The sharing economy and the increasing number of independent contractors and freelancers will play a big part in shaping business trends for the coming year. In a reversal of big business setting the trends, in 2016, it will be smaller businesses with advanced technology and lower overhead that will be setting the standards with which big business must compete.
Mobile doesn’t mean just the ability for shoppers to view items and make purchases from their tablets and smartphones. It also means hiring virtual workers, and that money saved on providing office space for employees can be used for innovation and more rapid expansion. Some research suggests that even the process of acquiring qualified staff has been accelerated by the increasing use of virtual assistants. Virtual office personnel often work for less in exchange for the benefits of working remotely, including cost savings associated with travel and not having to fight traffic.
Shift to Video
Upwork, one of the leading virtual employers, reported that the demand for Power Point presentations was down 5%, while the demand for video presentations using platforms such as Prezi increased by 23%. There was also a 115% increase in customer demand for motion graphics skills. More companies are also using video for professional development for their employees due to its flexibility and the fact that it can be utilized remotely when most convenient. This eliminates both scheduling conflicts and the untimely interruption of workflow.
Increased Focus on Employee Strengths
The disturbing results of a Gallup poll conducted in 142 countries revealed that worldwide, 63% of employees are not fully engaged. Further, the estimated economic cost of employees working beneath their potential is up to $350 billion dollars annually– in America alone. This information has led employers to begin implementing strategies that increase their employee’s level of engagement.
According to Lisa Cummings, the CEO of Lead Through Strengths employees who are assigned projects that allow them to utilize their strengths are six times more engaged than employees who aren’t. She advises that business leaders should invest in the natural talents of their employees rather than using a one-size-fits-all model. Success in online business is dependent upon employee retention as well as customer retention.
Customer Service
Businesses will invest more on customer service rather than continuing the present trend reflected by the estimated $500 billion dollars spent on marketing compared to the just $9 billion spent on customer service. The focus on customer retention has resulted in a number of new strategies with the goal of improving, and expanding, customer experiences. One big thing that’s expected to help in that is the rise of Big Data and Internet of Things, which should dramatically improve the way companies gather and process information about their customer’s habits.
Podcasts that combine information with entertainment and which customers can listen to anywhere and anytime are already gaining popularity and are predicted to become even more popular. They enrich and extend the consumer experience. According to Walker research, by 2020, customer experience will be even more important than price as criteria for customers choosing a company. One article points out that it takes an average of 7 social media exposures for a customer to become familiar with a brand. How pleasurable and entertaining those exposures are can determine whether they result in a regular customer.
Fun and Games
In much the same way that companies are using video and other strategies to increase employee engagement, companies are also developing more interactive technology for customers to improve their shopping experiences. Just as work can be fun and engaging, so can shopping. Mobile applications, which most startups utilize from their inception and other companies are hurriedly developing, have the potential to integrate shopping with elements of gaming. The power of mobile apps is undeniable, and companies are thinking beyond merely what is necessary to what their customers would love—and what will keep them coming back.
Music really isn’t a necessity, yet Pandora reported revenue of $732.4 million in 2014 for that non-essential service. Facebook, using a combination of advertising, gaming, and data collection, earned nearly $6 billion in the final quarter of 2015 alone. Businesses with mobile apps that are able to provide customers with valuable information about new products and upcoming sales in a playful and entertaining way will be the biggest winners in 2016.