Small businesses aren’t taking advantage of online customer relationships according to a national survey of 3,000 consumers and small business decision-makers commissioned in August by Web.com Group.
Nearly 30% (850) of the respondents were small business decision-makers, allowing the survey to capture insights about the relationships between consumers and small businesses, as well as determining if small businesses are taking advantage of the web and social media to build connections with customers.
“Small businesses have historically relied on face-to-face relationships to grow and differentiate themselves, but today's consumers are demanding that these relationships extend into 'e-Main Street'," David Brown, chairman and CEO of Web.com, said in a press release. “Our survey found a significant disconnect between how small businesses decision-makers think they are delivering on customers’ expectations versus the reality of consumers’ perceptions. The good news is small businesses are starting to realize the web’s untapped potential to reach consumers who are eager for online engagement.”
Here are the top five survey findings and implications for small businesses:
1. Consumers prefer to work with small businesses because of strong personal relationships.
-- Personal involvement, engagement, and connection are the most important reasons why consumers choose small businesses over larger brands.
-- More than eight out of 10 consumers say it’s important that small businesses are “easy to do business with;” “personal, intimate, human, face-to-face;” “customer-focused;” “reliable, there when you need them most;” and “local, close-by, convenient.”
2. Consumers expect small businesses to build strong “e-relationships” through the web and social media. Currently, the majority of small businesses are not delivering on these expectations.
-- 83% of consumers say that having website and use of social media is important to their consideration and choice of a small business.
-- In significant contrast to these expectations, only 34% of consumers say that small businesses they’re familiar with have a business website.
3. The majority of small business decision-makers overestimate their web and social media capabilities compared to what consumers expect.
-- For consumers, there is a 33% gap between the importance of small businesses having a web/social media presence versus how their expectations are being met (83% important to have; 50% meeting/exceeding expectations). In contrast, for small businesses, there is only a 10% gap (73% important to have; 63% meeting/exceeding expectations).
-- 61% of small business decision-makers rate their websites positively while 46% of consumers share this opinion – a very significant 15% difference.
-- Ultimately, the survey revealed that these perception gaps may be a result of the two groups wanting different things. Consumers tend to seek empowerment, engagement, and relationships via the web and social media, while small business decision-makers emphasize transactions, awareness, and marketing.
4. Small businesses that meet consumers’ expectations for web, social media, and digital capabilities have a significant opportunity to improve their bottom line by driving sales, loyalty, and ongoing online and social engagement with their customers.
-- 58% of consumers would be influenced to take positive actions if a small business delivers on their web/social media expectations. Of these consumers:
-- About 60% would likely: check out the business’ website and social media to find out more about the business; recommend the business to family and friends; visit the physical store or office; and learn what other customers have to say about the business.
-- About half of consumers would likely: seriously consider the small business over larger companies or internet-based businesses; put the small business on their “short list” of favorites; and make a purchase.
5. While small businesses are starting to discover the untapped opportunity of expanding their web presence, there is more work to be done before these companies can realize the full potential of their online and social media capabilities.
-- 65% of small business decision-makers think they have “good to strong” knowledge of web and digital technologies and services;
-- Yet less than half (41%) of small businesses that were surveyed have a business website today. Those that do not have a website say that they don’t see the need for one, or that costs to design it and maintain it are a barrier.
-- More than half (52%) of small businesses with a website have had it for three years or less, indicating that the web is a new area of opportunity for them.
-- Today, just over half (57%) say that web-based capabilities, technologies, and services are very important to their businesses overall. However, three out-of-four (73%) believe that the web, social media, and wireless will be very important in the future (next four years).
“Small businesses may underestimate the importance of digital capabilities today, but are beginning to take advantage of available tools to close the gap,” Brown said. “This survey underscores the significant opportunities to be gained by building a website and engaging with customers online.”