Canadians are increasingly looking to shop
online – but less than one third of small and medium sized
businesses conduct business there
The report shares key insights and actionable
tips for how to build and promote a website, market a business
online, and set up digital payments – so small business owners can
quickly digitize and avoid common pitfalls
TORONTO, Jan. 20, 2020 /CNW/ - Visa (NYSE: V) and a
group of key industry organizations today announced Digital
Transformations of Small and Medium Size Businesses: The Future of
Commerce, a look at the opportunities and challenges Canadian small
and medium size business (SMB) owners face in an increasingly
digital world. The report provides a snapshot of how SMBs can
capture revenue opportunities and move to more technology-focused
processes. Developed with leading SMB advocates, the report also
offers actionable tips for technology and digital upgrades that
business owners can easily implement to grow their businesses.
"As consumer expectations are evolving, it is critical that
small and medium size businesses evolve with them," said
Brian Weiner, vice president, head
of product, Visa Canada. "At Visa, our goal is to help businesses
understand and navigate the complexities of today's consumer, and
adopt digital processes to stay competitive."
Digital Opportunity for SMBs
According to the report,
consumer purchasing behaviour is driven in part by websites and
online experiences:
- Consumer behaviour is changing: 90% of consumers say
they are motivated to shop at a business if they have an easy to
use website. 87% of consumers also think it is important to support
local businesses, providing a great opportunity for SMBs to further
engage with consumers.
- An online presence is a must: Half of consumers often
search online (46%) and/or check the business website (47%) before
visiting a new business.
- eCommerce is a differentiator: Only 32% of SMBs sell
their products and services online, with only 12% of their sales
coming from ecommerce, demonstrating huge opportunity for Canadian
businesses.
Digital Payments Improve Profitability
One immediate way for SMBs to seize a revenue opportunity may be by
digitizing the checkout process:
- Consumers prefer card: 85% of consumers surveyed rank a
digital payment method, such as paying with a card or wire
transfer, as their number one preferred payment option. But only
52% of SMBs prefer to accept digital payments, despite the
potential financial benefits.
- Digitization impacts the bottom line: 40% of SMBs saw an
increase in sales after they started to accept digital payments –
by an average of 7.1%1. Further, 61% of SMBs agree
customers spend more when they use cards versus cash.
- SMBs recognize the benefits of going digital: 73% of
SMBs agreed that utilizing digital payments helped them manage
their business more effectively.
Offers & Loyalty are a must
Businesses are aware
that rewards drive consumer preference and digital programs can
offer instant value and gratification:
- Consumers enjoy digital rewards: 78% of consumers are
more likely to choose a business that offers a loyalty program, and
89% of consumers prefer a digital loyalty program compared to a
paper-based stamp or punch card.
- Loyalty programs add profitability: 81% of owners say
their business is highly dependent on customer loyalty, and close
to two-thirds feel that loyalty programs can have a positive impact
on average ticket size, repeat customers and revenue.
"While more than 80% of consumers surveyed say digital benefits
motivate them to shop at a business, businesses are still
underutilizing these preferred digital channels," continued Weiner.
"With this report, Visa is sharing actionable ways SMBs can bridge
the gap between consumer expectations and their current offerings,
resulting in untapped profit and growth in this digital
revolution."
Visa provides digital tools and technologies that SMBs can use
to help grow their businesses. Visa further helps accelerate
entrepreneurship through initiatives like She's Next, Empowered by
Visa, which connects women small business owners with Visa's
network and partners to help them fund, run and grow their
businesses.
About the Digital Transformation of SMBs
The Digital
Transformations of SMBs report is an independent study commissioned
by Visa in collaboration with a consortium of trade associations,
technology providers, financial institutions and researchers to
help bridge the gap between consumer expectations and
current SMB offerings.
To download the Digital Transformation of SMBs: The Future of
Commerce report and learn how to begin growing your business, visit
visa.ca/digitaltransformation.
Methodology
Maru/Matchbox, a global consumer
intelligence firm, surveyed 225 businesses that represent business
payment decision makers and 2,000 consumers in 2019 to form the
Maru/Matchbox 2019 Small Business and Consumer Surveys. ESI
ThoughtLab, a leading economics consultancy firm, collaborated with
Visa to develop equations that enable the cost analysis to realize
the impact of digital versus non-digital payments.
About Visa Inc.
Visa Inc. (NYSE: V) is a world leader in digital payments. Our
mission is to connect the world through an innovative, reliable and
secure payment network - enabling individuals, businesses and
economies to thrive. Our advanced global processing network,
VisaNet, provides secure and reliable payments around the world,
and is capable of handling more than 65,000 transaction messages a
second. The company's relentless focus on innovation is a catalyst
for the rapid growth of connected commerce on any device, and a
driving force behind the dream of a cashless future for everyone,
everywhere. As the world moves from analog to digital, Visa is
applying our brand, products, people, network and scale to reshape
the future of commerce.
For more information, visit visa.ca/smallbusiness and
@VisaCA.
|
|
|
|
|
|
|
|
|
|
|
|
18 The potential
increase in revenue from acceptance of digital payments was
calculated based on the experience of firms that recently began to
accept (within the last 5 years) digital payments and that have
been in operation for more than 5 years. Fifty-five firms met these
criteria. Please see the Methodology for additional
details.
|
SOURCE Visa Canada