Gone are the days when people see your ads in the — actual paper — newspaper and look in awe at your sole outdoor banner with no competition in sight.
Welcome to the digital world with its own new digital audience and consumer behavior.
If you want to not only survive but also thrive in the technological age, then you’ll need to understand how consumer behavior changed, driven by the numerous technological advances affecting the business world.
So keep on reading to learn all about the impact of technology on businesses and much more.
Impact of Technology on Businesses: The Main Culprits
Believe it or not, technological advances did change things for the better more often than not for most businesses.
The business side of things benefited from productivity boosts. The consumer-side benefited by opening the door for brand loyalty percentages to sky-rocket.
Overall, there are six main technological elements that truly brought change to how consumers think and behave.
1. Social Media
Social media evolved from a platform that was purely for individuals to socialize and provide entertainment to a marketing mammoth of a platform.
These platforms like Facebook, Twitter and Instagram are now serving as a bridge between your services and your customers. This is why we see 40% of business owners using social media to generate sales.
Consumers will shop around by brand through social media platforms. They will not only compare products, but also authentic reviews of your products by other users.
This technological edge brought us consumers who shop around before buying anything. They’ll compare everything. From product prices to checking whether your products are cruelty-free or not.
2. Everyone Has a Review
Speaking of consumers shopping around before buying.
Discussion and review forums specialize in showcasing how people respond to your product or service.
Keeping an eye on platforms like 2Shay, which is a community platform for consumers to share their experiences, is essential to your brand image.
Any sort of negative response needs to be addressed directly, and the issue dealt with as swiftly and elegantly as possible.
Everyone theoretically understands that no business is perfect and that there’s got to be weak spots. However, one consumer’s bad experience publicized can crumble up your customer base.
So make sure you act on the feedback. Your consumers are now used to rapid business responses due to the rise of social media as a business platform.
3. The Mobile Device Is King
The majority of your consumer base is now looking up your business online through their phones.
If your website isn’t mobile-friendly, they won’t give you a second glance, regardless of how pretty your brick-and-mortar store is. Moreover, if they can’t find you online or your online presence is outdated, it raises red flags about your authenticity and quality.
Also, you need a direct and engaging communication channel that enables you to reach your clients. Business text messaging is the perfect solution if you want to send thousands of SMS messages anywhere in the world. Text messages have 98% open rates, meaning there’s no better way to connect with customers across the globe.
In addition, you’ll have to take into consideration mobile payments advancements.
Mobile payments now boast increased security and ease-of-use. So nowadays you have a majority of your consumers comfortable with shopping online on their phones.
4. Big Data and IoT
The integration of IoT, big data and cloud technology are game-changers.
Right now, everything is getting connected to the cloud.
From portable devices to wearables to full databases, the amount of data getting accumulated on the cloud is mind-boggling.
As the size of the internet continues to grow exponentially each year, the internet will continue to become the world largest database of free information. Which with the right web scraping and proxy tools can be turned into a powerful tool for any company.
It also gives us a whole new level of consumer behavior monitoring capabilities.
By analyzing this data, businesses will be able to provide more personalized services to their customers. And the customers will be expecting to see tailored products and will run out of patience for generalized services. This has led to an increased deployment of Big Data by both large and small business enterprises. This continuous reliance on Big data has led to professionals opting for Big Data Course to help business owners optimize their operations and manage data traffic.
5. Augmented Reality
With companies like Timberland providing virtual fitting rooms to allow their shoppers to view themselves in different outfits before committing influences the user’s purchase intention quite positively.
The AR technology has deeply affected the customer’s shopping behavior. By inducing a positive attitude towards the brand, it leads to higher purchasing intentions.
It provides a new experience and a way to cement your brand’s good intentions towards your consumer.
5. The Power of Ad Blockers
Technology grants businesses the power to better reach their audiences.
Technology also allows audiences to intentionally avoid ads and other promotional materials.
By empowering consumers to opt-out of getting ads, this forces businesses to actually give deep thought to what they’re sending to their consumers.
If your consumers are taking action to avoid receiving your ads, that indicates a problem either in your selected target audience or your ad strategy.
So your ads will need to be personal, interactive and engaging in order for your consumers to relate to them, and in turn, to your brand.
The great advantage of putting additional time and effort in your ad strategy will be brand loyalty, higher sales, and a deeper connection to your consumer base.
6. AI and Consumer Convenience
Online shopping and mobile payments are now a dime a dozen. Consumers are already used to higher degrees of shopping convenience than ever before.
Nowadays, face and fingerprint recognition allow customers to place orders at the blink of an eye (sometimes literally). And, AI-driven voice recognition software lets Alexa users order pizza by the time they literally say that they want pizza.
This opens up a whole new dazzling world of possibilities. In both business products and services, as well as the shopping experience that comes with it.
However, it’ll be problematic if businesses don’t keep up with technological advances fast enough. They’ll be left behind by their consumers who’ll prefer their more convenient competitors.
Ready to Take Your Business to the Next Technological Level?
Now you know all about the impact of technology on businesses and the ways it affects both businesses and consumers. You can start integrating all its positive elements into your business whilst working on its drawbacks.
But if you want to give your business the technological boost it needs, you’ll have to keep up to date with the latest technology and business news.
So make sure to check out our case studies in our resource center, as well as the featured latest tech news!