Indonesia, in the Midst of Mainstreaming Islamic Social Finance

February 27, 2021

By Abigail Masters, Ebi Junaidi and Muhammad Ishak

With Indonesia being home to the world’s largest Muslim population the role Islamic Social Finance plays a dynamic and significant part in the nation’s development landscape. In recent years, Indonesia has witnessed a shift towards state implemented social security and increased social welfare policies. The Asian Financial Crisis and now the COVID-19 pandemic has created a high demand for ways to address poverty and inequality amongst Indonesian populations.

At present, social security policy structures being in their formative years, alternative solutions must be looked for. Islamic social finance, in particular Islamic Non-Governmental Organizations (NGOs), have long played a vital role in providing much-needed services and development programs in necessary areas such as healthcare, education, religious infrastructures, disaster relief and entrepreneurship.

In the present day, this opportunity for Islamic social finance to be considered as a pillar within the development is not just being realised by NGO’s but also by the government of Indonesia itself, setting up institutions to centrally regulate as well as manage and distribute Islamic social funding. Badan Amil Zakat Nasional (BAZNAS) concentrated on the Islamic financial obligations or zakat and Badan Wakaf Indonesia (BWI) concentrated on the Islamic endowment fund or waqf. The realm of Islamic social finance represents an exciting and relatively unexplored opportunity for development initiatives within Indonesia, however, there are many factors to consider and unique challenges that arise with
this opportunity.

Global comparison

Indonesia is not entirely unique in its social policy. In many ways, there are several elements that are somewhat similar to social welfare systems and policies seen around the world. Before the introduction of Sistem Jaminan Sosial Nasional (SJSN) in 2004 and the implementation of universal healthcare in 2014, there were very few social security policies in place, other than small scale, temporary programs for those living in extreme poverty. Where the similarities between the two states conjoin is in the emphasis on NGOs as key stakeholders in the development and as service providers that would otherwise be the responsibility of the state itself. What differs, however, is the scale. According to the U.S. Department of State, there are approximately 1.5 million registered NGOs in America alone (2021). Additionally, the scale of these NGOs is in general, much larger with some of the largest NGOs in America such as the Red Cross, bringing in annual revenues of over 2 billion USD from 2018-2019 (Forbes, 2020).

With such a disproportionate difference in NGO landscapes, the question begs about what can be done to bolster NGOs in Indonesia. The answer is not simple yet, a look towards philanthropy culture is necessary. Institutionalised philanthropy is still very new in Indonesia, with very little focus given to the private sector and instead to public individuals (Davis, 2013). One of, if not the major factor contributing to this, is the legal barriers and lack of incentives for companies to participate in philanthropy. In 2015, Indonesia ranked 56 out of 64 countries in terms of philanthropic freedom, indicating that the regulations and barriers in place did not easily allow institutionalised philanthropy (Hudson, 2015). This is despite donation and giving being entwined in the Muslim majority country’s essence.

Corporate, foundation and high income individual-based philanthropy are incredibly effective methods of fundraising for NGOs in the United States.

In 2018, Indonesia ranked first in the CAF World Giving Index, and in 2019 (Charities and Aid Foundation, 2019) was acknowledged as the only country in the past decade that had consistently improved its score. The rationale for this report focuses on the general public’s giving behaviour, assessing things such as time volunteered, charity donations and helping a stranger. When considering that Indonesia is the sixth greatest country of wealth inequality in the world (Oxfam, n.d.), it is not the general public at fault for the lack of funding for NGOs, but rather a systematic concentration of wealth at a top-level, and a lack of incentive for said wealth to be distributed.

Corporate, foundation and high-income individual-based philanthropy are incredibly effective methods of fundraising for NGOs in the United States. The National Philanthropic Trust estimates that approximately $309.66 billion USD was given by American individuals in 2019, with corporate America donating $21.09 billion and foundations contributing $75.69 billion (NPT, 2020). It is important to note that 2019 was exceptionally good for philanthropy in the U.S. which as a trend, tends to fluctuate depending on economic circumstances in the U.S. stock exchange. Regardless, philanthropy is a force to be reckoned with in charitable giving. All one has to do is look at the financial reports of high profile organisations such as the Red Cross to see the long list of names of high profile donators such as the Jordan Family, the Bullocks and Hiltons amongst a plethora of others. The endowments and foundations of high-income private individuals and or/families represent an astronomical pool of wealth. The Bill and Melinda Gates foundation alone is self reported to hold an endowment of $49.8 billion USD.

This isn’t to say that philanthropy in Indonesia is completely non-existent. Social Bella Indonesia a well known Indonesian beauty/e-commerce platform recently completed their #careonforward campaign. Which saw 10% of proceeds (in the form of care packages) from sales on their e-commerce site donated towards doctors, nurses and health care workers. The startup claimed they had raised over US$58 million dollars in funds for the campaign. This is but one example of a growing push for participation in philanthropy and corporate responsibility within Indonesia. Not to mention the donation worth IDR 40 billion given by Paragon Technology and Innovation, the producer of major Halal cosmetics Wardah, in the early time of the pandemic.

All of which, should be considered when attempting to use Islamic social finance as a primary source of development funding. While President Jokowi’s attempt to revitalize the zakat space with government-backed management and support, and while the funding pool in this space is vast, it may prove more effective to look towards other states such as the U.S. and prioritise corporate giving as well as high-net-worth-individuals (HNWI), rather than placing the sole responsibility on the shoulders of the people.

The recent launching of the National Movement of Cash Waqf has created controversy in public. Out of the announced IDR 180 trillion cash waqf potential, the middle-class Indonesian contribution was expected to mount IDR 130 trillion or over 72% of the potential. Although the controversy was claimed due to the political division and lack of waqf literacy, the story might be different if the launching was accompanied by the announcement of contributions by major Indonesian HNWIs, especially to those close to the current government, to existing waqf institutions. In the end, waqf’s role in reducing economic inequality can be realised by the encouragement of the country’s HNWIs to lend hands-on this movement. At the same time, Islamic teaching does emphasize the contribution of the best assets owned if a Muslim wants to contribute to this religious giving.

Islamic Finance Potential

Indonesia has the largest Muslim population in the world and therefore the role of zakat, waqf, and other forms of Islamic philanthropy or obligations should not be underestimated. Baznas estimated the potential of IDR 327.6 trillion of zakat collection in 2020. Some academics calculated even a higher figure, reaching up to 500 trillion. Yet, the realization was still a disappointing 10.2 trillion or around 3.1% (BAZNAS).

