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3 Tech Challenges and Trends for Small Businesses to Watch in 2020

Posted: 05 Dec 2019 01:00 PM PST

As the year comes to a close, we tend to take personal assessment of the past year and make new plans for the coming one. But how many of us take this same approach when it comes to looking at business performance? And, more specifically, assessing the IT investments you made in 2019? If you want to be a successful SMB in today's hyper-competitive economy, I would advise evaluating your IT spend during 2019 and how it impacted your organization, then make a plan for 2020. To help in this process, let's also look back on some of the common challenges SMBs faced in 2019 and how to prepare for what might lie ahead next year.

1. Failing to develop an IT plan

The biggest mistake we saw last year with SMBs was not taking the time to create an IT strategy. In their defense, looking at all the options out there can feel like you're trying to drink from a high-powered firehose. However, looking at IT components for the coming year and making a plan is worth the effort. You just need to break it down and take it one purchase at a time.

We constantly see small companies that just purchased what they needed in the moment, whether it be a few consumer-grade laptops from the local computer store or a server from a reputable service provider, without having a plan in place. However, they come to us when they find they can no longer manage the hodgepodge of products they've acquired.

Why did all of this become unmanageable? It's typically because the computers and programs are not consistent with one another, nor does the company have standard security protocols installed, to name just a couple of common issues. There is no method to the madness. While all this may work for a short time, at some point an IT plan and basic framework need to be put in place. Otherwise, it will continue to be a vicious cycle of patch fixes, bandages and short-term solutions. Why not get it right in the first place?

Solution: Smart planning for growth in 2020

The flip side of all that is having an IT plan in place. With a plan, your SMB will still be purchasing the same products, hardware and services, but the difference will be that every laptop is set up the same way, using the same tools, software and protocols, and every server will be purchased with an existing and future framework in mind. Don't know where to even start in creating an IT plan? Consider using a managed service provider. An MSP partner understands how to develop an IT plan that is relevant now and five years from now. They know how to align technology with your business goals to create value and ensure the smartest, most efficient use of your technology budget.

2. Locking in perpetual licensing agreements

In 2019 we continually came across SMBs that were tied to perpetual licensing agreements for many office services. In some cases, the licensing can be very expensive and can cause the organization to keep legacy versions of programs in place long after they have run their course. This can result in lackluster performance and security vulnerabilities.

Solution: Cloud-based and subscription-based services

A trend we saw taking shape in 2019 that will continue in 2020 is the movement to subscription-based services. Cloud solutions that at one time only made financial sense for large companies or enterprises are now affordable and very much within reach for SMBs. And they come with a monthly payment, rather than a year or multi-year commitment.

One example of a subscription service that many SMBs are quickly adopting is Office 365. It combines the advantages of cloud technology with the traditional foundation of on-premise software offerings, allowing Office applications to be available to numerous computers or devices with storage space on Microsoft's OneDrive. And, no matter what device they're running on, files can be accessed from anywhere at any time. By having every employee in every office using the exact same version of Microsoft Office, productivity is dramatically improved as everyone now has a common feature set.

Similar subscription offerings are now available from other vendors, whether it be QuickBooks for accounting or Salesforce or Dynamics for CRM, and all are easily installed on a network. Other benefits of cloud-based subscription services include savings on infrastructure costs, maximum uptime and centralized management of applications.

Also, with a plan in place you'll only be looking at subscription-based services that your SMB really needs, rather than adding a program here or there to a solitary computer. You also will no longer be tied down by contracts for perpetual licensing agreements.

3. Security breaches

It's no wonder why security is on the mind of every SMB owner these days. According to the U.S. Small Business Administration, in 2018 there were 58.9 million small- to medium-sized businesses in the United States that employ almost half (47.5%) of the nation's workforce. And, they were the target of two out of three of all cybercrimes.

So, how do SMBs combat this risk moving forward to continually stay one step ahead? While you can't completely eliminate the risk of a potential cyberattack or data breach, you can definitely take action that will reduce the risk and proactively protect you from potential harm.

Solution: Educate your team on security and the need for backup

In addition to having the most up-to-date security in place, in 2020 we also need to start educating employees on phishing scams, ransomware and being more conscious of how they interact through email and collaborative materials outside their own network. A recent Oracle and KPMG Cloud Threat Report found that 97% of respondents had defined cloud-approval policies. However, the vast majority (82%) noted they are concerned about employees following these policies.

