With the new year underway, now is the time to anticipate 2021 trends and consumer behavior shifts— and develop strategies and tactics that will resonate with consumers in the year ahead. 2020 was a unique and challenging year. But entrepreneurs and small business owners are a resilient group. Even with the uncertainty of 2020, many small business owners thrived. For business owners who are willing and able to try new things, 2021 is filled with opportunities to reach customers and grow their business. Here are a few small business trends we expect in the new year.

Small businesses will reprioritize conversion rates

The onset of COVID-19 positively impacted consumer habits toward online shopping overall. But for many online sellers, the increase in online sales led to spending time and resources adjusting to the surge in traffic and sales, often at the cost of a lower conversion rate. The recent holiday season exacerbated this existing issue, as it required many merchants to prioritize improving their backend processes to handle the influx of orders. As we head into the new year, online sellers will prioritize improving their conversion rates, to avoid “leaving money on the table” in 2021. Keys to prioritizing conversation rates include:

  • A fresh and modern website: Before the pandemic hit, small business owners often put more effort into getting listed with marketplaces than having (or updating) their own professional website. That changed in 2020, as small business owners put a renewed—and necessary—focus on growing their own sites. From the small business merchants we work closely with, we’ve seen that consumers are now more willing to shop directly via a small business’s website, which makes a seamless user experience key to driving sales.
  • Social channels that fuel engagement: Strategically leveraging social media channels is also paramount to success in today’s consumer landscape. Small business owners must ensure their social channels are set up to either allow purchasing from directly within the social channel, or seamlessly redirect to the website storefront. Building a community through social media platforms can also help small businesses build customer loyalty, for example by providing the latest product and business updates or offering discounts and special pricing to a brand’s most active followers.
  • Effective digital ad spend: With more businesses getting online every day, small businesses must stand out to engage and reach the right audience. Investing paid dollars wisely can help small business owners drive traffic to their website and ultimately encourage sales. In 2021, outsourcing marketing or working with e-commerce consultants versed on usability best practices and ways to improve conversion rates will increase, as small business owners strive to make smart, data-driven decisions.

 SMS marketing will make a comeback

In tandem with prioritizing conversion rates, previously popular marketing tactics will re-emerge. The pandemic created the need for newer forms of customer communication like video, as business owners worked to meet customers where they were: at home and on their mobile devices. In 2021, small business owners will take it back to the basics as SMS marketing makes a comeback and even becomes mainstream. Similar to email marketing, consumers will adopt SMS marketing through a transaction or by entering their mobile number to receive special offers. With this, small business owners that are able to obtain consumer mobile numbers early will be able to take advantage of this “new” medium. However, online retailers should exercise caution when using this marketing tactic, limiting SMS use only to exclusive sales in order to avoid consumer fatigue. In the COVID-19 era, SMS marketing can also be used to notify customers on inventory updates and when products are in stock.

Reaching customers in 2021

The COVID-19 pandemic transformed the way consumers and small businesses buy, sell, and deliver goods and services, and created a lasting impact on how brands must interact with their customers to succeed. In the year ahead, small business owners should prioritize strong customer engagement and conversion rates. Working with a trusted partner company can help small business owners operate more strategically, and continue engaging customers and driving sales in the new year.

This post is provided by:

Maria Melo, Senior Small Business Advisor, Yahoo Small Business:

As a senior business advisor at Yahoo Small Business, Maria Melo has been working with new and established e-commerce merchants for over 20 years to help them grow their businesses. Maria has also spent over 14 years working with her family in their brick and mortar retail store and is part owner of her own retail wine shop with her brother and sister.

Vince Dinh, Senior Small Business Advisor, Yahoo Small Business

Vince Dinh is a senior business advisor at Yahoo Small Business and an e-commerce veteran of 21 years. Vince has helped thousands of SMBs grow their businesses online. Starting in the ecommerce industry at its inception, he has seen the full evolution and what it takes to be successful selling online.