Cloud enables access to new markets, enhances customer loyalty for SMBs: Study

Microsoft study has found that there would be 3 times improvement in accessing new customers for SMBs on adopting cloud computing.

Micrososft Jun 06th 2018 A-A+

Cloud adoption is enabling SMBs to create new, innovative ways of reaching and engaging with customers, which is translating to positive business impact. Some of the specific indicators of the impact, as computed in the study, are as follows:

  • Interactive and customized services improve 17 percent on low cloud adoption, 36 percent on medium and 55 percent on high. In fact, it improves 234 percent when SMBs move directly from low to high.
  • Business response time improves only 13 percent on low cloud adoption, 50 percent on medium and 72 percent on high. It improves 454 percent when SMBs move directly from low to high.
  • Footprint in national and global markets improves 22 percent on low cloud adoption, 28 percent on medium and 65 percent on high. It improves 195 percent when SMBs move directly from low to high.
  • Customer base improves only 13 percent on low cloud adoption, 40 percent on medium and 59 percent on high. It improves 254 percent when SMBs move directly from low to high.

The complete indicators of business impact to SMBs, related to customer engagement and accessing new customers, from the study are as follows. Under the study, these indicators have also been calculated through statistical analysis for a wider population of SMBs.

 

Indicator

Change in the indicator, on survey respondents, from low to high cloud usage

Predicted probability of impact on larger population of SMBs

Enhanced customer engagement

Interactive and customized services

234 percent

1.8x

Customer satisfaction

200 percent

2.8x

Customer base

254 percent

2.4x

Increased competitiveness and accessing new markets

Business response time

454 percent

2.3x

Footprint in national and global markets

195 percent

3.6x

Launch of new products/services

265 percent

3.1x

Cloud computing is democratizing access to technology, it has enabled an SMB to access the same technology and compute power as a large enterprise without investing heavily in capital expenditure. Moreover, cloud computing services are the same whether a business has a local or international presence, which enables SMBs to service their customers in a cost-effective manner, irrespective of whether they are in the neighborhood or in another country/geography.

Cloud computing offers tremendous growth opportunities for local businesses and is the growth driver that a small business can adopt to become a large business in the shortest possible time. The quick ramp-up and ramp-down that the cloud offers is a big advantage to SMBs in all sectors.