There are plenty of horror stories about small companies being wiped out because ransomware hit them and they didn't have any sort of backup or other recovery solution in place. Especially as we move toward an increased remote workforce, employee education is key as much of your protection will rely on their actions.   

So, what is the solution? There is no one right answer. Each business approaches security differently, but the first step remains the same. Put a team in place. Identify who within your organization will be involved in the security and data protection effort. It is important to include team members from all aspects of your organization in order to better understand the needs and vulnerabilities from all perspectives. However, be certain to make sure it is clear who is running the show. If you cannot afford to dedicate the needed people and resources to your security efforts, consider working on a budget that can supplement your internal security efforts with the addition of a cybersecurity consultant or firm.

Successfully preparing for 2020 means developing a plan now. Being proactive is vital. Don't find yourself reacting to circumstance. By having a strategic plan in place, you'll have a competitive edge and will be better prepared for potential challenges that cross your path.

How to Scale Your Customer Support Operations

Posted: 05 Dec 2019 11:00 AM PST

If you've put your time and energy into developing a valuable product or service, one of the most exciting stages is to watch the business grow. You may have a strong, established customer base, but to keep growing you need to make sure you're equipped to handle the higher volume of customer support tickets, phone calls and requests that are inevitable with expansion. Before your customer base began expanding, a team of just five or six customer support agents may have been enough. But once customer growth starts, you need to at least double your support team just to keep up. Below, I put together a few ways in which you can scale your customer support operations to ensure both your old and new customers remain happy with your services.

1. Your customer support software should be built for your industry

The only proper long-term customer support software solution is one that is built for your organization's needs. While a homegrown system based on spreadsheets and emails might be enough for a small-scale operation, it's not a solution that can effectively scale alongside your business. Investing in a customer support software solution will enable your customer support team to be well-positioned for growth alongside the rest of your expanding business. But be careful! Not just any software solution will do. You should identify a customer support solution built specifically for your needs, especially if you're a B2B organization.

B2B and B2C organizations need different capabilities from their customer support software solution. If a B2B organization is using a B2C solution, they can respond to individual tickets, but will never have a full, 360-degree view of the customer and their ongoing relationship. B2C software focuses on interactions with a single contact. B2B software can address a single contact as well, but it also allows customer support teams and agents to take a wider view of the customer, allowing them to evaluate and understand their customers at the company level as well. The benefit of this wider view is that it's easier for B2B companies to identify larger, more impactful issues that may exist with customers at the company level, even if individual users aren't aware that their problem is widespread within their organization. With B2B software, customer support teams can more easily identify larger support trends, allowing them to uncover larger problems that may not be apparent when working with a non-B2B solution.

2. Hire versatile agents who can handle different support channels

Even with the right software solution in place, your support team needs professionals with the right experience. Listen to customer requests for support channels and hire agents with the right experience to fill their expectations. Your current support team may be well equipped to handle your current needs, but a more versatile support team will make a difference to your customers, especially if they bring support capabilities your customers are asking for. Customer satisfaction with your support team will increase as they see both their needs and requests fulfilled by more skilled agents.

3. Create an online information database to give your customers 24/7 self-support

Your customers likely have multiple users regularly asking the same questions of your support team. Your support software should allow you to create a self-service database of information so users can seek out solutions at any time, giving them the freedom to solve simple problems on their own and allowing your support team to focus on solving more complex problems that can't be addressed within a database. For example, a software company can create a detailed self-service tutorial about what is and isn't possible with their integrations so customers won't need to ask every time they are curious about a company's integration capabilities. As a result, the software company will see an overall decrease in ticket volume by letting customers answer their own basic questions.

An online database also improves customer satisfaction. Customers will be happier with instant access to answers rather than potentially having to wait for a support agent to provide them a simple yes or no. Plus, an online database allows for 24/7 access, as opposed to a customer support department which is likely only accessible during specific business hours.

As you prepare to scale your customer support team, a database will allow you to more efficiently hire new agents as your team will spend less time on repetitive tickets. Self-service will improve customer happiness and cut down on the number of agents you need available for your customers to address these simple requests, saving significant staffing costs. Building an online database will take time, but the payoffs are worth it, both for your support team and for your customer.

4. Improve customer success to help customer support

Scaling a business means scaling multiple parts of your business, including your customer support team. While your support team needs the resources and capabilities to serve more customers, they will remain focused on issues customers bring to their attention. Other customer-facing departments also need to scale to fill your customers' needs that don't fall under the umbrella of your customer support team's responsibilities.

