5 digital marketing stats and what they mean for small businesses

The last 15 months have resulted in huge change across the globe, both from a personal and business perspective. We hear a lot of talk about the ‘new normal’ and the need for people as well as businesses to pivot/adapt.

There has been a lot of research from various companies around the state of digital marketing and what it means for businesses of all sizes. For large businesses who generally have the teams, resources and budgets, adapting to a change in the digital world is relatively straightforward. Expertise can be deployed and the biggest challenge facing larger businesses is the speed at which they can adapt.

In contrast, digital marketing can present small businesses with lots of challenges and options that make plotting a route to success all the more difficult. There is no denying that we all are much more comfortable researching and ordering online.

A recent study actually found that here in the UK, the average adult is now spending over 6 hours per day, surfing the web. This is easy to see as we’ve had to adapt to working from home and going through lockdowns, the options to get away from our computers, tablets or mobile devices have been limited.

Although a lot of businesses have tried to adopt more digital solutions into what they do, there is still so much opportunity for all types of businesses to grow. Digital marketing offers all types of businesses in every sector, multiple options to connect with their customers.

Businesses that are succeeding online offer their customers a multi-channel experience encompassing their website, social media accounts, search engines, review sites etc. This is what truly differentiates the digital experience to the physical experience, the ability to connect with customers on the platforms that matter to them most.

In this weeks blog, we wanted to highlight 5 digital marketing stats and understand what they mean for small businesses:

1. Almost half of small businesses spend less than two hours per week on marketing efforts (Fundera)
This is not a surprising statistic when you consider that the modern day business owner has to juggle multiple priorities such as products/services, staff, finances and customer support. The day-to-day operations always take priority and this is often to the detriment of marketing efforts.

The businesses that continue to grow and thrive are the ones that focus on marketing efforts as that fuels engagement and revenue. It is for this reason we have seen a huge increase in the number of small businesses that are choosing to work with Digital Agencies who have the time and expertise to help with digital marketing campaigns.

2. Customers who engage with a business on social media spend up to 40% more with them in the long term (Statista)
Half of the global population is on one or more social media platforms. It is imperative that small businesses engage with customers across a variety of social media channels. One of the biggest challenges that small business owners face is trying to manage a presence across all the different platforms.

In our experience, it’s more advisable for small businesses to select 2 social media channels (e.g. Facebook and LinkedIn) where the majority of their customers spend their time. They can then focus on creating content across those channels and build deeper engagement with their customers.

When a business interacts with its customers on social media, it presents a chance for the small business to humanise what they do, their staff members and the overall customer experience. As a result, it’s no surprise that customers then have a higher lifetime value to the small business.

3. 91% of customers have visited a store because of an online experience (HubSpot)
There is no getting away from the fact that customers now expect all businesses to have an online presence. This often includes multiple touchpoints for the customer to interact with the small business. Some popular examples include the business’s website, social accounts, Google My Business page, review sites etc.

Since more and more of us are shopping online, businesses need to be able to blend a digital and physical experience. This can be achieved in a variety of ways such as offering the ability to book an appointment online or providing online vouchers/promotional codes that can be redeemed in the store.

As we transition away from restrictions, the businesses that have built an online presence and continue to engage their customers online, will be the ones that are best placed to also increase their physical traffic in store.

4. Only 64% of small businesses have their own website (Clutch)
This may come as a surprise to most people, but there are a significant number of small businesses that still do not have their own website. Many new businesses or start-ups think they are too small or niche to have their own website. In contrast, they focus on developing a social media page through Facebook or Instagram to connect with their customer.

While it’s great to have a presence on social media, it’s vital that small business owners understand the benefits of having their own website. In essence, a business can control the message, style and user experience of their own website. Sure, they need to focus on driving traffic to their site, but this can be remedied over time through content marketing or pay per click (PPC) advertising for example.

However, if relying on a social media page, a business is heavily reliant on the likes of Facebook or Twitter. If algorithms change or there is a shift in policy, this can have disastrous consequences for the business as all their hard work can be undone.

Therefore, it’s vital that a business looks to have its own website and this is something that many business owners are now understanding.

5. Marketing spend is expected to grow by 14% in 2021 (Deloitte, 2020)
The digital marketing sector is evergreen and pandemic proof. There will always be a need for businesses to engage with their customers online as the digitisation of society as a whole, increases year-on-year.

Marketing spend will always grow for businesses as they look to compete online. Whether it’s investing in technology solutions to offer a streamlined customer experience or focusing efforts on engagement, all business owners understand the need to market their businesses.

One of the biggest shifts over the last 12 months has been the way that business owners now view marketing spend. Traditionally, marketing budgets were viewed as an expense but now it’s more common for business owners to think of marketing as an investment as it helps with customer engagement, brand recall and ultimately growth.

Why are these stats important?
It is important to recognise that small business owners need help in order to adapt to the needs of the modern day customer. In many of our cities, towns and villages, small businesses play a vital role in our local economies and communities.

A study from the Federation of Small Businesses here in the UK found that there are over 6 million small businesses in the UK alone and this accounts for over 99% of total businesses. These statistics and ratios are similar in other countries such as Canada, the US and South Africa.

Therefore, it’s important that we understand the significant role that small businesses play in our local areas in terms of employment and investment. Most people are looking for personalisation and a local presence for the businesses they interact with, so it’s crucial that business owners evolve their outreach to embrace the online world and better connect with their target audience.

Summary
As we have seen throughout this weeks blog, the digital marketing world is evolving when it comes to small businesses. Some of the stats we highlighted show that there are many possibilities and opportunities when it comes to helping small businesses thrive online.

Our mission at iOB Business is to help our partners deliver digital marketing solutions to all types of small businesses. It is for this reason that we have developed the most value-driven Digital Agency opportunity on the market.

To find out more about how you can help businesses in your local community improve the way they market online, please contact a member of our team.

Until next time, take care.