2016 top business trends
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1 2016 top business trends Being aware of trends in business is important, regardless of the size of your enterprise. Change is occurring at a rapid rate, and staying on top of the latest trends can help you spot an opportunity early, and capitalise on it. Here are nine trends that could be influencing your business in 2016.
2 1 The connection economy is here Some of the most successful companies are changing the world without investing a cent into the basic components at the heart of their business. Facebook connects users without creating any content, Uber pairs drivers and passengers yet doesn t own any vehicles, and Airbnb is the accommodation service which doesn t own any real estate. The hotel alternative is currently valued at $24 billion and is used by more than half a million guests per night worldwide (huffingtonpost.com). This is the beauty of the connection economy, and it s making some very switched on founders millions. In a connection economy (in contrast to the industrial economy), the emphasis is on building human relationships rather than assets. This economy is about making connections not only between buyers and vendors, but also between customers. Best-selling author and marketing expert, Seth Godin, has identified four pillars of the connection economy: Coordination which basically refers to the need to coordinate people in order to get things done. Trust the ability to earn trust from consumers. Permission rather than bombarding people with marketing information, permission involves speaking to those who genuinely want to hear what you have to say. Exchange of ideas For example, you are more inclined to learn from other attendees at a conference than from speakers. Godin points out that these four pillars are based on the two principles of generosity and art because no one wants to deal with someone who makes it all about them, or who is stuck-inthe-mud creatively speaking. Connection is an art rather than an exact science and can t be taught in a boardroom presentation. This is a very interesting trend because in an age of increased automation and technology, it puts a new emphasis on building personal relationships and connections. 3
3 2 The gig economy is shaking up the world of work What is the gig economy you may ask? It involves a shift away from people working in stable and traditional jobs to undertaking short-term work assignments or gigs. Gigs are made possible by modern technology such as cloud computing and remote tools that allow online collaboration. Online freelancing is an example of the gig economy. Working in this way offers businesses more flexibility, for example by allowing them to bring someone on board for a one-off project, but also provides opportunities for those who gig to be innovative and entrepreneurial. It enables those who are interested in running their own businesses to do so without taking on many of the risks and costs involved in opening a traditional bricks-and-mortar operation. The gig economy is also closely related to the connection economy, with a similar emphasis on building relationships and connections. A shift away from traditional jobs is seeing more collaboration and new ideas 4
4 3 Digital wallets Think of all the things inside your wallet or purse more than likely it s so stuffed with bank cards, receipts, coupons, loyalty cards, notes and coins that you can t even close it up properly! Enter the digital wallet a virtual wallet app on your phone that lets you make payments and holds important information, such as your credit card details, loyalty cards and ID, which is safeguarded through encryption and passwords. Financial institutions across the world have been working on digital wallet services, which offer a level of convenience for both businesses and consumers. For example, the Commonwealth Bank has developed a new app that allows payments via mobile, and also provides the option for cardless cash withdrawals. bucqi, a brand new product released to the market in 2015, takes the digital wallet a step further by combining rewards and mobile payments. The new rewards app is designed to drive loyalty and new customers to small business and lets consumers make transactions and earn rewards at the same time without pulling out cash or cards they simply scan a QR code and the payment is processed in a matter of seconds. Digital wallet technology is steadily gaining traction around the world and is looking to escalate in 2016, at least according to some commentators. As well as the ability to transact easily, some of the advantages for businesses include the capacity to collect vital data such as customers buying behaviour and research patterns, which can be used to improve customer targeting. 5
5 4 Wearable technology In case you haven t noticed, wearable tech is becoming hugely popular. There s the Apple Watch, and if you are into tracking your health and fitness, you ve probably jumped on the Fitbit or Apple HealthKit trend. While this type of technology is often for personal use, it also has potential for business in terms of data gathering, which could provide pointers for targeting or retargeting customers with promotions or deals. As an example, some insurance companies are making use of wearable devices to assess customers health risk profiles, and are using this data to offer premium discounts for healthy behaviour. 5 Omni-channelling Omni-channelling refers to taking an integrated, multichannel approach to sales and marketing. In a nutshell it s true continuity of the customer experience, so a mobile app should match the design of a website, which should have the same look and feel of the physical store. This integration means that customers can reach brands and vice versa through multiple channels including desktop, tablet and mobile, and receive the same quality experience at each touch point. Always remember to customise your content to each platform (for example social media posts should be short bites of information vs more detailed websites). Omni channelling isn t new in 2016, but expect to see more creativity in this space. 6