Your customer success team needs the capacity to check in with customers on a regular basis, even if the customer isn't currently dealing with a problem. By opening up an ongoing line of communication between your business and your customers, the customer success team will gather valuable insights into how your customers are using your product on a daily basis, and your customers will benefit from a better understanding of your product or service. By becoming the day-to-day contacts for your customers, your support team will become their go-to for minor problems and fixes, reducing the overall contact volume between your support team and your customer and allowing your support team to focus on larger support issues.

A strong customer success team may even give you valuable insights into larger problems your customers may not want to share during a customer support interaction. By identifying these slower-building, larger issues, customer success teams can either address the problem themselves or notify customer support to step in before the problem escalates and damages your overall relationship with your customer. Identifying these issues can be critical to reducing customer churn, because your ability and willingness to proactively reduce their pain points won't go unnoticed. Over time, your customer success team will pay for itself.

Scaling your customer support team starts with giving them technology built for your industry, including the right customer support software solution. To be their most successful, a B2B customer support team needs tools meant for B2B customer support. As your team scales alongside your business, you will need to bring in expert agents familiar with your various support channels and capable of switching between servicing your different channels as needed. As you grow, so should your resources available to your customer. Whether those resources are in the form of an online database, a well-built customer success team or a combination of the two, your customers will be happier with freedom to access information about your product or service at any time and the additional attention they receive as customer success professionals work to make their experience with your solution as valuable as possible. 

How To Start A Successful CBD Business In 2020

Posted: 05 Dec 2019 08:00 AM PST

Most entrepreneurs who have been paying attention to the marketplace in recent years will be well aware of the fact that the cannabis industry has grown at an astonishing pace. What far too few of them realize is that this growth isn't likely to abate anytime soon, meaning you can still cash in on the ongoing cannabis bonanza if you know how to properly foray into the market with a solid business plan behind you.

By focusing on Cannabidiol (CBD) products, for instance, any good cannabis entrepreneur stands to make a killing before long. You'll need to do your homework before investing your money if you really want to succeed, however, so ensure you're up to snuff on all things cannabis before trying to start a successful CBD business in 2020.

Understand the landscape of the cannabis industry

The first step in starting a successful CBD business is to know what to look out for. Many entrepreneurs understand that the cannabis industry is tenuously regulated and subject to constant changes, but few of them are aware of the extent that commercial danger is present. By investing in cannabis products that won't be widely deregulated anytime soon, for instance, you could be dooming yourself to commercial failure. That's why a focus on CBD products is essential, as they'll remain in hot demand regardless of whatever forthcoming political and social changes occur by the time your company is up and running.

CBD products can be sold in a wide variety of ways, including as oils, tinctures, edible gummies, and patches. To truly rake the cash in, though, you'll likely want to specialize and become a recognized leader in a specific area so that you can hone in on a niche audience. Familiarizing yourself with the CBD trends that will define 2020 is the only way to make the right choice in this regard, as you must couple your business talents with market conditions to find and secure a target audience that will pay you huge sums of money.

Besides figuring out what niche area to specialize in, you should also be asking yourself how you intend to lure in customers. Many small businesses fail because they can't drum up enough business in their opening days to keep the lights on, which is why it's imperative that you come up with a game plan early on in the process. Do you have a social media presence, and if so are you exploiting it to the greatest extent possible? Brushing up on how leading cannabis companies make use of popular social media platforms is an essential part of guaranteeing that your business' marketing strategy won't backfire.

A stellar digital presence won't be enough by itself, either. You'll also need an excellent team of workers behind you to succeed, as no entrepreneur can single-handedly manage an entire cannabis empire, especially as it grows with time.

Who to hire (and how)

If you're interested in launching a cannabis company that can thrive throughout 2020, you should already be looking at prospective employees to determine if they can contribute to your commercial ambitions. Believe it or not, the founding entrepreneur isn't the only person who matters in a new company; you'll need a dedicated workforce of tireless and qualified professionals if you want your brand to take off where others have failed in the past. Many entrepreneurs who know their way around a cannabis plant have relatively little business experience elsewhere, however, which unfortunately leads them to hire the wrong people for the wrong reasons.

So, how should you go about managing the hiring process? For starters, don't be afraid to accept those who have plenty of experience in other industries. Workers who hail from a wide variety of backgrounds that have little to nothing to do with cannabis can, under the right circumstances and with the right qualifications, still prove to be essential elements of your team.

