06 June 2018
SME Indonesia goes digital
By Renna Magdalena

SME Indonesia goes digital





As we all know, small business or SME business is one of the most popular businesses. SME Business become one big challenge for entrepreneurs who just pioneered. Many people think the results obtained from SME business quite compete with other big business, let alone just need a small capital to be able to start.

Facts of SME

Small and medium enterprises or commonly referred to as SME in Indonesia in 2016 is estimated to reach 56 million businesses. Of the millions of SME that have crawled the world of work in Indonesia, there are 107 million people who have laid their lives on the SME. Through this SME the people of Indonesia are required to be more creative. Creative in creating products to market the product.

Characteristics of SME in Indonesia.

There are two ways that can be taken to market the business that we manage and both can be done simultaneously. First is marketing conventionally and the second is online marketing. The second way is most desirable because it requires a small capital and the acquisition obtained is quite large.

However, there are special characteristics of SME actors in Indonesia that are different from foreign players: if outside it SME are familiar with the technology. They from small are already familiar with business science and do want to become entrepreneurs. If in Indonesia, many SME because of economic needs. The power of our SME is in creativity and not afraid to try new ones.

SME are already using online marketing

Of the millions of SME in Indonesia, only 10% are just implementing an online marketing strategy. Online marketing strategy can be defined as how to market a product or service where the sale through the internet. From the survey results show, SME that apply online marketing strategy earnings 80% percent higher than with conventional actors. In addition, there is a potential 1.5 times greater to absorb labor.

Through this online marketing, reach becomes wider and unlimited. Consumers can find our products wherever they are as long as there is internet to access them. This online marketing provides more convenience for its customers, including the ease in choosing goods, payments, and customers do not need all the way to come to the store. Customers simply sit sweet at home with their gadgets and internet access to access the virtual store.

Indonesia has now entered the era of "borderless world" where the majority of residents already have internet access. Recorded in 2016, 132.7 million of 256.2 million Indonesians (51.8% of the population) have been connected to the internet estimated by 2020 internet users in Indonesia to 250 million inhabitants. For SME entrepreneurs this means the implementation of online marketing strategies is no longer an option but a necessity.

If SME entrepreneurs do not implement an online marketing strategy as part of our overall SME product marketing strategy it is very risky to lose significant revenue and will ultimately be defeated by our rivals.

The importance of online marketing strategies for SME is not only applicable to SME doing business online only. Online marketing strategies are equally important for SME that most businesses do offline such as furniture stores, restaurants, cafes and more.

10 online marketing strategies for effective SME.

1. Create a business website

The basis of online marketing is having your own business website. Although now there are social media and online forums that can be used as a means of promotion, the website still plays an important role in online marketing for the long term.

This is because in general people who are new to our business will definitely search our website first before looking for information in another way. In addition, the website is also an effective means of online marketing because of its function as an "anchor" of the activities of other online marketing subcategories such as content marketing, email marketing, search engine marketing, social media marketing and others. Moreover, at this time making the business website does not require a large cost (3 million of beginning and 1.5 million per year) and can be done without having special knowledge in the field of information technology.

2. Focus into one or two social media

It should be recognized if using all social media for online marketing is not easy and time consuming is not small. Social media marketing is becoming increasingly difficult as we try to use all the social media for our online marketing.

Business SME generally have limited resources; therefore, it would be much better to focus on one of the best social media for our business. With a focus to one social media we can learn faster to master the ins and outs of online marketing using social media we can also can build a better momentum where with a focus to one social media, the number of our followers will be more because we have a great presence in social media. Choosing the social media is best for our business. Social media is the best for our business is social media where our target customers gather and actively socialize. For example, if we have a restaurant business that has a target customer of young people then we have the opportunity to get bigger new customers with focus on Instagram compared with focus on twitter. Search engine optimization (SEO) based on live stats internet data recorded every day there are more than 3.5 billion search through google search site. With the large number of google search engine usage in searching for information maximize our website to be easily found by search engine is a must. Optimization of a website to be easily found in search engines and appear front page this is commonly referred to as SEO. SEO requires a deep enough knowledge and takes a little time to master SEO. However, we can start by applying SEO basics such as making sure to use h1, h2 and h3 title tags effectively, inserting relevant keywords in headlines, using SEO friendly url’s.

4. Blogging / content marketing in the internet the information is interesting and the attention of readers / viewers is a very valuable asset. Therefore, publishing articles that are relevant to our business by blogging is one of the effective online marketing strategies for SME. By writing and promoting interesting articles on areas related to business we can build a reputation that we know what we do it. In the long run it helps our business to gain the trust and attention of our business prospects. To get greater effect from blogging or content marketing, we also need to ensure SEO implementation of articles or content we have created.

5. Email marketing email marketing is one effective means of online marketing not only to increase sales but also build relationships with our customers. If our customers and business prospects have given us their email address, we can send you emails about promotions, events or important information about our business. If our business does not have a promotion or event, we can also send interesting information related to our business to build a more real relationship with our customers. An online marketing strategy in the form of email marketing essentially builds a list of email addresses of customers and prospects.

6. Customer review and testimonial review and testimonials from our customers is one of the most effective ways to build our prospective customers' confidence in our business. Ask our customers to provide testimonials. If possible also ask for our customers' willingness to include their photos together with our store, products or employees. Including images of the effectiveness of the review and testimonials given will increase and attract more attention. Opening reseller program, the benefits of opening a reseller program is unquestionable. By opening a reseller program, we can expand our business marketing reach with relatively little effort. In addition, reseller programs do not need to spend a large cost. Therefore, reseller program is one of the effective online marketing strategies for SME. But please note that reseller program can run well we need to apply a minimum selling price policy for our reseller. This is important to prevent price wars among our resellers. Blogger reviews from bloggers are not only useful for attracting readers' attention to our products and business.

