At The McGraw Council Membership, we have been pushing digitalization since our founding last year because we knew and recognized the significance of the “COVID economy” and how it changed consumer spending habits. We all know that going virtual changed the way we purchase products and services and while it is not surprising, it is still amazing to see such a large shift: global purchases taking place online increased by over $900 billion in the year 2020 (Repko, 2021). With such a massive shift, we know for a fact this will change our economy going forward. There are, however, certain areas impacted more than others.

One of the more significant, and what many believe to be permanent, shifts in consumer spending relates to grocery and discount stores, specifically in that many of these purchases will take place online rather than in-person going forward (Repko, 2021). The questions we all have about retail and restaurants, however, remain somewhat unclear. Small businesses will have to continue testing and adapting to gain a deeper understand what their customers need and want. One key component to watch, however, is the experience. If you are not delivering an in-person experience, your product/service delivery will become more and more digital.

Unfortunately, this is not always a simple process. It takes research, time, and money to digitalize one’s business. Thanks to the heavy-handed government regulations that shut everything down and continue to limit small businesses, however, these small businesses were forced to bear the burden of such efforts with virtually no warning. As a matter of fact, it frequently costs more than $3,500 for one project in digital marketing alone (What is Digital Marketing and How Much Does It Cost, 2021), which does not account for digitizing product/service delivery. This is one area where small businesses need help.

Let us be more specific. Rather than the state of New York spending $2.1 billion on illegal immigrants (Correal & Ferre-Sadurni, 2021), the state should use that money to assist small businesses in digitizing their businesses in response to the government mandates and regulations. The government created many of the economic issues we see today because of their mandates and regulations – restated, they caused the problem. Consequently, they now have a hand in fixing the problem. If the government is going to spend $2.1 billion, it should be spending it on fixing the problems they created. The small business community needs as much support as it can get and to think that non-citizens are getting support at the expense of the small businesses is simply appalling. Each and every one of us should take issue with this. Support your local, small businesses and help them as much as you can; they have been there for us, now we need to be there for them.

John M. Beaman
President, The McGraw Council Membership, Inc.
04/08/21

 

 

References

(2021). What is digital marketing and how much does it cost? PriceItRightHere.com. Priceitrighthere.com. Retrieved from Compare Digital Marketing Services Prices In 2021 | Cost Guide | PriceItHere.com

Correal, A. & Ferre-Sadurni, L. (2021). $2.1 billion for undocumented workers signals New York’s progressive shift. The New York Times. Nytimes.com. Retrieved from $2.1 Billion for Undocumented Workers Signals New York’s Progressive Shift – The New York Times (nytimes.com)

Repko, M. (2021). Consumers spent $900 billion more online in 2020. Here’s who will keep the biggest gains. CNBC. Cnbc.com. Retrieved from Consumers spent $900 billion more online in 2020, Mastercard report says (cnbc.com)