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The following topics will be discussed in this post.
- Enhance Relationships with the Customers
- Adjust Operations for the Post-Pandemic World
- Work with Other Businesses
- Work with Fintech Companies
Fintech or financial technology has been largely associated with big businesses and corporations. These companies leverage technology to manage financial operations and processes to enhance productivity and efficiency.
But small businesses can also use the technology to allow them to regain sales they lost when the pandemic started.
With more than 320 million vaccines administered, the economy is starting to recover. Due to this, small businesses should leverage fintech to allow them to connect with their customers.
Since customers are now online, small businesses should look to technology to facilitate payments and increase revenue until the pandemic is over.
Enhance Relationships with the Customers
Small businesses can use fintech to enhance their relationship with their customers. In the past, small businesses used personalized customer service to build strong relationships with their customers.
But the pandemic compelled their customers to go online, which made it challenging for businesses that did not have a strong online presence.
The changes in the retail industry require these businesses to make the necessary adjustments to connect with their customers.
Using third-party marketplaces may not be the best idea, since these businesses will not be able to deal with the customers directly.
But using fintech platforms allows them to connect with their customers. The technology offers payment products that help small businesses to facilitate payments by their customers.
The payment products together with its loyalty products that allow small businesses to gain insights on customer behavior in the market.
This helps them created targeted marketing strategies that help increase sales and allow them to stay afloat.
Adjust Operations for the Post-Pandemic World
Data from the Bureau of Labor Statistics show that around 20 percent of small businesses close even before the end of their first year of operations. After five years, the figure increases to 50 percent.
The main reason for this is that these businesses do not have the resources of large companies that can easily adjust in their operations.
The pandemic highlighted the importance of making these adjustments. While it may be challenging, small businesses should use fintech to offer different promotions and options to attract customers and buy their products.
They should also provide them with a safe option to make their payments. Even as walk-in traffic has gone down, US consumers continue to look for ways to support small businesses.
For their part, small businesses should also work to meet their customers halfway and use fintech to make the necessary adjustments.
Additionally, small business owners can get an online accountancy degree, so they can work on ensuring the financial practices they are implementing are above board.
It also allows business owners to make the necessary adjustments to their operations after examining the finances of their businesses.
It also allows them to save on the cost of hiring an accountant since they already know what to look for when checking their financial status.
Work with Other Businesses
The pandemic caused many brick-and-mortar stores to close as in-store traffic went down. While these closures affected everyone, they had a more profound effect on small businesses, since they did not have the resources that big retailers have at their disposal.
Small businesses also could not implement marketing campaigns to reach their target market. Additionally, their access to cheap inventory was limited since they could not purchase enough products to receive significant discounts from suppliers.
But if these small businesses work with other businesses, they can pool their resources and set up a network of small businesses. They can also use these resources to launch a major marketing campaign to reach their customers.
Fintech companies can provide these small businesses a platform where they can work with each other and develop the necessary tools to entice customers to check the products offered by the network.
Cross-promotions and recommendations through payment platforms also allow small businesses to increase their presence and connect with their customers. It will also increase sales, which they need at this point.
Working with other businesses allows them to create a network that brings a lot of value to each business.
Work with Fintech Companies
Working with fintech companies also allows small businesses to expand their market. These companies are eager to work with these businesses since they support the communities.
If these businesses disappear, the local communities will suffer. Each time customers buy from small businesses, the majority of their revenue goes back to the community.
On the other hand, the profits of large businesses normally go back to their headquarters and only a small portion goes back to the community.
The use of fintech is essential for small businesses to survive the current situation. So, small businesses should start working with fintech companies to allow them to stay afloat until everything goes back to normal.
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