How can SMEs balance customer care and the search for new business opportunities?
I developed my professional career in small and medium-sized enterprises (SMEs). In most cases, I found their commercial organization often stands out for its flexibility, customer focus, and personalized approach. However, on the other hand, it has certain limitations in efficiency and adaptability.
Some examples of these limitations?
1. Organizational structure:
- Direct management: In small enterprises, the owner or founder often plays multiple roles, from operational management to commercial strategy. This centralized decision-making limits delegation possibilities and can lead to overwork and rushed decisions.
- Small team: The workforce generally consists of a limited number of employees, implying excessive dependence on a few people. This can create vulnerabilities and a lack of specialization in certain areas.
2. Sales strategies:
- Direct sales: The tendency to focus on direct sales requires constant personal interaction with customers. While this strategy may foster loyalty, it limits scalability and the ability to handle a larger sales volume efficiently.
- Use of online channels: Although many small businesses aim to expand their online presence, they often lack the resources to manage e-commerce platforms and social media effectively, reducing visibility compared to larger competitors.
3. Customer relationships:
- Personalized customer service: Although SMEs often offer more attentive service, this practice can become unsustainable as the customer base grows, leading to staff overload and inefficiencies in after-sales service.
- Feedback and engagement: Feedback is essential, but SMEs often struggle to collect it and implement suggested changes due to limited resources, compromising their ability to improve.
4. Marketing and promotion:
- Local marketing: Focusing on local marketing strategies can limit expansion, making it challenging to penetrate larger and more diverse markets.
- Promotions and special offers: Frequent use of promotions and special offers, while boosting short-term sales, can erode profit margins and perceived quality.
5. Resource management:
- Flexibility: While flexibility is a positive trait, it can become a limitation if SMEs fail to establish clear and sustainable processes, risking a lack of consistency in their commercial strategies.
- Cost awareness: The need to keep costs low may lead to choices which limit innovation and investment in new opportunities, hindering the company’s growth and evolution.
How can networks and alliances support the evolution and growth of SMEs?
How can the commercial performance of SMEs be improved?
Here are some strategies which, in my experience, can make a difference:
1. Synergy
I have personally experienced that collaborating with other companies creates synergies which maximize resources and optimize commercial operations. By combining diverse skills, SMEs can tackle more ambitious projects and improve sales outcomes. Sharing experiences and best practices in the commercial sector allows each player to learn and grow, enhancing the entire network.
2. Skill enhancement
Strategic alliances provide the opportunity to acquire new commercial skills. By collaborating with other businesses, SMEs can learn and develop know-how in areas such as marketing, sales, and customer service, enriching their offerings and improving their commercial competitiveness.
3. Visibility channels
Through networks of alliances, SMEs can access new visibility channels and markets, increasing sales opportunities. Collaborating with established partners offers the chance to be introduced to a broader audience, enhancing the likelihood of acquiring new customers and strengthening commercial reputation.
4. Remain key players
Despite the benefits of alliances, it is crucial to maintain control over key commercial competencies. SMEs must ensure they remain central to their activities, focusing on what they do best in selling and serving their customers. Alliances should be seen as a way to enhance their commercial capabilities, not as a dilution of their corporate identity.
Do you agree that networks and alliances represent a strategic opportunity for SMEs?
Would you like to understand how to develop new strategic alliances for your business?
Contact me to create an operational plan tailored to your company for building or supporting your commercial organization.
