Technology is playing an ever increasing roll in our daily lives and according to a recent Visa study titled, Digital Transformation of SMBs the Future of Commerce nearly 280 million people or 85% of the US population are expected to go online at least once a month.
Interestingly the study points out that according to e-marketer estimates, 25% of purchases that start online are completed in store, also known as click-and-collect, and 25% of purchases began in-store are completed online. Therefore it should come as no surprise that when asked 78% of consumers ranked a digital payment method such as a card or being able to pay with their phone as their number one preferred payment option.
What comes as a bit of a surprise is that according to a new 2018 Maru/Matchbox survey that was highlighted in the Visa report, only 46% of SMBs sell their products and services online and of those SMBs who do they estimate that about 15% of their sales come from online channels.
By enabling the purchase of products and services via online, the opportunity for SMBs is two-fold. First as previously mentioned a large percentage of consumers rank digital payments method and cards as a preferred payment option which is predominantly the only option available online and the study found that 65% of SMBs agree that customers spend more when they use cards versus cash. So by SMBs enabling their products and services to be sold online, they’re creating a better customer experience and potentially generating higher revenue.
With the internet flatting the globe the information in this study presents SMBs with a fantastic opportunity as long as they have a digital-first mindset. When taking an internal audit and looking within their Industry SMBs need to take note of industry and consumer trends that will enable them to stay ahead of the digital curve.
