How Has Internet Connectivity Changed Business for the Better?

What did we do before the smartphone? Who would have thought that a small, handheld device could be taken anywhere and used to make calls, send messages, take photos, track our loved ones, make payments, or learn a new language? 

In much the same way, internet connectivity has allowed disparate business elements to coalesce into one seamless, virtual entity and has changed the way businesses operate on a granular level. 

How so? 

If you were an entrepreneur twenty years ago, you would probably find a shopfront with lots of foot traffic and make sure that your product was clearly advertised in the local paper, all the while telling your friends and neighbours about it. The internet has taken that concept and blown it up, creating a global audience for smart businesses owners on one hand, as well as changing the very fabric of the way the business functions.

Internet Connectivity and Economic Growth

It’s no secret that the backbone of most economies exists in the form of small and micro-enterprises. Therefore, the increased profitability and efficiency of these SMEs have a positive effect on the local economy, which is where internet connectivity really flexes its muscles. 

Let’s look at just two of the advancements made possible by the internet which have changed the face of business and are contributing to a healthier economy.

POS and Online Payments

The availability and use of debit and credit cards have climbed steadily over the past 10 years, due in no small part to the ease of use and increased security measures offered by merchants. 

Swiping, dipping, or tapping a card for instant payments is far simpler and safer than carrying cash, and a much more viable payment method than a cheque for vendors. (It offers a paper trail to boot!) 

A telling article from Forbes on the spending patterns between cash and card payments says, “A number of studies have indicated that people do spend more when paying with a credit card. In 2001, Drazen Prelec and Duncan Simester of MIT published the results of their research in Marketing Letters. They found shoppers spend up to 100% more when using their credit card to pay instead of cash.”

So, do businesses who offer reliable card facilities to their customers benefit?

Most definitely!

The article continues, saying, “Why do people spend more with plastic? First, it is simply easier to do. Let’s say you have $100 budgeted for a romantic dinner with your significant other. If you only have the $100 in cash, you will pay careful attention to what you are ordering to make sure you have enough to pay for your meal and tip. However, if you have a credit card, there is really no immediate penalty for over-spending, so it’s easier to go over your budget.

“Another reason is a phenomenon called coupling. When someone buys an item with cash, they immediately know how much that item cost, which can be painful. However, when someone pays with a credit card, there is a time period between when they purchase the item and when they have to pay for it, which makes the cost seem less important, according to Psychology Today.”

POS and mobile payments are an excellent example of how internet connectivity has changed the way customers pay and has the added benefit of increasing turnover for businesses.

Mobile Apps

 

Few technological advancements have been as exciting as the plethora of mobile apps that have hurtled onto our mobile phones.

Smart business owners have tapped into this growing market in the most innovative ways.

Consider how we can now order food from an app on our phone (from three different restaurants), pay online and have them deliver to our door. With a few clicks we can request an Uber to fetch our Grandmother from the doctor if we’re stuck in traffic, and then track the driver to ensure her safety. Many retail outlets have an app which offers user-friendly online shopping with added discounts and easy payment solutions.

Essentially, mobile apps – powered by internet connectivity – are simplifying the buying process and removing friction for more, higher-ticket sales, and reaching more people than ever before. 

Are you staying ahead of the curve?

There’s no doubt that the most successful businesses tomorrow will be the ones that harnessed the power of the internet today.

Is your business making the best use of internet connectivity?