Having a financial guru who can help navigate the tumultuous market environment and save you money could make the difference between commercial success and failure, for instance, yet few cannabis entrepreneurs think of hiring those who have little to nothing to do with the everyday management of cannabis products. You need workers who understand fintech meaning, can predict market trends ahead of time and will help you manage your company assets in times of trouble.

Still, you'll always need qualified budtenders and retail workers for a marijuana business, even if you're focused exclusively on CBD products. That's why reviewing industry-specific hiring guides should be a major priority for any budding entrepreneur thinking about foraying into the cannabis sector in 2020. 

Having an emergency plan

Everybody getting involved in the cannabis industry should have an emergency plan ready to be enacted at a moment's notice. This is because cannabis is still beset by countless regulatory and political questions, and the future of even the CBD marketplace isn't entirely secure. Those advocating to expand the war on drugs would be happy to see cannabis companies shut down in droves, for instance, so it's imperative to know that sudden legal or social changes could alter your industry for the worse as you launch your business in 2020.

Preparing to deal with regulatory uncertainty is never easy, especially when you're in an industry that's still grappling with misleading social stigmas. The recent vaping crisis, for instance, resulted in cannabis companies around the marketplace losing huge parts of their overall valuation thanks to investor paranoia about the immediate regulatory future. A cloud of uncertainty has descended over the cannabis industry, and it's unlikely to go away anytime soon. This shouldn't thwart your commercial ambitions to launch a thriving CBD company, but you should be aware that it won't always be easy to be a part of this still-maturing market.

Have an emergency plan in place in the event that your financial partners bail on you. Many financial institutions and banks won't do business with cannabis companies, for instance, leading them to over-depend on payment processing providers who may pull the rug out from you at any moment. Being able to accept a wide variety of payments from customers is the only surefire way to establish financial sustainability until banks and traditional financial institutions finally embrace the cannabis industry.

Keep a close eye on CBD-related news, too, and know which athletes, celebrities and prominent influencers are lauding CBD products in order to capitalize on their social buzz. Take heed of successful CBD companies, like CBDMedic, that leverage athlete endorsements (they recently partnered with NFL legend Rob Gronkowski.)

Constantly reaching out to new customers to take advantage of temporary market trends will be of the upmost importance, so having your finger on the pulse of the average consumer will be an essential element of starting a successful CBD business in 2020. You may not need to invest in an influencer yourself, but you should always know what's influential at the moment so that you can exploit it for your own gain. Before long, you'll discover that starting a successful CBD company in 2020 necessitates foresight, flexibility, and perseverance above all else.

Should You Get eNPS Feedback From Your Employees?

Posted: 05 Dec 2019 07:00 AM PST

You already know that your customers' satisfaction is critical to the success of your business. But what about employee satisfaction? Does it matter how happy your staff is? And should you gather employee feedback? In this article, we'll take a look at how you can use a Net Promoter Score (NPS) survey to assess your employees' at-work satisfaction and loyalty to your brand, producing a metric called eNPS.

Happy employees, happy customers

Happy employees create a better product or service, and they also generate higher customer satisfaction. That's why companies like Google offer their employees incredible perks and benefits (like free cooking classes and 15 days of PTO for first-year engineers). It's why the supermarket chain Trader Joe's offers its employees higher-than-average wages and encourages a team-minded environment. And it's why Netflix gives free lunches to its employees and provides new moms and dads with up to 12 months of paid parental leave.

What are the results of these employee perks? Powerful, customer-driven companies with employees that are thrilled to be working there.

While we're not suggesting that you pour all of your revenue into buying drinks for your staff every week or offering unlimited PTO, focusing on employee satisfaction and loyalty can produce real, revenue-boosting results for your business.

Tracking employee loyalty and creating enthusiastic advocacy

Employees who are engaged at work and enthusiastic about the company's products or services perform better, stay longer, provide more feedback and innovate. 

While you might assume your employees are thrilled about your brand – and working for your company – there's really only one way to know: give them a chance to tell you, confidentially. That's where the employee Net Promoter Score comes in.

NPS-forward companies such as Apple and JetBlue have used eNPS to track employee engagement and create a culture that fosters enthusiastic advocacy. The results speak for themselves. In 2019, Apple came in second on a list of the 10 best companies to work for and JetBlue was rated one of the top four airlines to work for. 

Focusing on eNPS is certainly a good decision, business-wise. But how exactly do you do it?

