How to support your small business customers better with SKU-level data
When it comes to small businesses, their operations may be small but their impact is mighty.
In the U.S. alone, there are 30.7 million small businesses which account for 99.9% of all businesses, according to the Small Business Administration (SBA). Add to that the growing number of jobs these businesses provide - 1.5 million annually, to be exact - small businesses are responsible for 64% of total new positions created in the U.S. (per Fundera.)
Despite the magnitude and impact of the small business landscape, many banks and credit unions continue to overlook this segment, forcing small business owners to turn to alternative providers that directly compete with traditional institutions. What does this mean for both small businesses and financial institutions?
Supporting small business customers with SKU-level data
The average small business typically only holds a 27-day cash buffer in reserve, wedging many businesses between a rock and a hard place when that buffer runs out. Accessing better, more comprehensive tools and services from their banks and credit unions can quite literally be the difference between financial life and death for small businesses.
So, how can institutions fill this need, implementing strategies to better serve their business customers and set them up for success in the future? The focus should be on providing the right financial tools and guidance to navigate any economic landscape and help ensure these small businesses can prepare for the future. Here’s where contextual, SKU-level data can help.
How Joe's financial institution helps him through SKU-level data
Let’s consider Joe, the owner of his family’s Italian restaurant. He recently reopened his doors, offering curbside pickup, delivery, and limited capacity seating.
While he may be back in business, he’s still looking for ways to cut costs and make up for lost revenue. Luckily for Joe, his bank has partnered with a leading SKU-level data provider to help him better understand where his money is going and how he can save. For example, the bank can detail how much Joe has spent on plastic utensils and takeaway boxes over the past several months, then suggest restaurant suppliers in the area that offer these products at a lower cost. And, through Joe’s mobile banking app, he can easily upload, categorize, and organize receipts related to his business expenses, helping him prepare for tax season or organize materials for his Paycheck Protection Program (PPP) forgiveness application.
How Polly's financial institution puts SKU-level data to work to help her launch a new business
Consider Polly, a new would-be small business owner.
Polly was recently furloughed from her corporate job and has decided to sell her homemade jewelry on Etsy. Although Polly has made some extra cash, she doesn’t think it’s enough to open a business banking account at her credit union. Like Joe’s bank, her credit union has partnered with a SKU-level data provider, allowing Polly to easily separate her business and personal expenses. She now has more visibility into her finances and can budget accordingly. And as a new entrepreneur, Polly can certainly use the help to start, and eventually grow, her business. This data and visibility will also allow the credit union to help move Polly to a business account when she needs additional services like a line of credit.
Joe and Polly are two examples of how harnessing SKU-level data can help financial institutions understand who their customers are and their timely financial needs. Without these details, Joe’s bank wouldn’t be able to provide the additional level of support he needed, and Polly’s credit union might not have known when to offer expanded services.
Why SKU-level data matters
Now more than ever before, institutions have to prioritize small business banking and offer enhanced budgeting and expense management tools to help businesses’ hard-earned dollars go further. Whether your customer is Joe (an established business owner) or Polly (an upcoming entrepreneur), small business customers need more from their financial institutions and SKU-level data can provide invaluable insights that help you level-up your support for those businesses.
Looking to get more out of your transaction data? Contact us to see how SKU-level data can help transform your digital experience.