The same phenomenon has actually happened in waqf. BWI predicted that the annual contribution in waqf assets is IDR 2000 trillion and cash waqf will reach around 180 trillion rupiah. The realization figures by BWI is a low 819 billion since the law (UU No.41 2004) allows cash as an object of waqf. However, these potentials cannot be seen as impossible to be realized. The UNDP, for example, highlighted in its collaboration with BAZNAS, the opportunity for these areas to contribute to sustainable development goals is simply too large to ignore (Pickup & Rehman, 2018).

The steps towards implementing more effective, long term and targeted methods of regulating, collecting and distributing islamic social finance contributions could have a marked effect on development within Indonesia. An idea to implement it in tandem with corporations- in particular, those who benefit off of low wages and labour, as well as Indonesian high-net-worth-individuals (HNWIs) should also be addressed in development. Whether it be by societal pressure or economic incentives in the form of regulation/taxation relaxation the distribution of wealth may be easier and become more popular.

Challenges to Islamic Social Finance

As with many other social finance initiatives, Islamic social finance faces a range of challenges both unique to the system and not. One of the challenges that Islamic finance institutions face is trusting namely, regarding the distribution of programs such as zakat, waqf, and sadaqah. To begin with, there is already a lack of awareness regarding the obligation under Islam to participate in giving zakat. It is estimated that only 4.4% of the potential total of zakat was given in 2019 (Yuniarti, 2021). Combined with a lack of awareness is the challenge of calculating zakat itself. Zakat encompasses not just liquid wealth or salary but the value of one’s accumulated assets, both liquid and hard. For many, this can prove difficult to calculate and not just for the individual but institutions as well. In short, literacy is the key starting point to mainstreaming Islamic social finance into Indonesia development framework.

Additionally, a major issue when considering obligations such as zakat is that many people prefer to give their money directly to the beneficiary, whether this be a person in need, a colleague or a friend. Some argue that this was due to the lack of trust in large organisations- it is estimated that only approximately one-quarter of zakat is given through formal organisations (Noor & Pickup, 2017). We also found that such a direct method is also being encouraged by the teaching of Islam. Indeed, direct distribution to those in need from the rich to the poor has been a source of social capital in many parts of Indonesian. We need to also acknowledge that the detailed demographic data that identify the needy is not simply available, to enable NGOs to lend their hand to those in need. The practice of direct giving is thus needed to lessen those who were left behind due to the data challenge.

A major issue when considering obligations such as zakat is that many people prefer to give their money directly to the beneficiary, whether this be a person in need, a colleague or a friend.

Reliable data as well as continuous donour, indeed, provide many challenges for sustainable and effective development within Indonesia. Without effective, centrally and formally managed channels for such large pools of funding the potential for implementing long-term, targeted programs and initiatives is much lower. Government institutions such as Badan Amil Zakat Nasional (BAZNAS) have attempted to remedy this by providing a verified, government-run institution to centrally manage Islamic social finance. However, the department still faces hurdles the government and President Joko Widodo himself have pushed hard in recent months to bring Islamic social finance and BAZNAS into the spotlight (Yuniarti, 2021).

The issue of funding for Islamic social finance institutions (NGOs in particular) also provides a very large challenge in times of crisis. Many Islamic social organisations rely heavily on zakat contributions or from government/IGO funding. In 2018, Dompet Dhuafa the largest Islamic NGO in Indonesia gained approximately 48% (Dompet Dhuafa, 2019) of their annual revenue from zakat alone but for most NGOs, some surveys have suggested that 80-85% of funding comes from international donors (Davis, 2013). A lack of diversity amongst funding sources contains a significant risk for charities and NGOs, particularly in Indonesia. The risk of global crises or natural disasters, to which Indonesia is extremely vulnerable has the potential to devastate the financial stability of Indonesia’s NGO systems.

Conclusion

As previously discussed, the role of Islamic Social Finance is not without its challenges yet represents a viable option to help bolster the Indonesian development sector. Islamic Social Finance and all that comes underneath its umbrella do not represent a finite solution to the many challenges that have arisen in the development sector both pre and post COVID-19 but instead raise large opportunities for innovation. So too does the potential for improved and more comprehensive social security policies within Indonesia. The role of NGOs as primary on-the-ground suppliers of essential services is not sustainable in the long term without diversifying funding sources, this will prove difficult, if not next to impossible if the government does not actively participate in relaxing regulation or providing alternative solutions that encourage corporate philanthropy. With the effects of COVID-19 still developing it is essential that the development sector and support for social security continue to be prioritized in the coming months.

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About the Authors

Abigail Masters is a Bachelor of International Studies Student at RMIT University, Melbourne. Currently completing her final year she is also an intern with CORE Indonesia.

Ebi Junaidi is currently Director of Islamic Economics and Finance for Center of Reform on Economics (CORE) Indonesia. He is a lecturer at the Faculty of Economics and Business, University of Indonesia. His research interest is on Islamic social finance, Waqf, Risk and Time Preference and Financial Decision.

Muhammad Ishak is a researcher at CORE Indonesia, Jakarta, Indonesia. He completed his master in Islamic economics from University of Malaya. He is mostly interested in macroeconomics, monetary, and Islamic economics.

References

Charities Aid Foundation (2019, October). CAF World Giving Index 10^th Edition. https://www.cafonline.org/about-us/publications /2019 – publications / caf – world – giving – index – 10^th– edition?
Davis, B. (2013). Financial sustainability and funding diversification: The challenge for Indonesian NGOs. International Journal of Voluntary and Nonprofit Organisations. pp.1-26.
Forbes (2020). ‘American National Red Cross’. https://www.forbes.com/companies/american-national-red-cross/?sh=6d659e9132f8.
Hudson Institute (2015). The Index of Philanthropic Freedom. https://www.templeton.org/grant/the-index-of-philanthropic-freedom-a-ranking-of-philanthropic-freedom-across-countries
Noor ,Z. & Pickup, F. (2017. The role of zakat in supporting the Sustainable Development Goals’.UNDP & BAZNAS Indonesia.
Oxfam International (n.d.). Inequality in Indonesia: millions kept in poverty. < Inequality in Indonesia: millions kept in poverty | Oxfam International>.
Pickup, F. & Rehman, A. (2018, September 7). ‘Zakat for the SGDs’. UNDP. https://www.undp.org/content/undp/en/home/blog/2018/zakat-for-the-sdgs.html#:~:text=Zakat%20is%20a%20form%20of,percent%20of%20their%20accumulated%20wealth.&text=Inspired%20by%20the%20Muslim%20faith,only%20in%20Muslim%20majority%20countries.
Republic of Indonesia (1989). The 1945 Constitution of the Republic of Indonesia. Department of Information.
U.S. Department of State (2021, January 2020). Non-Governmental Organizations (NGOs) in the United States. https://www.state.gov/non-governmental-organizations-ngos-in-the-united-states/#:~:text=Approximately%201.5%20million%20NGOs%20operate,development%2C%20and%20many%20other%20issues
Yuinarti, F.R. (2021, January 12). ‘Indonesia could be Asia’s nextIslamic finance hub’. The Jakarta Post. https://www.thejakartapost.com/academia / 2021 / 01 /12 / indonesia – could – be – asias – next – islamic – finance – hub.html
National Philanthropic Trust (n.d.). Charitable Giving Statistics. https://www.nptrust.org/philanthropic-resources/charitable-giving – statistics /#:~:text=General%20Philanthropy,a%205.1%25%20increase%20from%202018.&text=Corporate%20giving%20in%202019%20increased,a%2013.4%25%20increase%20from%202018.&text=Foundation%20giving%20in%202019%20increased,a%202.5%25%20increase%20from%202018

What is Dogecoin and How Can I Make Money from It?

