AI for SMBs Unlocking Unique Services for Small and Medium Businesses

In a tightening economy, small and medium businesses (SMBs) face the challenge of growing while protecting thinning margins. Unlike large businesses, SMBs have limited resources to weather an economic downturn or diversify into new value streams. However, enterprises that serve SMBs can provide solutions that lessen administrative burdens and deliver tangible value. With SMBs representing 44% of the US GDP, they cannot be ignored. By adopting the following four best practices, enterprises can invest in the right technology and leverage the most recent advances in generative AI to unlock unique services for SMB customers.

1. Create Personalized Experiences for SMBs based on Qualitative and Quantitative Data

As SMBs become more cautious about their spending, service providers must drive value through increased personalization. To achieve this, enterprises need technology systems with a centralized customer journey log that can track interactions, sentiment, and next steps across every touchpoint. This enables them to deliver a seamless customer experience. However, isolated qualitative customer information is not enough. Generative AI tools like IBM watsonx.ai can analyze high-level customer trends, market forces, specific customer data, and historical transactions. This analysis enables enterprises to recommend products that meet each SMB’s particular needs. Data-driven personalization is essential in today’s business environment, with 89% of digital businesses investing in personalization to enhance the customer digital experience. Failing to do so risks falling behind.

2. Provide Tailored Support for SMBs as They Adopt New Products

Most SMBs do not have massive tech teams to support the adoption of new products and services. To ensure successful uptake of products, service providers must have the appropriate tech tools to help SMBs understand the value of these products and assist with testing and implementation. Generative AI can turn SMB needs into product use cases, and the right tech systems can allow SMBs to test products in a sandbox environment. Additionally, generative AI solutions like watsonx™ Code Assistant can meet the core technical needs of enterprises. Watsonx Code Assistant can help enterprises achieve a 30% reduction in development effort or a 30% productivity gain, enabling them to effectively and efficiently serve SMBs.

3. Strategically Align Pricing Models to the Needs of SMBs

To meet the distinct needs of each SMB, enterprises should align their pricing models strategically. Usage-based pricing models or fixed time-based pricing models, such as monthly subscriptions or one-time payments, enable enterprises to cater to SMBs’ specific requirements. With usage-based pricing, SMBs only pay for what they use. This method requires the enterprise to have clean data flows from central sources of truth to accurately track and reflect usage. Watsonx.data allows enterprises to centrally gather, categorize, and filter data from multiple sources. Through workload optimization, watsonx.data can reduce the cost of an enterprise’s data warehouse by up to 50%. Paired with IBM’s data consulting services, enterprises can leverage watsonx.data to track usage, generate dashboards, and make strategic decisions. Alternatively, fixed time-based pricing means SMBs pay a predetermined cost based on what they can afford and make full use of the product or service within their purchase period.

4. Offer a Digital Experience with Increased Self-Service Options

SMBs are lean operations with small workforces that prioritize efficiency. Less than 15% of SMBs prefer to interact with providers through phone and automated voice systems. To serve this demographic, enterprises must create end-to-end digital experiences from the point of research to post-purchase support. Self-service platforms make small tasks easy, allowing SMBs to update their billing and contact information without needing to contact a provider representative. Conversational AI solutions can reduce call wait time by 30% and produce up to a 370% three-year ROI. IBM watsonx Assistant can address complex tasks by providing intelligent customer care across all touchpoints with an SMB. It learns and improves automatically over time with every conversation.

Meeting the Needs of SMBs also Benefits Service Providers

If implemented correctly, these technologies can drive value for both SMBs and the enterprises that serve them. As the SMB grows and matures, the enterprise can meet the needs of the growing business through cross-selling of solutions. The SMB can stay with the same trusted enterprise for their operational solutions, and the enterprise can maximize the customer lifetime value from the SMB by providing solutions across various stages of the SMB’s growth.

Even if an SMB is not looking to grow, the enterprise that serves it can still provide strategic solutions that help the SMB increase operational efficiency. Generative AI for CRM, quicker close to sale, generated smart replies, and self-service options all contribute to this goal. By providing powerful and capable generative AI solutions, enterprises can meet the specific needs of their SMB clients and help them succeed.

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