6 6 More use of the cloud We ve all heard of the cloud by now, and it can provide a number of advantages for SMEs. These include the ability to access data and work from any location, and save on hardware and software costs. Some examples of cloud computing include cloud accounting, online storage and collaboration tools such as Google Drive, and virtual meeting software that enables you to meet up with others without leaving your desk. Even social media and platforms Gmail are examples of cloud computing. According to Forbes magazine, cloud applications are expected to account for around 90% of mobile data traffic by Increased use of smart data Big data refers to the process of collecting data from a variety of sources and analysing it for patterns and trends, but this year big is switching to smart. Sources of big data includes social media, mobile devices, desktops, credit card purchases, online behaviour and point-of sale, which is fed through software such as Google Big Query, Google Analytics and Salesforce to paint a picture of consumers preferences and spending behaviour. While big data has been around for a while, according to a report in Business Spectator, it will evolve into smart data, which filters out the noise, or information without any real value. There is no formula to do this, but it does involve a creative element, asking the right questions, combining qualitative and quantitative results to reach further insightful conclusions, and smart extrapolation of findings to roll out the best marketing approaches. The transition to smart data will focus on developing a more comprehensive and integrated view of customers preferences and activities, rather than just being a massive collection of data that lacks sufficient meaning. The switch to smart shows that intelligent interpretation of data is important and bigger isn t always better! 7
7 8 More selling through social media Using social media to sell is a trend which isn t showing signs of slowing. According to brainymarketer.com, studies in 2015 showed that nearly 80% of people who reported using social media for sales got better results than those that didn t, and two-thirds of buyers reported being influenced by a seller s social content prior to purchasing. Social media is great for positioning your business in the space where people frequently hang out. Social media can provide a great opportunity for connecting and engaging with existing and potential customers, and for doing some very affordable marketing activities. Using social media for marketing requires more than simply posting on multiple channels though. It needs to involve a comprehensive strategy that includes determining where and when your target demographic is online, and timing and styling posts accordingly. This may require some experimentation to see what works best for your business. It s also more about connection and engagement than direct marketing or selling. New to the game of social media is SnapChat a photo and video messaging app that sends messages that self-destroy after a designated time. SnapChat is growing in popularity, particularly among the age group, and provides a number of opportunities for businesses to reach their markets in the digital space via sponsored advertising. Keep watch of changes to the social platforms you are using. Instagram recently announced the departure from chronology-based feeds, to show posts which have the most interaction first, which is forcing brands to rethink their strategy. 9 Workplace trends The world of work is changing, and businesses that adapt to this are more likely to thrive and retain staff than those that stick with a more traditional approach. Examples of workplace trends that are having an impact include remote work, work mobility, flexibility and work/life balance, as well as flatter organisational structures and increased globalisation. There are numerous other business trends that are likely to continue having an impact this year and beyond as well. These include an increased blurriness between online and offline activities or bricks and clicks, an emphasis on providing a better customer experience rather than simply a lower price point, and creating content marketing with cut-through as consumers are faced with more information than ever before. With a changing economy, bartering is also evolving as businesses seek to find ways of conserving cash to invest in innovative business growth. What is certain is that business is never static, and staying on top of trends can provide you with an opportunity to grow your business or innovate. 8
8 It s worth paying attention to what s reshaping the business world and putting strategies in place to attract new customers. What are you doing to stand out in the market? Bartercard is a business tool that has been around for more than 25 years, connecting businesses and helping implement effective customer referral programs for members. Bartercard can assist you to stay on top of the latest approaches without the expensive price tag 24,000 members and business experts world-wide are exchanging goods and services without use of cash to attract new customers, stay competitive, conserve cash flow and grow profits every day. To attract more customers and feel energised by your business, talk to Bartercard about implementing effective strategies. See a full list of what s available when you join Bartercard - visit our Online Directory. connecting business connecting people 1300 BARTER ( ) bartercard.com.au info@bartercard.com.au Bartercard Australia All rights reserved. 9
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