February 27, 2021

With the recent news of meme-driven stock frenzies like Game Stop, another one has risen from the grips of internet culture in the form of Dogecoin, the newest trending cryptocurrency.

Dogecoin is a cryptocurrency that literally started as a joke in 2013. It is a satirical homage to bitcoin, designed to serve no real purpose other than generating a few laughs. What started out as a practical joke in 2013 between software developers Billy Markus and Jackson Palmer, is now the world’s 10th largest cryptocurrency as of date.

It was initially named after an internet meme of a shiba inu dog and the then-popular bitcoin. Dogecoin was a marriage of these two sensations and started out as a form of satirical homage to bitcoin, with no real purpose other than to generate a few laughs from the internet folk.

Markus even makes to throw jabs at his own work, arguing: “The idea of dogecoin being worth 8 cents is the same as GameStop being worth $325. It doesn’t make sense. It’s super absurd. The coin design was absurd.”

Now, the stock price for Dogecoin is up by more than 1,600% this year alone, a chunk of its overnight growth being driven by celebrating cheerleading from the likes of Tesla’s founder Elon Musk, rapper Snoop Dogg, and Kiss singer Gene Simmons who all showed their verbal support from their social media accounts.

But financial experts advise trade enthusiasts to tone down the excitement, in fear of the already unstable stock market being even more unpredictable. Head of Research at dogecoin.com, Garrick Hileman, disclosed: “I do worry about all the attention paid to a cryptocurrency that historically has not seen real-world traction and is a bit of a joke—literally.”

Dogecoin creators, Markus and Palmer, coined their creation as the “fun and friendly internet currency”. They rode the hype about the proliferation of crypto coins at the times of its creation and paired it with an unlikely partner, a viral internet meme. Its humble beginnings were able to cultivate a community of traders who used their dogecoin coins to give each other small tips in online forums or band together to support social causes, such as using the money to sponsor a Jamaican two-man bobsled team in the Winter Olympics in 2014.

Where do I start trading dogecoin?

With all this information and history lesson about this viral cryptocurrency, how exactly can you use it to start earning some money? Dogecoin is relatively easy to secure and make money off of, as it’s supported by most trading platforms. There are also decentralized trading platforms that allow you to swap tokens.

You can buy dogecoin with a credit card on cryptocurrency exchanges such as Bittrex Global GmbH and Payward Inc.’s Kraken, as well as other popular trading platforms like Robinhood Markets Inc.

deVere group recently released a statement announcing they were going to add dogecoin to their crypto-trading app because of the surge of demand after Elon Musk’s tweets, prompting the deVere CEO Nigel Green to call the phenomenon “The Elon Effect.”

What can I do with dogecoin?

Even with the popularity of cryptocurrency in recent years, there’s still a long way to go for it to completely replace traditional payment services. Most conventional online retailers don’t accept cryptocurrency as a form of payment just yet.

However, there are websites selling copper tokens for $12 a piece through dogecoin. These tokens are stamped with a “D” and have “2014” engraved. Bitrefill also lets dogecoin traders buy gift cards for several retail platforms such as Amazon and Apple through dogecoins.

If you are already familiar with the trading scene, exchanges that trade bitcoin also let you convert any existing cryptocurrency you have into traditional currencies.

Conclusion

Even after a near-decade has passed since the creation of dogecoin, it has remained a nostalgic memory for the crypto industry due to its humorous origin that evolved into something no one expected it would. The dogecoin community is now growing, with more traders looking into securing their own stocks to get ahead of the curve.

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From Adam Smith to Karl Marx: How would digitalisation ‘age’?

February 27, 2021

By Dr Mandeep K Mahendru and Dr Anirudh Agrawal

The world is increasingly becoming digital, where our life-long earnings, relationships, secrets, property and personal rights are stored digitally in some cloud-based server. Current political, economic and social narratives on the depth and breadth of digitalisation are significantly positive, and public funds are diverted in re-organising education, markets and governance along with digital industrial requirement. The fact demonstrates that digitalisation helps humankind by making the world flatter, in making information access easy and democratized, has created multiple jobs and creating the governments more accountable. Internet and digitalisation have made governance easier and minimised information asymmetry. The associated opportunities have created a new generation of entrepreneurs and a new class of rich. The social rights activists advocate making the web and digital space more open, accessible, democratic, with minimal regulations. The markets, public sector and social sector (schools and universities) are encouraging utilisation of digital technologies, digital information and the internet. Our social and political contexts are moderated by how our social network responds or shares via social media.

While the advantages seem to outweigh the potential risks, we must critically reflect on the risks and threats posed to vulnerable individuals, social orders and nations through increased digitalisation¹. AI-driven digitalization has the potential to further deepen the vulnerability of the marginalised people, negatively influence labour markets, job security and wages. It has the potential to increase the risks of misappropriation of digital assets like bank accounts and personal data². This opinion piece describes the current state of “informed bewilderment”³, by contextualizing how the world changed from the times of Adam Smith’s free markets (the 1770s)⁴ to Karl Marx’s collective production system (1870s)⁵.

The markets, public sector and social sector (schools and universities) are encouraging utilisation of digital technologies, digital information and the internet.

