Embracing the Cloud is Paying Off for U.S. Small Businesses, Says Local Search Association’s Modern Commerce Monitor™ Report
WASHINGTON (PRWEB) June 04, 2019 -- The Local Search Association (LSA) today revealed the findings of its most recent small business survey, the Modern Commerce Monitor™, Wave IV. The survey shows that small business adoption of cloud-based software has nearly doubled since 2016 and 55% of small businesses currently use at least one cloud-based tool to run their businesses, with that number expected to climb to 75% within another two years. The findings were announced at the LSA Localogy Engage event in Washington, D.C.
Confirming that time is the most valuable commodity for small business owners, 81% of those surveyed cite saving time or gaining efficiency as the motivating factor for moving to the cloud. This was contrasted by only one-quarter of small business owners saying cost savings were the reason for moving to the cloud.
Running small businesses via cloud-based applications is reaping dividends. Small businesses using cloud solutions spend 70% more time with customers, and 60% more businesses that use cloud solutions report they are in revenue growth mode. Other benefits cited include higher customer satisfaction, new market opportunities and lower error rates.
“The payoff for small businesses that embrace the cloud is clear, but the Modern Commerce Monitor™ results also suggest that the small-business software industry could be doing a better job of building user friendly software,” said Bill Dinan, president of the LSA. “Despite the incredible gains in small business cloud adoption, the industry needs to include more user feedback in the process of building and improving the solutions.”
A staggering 62% of small businesses say they fail to use all of the features in the software they buy, and nearly half say their use of small business software has tapered off after initial heavy use, a signal that the software did not become mission critical to their business. In addition, 76% of those surveyed suggest product simplification as a way to drive higher usage and engagement.
At the Localogy Engage event, the LSA will also release its SMB market forecast, which shows that the small business cloud industry will generate upwards of $85 billion by 2024.
The Modern Commerce Monitor™, formerly known as the Tech Adoption Index, is an annual survey of US small businesses. Wave IV of the Modern Commerce Monitor™ was conducted in May 2019.
ABOUT LSA
The Local Search Association (LSA) is a not-for-profit association of more than 300 media companies, agencies and technology companies that enable enterprises and small businesses to achieve more within local markets. From Facebook, USA Today and Google to DexYP, Microsoft and Yelp, LSA members represent today’s top organizations serving businesses with a local presence. LSA is dedicated to helping its members succeed through data and insights, education, events, consulting and more. For more information and to become a member visit https://www.thelsa.org.
Meggan Manson, Young & Associates, 301-371-6995, [email protected]
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