How SMBs Can Leverage Tech to Meet and Exceed Today’s Retail Consumer Demands

Small- and medium-sized businesses (SMBs) are often called “the lifeblood of the American economy.” A 2022 GOBankingRates survey found multiple reasons consumers patronize SMBs: elevated employee-consumer interactions, niche product and service offerings, supporting the local community, and more. However, despite their love for SMBs, customers still expect these businesses to meet their evolving preferences, and they aren’t particularly willing to compromise.

Retail brands must work to meet these needs as consumers won’t hesitate to share negative feedback publicly and with family and friends. Research by Vonage that found 46 percent will tell loved ones, 24 percent will post on social media or other online forums, and 18 percent will go directly to a consumer protection agency.

Vonage recently surveyed consumers to gain insight into their preferences when interacting with SMBs in general. Let’s dive into the key findings and what they mean for how SMBs in the retail industry can gain a competitive advantage with customers. 

Be Quick to Respond and Resolve

Consumers want fast responses and problem resolutions wherever they are. When interacting with SMBs that use chatbots, voice recognition software and other artificial intelligence (AI) tools, 29 percent of consumers prioritize speed over everything. The numbers are similar across different mediums, too: 27 percent of those using voice calls and 25 percent of those using video communications want SMBs to respond quickly. Consumers also want to communicate on their terms, not vice versa: 42 percent of consumers who interact with SMBs over video wish to build a human connection without having in-person interactions.

Today’s consumer is busy. They don’t want to wait for an answer to a question or problem, or worse, be transferred to multiple people, having to start over and repeat themselves each time. For retailers, consumer engagement happens in a multitude of places: in-store, on websites, on social media, over the phone, etc. Retail SMBs looking to maintain a competitive edge, especially going against large established retailers, must have the technology in place to help avoid bottlenecks in communication.

Unified-communications-as-a-service (UCaaS) systems, where a company consolidates all communication applications like voice, video and messaging into a single platform, can help retailers (especially those on the smaller side) streamline communication to ensure employees can seamlessly connect with each other and with customers, leading to a better overall customer experience. Small businesses are well-known for developing a more intimate relationship with consumers than their larger counterparts. Implementing the right technology can ensure that connection isn't lost when consumers are calling or chatting online with retailers instead of heading in-store.

Deliver the Communication Channels Retail Customers Want

Despite the recent digital transformation, you might be surprised that phone calls are still highly popular with consumers: 23 percent said voice calls are their preferred communication method, especially across healthcare (33 percent) and professional services (32 percent). However for retail SMBs, 32 percent of consumers indicated they prefer email communication, compared to 25 percent via voice. The results indicate that retail SMBs must offer multiple communication channels to meet the needs of today’s customers to maintain brand loyalty and foster better engagement. In fact, 60 percent of consumers view SMBs without multiple channels less favorably, and 16 percent would not patronize a brand again. These preferences aren’t static, either: 30 percent of consumers say they change daily.

Creating great CX with retail customers requires flexibility because it’s not a one-size-fits-all approach. Retail SMBs must pay continuous attention to customer preferences in order to keep them happy, returning, and recommending the business to others. SMBs that deploy an omnichannel approach, where customers can call, text, chat, or use any other medium to communicate with brands at any time, are better positioned to stand out from the competition and foster strong customer retention. By encouraging interactive engagement across the desired customer channels, retailers are helping foster shopper loyalty and more personalized experiences — two things retail SMBs rely on to be successful.

Making Great First and Last Impressions

Retail SMBs often don’t have the large budgets and internal resources of their larger retail brand conglomerates, however, technology exists to help them easily implement and scale communication channels to deliver great CX. Business success is not only about making a great first impression; it’s about making the best last impression, too. Customers will feel that and keep coming back for more. SMBs in the retail industry must pay attention to the ever-evolving needs and communication preferences of their customers and be responsive; doing so will deliver high-quality interactions and satisfaction for years to come.

Joy Corso is the chief marketing officer of Vonage, a company that offers flexible and scalable voice, messaging, video and data capabilities across unified communications, contact centers and communications APIs.