Adam Smith wrote the Wealth of the Nations and the invisible hand theory during the late 18^th century when the international trade of Great Britain was booming, and the United Kingdom’s colonial powers were expanding. He theorized that markets work in perfect harmony when government intervention is least. The book was written at the beginning of the industrial revolution when the average English citizen wanted to design, innovate and produce. It was also the time when the per capita income of average English citizen was increasing at a rate never seen in its history. It was the time when the concentration of wealth was shifting from the then land-owning classes and gave birth to the new entrepreneurs (nouveau riche) of that time. For the moment, one must empathise with an average English citizen who had any land or job or proper education, where her future would be subservient to the landlords of the time. One should reflect how the economic boom driven by the Industrial revolution must have made the working-class aspire to become entrepreneurial, free-spirited and rich if only they could get funding and open their factory that produces goods from baby diapers to biscuits cloths to locomotives. Now, imagine the ruling class must be uncomfortable to see their powers over landless individuals diminished by the newly emerging class post-industrial revolution. The state must have been coerced to act and regulate industries and international trade to maintain the socio-political status quo. It is in this context that the wealth of the nation’s hold our greatest respect as it gave us a philosophical and rhetorical weapon to argue against the role of regulations by the state. The first movers (entrepreneurs) of 18^th century Great Britain did accumulate wealth and prestige.

Similar to the IR of the 18^th century, today’s digital age started in the early 1970s and continues to create an aspirational middle class and nouveau riche. Like the first IR, this digital age has opened new opportunities and kept challenging the ‘old money establishment’ through innovation in the field of technology, where working-class individuals with idea and skills have the potential to challenge capitalist establishment from old established industries by finding new digital worm-holes of doing business. The status quo of older generation institutions, rules and routines are challenged. For example, the traditional prints and tv media are challenged by social media, SEO based algorithms challenge traditional brick and mortar marketing, public policy work is reflected by the likes, dislikes, comments on web 2.0 and web 3.0 platforms like Twitter and youtube. Today’s top five most prosperous individuals and most innovative companies were all started by first-generation entrepreneurs in the digital space.

Almost 100 years after the publication of Wealth of the Nations, Karl Marx published Das Capital. The ideas of Karl Marx were antithetical to the political economy discussed in the writings of Adam Smith. While, Adam Smith advocated free choice, free will and lack of government intervention, Karl Marx advocated collective production and collective shared interests. What must have been the context? His was the time of the post-industrial revolution. The cities had gained tremendous influence. The large scale migration to cities had again created two classes: those who owned means of production and those who worked to survive. In such a context one may ask questions, such as, how could means and organisation of production change, such that class difference are minimum? Probably, Karl Marx evolved around the Hegelian counterfactuals, re-imagined the ‘power centre’ as the producer, owner, regulator in his works and ideas. Marx writings represent an era that marked the rise of capitalism gave rise to social injustice and the unrest that led to revolutions in Europe, particularly in 1848 and 1870-1871, de-legitimating monarchies and governments which showed a lack of empathy for the marginalised. His works and ideas provided the philosophical basis to challenge the then system of production, regulation and governance, where vox populi advocated for greater leverage income distribution and decision making both at the production side and the governance side.

The writings of Karl Marx legitimated the idea of a classless society. His writings were detailed, which included discussions on organisational design and the role of nation-state public sector development. The idea of a classless society gained prominence over a while. Growing tensions among those with capital, with power against those who had none eventually, led to multiple social and political protests and in some case resulted in regime changes and bloody revolutions. Among them, 1917 Russian Revolution is the most prominent example where the writings of Karl Marx were institutionalised into the creation post-revolution Soviet republic.

The recent accusations on social media’s role in influencing governance, politics, and choices are seriously undermining the state’s institutions and functioning.

As Digitalization is gaining prominence and there is greater social, market, and state support. Nevertheless, we are already facing severe challenges. “The concentration of globalisation of wealth, the permanence of unemployment, the lowering of wages have become real and troubling once again”⁶. The recent accusations on social media’s role in influencing governance, politics, and choices are seriously undermining the state’s institutions and functioning⁷. The markets are undermined by how well one spends on social media algorithms and social media influencers. The space for new and emerging brands is decreasing. The big click-based retail firms are promoting their brands and undermining the brands of small upcoming entrepreneurs. As observed during the times of Karl Marx, we might see the divide between the state and digital companies decrease such that they may occupy the same politico-economic space. The inherent fears of the majority are catapult using digital technologies and played against minorities and vulnerable. Just like the writings of Karl Marx and following political changes, we may see similar events unfolding as digitalization reduces the space for conversation and increases the class and capital divide.

Mark Twain along with several other philosophers have said “History repeats itself”. We believe that we are probably close to a similar intersection, where the events that led to the rise of totalitarianism and hyper-nationalism may again find their space. Hyper often preludes bloody struggles and profound institutional changes. It is, therefore, essential to be critical of digitalisation, the centralisation of data storage in the hands of few companies, ownership of personal and financial data in the hands of few.

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About the Authors

Dr Mandeep K Mahendru is a senior researcher at State Bank of India. Her research interests are primarily at the intersection of public finance and social well-being. Her research assists the bank in deciding policy based financial instruments helping the poor make informed decisions. Her work has been cited in multiple Indian government reports related to public finance and social well-being. Dr Mandeep also teaches finance and accounting in Delhi University and Indraprastha University.

Dr Anirudh Agrawal is a professor at FLAME University India and a researcher at COPENHAGEN BUSINESS SCHOOL. His research interest lie at the intersection of Finance, Technology and Social well-being. He has published multiple peer reviewed articles and edited volumes on impact investing, digitalisation and entrepreneurship. Previously, he worked as a development consultant at Frankfurt School of Finance and Management.

References

http://dasfilter.com/gesellschaft/understanding-digital-capitalism-what-time-are-we-living-in-an-introduction
https://blackwells.co.uk/bookshop/product/AI-Superpowers-International-Edition-by-Kai-Fu-Lee-author/9781328606099
del Cerro Santamaría G. The Network Society: A Cross-Cultural Perspective. International Sociology. 2007;22(2):213-216. doi:10.1177/0268580907074549
https://www.jstor.org/stable/2709034?seq=1
https://www.britannica.com/topic/Das-Kapital
https://www.nytimes.com/roomfordebate/2014/03/30/was-marx-right
https://digital.hbs.edu/platform-rctom/submission/impact-of-news-digitalization-on-democracies/

Managing Remote Teams: How To Do It Like A Pro

February 26, 2021

You’re an entrepreneur or a business owner in general and you’re doing your absolute best. It’s been difficult in the last year, but you’re finally at a point where you are – or are about to be – managing a team. In a trend representative of the times and of growing popularity worldwide regardless, it’ll be all done remotely. Working from home will be standard.

You know that it’s difficult to keep people motivated at the best of times and you’re concerned about the wellbeing of your employees as they push through the months ahead while working remotely. What can you do to make things better? What tricks work and what don’t? What can you do on a budget?

Why, let’s take a look!

Understanding isolation

While we’re still amidst the present crisis, polls on how the workplace has reacted have started to come in. We’ve seen reports pinning as many as 55% of businesses planning to increase the amount of availability of remote working in 2021 and beyond. With the catalyst of the pandemic forcing people to work remotely, many companies will now be adopting a more flexible culture once things are ‘back to normal’.

