How the digital transformation leveled the playing field for SMBs

According to a recent report by the Ministry of Economy, there are currently more than half a million small and medium sized businesses in Israel. These businesses produce more than half of the business product and employ about 60% of the business sector. These small businesses are the foundation for growth and stability in the Israeli economy.

Despite these impressive numbers, small and medium sized businesses were highly affected by the pandemic. Often lacking the strong financial base of enterprise businesses, SMBs had to rely on their own agility and adaptability to succeed despite the severe economic side effects of Covid-19. They quickly found the right technology to empower them to do business, and implemented these tools in their routine operations.

Those of us in tech are used to conducting remote meetings. But therapists, TRX coaches, or yoga instructors were not. Small businesses and single entrepreneurs went digital, offering services online via various platforms, and more often than not, it’s what kept them afloat. When the right technology is introduced, there is no going back. It’s just too convenient.

Remote meetings are just part of the digitalization we see in small-medium businesses. As customers, we’ve learned to expect a seamless customer experience. We’re accustomed to big brands knowing our preferences, nailing product recommendations, and providing a quick and easy payment process. This automated personalization is a powerful tool in creating customer engagement and loyalty. It’s no longer limited to large businesses, as SMBs are adopting tech tools to enable them to “remember” a customer’s birthday for a special birthday coupon or send an automated reminder when a product of interest is back in stock.

Digitalization also leveled the field as far as payments. With the right platform, SMBs can manage their billing, collection, expenses, and payroll online, automating a process that otherwise would be one of the biggest time traps in any business.

And speaking of time, every one of us has tried to make an appointment with a service provider via WhatsApp or by phone. Whether you’re trying to get a haircut, a massage, or a meeting with your accountant, there’s often a lot of back and forth. Here again, technology comes to the rescue of both sides of the transaction, by using online scheduling, and empowering the customer to self-serve in finding the most suitable time slot available.

Digital transformation was in motion before Covid, but undoubtedly, the pandemic accelerated the process. SMBs used their size to their advantage. Without cumbersome procurement protocols and complicated internal processes, SMBs are able to seek, find, and implement technology that enables them to manage their time, customers, and money at one click of the mouse. This transformation is truly remarkable, as it impacts not only business owners, but also their families, staff, and customers.

 

Itzik Levy is the CEO and Founder at vcita