Reviews from bloggers can also increase the ranking of our website's search engine by increasing the number of links (links) that became one of the important factors of the high ranking of search engines a website. A popular blog can attract tens of thousands or even hundreds of thousands of readers each month and the readers of these blogs usually have a high trust on the blog author. This means that by getting reviews from these bloggers we have the potential to get additional visitors from the blog readers significantly. Therefore, getting a review from blogger is one of the effective online marketing strategies for SME. Use Facebook ads inIndonesia Facebook has monthly active users over 88 million.

While Instagram is also owned Facebook has 22 million active monthly users. With such a large amount there is enormous potential to reach the market through Facebook and Instagram. But with the decreasing organic reach (unpaid) from the post of a "Facebook page" (where it is predicted the organic range of Instagram will also decrease) then to be able to reach prospective customers more effectively we need to use Facebook ads.by using Facebook ads we can reach Facebook and Instagram users who have an ideal customer profile so that the conversion rate of our ads will be relatively higher than ads that are not targeted. Except Facebook ads has a cost affordable cost-per-click (CPC) advertising that can be used as one of the most effective online marketing strategies for SME.10. Endorsement along with the rise of online business, product marketing strategy followed. If you are used to using Instagram, you are familiar with endorsement. Later, online business players began to learn marketing strategies that include new in this business world.

Endorsement itself comes from the word endorse which means giving advice. In terminology, endorsement means asking for social media programs to promote the company's products. The chosen public figure is not arbitrary; business actors usually choose social media program that has many followers in his account. how it works endorsement, broadly selected selebgram promote the product by posting photos of the product in his account. For those of us who are aggressively launching marketing, endorsement can be one of the recommendation of marketing method. Capital for endorsement is not as expensive as advertising cost on television. We simply send our product to the programmer who becomes the endorser and its fee. Only in this way, our product has been seen by millions of people. Indirectly also our marketing costs can be suppressed. Program is one of public figure. The followers will tend to imitate and follow the style of his idol's program. That way many people will be interested and order products promoted by the program. This certainly encourages sales to be increased effort from the government: kampung SME digital in reality, there are still many SME who do production, marketing and promotion are traditional even not yet using the sophistication of technology. One of them is the progress of information technology that can be utilized by SME for promotion, marketing and sales increase due to cost-effective, time-saving and easy to access. Therefore, as an effort to assist Indonesian SME in order to modernize and increase the competence of SME through information computer technology (ICT) then pt.

Telkom built kampung SME digital. kampung SME digital is the implementation of pt. Telkom Indonesia as the state-owned enterprise in supporting the government policy by using the concept of kampung SME which can utilize information technology comprehensively and interactively to support the business process running in the central SME or SME centered in a certain location in order to realize the SME maju, mandiri, and modern with a touch of ICT technology. In developing this digital kampung SME the pt. Telkom Indonesia uses abc-gm strategy by involving the parties a = academia, b = business (telkom, banking), c = community (SME) and g = government (government) and media (print, electronic and online). As for the parties perform their roles as follows:

1. The academy as the drafter mentoring as a consultant in providing business input enter the process start raw materials, processing into ready-to-market materials, halal certification, packaging so that the product more attractive, and marketing both conventionally and on-line.

2. Business side will build the infrastructure of internet access network along with its device (provision of pc, , product knowledge) and application needed in SME business so it is expected that SME players in running their business have come into contact with digital in the form of application of information technology to bring and help them to be more advanced and lifted upward as well as financial assistance for business processes run by SME to advance ahead.

3.The community is a party that will be assisted so that business can be more advanced, independent and modern.

4. The government as the regulator in this case will provide coordination assistance with the stakeholders so that the perpetrators of SME easier to run their business either in the form of ease of obtaining SIUP, halal label and other legality permit.

5. Media party Helps to promote SME to the public at large so that all communities know the existence of SME in the surrounding area which will also affect the perpetrator increase in turnover of SME the consequences of online marketing when the perpetrators of SME choose to goes digital there are consequences that will bear that is the problem of operating discipline is not the same as offline business: online, we cannot operate at will. In fact, we must provide 24 hours and 7 days a week. Cannot, online today, continue tomorrow offline. We will be left by the buyer.

In the online business it's a major customer trust issue. In order to maintain business in the digital age, SME must have a strong concept of engagement with customers, suppliers, and other ecosystems. Another consequence of goes digital is that customers cut the path of interacting with the seller. If the seller is not ready, for example the supply strategy is immature, there can be a scarcity of stock. Edge buyer blurred because when shopping no goods. Ethics in online marketing. Another thing that must be considered SME players when deciding goes digital is the ethics of the use of communication channels used. "now many marketplaces are available and free. Can open your own site, have a blog, go to forums selling, or selling in social media and messaging applications. Take advantage of which is effective and appropriate to the ability. But do not forget one thing that is ethics. Remind him, communication in cyberspace and real no difference. Ethics should still be held. If every day we bombard people with information via broadcast message / post and continue to channel, it should be evaluated. Do-do not even make people disturbed. So, communicating like in the real world with attention to ethics and norms. Each customer has their own value from our products that will be fruitful as a positive result, even can also negative. By giving the best service to every customer, the name of SME business we will be more known through word of mouth. It is one of the free promotions that can be obtained. There have been many cases that have made mouth-to-mouth the perfect promotion to support SME businesses. Also make sure the photos are displayed in accordance with the original. And use a reliable delivery / delivery service