And this isn’t all good. Isolation affects people differently, but it does so by tending to leave a person with the worst of themselves. Insecurities, bad habits and past or present addictions are all able to thrive more readily the more a person is cut off from regular contact with friends, peers and loved ones.

Because of this, it’s simply important for managers to first prioritise a sincere and continuing dialogue with their employees. It’s important to go a little deeper than you would have previously, doing your best to genuinely be there for the people you manage and work with.

Avoid micromanagement

One of the harder things managers have reported as embracing in remote teams is uncertainty. With so little oversight on their employees compared to working in an office, the mind can get to racing and worries about productivity can blossom.

The truth? Your teams will work consistently and they’re likely to get the job done. The key for managers to secure this result during the pandemic is to ensure they are there for their teams’ wellbeing, communicating with them regularly enough to make them comfortable and ready to continue work.

Ultimately, it’s about having confidence. And managers will find that if they are willing to give their team more of that, they’ll be rewarded in results and loyalty.

Embrace coaching

One trend in styles we’ve seen emerge during recent months is that of a more coaching-oriented management approach. Instead of guiding an employee strictly through their day and mandating specific productivity KPIs regularly, results have been observed in companies whose managers adopt a style that is focussed on empowering staff to get results alone. The key to this method is an approachable manager with a decent and regular engagement level with their teams – important in making them comfortable enough to come to the manager when they need help.

Coaching is a real opportunity to turn regular working time into an opportunity to develop your staff and their skills in a focussed manner. It can also help with productivity, wellbeing and staff retention by allowing them to uncover skills and goals that make them more engaged with their work – and happier with their environment.

You’ve got this!

If you’re a manager looking to do their best in the months ahead, we commend you. It’s daunting, worthwhile and valuable to be a leader for others – especially during tricky times. The Idea Financial team, who are here to help businesses secure a line of credit when they’re in need, wish you well.

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What Traits Do Successful Business Leaders Have In Common?

February 26, 2021

There’s no single formula that defines whether or not someone can be a successful business leader. However, many of the people at the top of their game do share certain traits that make them good at what they do.

If you’re hoping to emulate these leaders, you might want to consider adopting some of these qualities yourself.

Self-Awareness

Nobody’s perfect, and that includes the world’s most successful business leaders. While it might seem like nothing could touch them, they all have their weaknesses. What makes a lot of them stand out, though, is the fact that they’re aware of this and take the necessary actions to counteract them.

Self-awareness is an excellent trait to have because it helps you identify your strengths and limitations, and then work within those boundaries. Business leaders with this quality will hire those who succeed where they falter because this counteracts their weaknesses. That way, there’s always someone who can make up for their pitfalls, thereby covering all bases.

This isn’t to say that all business leaders are perfectly self-aware, especially as the prevalence of this trait is quite rare. However, the best out there are often willing to learn and improve because they understand its importance.

Philanthropic

Selflessness is a good trait for any person to have. It shows that you put value on other people’s lives, which can make them more inclined to take an interest in you.

For business leaders, this selflessness is often demonstrated in their philanthropic endeavours. Plenty of success stories like Tej Kohli, Warren Buffett, and Bill Gates have all invested a lot of money into charitable organisations with the aim of helping the planet and its inhabitants. Tej Kohli, for instance, has done a great deal for treating poverty blindness, while the Bill & Melinda Gates Foundation has been enhancing healthcare for years now.

Self-Control

What good is a business leader who reacts poorly under pressure or doesn’t take the time to think things through? There’s a reason that most successful people in this position don’t act this way, and that’s because they understand the value of self-control.

When you’re able to keep calm and focus, no matter what situation you’re in, you tend to find the best solutions more often than not. You don’t typically opt for quick fixes or fly off the handle because you know these will only make things worse. Instead, you take a step back and evaluate things thoroughly, never letting your emotions dictate what you say or do. These traits are exactly what executive recruiting firms look for in potential leadership roles.

Authenticity

In a world where angry people on social media can destroy a career, you have to be careful about how you behave. Treat people poorly and lie through your teeth, and eventually, it’ll come back to bite you.

That’s why many successful business leaders nowadays are often authentic and honest. They treat their employees with respect and act in the office the same way as they do in the media. Given that authentic leadership is believed to have a substantial impact on overall job satisfaction, it’s no wonder that employees celebrate those who have this quality. Plus, it’s not like leaders can afford to have their reputation tarnished in this current climate, especially not if they rely on investors.

You don’t have to be a carbon copy of the business leaders you admire if you want to succeed. However, it certainly pays to have these traits if you’re going to be at the top of your game.

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Is the Gender Pay Gap Real?

February 26, 2021

While it’s universally acknowledged women are paid less than men, there are a number of differing thoughts on why it happens. What’s more, some pundits have stated that doesn’t necessarily mean the gender pay gap really exists.

So, where does the truth lie?

Is the gender pay gap real?

Let’s take a look.

What is the Gender Pay Gap?

Simply put, the gender pay gap is the difference in pay between women and men. While there are many different ways to calculate the disparity, there does appear to be unanimity. Women are largely paid less than men.

Moreover, women of color experience an even broader gulf in compensation for their work. According to Census Bureau statistics, women earn on average 18 cents less than men. However, when broken down by ethnicity, it’s an average of 10 cents less for Asian women, 21 cents less for Caucasian women, 38 cents less for African American women, 43 cents for Indigenous women and 46 cents for Latinas.

However, some say looking at the numbers alone misses the point.

Why is it Disputed?

In a 2016 article for Forbes entitled, Don’t Buy into the Gender Gap Myth, Karin Agness Lips asserted the notion of the gender pay gap was nothing more than statistical manipulation designed to convince women they’re being victimized by discrimination.

She said the data fails to account for the different choices men and women make in terms of education and experience, as well as the number of hours worked by each gender.

To bolster her position, Ms. Lips quoted author Hanna Rosin as having stated the fact that statistics show women’s earnings are a certain percentage less than men’s, does not mean they are making a corresponding amount less for doing the same work. One must be careful to perform exact comparisons, lest the result be skewed.

On the Other Hand

Four years later, also in Forbes, in an article entitled On Equal Pay Day, What Is The Real Gender Pay Gap? Kim Elesser said while those choices do matter, that logic doesn’t hold up. Ms. Elesser’s position is that such comparisons ignore the role societal gender bias plays in women’s career choices, promotions and childcare.

In other words, simply running the numbers and saying, “it’s because men and women do different work,” fails to take into account the differences in opportunities for men and women. These can constrain the choices women can make before they ever negotiate a salary offer with an employer.

