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Technology provides businesses with opportunities to attract new customers and increase their sales. However, with those opportunities come threats. A business may find itself struggling to maintain sales when technology means that it is competing against more businesses.

Many types of technology will have an impact on the sales activity of a business. Examples include digital communication systems, e-commerce, social media and payment methods.

The impact of digital communication systems on sales activity

The easier it is to contact a business – whether by phone, by email, through a website or using a mobile app – the more likely a customer is to trust that business and make a purchase. Using digital communication effectively can therefore help a business to increase its sales.

The impact of e-commerce on sales activity

The positive impacts of e-commerce on sales include:

• businesses can attract customers across the world
• businesses can sell 24/7
• a well-designed e-commerce site can help a business look professional, which may attract customers
• prices can be updated easily, making it possible to react to competitors
• customers can see which items are in stock

The negative impacts of e-commerce on sales include:

• more potential competition, as customers are not restricted to local businesses
• the business must consider logistical issues around delivering orders to customers
• providing customer service to a large customer base may be challenging for a small business
• customers can compare prices with those of the business’ competitors
• stock records will need to be kept up to date

The impact of social media on sales activity

Social media can be used to run sales and marketing campaigns and to interact with customers. Having regular direct communication in this way can help to build customer relationships, which can help to increase sales.

Poor responses to social media posts can quickly be shared with other customers, which can be very damaging to the reputation of a business and lead to a fall in sales. Good responses can have the opposite effect, leading to increased popularity and sales.

The impact of payment methods on sales activity

Making it easy and convenient for customers to pay for products and services means that they are more likely to make a purchase. Businesses that only accept cash may find it increasingly difficult to attract customers.