Questions to ask on an eNPS survey

The most basic eNPS question asks, "On a scale of zero to ten, how likely are you to recommend this company as a place to work?"

Like a standard NPS survey, this first question is followed by an opportunity to provide open-ended feedback, "Please explain your rating."

Another helpful question that some eNPS surveys ask is, "How likely are you to recommend this company's product/service to a friend, coworker or family member?"

This additional question sometimes produces an even more accurate measure of an employee's loyalty. An employee may enjoy working for you because of the benefits you offer or because of their coworkers – but these motivational factors don't necessarily indicate that they really believe in your product or service (ouch!).

Promoters, passives and detractors

Like NPS, eNPS will divide your survey takers into three basic categories based on their scores. Promoters are employees that have rated you a 9 or 10. Passives are employees that have given you a 7 or 8. Detractors have given you a 6 or below. Once you have scores, use the following formula to get your eNPS.

Employee Net Promoter Score = % of promoters - % of detractors

Consider that eNPS can range anywhere from -100 (100% detractors) to +100 (100% promoters). When you look at your score and see a 39, for example, that doesn't equate to getting an "F." Thinking of it more like a profit margin than a grade will help to conceptualize what it means. A 39 is a decent score, but it can still be improved. 

Open-ended feedback

The open-ended question on your eNPS survey not only gives your employees a safe, confidential way to share practical feedback and constructive criticism with you; it communicates that you value their opinions.

Still, open-ended feedback can be tricky to analyze. Instead of giving you a single number, your staff is providing you with potentially-endless variations of text-based comments that you'll have to read and sort through. NPS software can be used to organize, filter, and highlight your feedback, thus simplifying the process of analysis.

Best practices for eNPS

The scary truth is that many industries produce a shockingly high number of employee detractors. One survey of more than 5,500 information workers showed an NPS of -23% and FranklinCovey, a Utah-based consulting and time-management company, found that its eNPS ratings ranged from -40% to 100%, depending on store location.

If you're surprised (and not in a good way) by your eNPS survey, don't panic just yet. The whole point of this process is to give you a metric that helps you improve.

Even if your eNPS is decent – or even great – you'll want to step up your game to create even more enthusiastic brand advocacy and loyalty within your own company. 

Keep tracking 

Rather than obsessively focusing on getting a higher eNPS than other companies, compete against your own current score. How can you improve your own score over time? You need to regularly survey your employees, which you can do through an email or link, or on your website. These surveys are quick and easy to fill out and your employees usually won't turn down an opportunity to voice their opinion. 

Unlike the standard annual employee survey, continual eNPS surveys produce trackable results that show how changes within the company are actively affecting employee loyalty.

Assess the results

Just as you would with a standard NPS survey, you'll want to assess your open-ended feedback to identify common themes and keywords. For example, if you found that "communication" was a common keyword used among detractors, then you might note intracompany communication as a significant area for improvement.

Alternatively, if you find that your most enthusiastic promoters are employees who actually use your product or service, then you may want to find ways to encourage more of your staff to engage actively with your brand as customers. 

In any case, the open-ended portion of your employee feedback should give you powerful, actionable tools to help you create a company with happy, enthusiastic and committed employees.

Act on your feedback

Your eNPS score and feedback will produce powerful insights. But to produce a real, measurable impact, eNPS feedback needs a plan of action.

That may mean assigning one of your staff members to spearhead eNPS. It could mean developing a process for methodically and strategically assessing feedback. Or you might want to publish a regular report with eNPS results, offering your staff a transparent overview of what's working, what's not and where the company is headed.

In any case, a key part of any NPS survey is "closing the loop," which means engaging with your score and feedback to make real, lasting changes.

Why eNPS?

Lengthy, infrequent employee surveys produce the same kind of flawed results as lengthy, infrequent customer surveys. They don't track changes in the company, don't produce practical and actionable feedback, and they are often trapped in departments where they never lead to action.

On the other hand, eNPS surveys follow the same simple guidelines as regular NPS surveys. They produce a single, trackable metric. They reflect how changes in your company are affecting employee satisfaction. And they provide actionable, open-ended feedback that can help you improve your business.

If you're interested in creating an eNPS survey for your company, you'll need an NPS software program to help you deploy surveys, organize results and store data for continuous tracking and comparison. 

Dedicated NPS software will also make future analysis of your data easier since most software will organize your results over time making a comparison of your trends easy. It also becomes much easier to dig deeper into your data. For example, it allows you to break down your eNPS score by the department.
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