2018 was generally a good year for business, including
small and mid-size companies. Business
owners entered the past year with optimism, and despite
market and government volatility, they continue
to be positive moving into the new year. Although there
are concerns about the shrinking labor market and
increasing health care costs, economists are expecting
two to three percent average growth rates in 2019.
In this article, we provide our annual round-up of
some of the trends that small and mid-size businesses
should expect in the coming year.
1. The Virtual Assistant. Already ingrained in
homes and for individual use, bots fueled by Artificial
Intelligence (AI) will continue to increase their presence
in the business setting, especially in the area of customer
relationships. At the Computer Electronics
Show in Las Vegas in January, the virtual assistant dominated
most company booths, with thousands of new
products expected to be launched in the coming
months. Bots are being used to direct website visitors to
the correct page, answer technical questions, and provide
pricing information on a 24/7 basis. In addition to
the original players, Amazon and Google, many new
companies are introducing hardware and software
products that support the growing demand by enterprises
for AI devices and services.
2. Issue Oriented Marketing and Taking a Stand.
Corporate responsibility has been a core business strategy
for many years. However, beginning in 2018,
businesses are increasingly willing to pick sides on the
important issues of the day. This strategy is especially
effective with Millennials and Gen Z, who are more
likely than not to stick with a brand that shares and
promotes their values. Nike’s use of the kneeling Colin
Kaepernick and Airbnb’s #WeAccept campaign are two
winning examples of companies that picked a side and
won a loyal following because of it. While many companies
choose the more traditional approach of making
a difference through donations or supporting volunteerism,
taking on hot-button issues is definitely a new
trend to be watched. Along the same lines, some companies
have faced backlash for failing to take a stand,
such as continuing to support television programs with
content that may be perceived as discriminatory.
3. Data Collection and Security. Europe’s institution
of the strictest data privacy rules in the world in
2018, GDPR, is heralding the way for increasing scrutiny
on how data is collected, stored, and shared, especially
the PII (personally identifiable information) such as
addresses, social security numbers, and health
information. Many U.S. states followed GDPR by
introducing privacy laws of their own, including
notifications for breach and regulations on how data
may be sold. Consumers, as well as enterprise customers,
are requiring service providers to institute strict
protocols when it comes to protection of their or their
clients’ private data. Increasingly many consumers,
especially of technology services, are demanding that
their providers adhere to strict standards when it
comes to protecting their information. Businesses
would do well to stay ahead of the curve and limit or
closely monitor the gathering and use of data from
individual as well as business sources.
4. Personalization of Services. 2019 will see a
continuing push to deliver increasingly personalized
customer experiences. Innovation in technology and
the availability of greater amounts of consumer information
is allowing companies to tailor make their
marketing, and enhance the onboarding and continuing
interactions with their customers. Businesses, such
as Spotify and Netflix, are at the forefront of these
initiatives, but even smaller market players are seeing
the benefit that personalization of services and products
has to their bottom line and customer loyalty.
That’s our wrap-up for this year’s trends. Wishing
you all a happy, productive, and trendy new year.
Business Insights is hosted by the Law Firm of KPPB LAW (www.kppblaw.com).
Sonjui L. Kumar is a founding partner of KPPB LAW, practicing in the area of corporate law and governance.
Disclaimer: This article is for general information purposes only, and does not constitute legal, tax, or other professional advice.