SME City

How do SMEs Cross the Digital Chasm?

By SiliconIndia     
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Bangalore: The digital marketplace is constantly evolving and is changing at a rate that a number of Small and Medium Enterprises (SMEs) are unable to learn and adapt fast enough. In such a scenario, one wonders how technology can be worked to its full potential for these businesses.

Tobias Bowman, a Digital Marketing Specialist and Head of Marketing of the HP Group (a digital marketing agency) addressed this issue in the group’s blog. Bowman uses the “Crossing the Chasm” graph to explain the problem the divide between technology and SMEs that use it poses to their development. According to him, the challenges marketers face in trying to bridge the gap between the consumer majority and technology is very similar to SMEs who try to catch up with technology.

In order to be able to choose whether to implement a particular type of technology, or to tap into its full potential, Bowman notes that the question SMEs should ask themselves would be ‘Do my potential clients use ([X] technology)?’. The adoption of technology without strategy backing the move amounts to little according to the digital marketing specialist.

Since SMEs are fluid and can implement various technologies quickly and with ease, they could easily get confused by the flood of new services and technologies that are available. Bowman addresses this issue by saying that small and medium businesses should be cautious of solutions that seem to be “definitive”.  “The process is different for each market and each business, mapping the buying process and strategizing around it can make your budget go further. Do what you can yourself, understand which areas are core and invest your budget in these areas,” he says.

Companies with less than a turnover of 5 million should invest around 7 to 8 percent of annual revenue into marketing, and agencies or consultancies could help with insight on investment. Regarding the issue of revealing your small business’ expertise and innovation in a particular area to such agencies “Providing an educational experience for your clients cements relationships and if you can provide that educational experience in the sales process then your conversion rate will rise”, he says.

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