Canadians are increasingly looking to shop online – but less than one third of small and medium sized businesses conduct business there
The report shares key insights and actionable tips for how to build and promote a website, market a business online, and set up digital payments – so small business owners can quickly digitize and avoid common pitfalls
"As consumer expectations are evolving, it is critical that small and medium size businesses evolve with them," said
Digital Opportunity for SMBs
According to the report, consumer purchasing behaviour is driven in part by websites and online experiences:
- Consumer behaviour is changing: 90% of consumers say they are motivated to shop at a business if they have an easy to use website. 87% of consumers also think it is important to support local businesses, providing a great opportunity for SMBs to further engage with consumers.
- An online presence is a must: Half of consumers often search online (46%) and/or check the business website (47%) before visiting a new business.
- eCommerce is a differentiator: Only 32% of SMBs sell their products and services online, with only 12% of their sales coming from ecommerce, demonstrating huge opportunity for Canadian businesses.
Digital Payments Improve Profitability
One immediate way for SMBs to seize a revenue opportunity may be by digitizing the checkout process:
- Consumers prefer card: 85% of consumers surveyed rank a digital payment method, such as paying with a card or wire transfer, as their number one preferred payment option. But only 52% of SMBs prefer to accept digital payments, despite the potential financial benefits.
- Digitization impacts the bottom line: 40% of SMBs saw an increase in sales after they started to accept digital payments – by an average of 7.1%1. Further, 61% of SMBs agree customers spend more when they use cards versus cash.
- SMBs recognize the benefits of going digital: 73% of SMBs agreed that utilizing digital payments helped them manage their business more effectively.
Offers & Loyalty are a must
Businesses are aware that rewards drive consumer preference and digital programs can offer instant value and gratification:
- Consumers enjoy digital rewards: 78% of consumers are more likely to choose a business that offers a loyalty program, and 89% of consumers prefer a digital loyalty program compared to a paper-based stamp or punch card.
- Loyalty programs add profitability: 81% of owners say their business is highly dependent on customer loyalty, and close to two-thirds feel that loyalty programs can have a positive impact on average ticket size, repeat customers and revenue.
"While more than 80% of consumers surveyed say digital benefits motivate them to shop at a business, businesses are still underutilizing these preferred digital channels," continued Weiner. "With this report,
About the Digital Transformation of SMBs
The Digital Transformations of SMBs report is an independent study commissioned by
To download the Digital Transformation of SMBs: The Future of Commerce report and learn how to begin growing your business, visit visa.ca/digitaltransformation.
Methodology
Maru/Matchbox, a global consumer intelligence firm, surveyed 225 businesses that represent business payment decision makers and 2,000 consumers in 2019 to form the Maru/Matchbox 2019 Small Business and Consumer Surveys. ESI ThoughtLab, a leading economics consultancy firm, collaborated with
About
For more information, visit visa.ca/smallbusiness and @VisaCA.
18The potential increase in revenue from acceptance of digital payments was calculated based on the experience of firms that recently began to accept (within the last 5 years) digital payments and that have been in operation for more than 5 years. Fifty-five firms met these criteria. Please see the Methodology for additional details. |
SOURCE Visa Canada
© Canada Newswire, source