Smartphone shopping, augmented-reality changing rooms, same-day delivery (perhaps soon by drone) – with so much innovative e-commerce out there, you would think that small and micro businesses were tooled to the hilt with technology. In reality, nearly half of UK small businesses lack even the most basic of 21st-century gizmos: a website.
In recent months, consumer spending has dropped significantly because of Covid-19, but where money is being spent, it is likely to be through online purchases, so a website is more essential than ever if a business is to thrive. In fact, a survey for the website builder GoDaddy found that lockdown has prompted a fifth of micro businesses to set up an online presence for the first time, while nearly half of such businesses have boosted their digital and social media activity.
One survey found that 53% of consumers had shopped more online during the pandemic, and that at least three-quarters expect to continue buying online once lockdown ends. This could well signal a permanent change in consumer behaviour.
While big brands will take a lot of these sales, many customers still want to support their favourite small businesses, whether the local pub, florist, butcher or baker. The GoDaddy survey reports that 63% of consumers say they are more likely to shop with small local businesses during the pandemic, and that 67% of these plan to do so once lockdown ends.
Some savvy small businesses are tapping into this trend by using their websites to create additional opportunities for consumers to spend. Online promotions, reward schemes and e-gift cards are just some of the ways businesses can help keep customers returning.
Online promotions
Promotions (vouchers, discounts and deals) are a great way to attract new customers and keep them coming back for more, as are contests, giveaways and flash sales. Meanwhile, free deliveries and automatic replenishment of perishables using a subscription model have become increasingly popular in the e-commerce world. Placing time limits on deals can create a sense of urgency and encourage uptake.
Another way to spur bigger purchases is to create product or service bundles, or to cross-sell complementary items. Multi-buy deals – such as three for two – can result in a larger shopping basket too. And what about the customer who leaves your website without purchasing the items in their cart? A reminder email might entice them back.
But be warned about heavy discounting, if it’s not done properly, businesses can end up reducing the perceived value of their products or services.
Ultimately, it’s crucial to benchmark the results of any promotion against your regular pricing to see which strategy has the most positive impact on the top line.
For small businesses, the prospect of running promotions can seem daunting, but it doesn’t need to be if you know where to look. GoDaddy has created a suite of email marketing tools specifically designed with small businesses in mind. These tools let clients quickly and easily send out notifications about promotions, and even automate them to lighten the load.
And to help you get to know your customers better – who they are and what resonates with them – GoDaddy makes it simple for its clients to create surveys and monitor the results. All of which will help you run your business in a way that bolsters your bottom line.
Reward schemes
Reward schemes differ from online promotions in that they encourage repeat purchases over an extended period.
The added benefit is that your business can gather data on consumer behaviour and satisfaction, so you can tailor products or services to their needs. Your customers may also spread the word about your loyalty scheme and encourage others to join.
For customers, there are many benefits – saving money and time, winning prizes, and early access to products, services or events. Communicating the advantages of a scheme is one of the keys to its success.
Typically, customers earn “points” when they buy from you, refer friends or post about your business on social media. You can also award points for anniversaries and business milestones.
Shoppers can be automatically enrolled when they make their first purchase, or can opt in via your app, website or social media channels. Customers then redeem their points to get products free or at a discount.
Remember to take time periodically reviewing the performance of the programme. You can choose which metrics you measure – whether it’s number of members, or rewards earned or claimed – but it’s important to understand what worked well, what didn’t, and how to improve the programme.
Digital gift cards
Digital gift cards could be the ultimate guarantor of customer loyalty during the pandemic. They’re not just a source of immediate income, they are an endorsement of your business from the giver and a warranty that you’ll gain a future customer. What’s more, they are a relatively cheap marketing tool that spreads awareness of your brand.
Some businesses combine e-gift cards with promotions offering future discounts, which they hope will encourage recipients of e-gift cards to return and spend more.
This makes sense as the cost of acquiring new customers can be far higher than retaining existing customers. And those existing customers are much more likely to try out new products and to spend more as their trust grows. This underscores the importance of a loyalty scheme for small businesses.
Developments in technology might be moving at a rate of knots, but small businesses needn’t be left behind. Beyond the bells and whistles of drones and augmented reality, there is a world of opportunity for entrepreneurs. And it all begins with a website.
GoDaddy launched the #OpenWeStand initiative offering a number of free tools, widgets, resources and blogposts at OpenWeStand.org to help small businesses keep their digital doors open while their physical doors are closed. Over 50 companies have joined the cause, including Slack, Salesforce, PayPal, and more
