In an era dominated by technological advancements, small businesses are increasingly leveraging digitalization to cater to customer needs through diverse online channels. With emerging technologies like artificial intelligence, the current landscape offers an unprecedented opportunity for businesses to thrive in the online world. A recent global survey conducted by GoDaddy in 2023 sheds light on the status of small businesses worldwide, revealing their strategies to reach customers and sustain competitiveness in the market.
The survey reveals that a significant 62% of small businesses in India utilize websites, online stores, or e-commerce platforms as their primary sales channels, emphasizing the crucial role of the online realm in business growth. Furthermore, 65% of respondents reported that up to half of their revenue is generated through online sales, highlighting the pivotal importance of an online presence.
Social media platforms also play a vital role in small businesses’ sales strategies, with 58% of entrepreneurs globally, and 55% in India, leveraging these platforms to connect with customers. Phone calls and physical presence are also crucial channels, with 37% of businesses globally and 46% in India utilizing them to reach their customer base. These findings underscore the importance of a robust online presence with complementary channels for businesses to flourish in the digital age.
The ability to sell products or services online presents both opportunities and challenges for small businesses. In India, 63% of surveyed small businesses have been selling online for 1-5 years, while 20% have been in the online market for less than a year, and 4% have a decade-long digital presence. These statistics highlight the relatively recent integration of digital channels into the marketing strategies of small businesses.
The initial steps taken by entrepreneurs when starting a new business play a pivotal role in establishing a solid market presence. Globally, the top five actions small businesses focus on include creating profiles on social media platforms (38%), online advertising (30%), personal contact with potential clients (29%), creating a company logo (28%), and launching a website (27%).
In India, the most common initial step is starting small businesses with a social media account (35%), followed by online advertising (34%) and personal contact with potential customers (33%).
To assist small businesses in navigating the digital landscape, GoDaddy offers five key tips for fostering online growth:
- Choose the Right Domain Name: A domain name acts as a business’s identity on the internet allowing it to be found easily by the customers. It is therefore crucial to choose a memorable and available domain name that defines the business. If .com is not available, then consider alternative extensions like .shop, .co, .photography, and .tech.
- Build a Professional Website: Websites serve as the online home base for businesses, enhancing visibility and providing customers with information about products and services. A well-designed website with engaging content, including text, images, and videos, can offer a compelling customer experience. A website grants you control over your business messaging and serves as a central hub, linking seamlessly with your social media channels.
- Listen to Customer Feedback: Customer satisfaction is directly linked to business growth. Actively listen to customers, identify their problems and needs, and consider developing new products or services to address them. Regularly engage in customer feedback to stay attuned to changing behaviors and interests.
- Develop a Support System: Establish a robust business support system, including family, friends, mentors, and business coaches. Seek diverse insights to address challenges and explore new ideas for growth.
- Review Your Business Plan: Regularly revisit and analyze your business plan, focusing on the target audience, competitors, cash flows, profitability, and timelines to achieve business goals. This ensures continued relevance and alignment with evolving business dynamics.
As small businesses increasingly embrace digitalization, these strategies and insights serve as a roadmap for success in today’s competitive digital environments. By harnessing the power of online channels, entrepreneurs can not only survive but thrive in the ever-evolving business landscape.
Image by Freepik
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