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

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news