Telstra's 2018 Small Business Intelligence Report, unveiled during the launch of the 2018 Telstra Business Awards today, shows that "digital is widening the gap between small businesses and potential customers".
Telstra's experts revealed "Australia’s small businesses could be reaching more customers and making more sales, more often", at the launch of the 2018 Telstra Business Awards.
The awards nomination process is still open, and closes on 28 March.
Drawing on the 2018 Telstra Small Business Intelligence Report, which after free registration is a freely downloadable and impressive 44-page document, Telstra executive director, Small Business, Brendan Donohoe, said: "The evidence showed small businesses were missing critical opportunities to meet the wants and needs of the contemporary consumer."
{loadposition alex08}“Digital technology is helping create big opportunities for small businesses – but only for those who embrace it,” said Donohoe.
“Our report shows small businesses are trying to meet customer expectations but are at times falling short, often acting on ‘gut feel’ or relying on traditional ways of doing business. The gap between what customers want and what small businesses are delivering shows up in how customers find businesses, how they prefer to interact and what keeps them loyal and coming back."
Donohoe said while digital technology was a key opportunity for Australia’s small businesses to be more competitive and find more customers, "change was required".
“Where we see a real opportunity for some small businesses is being open to change, safely putting a toe in the water with digital technology and in return, delivering a great experience for customers,” he added.
As noted, the report was released as part of the launch of the 2018 Telstra Business Awards, which Telstra says has been "updated to reflect the changing nature of Australia’s small and medium business sector and the significant role technology plays in business".
“Now in its 26th year, the Telstra Business Awards offer entrants a range of benefits, including a comprehensive Business Benchmark Report, and access to exclusive networking events,” Donohoe continued.
“And this year, we’re delighted to have refreshed all aspects of the Awards program, from entry process to awards categories and the assessment criteria. The changes will help provide even more value to the business community and help the Awards remain a prestigious mark of business excellence."
Jen Geale from 2017 Telstra Queensland Micro Business Award winner, Mountain Bikes Direct, said the awards provided her with "invaluable credibility and more reason to trust her business, gaining her new customers, and access to strong and valuable networks".
Telstra tells us that, based on their past experience in retail, the co-founders of Mountain Bikes Direct "opened a purely online store, as a response to a shift in consumer buying habits".
Geale, who believes e-commerce has helped to set the business apart in the market, said "the use of technology cannot be over-estimated".
“Everything we do is in the cloud. So, we can have staff in multiple locations in Australia, and overseas. We’re now able to hire the best people, no matter where they are located, and have them working all sorts of odd hours according to when our customers shop,” she said.
2018 Telstra Small Business Intelligence Report – key insights:
- Online is the new word of mouth:
Seventy-six percent of business owners consider "word of mouth" (referral from others) to be the most significant driver of new sales, but for 71% of consumers, it comes behind online search and online reviews. - Build it and they will come:
A mere 36% of sole traders have a website when 89% of customers say they want a website that’s easy to navigate and 48% of customers say they will stop considering a business if it doesn’t have one at all. - Customers are on the go
A third of e-commerce businesses (63%) do not have a mobile-friendly website, while one in two (48%) of customers are shopping on a mobile device at least once per week. - Reward loyalty
A rewards programme is important for more than one third (39%) of customers, but only a minuscule 14% small businesses offer one. - Face to face is out of fashion
Three times as many customers want to communicate via online chat than businesses that offer it (28% versus 9%). Three quarters (74%) of small businesses like to communicate face-to-face but this is the preference for only 33% of customers. - Need it now or never
Half (54%) of businesses expect on-demand delivery as part of the e-commerce experience in the near future, but the vast majority (76%) of businesses have no intent of using this technology.
More key insights:
- An effective digital presence is critical: Only 1-in-2 small businesses have a website, which means there is a significant gap with consumer expectations as 62% of customers will stop considering a business if they can’t find information about it online (think about the last time you Googled a café, restaurant, or dry cleaner)
- Most businesses are not future ready: 45% of Aussie consumers want to use Google Home/Amazon Alexa/Apple HomePod to enhance customer experiences but 77% of businesses have no intent if using the voice commerce technology.
More on the 2018 Telstra Business Awards
The Awards has been a programme that shines a light on Australia’s most innovative small and medium businesses to gather, explore their dreams, celebrate their achievements and to become ‘that’ business. Since 1992, the awards have showcased some of Australia’s best business talent, with more than 45,000 businesses nominated to date.
This year, each entrant receives a comprehensive and personalised Business Benchmark Report with actionable advice and insights, as well as access to exclusive masterclasses and networking events. Nominations close on 28 March (it only takes two minutes), and you can enter here.
