If COVID-19 taught us anything, it has been how to rapidly respond to change. With online spending skyrocketing in recent months, Australia’s small-to-medium businesses must respond to this change in customer behaviour in order to take advantage of the ‘new normal’.
The COVID inflection point for digitisation
Make no mistake: Australian businesses in all shapes and sizes are at an inflection point, with the data telling a truly remarkable story. Unemployment has risen rapidly, and 1 in 10 small to medium businesses are no longer trading due to COVID-19. Those that have survived are reporting serious concerns, with 80 per cent of small to medium businesses expecting adverse impacts to their operations in the next two months.
Small business owners have always told us that one of the biggest barriers to getting their operations online was the time required. Owner-operators are typically so invested in doing the day to day that they don’t have the time to digitise their business. But now that COVID-19 has driven legions of shoppers online, driving a digital strategy for small business is not just important – it’s urgent. Especially considering we’re seeing Australian consumers actively looking to support local businesses in their area.
New data from Ventures Insights indicates that 70 per cent of Australian consumers now consciously support local businesses, but many indicate that they are hamstrung by a lack of online presence. Businesses that go digital also reap near-immediate rewards, with our research showing that boosted technology spending leads to revenue that is three times faster than those who don’t invest in technology.
There are clearly huge opportunities for small to medium businesses in Australia to go digital during this time.
To capture these post-COVID consumer dollars, businesses must seize the opportunity of e-commerce as much as possible because those that have adapted well have put technology right at the centre of their business.
Businesses that have managed to rapidly digitise during lockdown have told us that tech and telecom services are now more important than they had been in a pre-COVID world. Connected, always-on tech is now being used by small businesses to create new experiences for customers and new ways of doing business.
There’s no doubt that it’s going to continue to be hard for many to adapt. Previous barriers to adoption such as time pressure or complexity are still as relevant as ever, but the urgency has increased. Video, remote connectivity and e-commerce must now be the watchwords of the successful post-COVID SMB.
One such business adapting successfully is Kalleske Wines. Situated in South Australia’s Barossa Valley, Kalleske relied heavily on physical presence at its winery, restaurant and cellar door to do business. When COVID-19 hit, Kalleske had the radical idea to take the fundamental features of a winery and put it online, adapting and digitising its operation rapidly to stay open.
It started to offer mixed six- and 12-packs of wine with accompanying videos and downloadable resources for customers to learn more about the wine. Furthermore, it replaced its Cellar Door experience with Facebook Live sessions in conjunction with a local industry group to continue tour and information sessions. Private tastings were held via video conference, with customers being sent new 100mL sample sizes to try the wine during the session.
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Monthly educational masterclass tasting with Troy Kalleske. Each month the Kalleske team meets to compare our most recent 'new release' vintage wines against the previous vintage. Today we tasted our Parallax Grenache, Zeitgeist Shiraz and Moppa Shiraz! #tasting #cellardoor #organics #greenock #kalleske #barossa #BarossaWine #mybarossa #masterclass #wineeducation
Kalleske has told us that they’ll almost certainly continue all of these initiatives in the future to ensure that customers who would rather not travel can still take advantage of what their business has to offer.
It’s not an easy road out of COVID-19, but with resilience and ingenuity, many SMBs will be able to adapt to changing consumer behaviour and provide more remote working opportunities for their employees. Ultimately though, there is no going back.
COVID-19 represents a fundamental opportunity to capture not only a new wave of online shoppers, but also for SMBs to digitise their operations.
As the backbone of the Australian economy it is now incumbent upon all of us to get behind small business and help them grow. However, moving past these challenges (toward a new normal) and moving back into growth requires time and support, which many SMBs don’t currently have.
So we have made some small but significant changes to help them thrive:
- To give you peace of mind about staying connected to your business operations over the coming months, we’re providing unlimited data allowances on fixed broadband free of charge for our small business customers until 30 September.
- We’re offering small business customers a $50 credit for 6 months when connecting a new fixed internet service on the $100 Business Internet Unlimited plan with a $25 Business Calling Pack, until 31 August. This is a great offer providing more value to our Business Internet Plans to help small business to thrive again.
- We’re offering small businesses access to our new Digital Marketing Services website plans at half the regular cost, until 31 August. We’ll help you create or update your website and if needed, open an online store.
- We’ll be on hand to assist you in creating business listings for Google My Business, Apple Maps and Facebook Business. For our existing customers, we will automatically apply 50 per cent off your Telstra Digital Marketing or Telstra Online Essentials website subscription charge.
- If you’re missing any equipment to work from home, Telstra’s Mobile Worksuite gives you the data, software, devices and support you need to get you and your team working remotely smoothly.
- We continue to monitor the situation closely while working closely with regulators and the government. Our absolute focus remains on team wellbeing, supporting our customers and playing our part in the national response.
- Find out more details about how we’re supporting small businesses through COVID-19.