Small Business Reports
SmallBusinessReports.org
Special: Report Review - Innovation Readiness 45% of business owners say innovation is critical to staying competitive
A growing number of businesses are
recognizing that they must embrace innovation
62% of auto
shops and contractors believe smart POS would make running their
businesses easier and more convenient. 44.8 percent of business owners perceive innovation as critical to their survival.
Only 14.2 percent of these businesses are using smart point-of-sale (POS)
systems, a crucial tool that can streamline payments, boost customer
loyalty and track business operations.
At the same time, business owners recognize the value that specific
technological applications can bring to their operations. For example,
75.6 percent are interested in expanding their payment acceptance
capabilities with innovative solutions. Accepting an array of digital payment methods,
offering customer loyalty and being able to order and track inventory are
key ways innovation can enhance business operations. These features and
others can be found under the hood, as it were, of smart POS systems. Customization is a key element of smart POS’
appeal among the consumer services firms that have implemented the
technology or are very interested in doing so, cited by 56.3 percent.
Unlike one-size-fits-all hard-wired terminals, smart POS can be tailored
to meet companies’ unique needs. This corresponds to the technology’s
second-most appealing aspect: that it works well. Businesses perceive several benefits from smart
POS technology, but the most important is that they find it convenient.
Sixty-two percent mentioned that smart POS systems would bring ease of use
and convenience to their operations, and nearly 50 percent cited
cost-effectiveness Garages, contractors, entertainment venues and
other similar consumer services operations may be behind other sectors on
innovation, but they show a lot of interest in consumer applications. Consumer services businesses show a great deal of
interest in consumer-facing apps like digital payments and receipts,
customer satisfaction rankings and loyalty programs. Our research shows
most respondents are interested in payments acceptance (75.6 percent),
digital receipts (57.1 percent) and customer satisfaction rankings (50.1
percent). Many firms believe technological solutions — including ordering
and managing inventory, booking appointments and loyalty and rewards
programs — could also improve their back-office operations. The top
related applications for this market segment are inventory management
(49.2 percent), payroll management (47.6 percent), taking orders (42.5
percent) and marketing tools (42.3 percent). Consumer services businesses largely trust their
merchant payment service providers (PSPs) to deliver these digital
solutions. It bears noting that most are very satisfied with their PSPs,
but there is a lot of room for improvement. More than 40 percent of
respondents were only “some-what satisfied” with their current providers,
and approximately two-thirds of that group indicated a willingness to
switch to another firm. This interest depends on affordability (60.9
percent), solutions’ integration levels (58.4 percent) and ease of use
(54.7 percent), among other factors, while smaller firms noted that trust
(45 percent), ease of use (54.2 percent) and fully integrated solutions
(58 percent) were more important to them. Some smaller businesses may be intimidated by the
perceived cost and complexity of implementing smart POS systems. For this
reason, the key feature SMBs seek when contemplating smart POS systems is
ease of use.
70.8% of smaller garages
were interested in customer-facing payments acceptance apps.
62.7%
of businesses in the
contracting field said they were willing to switch to different PSPs
Digital innovation is transforming the retail
economy in fundamental ways, but it is coming to some corners more
gradually than others. The consumer services sector is seeing businesses
like auto garages, contractors and entertainment and tourist venues rank
lower on the innovation scale than other segments, but no business can
afford to ignore the wave when digital technologies and platforms like
Google and Yelp are making shopping around easier than ever. Consumer
services companies are aware of this, too, and nearly half of those
surveyed view innovation as critical to their survival. This sector is
disproportionately comprised of SMBs, though, and thus struggles to adapt.
Firms are uncertain whether the returns will justify their investments,
making the perceived costs of changing their payments operations a key
adoption barrier. What’s required are solutions that are uniquely tailored
to these businesses’ needs. This is the great benefit of smart POS
solutions, after all: that they can be customized to businesses’
priorities, whether that means broadening accepted payment methods or
driving customer loyalty.
40%
of consumer services
merchants are very or extremely ready for innovation
26%of merchants are very or
extremely interested in smart POS
Small
Business Reports
(415) 878-6276
Editorials, opinions and articles are not a solicitation or an offer to sell, refer or arrange
financing. Features in this publication do not promote or sell products,
goods or services.
©
Copyright 2010-2019 SmallBusinessReports.org All Rights Reserved
Use of this site constitutes
acceptance of our user agreement and privacy policy, California privacy rights.
User Privacy Policy |