The year 2024 brings a wave of uncertainties and challenges for small businesses, navigating economic landscapes, consumer behaviours, and policy changes. Our experts share insights on the trends that small businesses should keep a close eye on in the coming year.
Data Privacy Focus
Vijay Sundaram, Chief Strategy Officer at Zoho, underscores the growing importance of data privacy for businesses in 2024. With high-profile privacy breaches and potential extensions to The Privacy Act, small businesses are becoming more aware of the need to invest in privacy protections. Sundaram notes that a quarter of Australia’s small and medium businesses would not survive the financial and reputational damage of a privacy breach. Consequently, data privacy is set to be one of the biggest focuses for businesses and their customers in 2024.
Back-to-Basics Strategy
In the competitive market of 2024, Paul Hadida, General Manager APAC at SevenRooms, advocates for businesses to focus on fundamental basics to achieve strong and sustainable success. Instead of reinventing the wheel, he suggests that businesses excel in providing services that consumers are drawn to, using data as the foundation. Leveraging approved customer data allows businesses to tailor experiences, understand customer habits and preferences, and drive internal efficiencies for improved operations.
Consumer Selectivity and Consideration
Anna Lee-Renwick, Co-Founder and Chief Product Officer at Anni, observes a shift in consumer choices based on values, self-perception, and practicality. As consumers become more selective in their spending, businesses must understand their pain points and communicate their unique selling propositions effectively. Lee-Renwick notes that consumers are turning to social media for advice due to perceived expenses and difficulty finding experts. Heading into 2024, understanding consumer values, perceptions, and needs will be essential for businesses targeting their audience with resonant messages.
Disciplined, Data-Driven Customer Understanding
In the face of economic pressures, Jamie Hoey, Australian General Manager at Wunderkind, underscores the importance of customer retention. He advocates for a disciplined, data-driven approach, leveraging first-party data and customer identity solutions. Hoey emphasises that businesses need to understand their customers, make informed decisions, and position their brand appropriately. Focusing on doing more with existing resources, building owned channels, and fuelling personalisation strategies will enable businesses to maximise market share, build loyalty, and prepare for the inevitable market upturn in 2024.
Retention vs. Acquisition Dilemma
Rob Hango-Zada, Co-Founder and Co-CEO of Shippit, highlights the ongoing debate of retention versus acquisition, emphasising the importance of both for business growth. In the uncertain times of 2024, he suggests that businesses cannot afford to focus solely on one or the other. While acquisition is essential, the data suggests that a disproportionate focus on retention is crucial. It is not only 70% cheaper to grow through retention, but happy customers also become advocates, driving growth through word-of-mouth.
Economic Uncertainty and Resilience
Small businesses face an ongoing challenge of economic instability, marked by fluctuations in interest rates and uncertainties in consumer spending. Andrew Fraser, Managing Director APAC at Lightspeed, encourages businesses to view 2024 as an opportunity rather than a challenge. He emphasises the need for a deep understanding of evolving customer behaviours and the development of strategies for long-term success. The resilience, innovation, and diversity of the small business community will play a pivotal role in navigating the economic landscape.
TLDR: React and Adapt
As small businesses brace themselves for the challenges of 2024, the identified trends present both challenges and opportunities. From prioritising data privacy to embracing a back-to-basics strategy, businesses must remain agile and adaptive. Consumer selectivity and the retention vs. acquisition dilemma underscore the importance of understanding customer needs and fostering loyalty. A disciplined, data-driven approach will be the key to unlocking success in the face of economic pressures. Small businesses that navigate these trends with resilience, innovation, and a customer-centric focus are poised to turn the uncertainties of 2024 into opportunities for growth and sustainability.
What are your biggest challenges in 2024?
