On one hand, year-on-year improvements are what makes companies great; on the other, firms can’t control many of the factors that dictate whether, say, revenue rises or not. The efforts of one person (or even one company) can’t counter 2019’s industry trends or the broader overall economic picture. The lower middle market and small business is one place where consumer confidence has continued to stay steady, so keep an eye out for these trends to continue growing in the new year.
In the coming year, avoid purchasing data or otherwise acquiring it without consumers’ consent. Not only is regulatory pressure increasing on companies that do so, but Deloitte reports that 71 percent of purchased data is inaccurate. Where should consumer data come from, then? Why not consumers themselves? Declared data firm Jebbit recommends leveraging the seasons with a holiday gift guide, themed poll, or holiday travel quiz. Interactive content is all the rage among consumers, as is the one-to-one personalization that’s made possible by data tied to specific customers.
Next year, take a page from Dunkin’ Donuts. The breakfast brand recently reported a 3.6 percent redemption rate for a mobile coupon campaign aimed at a competitor’s customers in Rhode Island. What’s more, ten times the number of redeemers took a secondary action, such as mentioning it on social media. Another type of personalization that’s sure to pay off is a “channel of choice” communication strategy. Consumers are turning away from live conversations in favor of services that don’t require talking, such as SMS and social media. Automated channels are also growing in popularity, with 49 percent using chatbots or automated assistants at least once per week. With that said, 45 percent of consumers are open to any channel, as long as the service is effective.
Lastly, in 2019 and into the future, expect social responsibility to be the table stakes of business. Firms that aren’t sure how to contribute should consider Patagonia’s CSR efforts. The outdoor brand takes an “all of the above” approach that includes employee volunteerism, selection of socially responsible suppliers, grants for environmental initiatives, and more.
Part of what makes New Year’s resolutions fun is their challenge. There’s no reason to make a year-long commitment to something that’s sure to come true anyway. But businesses need more certainty than casual resolution-makers. There’s a difference between sinking one’s own time and money in something, and sinking employees’ time and investors’ money into it. In the latter case, it’s important that the payoff is at least likely. Managing this balance can become easier when you work with the well-informed team at SA Capital Partners. The ups and downs of trends in the lower middle market come and go, but SA Capital Partners has experience in managing the strong and weak times for the market. Let their knowledge be your guide into the new year.
About SA Capital Partners:
SA Capital Partners is an innovative financial services firm that specializes in mergers & acquisitions advisory and capital raising for lower middle market businesses. We aspire to give all the tools necessary to complete any transaction. SA Capital Partner’s financial services industry specialists provide comprehensive, integrated solutions to banking transactions. Our breadth of services and industry knowledge allow us to understand each client’s unique business needs. Our goal is to make all financial services available to every small business.