Weighing in on the critical question of whether to invest in mobile marketing technology, Forbes recently observed that up to 90% of SMBs fail today because of outmoded business beliefs and behaviors concerning use of technology, including mobile. Recent research from Constant Contact, shows using the UK, as an example, merely 20 per cent of the UK’s small businesses are using mobile solutions to help market their products and services. This is weird, since the UK is an acknowledged leader in mobile tech usage.
Mobile App Source President Michael Berner commented on the issue.
In its article, “Small Business Is Missing The Digital/Mobile Revolution,” Forbes said that up to 90% of small businesses fail today because owners “…reject new technologies and other emerging innovations as long as possible…” and because they don’t spend on “…innovation at all as they pour everything into defending and extending their historical business approach.”
Adam Hartung makes this valid point in the article:
“Most small businesses are run by leaders committed to a single, narrow success formula. Most are wedded to their core ideology, based on personal history, and unwilling to adapt until the business completely fails. Most reject new technologies and other emerging innovations as long as possible, trying to conserve cash and wait for “more proof” change will pay off. Additionally, most spend little time investing time, or money, in innovation at all as they pour everything into defending and extending their historical business approach”.
Forbes took aim at several ways that entrepreneurial owners under-utilize digital marketing. But the article was most critical of SMBs for failing to embrace mobile. “Most small businesses, late to the game in digital marketing, are content to try and add mobile capability to their already existing web site – hoping that it will be sufficient for future growth. Meanwhile, customers are going directly for apps in accelerating numbers every month,” it said.
Forbes noted that consumers spend approximately 8 times as many minutes per month in mobile apps as they do in websites. “The trend to digital marketing – including the explosive growth in mobile app use – is proven,” said Forbes. “And due to very low relative up-front cost, as well as low variable cost, (digital is) a wonderful opportunity for small businesses ready to adopt, adapt and grow.”
Mobile App Source CEO Michael Berner said, “Forbes is a preeminent business publication, and it’s done a service to entrepreneurs by making these observations. Tech fear and lack of knowledge are causing many SMBs to ignore mobile marketing. This will cause thousands to go out of business. That doesn’t have to happen. The money they’re spending on print ads and brochures will more than pay for a mobile app. They should speak with a mobile app developer before they lose another dollar of revenue.”
Recommended reading: Small Business Failure Rates by Industry: The Real Numbers
image credit:AllBusinessLoans
Hayden Richards is Contributor of IntelligentHQ. He specialises in finance, trading, investment, and technology, with expertise in both buy-side, sell-side. Contributing and advising various global corporations, Hayden is a thought leader, researching on global regulatory subjects, digital, social media strategies and new trends for Businesses, Capital Markets and Financial Services.
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