. Communication tools are crucial. Finding the right balance of instant messenger tools, project management and video conferencing software improves communication. And that’s just internal communication.
Small to medium-sized businesses (SMEs) notoriously miss incoming calls from leads, which costs them business. Live answering services for small businesses are equipped with integrations that connect to your systems for better communication.
4. Save money.
Adopting technology for small business efficiency can help you reduce your monthly costs. But the cost of technology is also a barrier for many companies! While cost requires careful consideration, the right technology offers cost reductions in the long term. Increased optimisation and efficiency free up time for you to focus on tasks that help you grow.
For example, investing in new Client Relationship Management (CRM) software and a consultant to help you get started will be expensive. The consultant’s upfront fee and the monthly cost of CRM can be as steep as the learning curve. But fortunes should change after everyone has adjusted to your new workflow. Improved productivity, sales performance, and more effective marketing may return a stronger ROI than your previous workflow.
5. Improved customer experience.
Customers judge you at every touchpoint. On average, it takes nine touchpoints to engage with companies. It puts a lot of pressure on companies to ace each one.
Technology helps small business owners improve their customer experience with automated systems and increased personalisation. Use it to reduce the chance of human error while providing a more personalised and efficient customer experience.
You can also outsource your customer service. 24/7 answering services can take every phone call for you and integrations can push call data to the tools you already use. Answering services have friendly, well-trained virtual receptionists following customised brand scripts. That means they’ll sound just like you and customers won’t know you’re using an outsourced service.
6. Increase employee satisfaction.
A 2020 US study found that 39% of the US workforce would leave their job due to frustrations with technology. People don’t like using clunky technology as it makes it hard for them to produce their best work.
Remote work and hybrid work models shot up in popularity in 2020. And a 2022 report by Tracking Happiness found that remote work increased employee happiness by 20%.
7. Make more data-driven decisions.
One of the benefits of adopting technology for small business efficiency is that lots of modern tools collect useful data automatically. They help you spot your most common lead source, most effective marketing channels, and customer pain points. These key insights help you make informed decisions and embrace strategic growth.
The cons of adopting technology for small business efficiency.
1. Upfront costs.
Cost is one of the major technology challenges for small businesses. Investing in new technology hoping that it will pay off in the long run is daunting. Sage Accounting found that cost is the most significant barrier: 41% of British businesses are concerned about cash flow. And 24% are unsure of the return on investment.
It takes commitment and patience to commit to the project. Abandoning it too soon, realising you’ve picked the wrong technology, or failing to stick with the new system are all valid concerns.
2. Learning curve.
Successful technology implementation is a team effort. It can take a while for everyone to adjust to new tools and workflows. Some mistakes and misunderstandings are likely.
It’s best to accept the learning curve and take steps to mitigate it:
- Set clear benchmarks before implementing new technology.
- Conduct regular feedback reviews to iron out any problems.
- Host training sessions with your team prior to rollout.
3. New cybersecurity risks.
Small business owners are cautious about trying new tech. And there is reason to be cautious as 46% of cyber breaches impact businesses with fewer than 1,000 employees. New tech comes with a learning curve, making you more vulnerable to cyber threats and data breaches as you get to grips with it.
4. Dependency on technology.
New technologies like AI can rapidly transform workflows. A task that used to take hours every week now can be done in seconds. It can disrupt your business, in a good way, but it leaves you having to reconsider your workflow and people’s roles as large parts of the job can now be automated.
Technology is essential but there’s a risk of becoming too dependent and losing the human touch. Four out of five people would rather speak with a human by phone rather than use chatbots, email, or voice recording for help.
New technology begs the question, should I automate this or would it be better if a human takes care of this?
How to improve business performance through technology adoption.
Technology can improve every area of your business, including your customer experience, operations, communication, and sales. Start by mapping out your business and evaluating where you can make improvements.
- Pinpoint areas for improvement: Customer feedback is much easier to collect once you’ve committed to adopting technology for small business efficiency. Google Forms, SurveyMonkey, and Typeform are easy-to-use tools that can be worked into your email marketing to collect feedback regularly.
- Automate repetitive tasks: There’s a good chance that the tasks you find most tedious can be automated. Common tasks like appointment scheduling, invoicing, and HR processes do not need to keep on slowing you down.
- Create customisable templates and workflow: Project management tools offer customisable templates that you can apply every time a new project is created. Move faster and provide a better customer experience.
- Optimise marketing: The data collected from your tools makes it easier to create more effective targeted marketing campaigns. It’s easier to identify your audience, create more personalised campaigns, and automate more of it.
Want to learn more about the best technologies to enhance business efficiency? Check out our suite of services designed to support your business growth here.
