The advancement of technology in Indonesia, supported by adequate infrastructure and regulations, has significantly driven the growth of the digital economy.
The e-Conomy SEA 2022 report by Google, Temasek, and Bain & Company estimates that Indonesia’s digital economy will reach $146 billion by 2025, up from $70 billion in 2021.
Data from the Indonesian Internet Service Providers Association in 2021 indicates that this growth is also aligned with the increase in internet penetration, which reached 73.7 percent of the total population in 2021.
This presents a significant opportunity for micro, small, and medium enterprises (MSME/UMKM) to leverage technology in their marketing strategies.
However, many UMKM still have not fully utilized the potential of marketing platforms, including e-commerce.
In 2022, the number of e-commerce businesses in Indonesia increased by 4.46 percent to 2,995,986 enterprises.
Nevertheless, data from Statistics Indonesia (BPS) in 2022 shows that many UMKM have yet to transition to these platforms.
The 2023 eCommerce Survey, conducted by BPS in 4,252 census blocks in 302 regencies/cities, revealed that most UMKM still feel more comfortable selling directly (offline) and lack the knowledge and skills to sell online.
The Directorate of Community Service at Universitas Gadjah Mada organized a training event to address UMKM’s issues and needs for optimally growing its customer base through marketing strategies.
The event, packaged as UMKM Class Series #6, “Attracting Consumers Through Growth Hacking, Mobile Apps, and Facebook Ads,” featured speakers Rizqie Indra Maulana, Chief Marketing Officer of Berlima Digital; Deddy Effendy, CEO of Palem Craft Jogja; and Adrian Leo Hadipradata, CEO of Berlima Digital, with moderator Dr. Agus Ngadianto, a lecturer at the UGM Vocational College.
Rizqie Indra Maulana discussed Growth Hacking Strategies for UMKM and Quick Tricks for Business Growth, noting that in the ever-evolving digital era, Growth Hacking strategies are highly relevant for UMKM to achieve rapid and sustainable customer growth.
A 2021 study by Startup Genome found that companies using Growth Hacking strategies could grow 3.5 times faster than those that did not.
“With innovative and experimental approaches, Growth Hacking allows UMKM to discover new ways to increase customer numbers and sales conversions,” Maulana said.
Deddy Effendy, who discussed Online Selling Based on Mobile Applications, explained that mobile apps are a highly effective way to bring UMKM products or services closer to consumers.
Data from We Are Social and Hootsuite in 2023 shows that 90 percent of internet users in Indonesia access the internet via mobile devices. Meanwhile, the time spent by users on mobile apps increased by 30 percent in 2021.
“This shows the importance of mobile apps in providing a more personal shopping experience and increasing consumer engagement,” Effendy explained.
Adrian Leo Hadipradata, who discussed Facebook Ads: Profiting Without Loss, explained that using Facebook Ads is a highly potential strategy for UMKM.
With over 140 million monthly active users in Indonesia in 2021, this platform offers significant opportunities to reach many consumers.
“A report from Social Media Examiner in 2021 revealed that 72 percent of marketers using Facebook Ads reported the effectiveness of ads in increasing sales and brand awareness through this platform,” Hadipradata said.
Dr. Rustamaji, Director of Community Service at UGM, stated that UMKM must incorporate technological advancements into its businesses.
According to him, even though the world is currently facing various crises due to wars in different regions, the most essential thing for UMKM entrepreneurs is to keep their products sold, known, and in demand.
Moreover, he added that UMKM entrepreneurs must begin preparing for product diversification. Product diversification has become necessary, as evidenced by Indomie’s various flavor variants, which typically last only two years.
“With this phenomenon, UMKM entrepreneurs must always be prepared for market saturation in tastes and offer alternative products to keep the market stable,” Dr. Rustamaji said.
Author: Agung Nugroho
Post-editor: Lintang