She says the only true way to accurately measure is to run a gender pay gap analysis in which an organization’s average male worker’s salary is measured against the average female’s. Where there is a discrepancy, there is also the likelihood of bias.

So, Who’s Right?

Whatever the cause, the gender pay gap is very real.

Moreover, it affects us all in a number of different ways. In households in which women are the sole breadwinner, or contribute significantly to the household income, the likelihood of poverty is greater because women are paid less. In fact, 56 percent of children living in poverty live in households headed by women.

When it comes to Social Security benefits, the pay gap means women receive lower payments each month. It also means they had less money to put toward retirement plans, so their post-career choices are often more restrictive than those of their male counterparts. As a result, more than twice as many women over the age of 65 live in poverty than men.

One more thing, closing the gender pay gap would add some $512 billion to the nation’s GDP.

So yes, the gender pay gap is very real — and we all suffer because of it.

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The Government has cancelled its review of workers’ rights – what does this mean for UK employment law after Brexit?

February 26, 2021

By Pia Sanchez

On 14 January 2021, barely 2 weeks after the UK and the EU signed the Trade and Cooperation Agreement (TCA) that covers the terms of the UK’s future relationship with the EU, the media reported that the UK government planned to ‘tear up’ EU employment law protections and that it had already started consulting with some business leaders. This was fiercely criticised by trade unions and opposition figures, which led to the Business Secretary, Kwasi Kwarteng, to confirm a week later that the review of employment rights would no longer take place. We can therefore assume no changes will be introduced, at least in the short-term.

The UK’s scope to reform employment law legislation post Brexit is fairly limited under the terms agreed under TCA in any event. The TCA specifically covers social and labour protections, setting an expectation that neither party will digress much in its legislation from the other.

The TCA contains a “non-regression” clause such that neither party can weaken or reduce its levels of social and labour protection below the levels in place at the end of the transition period (31 December 2020) in a manner that would affect trade or investment between the parties. The agreement is clear that it will also include a party failing to effectively enforce its law and standards. The purpose is to ensure that neither party waters down protections to undercut the other.

The UK will have some discretion to make minor amendments to employment law, but it is unlikely that Brussels will tolerate much deviation. Any dispute that threatens to affect “trade and investment” will be subject to the dispute resolution mechanism set out in the TCA – how this will be interpreted and evidenced in future remains to be seen. The government’s January announcement may have been an attempt to test the waters and used to appease calls within the Conservative party for the UK to show more independence from the EU.

Under the TCA, EU Directives and EU derived legislation in existence up to 31 December 2020 will continue to be retained by the UK. Decisions by the Court of Justice of the European Union (CJEU) as at that date will also be binding. Employment tribunals will therefore continue to apply existing EU case law and to read domestic legislation in line with EU law. The UK Court of Appeal and Supreme Court will however be entitled to depart from CJEU decisions “if it seems right to do so”. In practice, we should expect little departure by the UK courts as any major departure risks breaching the non-regression clause and may lead to protracted appeals in cases.

In terms of future legislation, the UK will not be expected to transpose future EU Directives into domestic legislation. The non-regression clause includes a requirement for both the UK and the EU to strive to increase employment law protections, creating the expectation that the parties’ legislation will evolve in parallel with each other to avoid major differences. It will be interesting to see the approach adopted by the UK in future, particularly with new EU Directives in the pipeline.

What changes can we expect in future?

As part of its January announcement to review employment rights, the government had been expected to target the Working Time Regulations 1998 which serves to implement into domestic law the EU Working Time Directive. This Directive remains binding on the UK and it sets minimum standards on working practices such as rest breaks, weekly working hours and holiday pay.

Employer and employees alike would welcome greater clarity and a simpler system for calculating holiday pay and clear rules for the carry-over of holiday entitlement.

In recent years, case law interpreting the Directive has led to cumbersome requirements for employers. For example, a requirement that employers must keep detailed logs of their workers’ working time – an obligation which is often not followed by UK employers nor subject to strict enforcement. Holiday pay and how this should be calculated if workers receive additional pay entitlements such as allowances, commission payments and overtime pay is another area riddled with complexity. Employer and employees alike would welcome greater clarity and a simpler system for calculating holiday pay and clear rules for the carry-over of holiday entitlement.

Less popular would be a proposal to remove the average weekly 48-hour limit. Employees in certain sectors already “opt out” of this as part of their employment contracts, but the limit remains applicable in the vast majority of workers’ contracts.

A study by NordVPN Teams, suggests that since March 2020, UK home workers have increased their working week by almost 25% staying logged on to their computers for an average 11 hours a day compared to 9 before the pandemic started. New legislation could be introduced to protect workers and bolster existing rights, for example, to ensure that home workers can request adequate rest breaks, have a right to “clock off” from work after completing their contracted working hours, without an expectation that they should continue to check emails after hours and be contactable. A review could also include an evaluation of the adequacy of the current body of health and safety legislation to protect the wellbeing of home workers.

Collective consultation obligations applicable in redundancy situations is likely to be a target for reform. Many believe that collective consultation obligations should be triggered only when a higher number of employees are affected – a proposal unlikely to be welcomed by trade unions.

TUPE legislation (applicable when there is a transfer of the ownership of a business) may also be reviewed. Employers have long complained of the difficulties caused by the legislation’s prohibition to harmonise terms and conditions of employment if changes are related to the transfer – these are rendered null and void.

Other possible changes may include the reform to The Agency Worker Regulations 2010 – perceived to be cumbersome by employers, and a cap on discrimination awards similar to the cap that applies to unfair dismissal cases.

With unemployment figures already reaching 5% affecting 1.72 million people and expected to rise by 7.7% by the Bank of England by the middle of 2021 when the Coronavirus Job Retention Scheme (furlough) comes to an end, any substantial reform that is perceived to water down workers’ rights is likely to prove extremely unpopular.

Calls to provide greater protection those highlighted to be the most affected by the coronavirus pandemic, such as those with underlying health conditions, women, parents with caring responsibilities -who are most likely to be selected for redundancy, workers on zero hours and in the ‘gig’ economy must form part of any review to improve social and labour provisions in the current climate. An improvement to the working conditions of those who fall in these categories falls squarely under the TCA’s non-regression clause which requires the UK to strive to improve social and labour conditions.

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About the Author

Pia Sanchez is a Senior Consultant at CM Murray specialising in employment and partnership law. Pia advises multinationals, law firms, financial institutions and senior executives on all aspects of contentious and non-contentious HR issues, frequently with a cross-border element. Pia is a bilingual Spanish speaker, named ‘Consultant Lawyer’ by the Mexican Government to advise its diplomatic mission in the UK.

