SMEs missing online opportunity

New Zealand small to medium enterprises[1] (SMEs) aren’t harnessing the power of digital marketing, according to the Yellow SME Digital Readiness Survey [2] released today. Just 50 per cent of businesses surveyed have a website and nearly 20 per cent say they don’t use any online tools in their marketing mix. 

The survey conducted by Colmar Brunton measured how SMEs use a range of digital marketing tools from social media, to websites and mobile applications.

Evan Lawrey, marketing director at Yellow said the Yellow SME Digital Readiness Survey was commissioned to understand how savvy Kiwi businesses are in a digital environment and some of the results were unexpected.  

“Surprisingly, we’ve found it can be SMEs in the main cities that lag behind. For example just 40 per cent of Auckland businesses are using social media tools such as Facebook, versus 65 per cent in Southland,” says Lawrey.

There was digital strength in Otago and the Tasman region too, with the vast majority of businesses (92 and 93 per cent respectively) having at least one online tool, compared to a national average of 81 per cent. Northland fared the worst with just 71 per cent of businesses having an online presence.  

But Lawrey points out that it’s the low uptake of websites (just 50 per cent) and the fact that one in five businesses use no online marketing that is of most concern, especially when compared to the latest research into consumer behaviour.  

“Each month 57 per cent[3] of Kiwis use the web to search for businesses, products and services and of those 17 per cent[4] use the internet exclusively. If half of all small to medium businesses aren’t online, they’re missing a huge opportunity,” adds Lawrey. 

The findings have drawn the attention of Tenby Powell, a passionate SME advocate who is convener of the Government’s Small Business Development Group and founder of the New Zealand SME Business Network.

“Business owners know they need a digital presence, but often they’re time poor and not sure where to start. But, to succeed in the current climate, it is vital business owners keep abreast of digital channels,” says Powell. 

As a result of the findings, Yellow is hosting a nationwide series of free events called The Biz in May and June, designed to help SMEs run their business better. Tenby Powell will speak at some of the events, along with a range of experts in digital marketing, research, business planning and finance, and inspiring business owners. 

The Yellow SME Digital Readiness Survey also asked businesses of their intentions for the year, and it revealed that 31 per cent of businesses are planning to increase their advertising and promotional spend on new and existing online channels this year. 

The findings indicate of those businesses that do have a website, around a third are considering boosting their digital presence with the following tools: 

•         28 per cent plan to invest in mobile channels (either ensuring their website is mobile optimised, building an app, or using text messages to communicate with customers) 

•         38 per cent plan to start using search engine marketing  

•         32 per cent plan to start using search engine optimisation 

•         31 per cent plan to invest in video

 

Evan Lawrey of Yellow says that the findings suggest businesses with a digital presence are seeing the benefits. “These businesses are realising that it’s important to keep adding layers to their web offering, be it mobile or search marketing,” says Lawrey. 

Business owners who would like to attend the free events series should visit www.bizevents.co.nz for regional dates, times and speakers.