A report by Viffa Consult finds that SMEs that have adopted e-commerce and digital practices have enjoyed the benefits as both existing and new customers have been able to easily access products and services locally and internationally.
SMEs have also adopted various strategies that have proven to attract more customers and traffic to their businesses.
Local businesses have adopted means to ensure their customers are satisfied by maintaining excellent customer service between the business and the customers.
Small business entrepreneurs have now focused on selling high-quality products which have become a key reference point for Kenyans shopping online.
Due to the competitive nature of online platforms, these business owners have found it necessary to provide compelling value propositions to their potential customers alongside aggressive marketing.
"SMEs using Facebook and WhatsApp channels often sell through open or closed groups such as Klilimani mums among others," revealed the report.
According to a survey carried out in various counties, SMEs are deploying a variety of marketing strategies with the majority focusing on selling existing products to both current and new customers.
"There is also a notable trend of SMEs closing shop to open new ventures or diversifying by opening new ventures leading to the application of innovation and aggressive marketing strategies," read the Kenya SME Go-To Market 2021 Report.
Customers have also proven to be more attracted to businesses with low costs of production which reflects in the lower prices.
"This is risky due to the fact that it leads to thin profit margins hence breaking even is made impossible as well as exposure to stiff competition from well-capitalized competitors leading to closing of business," read the report conducted by Viffa Consult.
The report also revealed that many businesses that had not adopted e-commerce were mostly limited by lack of finances and technical knowledge; lacking compatibility with target customers, and the inability to evaluate e-commerce cost to benefits.
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