A Brief Look at Why the Not So Quick, Not So Rich Path to Success Works for Most People

February 25, 2021

You are familiar with schemes that suggest a person can become wealthy without much by way of process. We call it a get rich quick scheme. And such ideas are universally rejected as scams. One way you can recognize a scam without even knowing the details is by evaluating how little output and effort it requires to get the promised result of great wealth. If the effort is too small, the resources too little, and the reward too great, it’s a scam. Run away!

Effort, investment, and wealth make up a classic “three things” conundrum. You have to pick two. You can get rich quickly, but it isn’t easy. You can get rich easily, but not quickly. Or you can go the quick and easy route, but not get rich. This is why the compromise of hard work, but not too hard, paired with investment, but not too much investment, gets you financially stable, even comfortable, but not rich. We call it the middle class. Put a little more time or investment into the mix and you can get to wealth. You just have to decide how much wealth you are after. Here are a few things to consider if you want to do better than average:

Risk

The stock market is a great place to learn how money works. It is also a great place to learn how to leverage risk and reward. You don’t have to be wealthy to participate in the markets. You might find it helpful to start with penny stock news. Information is the key to sound investing. You can strike it big with only a moderate investment of money. But you still need to put in the effort. Most of that effort comes in the form of research.

Striking it big is an allusion to finding gold. Relatively few people got rich that way. Most didn’t put in the research to know where to dig. Others didn’t invest in the necessary equipment and manpower to make it happen. They were willing to risk a lot for an uncertain and statistically improbable reward. Don’t allow the bulk of your investments to fall in the category of the statistically improbable. Investing isn’t gambling. It is leveraging information, effort, and resources for maximum efficiency in performance. Start with information and you will have a better chance of ending with reward.

Education

Whether it be in finance or the arts, education is the best gift you can give your child. It is also one of the best methods available to speed up the get rich equation. A great education takes time. So you can’t get rich quickly and have a complete education. Take the time to learn what you need to know, and you will have a fighting chance at whatever you desire.

Great wealth is not even the goal for most people. The path of an educator is not great wealth, but life satisfaction. Some would say that is more valuable than material wealth. Whatever profession you decide to follow, it is certain that you will make more money when you take the time to maximize your education.

Buying Happiness

It sounds weird. But money actually can buy happiness. Just try getting rid of all your resources a little at a time. You will notice yourself getting less happy by the day. The real question is how much does happiness cost. There has been a lot of research in this area. What we learn is that happiness can be measured in time as well as money.

People found that things like not having to do chores were worth about $18,000. It is a way of expressing time-affluent activities in terms of money. Would you rather have an extra $4,000, or an extra week of vacation? Happiness is not always about the pursuit of more money. It is about the things that are more important than money that money can help you achieve. You need enough money for those things, and little more. At some point, the pursuit of money detracts from the things that really matter to you and make you the happiest.

Getting rich quick isn’t all it is cracked up to be, even if you could do it. Take things a little slower and you can do a better job balancing risk vs. reward. Complete your education and ensure you can do work that is meaningful to you. And evaluate what makes you truly happy so you don’t let the pursuit of more money decrease your ultimate joy. There is a reason they say slow and steady wins the race.

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How To Upgrade Your IT Infrastructure & When Should You Do it

February 25, 2021

Adding a virtual server, Hyper-Converged Infrastructure, or cloud service can be viable options for an IT infrastructure upgrade.

A business that focuses entirely on IT-based works or services needs a timely upgrade to keep up with today’s fast-paced companies.

Most companies stick to their outdated, slow IT technologies. Therefore, they cannot satisfy customer needs & eventually lose potential clients. If you haven’t changed outdated networks, use slow-paced networks, you are still in the Bronze Age. Within a few years, the number of online devices will exceed the earth’s total human population.

So if you aim to beat your competition & provide the best user-friendly services to the customers, upgrading your IT infrastructure is of optimum importance.

Signs That Tell You That You Need An Upgrade

Stats show that, on average, most IT companies spend most of their time maintaining service quality rather than working on innovating. That happens when you use backdated, old, slow-paced networks.

The following signs are the red flags that tell you to take a look at your IT infrastructure-

1. Backdated Software

Software is the oil that keeps your IT infrastructure running. If you still like to stick to the saying, “If it ain’t broke, why fix it?” then that’s not going to work.

An almost dead software is too slow & puts your entire system at risk. You can never tell when the software will shut down as it is approaching its end.

So, update your software’s security patches regularly & if it’s closing to the end of life, upgrade it. Using up-to-date software can guarantee you improved productivity & better cybersecurity. By minimizing the long-term costs, you can achieve better efficiency. Moreover, the employees can enjoy hassle-free service.

You can hire professionals like Real Computer Solutions to upgrade your software and provide many other services like software and IT management, development, and maintenance. You can visit https://www.realcomputersolutions.com to know more about their services.

2. Slow System

Nothing is more frustrating than seeing the loading sign blinking for eternity on your computer’s screen. A slow system is worse than a nuisance. It affects your employees’ productivity & willingness badly.

Moreover, the whole company comes to a standstill, not to mention your service’s image to the clients.

If you regularly face slow system issues, the problem is severe & needs immediate attention. However, the underlying issues can be storage shortage, limited bandwidth, or low processing power.

3. Regular Server Crashing

If you experience server crashing issues more randomly, it’s a red flag. The problem may be more severe than you think. The primary reasons for server crashing are low airflow to the server room, low processing power, or storage shortage.

In the worst-case scenario, your server may get attacked by malware infection or corrupted disks. If the server remains down for a while, your business can be affected badly.

4. No Cloud Service

In today’s fast-paced IT industry, the importance of cloud service is known to everyone. If your company isn’t using cloud computing, you are lagging in the IT sector’s revolution.

With the assurance of higher collaboration, scalability & flexibility, cloud computing can keep all your employees on the same software level.

Migrating to the cloud service will help the employees achieve flexibility, improved collaboration with others & overall consistency. Cloud service increases processing power & storage facilities, too.

5. No Reliable Backups

A reliable backup is pivotal for conducting any IT-based business. Sadly, most companies do not pay attention to a solid backup plan.

That said, in terms of emergency or breach, your company may get destroyed. With no solid recovery plan or backup, you may suffer from vital data loss & in large quantities.

That said, investing in a solid backup is important. Implementing a system for data recovery & establishing that process is crucial. Cloud hosting can be a viable option in this regard.

6. IT Solutions Cost Too Much

The older the technology, the more the cost for the upgrade & repair. This situation is more like the nickel & dime effect as costs build up alarmingly over the long haul.

However, your cost shouldn’t balloon out of control just to make sure your technology is up & running.

