Reasons to Invest in Tech According to Scott Stevens of Grays Peak Capital LP
It is no secret that technological advancements have drastically changed the way we live our lives. In addition, it should be no surprise that technology has also affected and disrupted several industries. Technology has allowed for the seamless flow of information, expedited processes resulting in higher efficiency, driving more revenue to your business, and much more.
According to Scott Stevens of Grays Peak Capital LP, investing in technology is essential for businesses to thrive and remain relevant in their industry. Without an investment in technology businesses run the risk of becoming irrelevant and ultimately failing. Scott Stevens states that in addition to the above benefits of technology, there are many reasons why a business needs to invest in technology, regardless of the size of your budget. He graciously took the time to outline his five best reasons for investing in technology to grow your business.
Technology Helps Create Better Customer and Vendor Interactions
Technology helps to foster and create stronger and more meaningful customer interactions. According to recent studies, 84% of businesses are using at least one digital platform to provide consumers with product and service information as well as to actively engage with their customers. In addition to this, the same study revealed 79% of businesses are utilizing digital tools to communicate with customers and suppliers.
What does this mean for your business if you don’t have technology to engage with customers? According to Scott Stevens it means that your business will likely suffer and will certainly struggle to achieve a customer retention rate. Media platforms such as Instagram and Facebook are free for users and provide in-depth analytics that help you make informed decisions.
Scott Stevens noted that while social media platforms are necessary for most businesses, the rise of artificial intelligence such as chatbots will continue to influence the buying process for online shoppers. Chatbots are a major influencer for younger generations, with the majority of millennials having interacted with a chatbot at least once during the buying process. Chatbots do not need strictly for selling, chatbots have the ability to solve consumer concerns and leave customers with a lasting positive impression on your business.
Chatbots and media platforms are not the only way businesses are utilizing technology to create meaningful relationships, digital technology such as instant messaging applications help to build lasting relationships with your vendors. Scott Stevens states that when you have a seamless flow of information with your suppliers and vendors you can expedite your processes and once again build lasting relationships.
A major benefit to the above reasons is the initial expense of the technology. Most instant messaging applications are free, social media campaigns are free, and chatbots are a reasonable price per interaction. Regardless of the size of your budget, an investment in customer and supplier interactions is always beneficial.
Without Technology you Run Major Risks of Becoming Irrelevant
When the internet bubble came and disrupted the way we live our lives and conduct business, the businesses that failed to build an internet presence were quickly passed by their competitors. Scott Stevens states that this is now true for companies that refuse to invest in technology. Small businesses have access to substantial software that is designed to increase revenues, increase customer retention and relations, develop business, and much more. Traditionally these are the software applications that have exclusively been saved for big corporations, predominantly due to the massive price tag attached to the software; however, Scott Stevens states that due to advancements in technology the price has significantly dropped to reflect the needs of the small business market.
Technology drives revenues and expedites processes
Perhaps the most important of the reasons to invest in technology is that it drives revenues and streamlines business processes. The impact of technology on businesses is easily seen through the recent rise of cloud technology and computing. As of 2017, 41% of businesses using cloud computing technology reported the use of such technology has improved availability and resiliency, with 39% of users stating they have increased agility and responsiveness. Scott Stevens shares that this data proves there is a direct correlation between investments in technology and increased processes, which ultimately allows the company to run smoother with little overhead investments in tech – 28% of businesses reported the use of the cloud has decreased their overhead expenses.
It is obvious that technology helps to expedite processes, but how does it drive revenues? Scott Stevens states that one way technology is able to drive revenues is through the use of advanced analytics you can target your next customer and create marketing campaigns directed at new consumer groups. He shares the case study of New York City’s Harley-Davidson AI-driven marketing platform, which is used to identify customers most likely to buy and then dives deeper to determine additional consumers who possess similar attributes to their clients. This system drove sales by a total of 2,930% increase in sales leads. Scott Stevens states it is worth noting that of course not all companies will see such drastic results, but it is direct evidence that technology works to build your revenues.
The need to invest in technology if you run a business should be evident by now: it helps build meaningful relationships, ensures you remain relevant, drives revenues, and expedites your processes. Scott Stevens leaves us with his last talking point, according to a Forbes article he recently read, a detailed breakdown of the real costs of technology determined that new software development costs just $0.20 per hour. This is a substantially lower price point than hiring excellent talent which equates to a total of $60 per hour, which further proves that technological investments have low overhead fees.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes.