Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Digital SMEs bask in higher revenues

Digital SMEs bask in higher revenues

Yellow survey shows the ‘digital readiness’ of Kiwi SMEs slowly increasing

• SMEs with digital marketing tools have revenues $150,000 higher
• But New Zealand businesses are three years behind Australia for website uptake
• Social on the rise despite uncertainty about effectiveness

Savvy New Zealand SMEs are benefiting from digital with the Yellow SME Digital Readiness Survey [1] revealing the average annual revenue of SMEs using digital marketing tools is $150,000 higher than SMEs disengaged from modern marketing practices.

The survey, commissioned by Yellow® and conducted by Colmar Brunton, showed Kiwi businesses that are online enjoy a range of benefits. Forty per cent said digital helps boost their revenue and more than half[2] said it generates positive word-of-mouth.

Yellow CEO Michael Boersen says small businesses are vital to New Zealand’s economy, contributing nearly 30 per cent to our GDP each year[3], and the economic benefits could be substantial if all SMEs used digital tools to help grow revenue and productivity.

“We commissioned this research to put SMEs under the microscope and understand which digital marketing tools they’re using and what’s working for them. It’s important we share this information amongst the SME community to help them market their businesses better and in turn grow,” said Boersen.

However, Boersen was quick to point out that all is not rosy when reviewing the finding of SME’s marketing practices.

“It’s hugely concerning that overall there’s been little progress in the uptake of company websites around the country since last year – it’s stayed stagnant at 50 per cent. So we’re at least three years behind Australia - their uptake was at 52[4] per cent in 2011.

“What SMEs need to remember, is that websites aren’t just about e-commerce - they’re a vital research tool for customers. Almost half (47 per cent)[5] of people who researched online bought offline and smartphone users are even more sophisticated, with 74 per cent of them using their device to research a product or service[6].”

Further, the research examined how confident businesses are in the effectiveness of their digital tools, and it found that it’s not always the highest rated that are top of the list for small business owners.

Boersen explains: “If we look at websites for example, 61 per cent of SMEs agree that their website is effective at promoting their business. Despite this, just 16 per cent of those without one are considering getting one in the next six months.”

Consideration of social media however, is higher than websites with around a quarter (26 per cent) of business owners planning to use it in the next year or so.

“SMEs considering social need to be aware that for those using it, the jury is still out. The majority (55 per cent) of SMEs using social weren’t confident that it was effective at promoting their business, or described it has having a ‘neutral’ impact.

“It seems SMEs are prioritising social, but it’s a bit of the cart before the horse. Social works best when there’s a strategy and call to action behind it. Often that’s to drive web traffic, so if there’s not one – or it’s a bad one – it’s a bit of a wasted exercise.”

In terms of what’s next for SMEs, Boersen says, “We can expect to see savvy SMEs turning to video to boost their content play online and on social. While uptake is low at seven per cent, there’s a 53 per cent confidence rate,” says Boersen.

SMEs owners wanting to know more about digital marketing can visit www.yellowbusiness.co.nz for more information.


Ends


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing: Affordability Drops 14%, Driven By Auckland Prices

Housing affordability across New Zealand fell 14 percent in the year ending November 2014, with Auckland’s lack of affordability set to reach levels it hit during the height of the global financial crisis, according to the latest Massey University Home Affordability Report More>>

ALSO:

The Dry: Fonterra Drops Forecast Milk Volumes By 3.3 Percent

Fonterra Cooperative Group, the worlds largest dairy exporter, reduced its milk volume forecast for the 2014-2015 season by 3.3 per cent due to the impact of dry weather on production in recent weeks. More>>

ALSO:

Strike: Lyttelton Port Workers Vote To Escalate Dispute

Members of the Rail and Maritime Transport Union (RMTU) at Lyttelton Port today voted to escalate their industrial action. Around 200 RMTU members have been operating an overtime ban since 17 December and today they endorsed a series of full withdrawals of labour at the port. More>>

ALSO:

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news