Instead of using the stopgap strategy to address the issues close to hand, focus on the existing technology’s long-term upgrade.

7. System Breach

It is the final & the worst-case scenario that reminds you to upgrade the infrastructure. No matter how minor the breach is, it’s a reminder of your service’s vulnerabilities.

That said, you should do a complete upgrading of the technology, starting from changing your old hardware, updating security and software, and implementing a devops platform as a service to better manage cloud infrastructure.

System breach can affect your reputation badly. So, take caution of the situation before it happens.

Possible Solutions To Updating Your IT Infrastructure

If you want to upgrade the pre-existing IT infrastructure, the methods discussed here can come in handy:

1. Adopting Virtual Server

Server virtualization is an excellent deal if you want to transfer to a new platform of data analyzing, sorting & sharing. Surprisingly, making this recent transition move is relatively easy & straightforward.

However, you also have to consider the limitations too. Sometimes it becomes tough to make changes & accommodate accordingly in comparison to the traditional infrastructure.

2. Hyper-Converged Infrastructure

Hyper-Converged Infrastructure (HCI) is one of the most recent technologies for updating IT infrastructure. Here you move on from hardware-based services & adopt new form factor node technologies.

These small nodes work as storage providers to RAM, CPU & Storage with little complexity. However, to avail of this service, you need to give up the traditional infrastructure. HCI also offers many intricate services like disaster data recovery, reduplication & backup.

But this method isn’t flawless either. You become dependent on one sole provider for such services as this technology is still developing & uncommon. That said, it raises substantial financial risks.

3. Cloud Computing Services

As mentioned earlier, cloud computing services can be a viable option. It mitigates the issues with traditional IT infrastructure by allowing greater agility, performance & flexibility.

However, it’s not a cost-saving approach. You need to pay a hefty amount to keep the cloud running.

Final Thoughts

Upgrading your IT infrastructure can be daunting as there is no universal solution. You need to select one based on your suitability & convenience. However, it’s better to consult with a specialist before undertaking any upgrade for his unbiased opinion.

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9 Email Types To Start Sending For SaaS Customer Success

February 25, 2021

Selling software as a service (SaaS), particularly in a business to business (B2B) setting requires a nuanced approach in order to achieve customer success, which in turn is vital to the success of your business. Smooth on-boarding of new customers is crucial to growth in the field of SaaS as customers expect fast and easy set-up and immediate results. Effective communication with your existing clients also ensures that they become loyal lifetime customers and maintaining retention of their interest in your software will also lead to recommendations as they refer other clients to your product. Paying close attention to the type of emails your marketing and customer support departments send out to both clients and potential leads is vital. The message that your emails get across to your audience can make or break your company; with consumer email inboxes being inundated with hundreds of sales pitches daily, striking the right balance between simplistic efficiency and personalized attention to detail is paramount. There are a number of tried and tested strategies here to utilise best practices for customer success, and we have researched the nine most important emails you can send out to your clients for effective communication that achieves results all round.

1. The Welcome Email

One of the most important emails your team must send out, is a carefully worded welcome email to new customers. You will need to familiarise them with your brand and your product, set the tone for your relationship and make them feel good about their initial interaction with you. First impressions really do count here, so make sure your initial point of contact is swiftly executed and personalised to make the customer feel special. This email needs to build momentum with your client so that they feel motivated to follow through with their initial decision, and the ideal way to go about this is to include a boldly worded call to action or clickable button that sets the customer a goal to proceed with for their next step in setting up their software package.

2. The Support Email

Many clients struggle with the initial set-up of software that they are not familiar with. In order to avoid frustrations surfacing with respect to this, it is good practice to follow up your welcome email with a support email outlining answers to frequent problems, providing links to extra guidance and offering friendly, approachable, tailored help options via your software customer support team. A positive introductory tone from your support team in this type of email can make a significant difference to customer perception of the product. Most of the interactions that your customers will make over the lifetime of their product plan will be with your customer support team should any issues with the software arise, so this is a really important area in which to build a trustworthy rapport. To go the extra mile, use what data analysis you have at your disposal to check up on your client’s usage, and pre-empt any potential glitches or bugs ahead of time.

3. The Thank You Email

All consumers respond positively to good manners and gratitude from businesses that they have chosen to invest their time and money into. While recipients of the “Thank You” email are unlikely to spend much time responding and may only briefly scan this follow-up message, it will nevertheless score you brownie points in their general perception of your brand and keep your company at the forefront of their mind. While it may seem like a small gesture, you can make additional use of this type of email by politely requesting customer feedback. This is a good opportunity to engage further with your clients and develop a lasting relationship, by troubleshooting early and responding to their opinions.

4. The Product Changes Email

All software services require fundamental fixes and updates from time to time. This is a necessary aspect of an industry that relies on current behavioural trends and technology. However, humans are often innately resistant to change and as such, when surprised by unexpected software updates can feel alienated. Ensure that your clients are aware in advance of any changes you intend to make to your software in order to prevent any frustration in this area, and list how it will affect their usage.

5. The Advertorial Email

Many software service users do not make full use of the potential capabilities of the product they invest in, and as a result can end up dissatisfied with it’s productivity. Wise words from our tame tech blogger, Jonathan Saunders at Big Assignments and Paper Fellows, are to “keep your clientele up to date with creative new ways to utilise your product by sending them handy how-to tutorials.”

6. The Incentivised Plan Email

Generating a new lead is always great for growth, but so is building on existing leads. Encourage existing clients to upgrade their plan by up-selling or cross-selling them your premium packages. You can incentivise this type of action by marketing a discounted deal for new or loyal customers, or by offering a free trial period during which they can experience the benefits for themselves.

7. The Business Blog Email

When it comes to engaging with new clients, publishing free content is one of the most effective tools. Consumers have been shown to respond best to businesses that provide the most accessible information, so circulating a regular company blog is a real winner. This type of content can make good use of positive testimonials and also provide helpful guidance from software experts. You can also use customer success story templates to show your previous clientele.

8. The Milestones Email

Finally, we have a great piece of advice from a professional email writer at Essay Help and Boomessays. Eva Santiago stresses the importance of “give[ing] your clients something to celebrate. Mark important milestones in your customer- relationship with a personalised email and share your business achievements with them too.” Success breeds success, so ensuring your customers are aware of your progress as a competitive company will likely encourage lifetime value from them.

Armed with these nine varieties of emails to send to your clients, your software service business is certain to prosper. Keep your content simple and friendly, with personalised touches where possible, and that all important consumer relationship will ensure your clients stay on board, wherever your business is headed.

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About the Author

E-learning consultant, Lauren Groff, writes at Essay Writing Service and Paper Writing. Lauren’s also contributes to State Of Writing.