Going digital to survive COVID-19: The choice for UK SMEs
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UK SMEs face, once again, the pressure of the measures and regulations implemented to curb the pandemic, which might come and change with just a week’s notice – just as the holiday season approaches. In such an unprecedented situation, understanding the changing market and customer behaviour is paramount to survival.
While over half of small to medium businesses don’t have a website, the eCommerce industry is growing rapidly, fuelled by the pandemic’s social and behavioural consequences. Quickly adapting to the new way of conducting business and joining the digital revolution might be the only strategy for small or local businesses to thrive through the post-pandemic scenario.
Understanding the potential losses of not having an online storefront is the first step for SMEs’ owners. Still, identifying the benefits, such a choice could bring is what truly fuels businesses to implement the changes needed.
Drastic times call for drastic (and fast) changes
In 2019, there were 5.9 million businesses in the UK, 5.82 million of which are considered to fall into the “small to medium enterprises” category. Of this number, only 48% have a website or eCommerce store, a percentage that becomes even smaller (45%) when considering microenterprises, those run by the owner(s) only, without employees.
However, not having a website and not being able to push your online sales have been linked to an average loss of over £32,000 per business, per year. This figure only refers to microenterprises, but it is much higher when considering companies with 10 to 49 employees.
Ultimately, the consequences of not having a website can be disastrous, especially in a moment when eCommerce is taking over the market. Alongside the financial loss not having a website can cause, it is also worth considering the increased competitive pressure.
Especially in a moment when the economy is at the mercy of the restrictions that come with the pandemic, it can be impossible for brick-and-mortar businesses to keep providing products and services to their customers. Failing to innovate can rapidly lead to a loss of loyal consumers and market slices.
In turn, small businesses are prompted to adapt, quickly, to the new economic scenario.
COVID-19 fuelled UK eCommerce growth
According to the Office for National Statistics’ 2018 E-commerce and ICT activity report, the eCommerce sales registres in all industries outside of the financial sector were up by a whopping 18% since the previous year. This has been the most significant growth registered in the sector since 2014.
The trend, already taking over most industries in the UK and worth over €220 billion, is expected to keep growing and be responsible for over 30% of all retail sales in the country by 2024.
Alongside these insightful statistics, it is worth understanding the way the current pandemic has changed the customer behaviours. Naturally, an increasing number of individuals are wary of pouring into the stress and heading to their favourite market or shop, mostly due to fear of contagion.
However, the consequences of this sudden change are deeper than we might expect. 77% of UK shoppers said that they had bought more products online since the start of the pandemic – and not only from major chains or high-street brands.
Consumers have also become more prone to be patient if their delivery is delayed, and they have started to mind more about sustainability and greener products. This change in consumer behaviour, along with the fact that over 87% of shoppers begin searching for a product or service online, gives small businesses an indication of the importance of joining the current digital transformation.
Joining the UK eCommerce powerhouse becomes paramount
Businesses in the UK might need to adapt quickly, but the environment is offering positive opportunities for them. One of the first steps is always investing in a website, created by an experienced web design company that understands the characteristics of their specific industry.
The benefits of this important step go beyond the ability to stay open for business during the harshest moments of a lockdown. Here’s some:
- Implementing local SEO best practices – implementing local SEO practices is impossible without having a website. On the other hand, local SEO is essential to make a business more discoverable, from the point of view of consumers who are already actively looking for the specific product that business sells. If coupled up with an eCommerce store, local SEO can, alone, fuel sales and increased visibility.
- Increase visibility – it is safe to say that consumers can’t or won’t take time to stroll through the high street to pick a shop and product. Using a website can help a business re-create such an enticing storefront, but digitally.
- Cut operating costs – as a business decides to move online, operating costs can be significantly reduced, especially if rent and ensuing utilities won’t need to weigh as much on the budget. A website can also reduce the cost of physical marketing efforts, allowing any brand to align their marketing with their values and pick a personalised campaign.
- Foster customer relationships – Among the most significant damages the pandemic has caused for businesses, is the fact that it has interrupted the relationships business owners have been cultivating with their consumers. This relationship is paramount when operating a local business, as the sales and reputation of the brand will be linked to the community’s judgement. Having a website is an optimal strategy to grow a mail list, which is another way to check-in with consumers and keep them updated on news, products, and services.
Ultimately, the chances of survival for small businesses without a website is thin, especially due to the high operating cost and limited chances for sales, curbed by the current pandemic and ensuing restrictions.
At the same time, joining the digital transformation fuelled in the UK by eCommerce growth and developing consumer behaviour does not have to be an unachievable goal. Indeed, even small or local businesses running on a limited budget can invest in a website. Just by doing so, they will be able to count on increased visibility, new opportunities for sales, and increased growth potential.