Improving service and convenience is key to Victorian SMBs

The 2018 Yellow Digital Report, set to be released on Wednesday 19 September, reveals that improving service and convenience is a business priority for almost 50% Victorian small and medium sized business (SMBs), with 35% offering same day delivery, and another 14% offering next day delivery.

Yellow’s Senior Brand Manager, Erin Williamson, said: “Over the past few years, Australia has seen the introduction of major international players, such as Amazon hit our already crowded marketplace, and this will only continue.

“It’s clear these large corporations pose a threat within the e-Commerce space and it’s slowly becoming evident to small and medium businesses as they begin to feel the pressure. Instead of giving up, it seems they are working to improve their services to combat these threats.”

Despite this, only 61% of Victorian businesses have a website (below the national average of 72%), with 9% expecting to in the next year. Further to this, almost seven in ten (68%) Victorian SMBs with an online presence admit to not having a digital business strategy.

“Looking back over the growth in SMBs digital exploration, it is evident businesses are understanding the need for an online presence. However, when you look deeper into how they are maintaining their digital business, you find many SMBs are struggling to maximise platforms to best benefit their customer.”

The 2018 study from digital expert Yellow surveyed 1,504 (280 Victorian) consumers and 1,003 businesses (171 Victorian) and found that almost six in ten (52%) Victorian SMBs believe their website has increased effectiveness of their business, while the remaining 48% feel it has not.

“With the rapid change in technology, SMBs understand accessibility is key to their business’ success.  Despite this, we are still seeing 55% of Victorian small to medium business who have a website are yet to mobile optimise their site despite eight in ten consumers accessing the internet via a mobile device. It’s clear SMBs still have a way to go when understanding digital needs,” Erin continued.

Other findings from the 2018 Yellow Digital Report include:

§  61% of Victorians preferred the best deal when purchasing online, compared to fastest delivery (11%), or supporting local brands (12%).  New South Wales had similar preferences at 63%, 12% and 11% respectively, and nationally at 62%, 10% and 10% respectively.

§  40% of Victorian SMBs advertise on social media

§  More Victorian SMBs admitted to not using online advertising than other states (25% vs national average of 19%)

§  Fewer Victorian SMBs have a social media presence (46%), compared to 53% in New South Wales and 51% national average

§  More Victorian SMBs are using the internet to target international customers (11%), vs 8% in New South Wales and 9% national average

Delivery times offered to online customers

 

Total

SMBs

Small

Businesses

Medium

Businesses

Same day

32%

33%

16%

Next day

16%

16%

12%

2 to 3 days

17%

17%

12%

4 to 6 days

9%

9%

4%

7 to 10 days

9%

9%

9%

11 to 14 days

4%

4%

5%

Over 14 days

8%

8%

10%

Mean days

4

4

5

 

Delivery times offered to online customers by State

 

Total

SMBs

NSW

VIC

QLD

SA

WA

TAS

NT

ACT

Same day

32%

32%

35%

27%

29%

38%

34%

27%

49%

Next day

16%

13%

14%

21%

13%

22%

18%

13%

29%

2 to 3 days

17%

18%

13%

22%

14%

13%

22%

13%

29%

4 to 6 days

9%

10%

6%

10%

13%

4%

8%

11%

21%

7 to 10 days

9%

10%

7%

9%

11%

5%

14%

9%

14%

11 to 14 days

4%

4%

4%

6%

4%

4%

2%

3%

5%

Over 14 days

8%

11%

5%

9%

5%

4%

14%

14%

8%

Mean days

4

4

3

4

4

3

4

5

3

 

 

 

About the Yellow Digital Report

The Yellow Digital Report, formally the Sensis e-Business Report, is an annual initiative as part of Sensis’ ongoing commitment to increase its understanding around the needs of, and shifts in, Australian small to medium businesses (SMBs). It is part of a series of reports produced by Sensis, which include the quarterly Sensis Business Index and the annual Yellow Social Media Report.

The Sensis Business Index first launched in 1993 to track the overall confidence and behaviours of Australian SMBs.  It also serves to provide an independent, objective assessment of SMB experiences and attitudes on Government and other key issues.

Sensis first produced a benchmarking report on technology and small businesses in February 1994. In recent years, these surveys have expanded to include electronic commerce (e-commerce) and digital behaviours of both SMBs and consumers to form the basis of the annual Yellow Digital Report.

The 2018 Yellow Digital Report surveyed 1,003 Australian SMBs and 1,504 Australian consumers about their experiences with and adoption of technology, including e-commerce and digital behaviours.

Surveying is conducted by TKW Research and reporting by Di Marzio Research.

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