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Covid-19 has highlighted how essential digital is for SMEs. Many have embraced it quickly in order to maintain sales and brand presence. Those that adapt in this current environment will position themselves well for the future as the economy starts to recover, says David Curtin, Chief Executive of IE Domain Registry, the company that manages .ie, the preferred online address for business in Ireland.

Covid-19 has accelerated the need for SMEs to embrace digital tools, platforms and websites. People are staying safe working from home, and they have turned to online and e-commerce for goods and services. With footfall down and less physical interaction with businesses, SMEs must leverage the online opportunity to stay relevant to their customers in these unprecedented times.

Consumer Behaviours

Our latest SME Digital Health Index, which analyses Irish SMEs' and consumers' attitudes to digital technology, shows almost six in 10 consumers say making online purchases is 'important' to them. Consumers expect their local SMEs to be online. They want to see what their local shop has to offer, buy their products online, and have it delivered straight to their door.

E-commerce is worth €12.3 billion to the Irish economy, yet fewer than a third of SMEs with a website can actually take sales orders or process transactions through it. According to the CSO Retail Sales Index, for retailers based in Ireland online sales were estimated to account for only 3.3% of total retail sales in 20192. This is evidence of a missed opportunity. Consumers will not wait around for their local businesses to catch up. 54% will shop with a competitor if their preferred retailer isn't online, and this may result in spending with overseas companies.

As a result of Covid-19, consumer online behaviours have evolved. People recognise that supporting local Irish brands is important and more are now buying day-to-day essentials online regularly. Consumers are also more amenable to interacting with professional services online through virtual consultations, in areas such as interior design, GP services and physiotherapy, and banking and finance. SME websites and promotion of their online services will be critical in encouraging consumers to transact with them.

In Association with

SME Innovation

We have seen businesses demonstrating how quickly they can digitally innovate and respond in a crisis. Restaurants are offering 'pantry sales' where customers can buy the authentic ingredients online and create favourite meals at home. Retailers who had previously not sold online are now embracing e-commerce, while others have optimised their online stores for better conversion rates. Some businesses have adjusted their offerings and price points. Bespoke furniture makers are selling reasonable pop-up home office desks online, and yoga studios are moving online too.

In the new era of social distancing, SMEs must embrace omni-channel to engage with their customers on all fronts. Providing options such as click-and-collect or the ability to reserve an item online are e-commerce methods that are easily adapted for all SMEs. Omni-channel will be vital for those providing services and B2B businesses as well. For example, if someone is looking for an architect, solicitor or accountant, they will check online and gauge the company on the quality of their website. Every business needs to be fit for purpose in this digital world.

Online Benefits

Just under three-quarters of SMEs say that one of the biggest benefits of being online and digitally savvy is an increased awareness or understanding of their business among consumers. A third believe that their online presence has led to increased revenue, while a similar number believe it saves them time.

Small firms must realise the full potential of their websites. Three out of four SMEs with a website say that it is important for driving future sales growth. Processing transactions isn't the only way a website can generate sales revenue for a business. Allowing a customer to book an appointment, or even simply make a query, can lead to a sale at a later time. In these cases, a website is facilitating a transaction that otherwise would not have taken place. Indeed, almost three-quarters believe that their website contributes to 'offline' or face-to-face sales.

Misconceptions

When asked what exactly is preventing SMEs from doing more online, nearly three in 10 said they simply don't have the time. One in 10 say they lack the expertise, and a similar number say that the investment seems too expensive.

This slowness to adapt to the digital standard was largely based on a pervasive misconception by some SME owners that using a website, data analytics tools, or accepting online payments are difficult, time-consuming tasks that require specialist expertise. This is not the case. There are now many affordable online tools that allow SMEs to build modern, e-commerce-ready websites quickly, without any knowledge of coding or web design.

Covid-19 has shown SMEs that investment in digital can offer a return and a lifeline. DIY web builder packages are widely available from hosting companies in Ireland. Some reliable companies include our .ie accredited Registrars listed on www.iedr.ie.

Digital Supports

The SME Digital Health Index also revealed that only one in 10 Irish SMEs have availed of digital skills training supports over a twelve month period. The Trading Online Voucher Scheme run by the Local Enterprise Offices has recently been expanded in response to Covid-19 (www.localenterprise.ie/response) and is a great support for micro businesses looking to make the move online, improve their e-commerce abilities or use digital tools to stay in touch with local customers or international suppliers.

Many of the Local Enterprise Offices have also moved their training events online. Now might be a good opportunity for business owners and staff to improve their digital skills. There are many courses from training organisations that can be completed online. Sector and representative organisations also offer useful training and supports, so itís worthwhile that SMEs explore all the options available to them.

We have compiled a list of useful resources at www.iedr.ie/covid-19-business-supports.

Regional Digital Hubs

We believe that lasting, substantive change in Irish SME adoption of and attitudes towards digital can occur only with large-scale action. We recommend that the Government takes a 'regional digital hub' approach to its national digitalisation initiatives. Post Covid-19, these hubs are taking steps to ensure their facilities are organised and controlled, in line with the advice from health authorities.

We need to prioritise digital skills training and internet infrastructure upgrades in smaller towns and regions with high growth potential. These areas will be the most likely to quickly generate returns on investment.†This will also help rejuvenate ailing main streets, keep local talent in the community and open up stagnating or isolated areas to larger markets. As the country looks beyond Covid-19, providing SMEs with the tools to digitally boost their businesses will set them on the road to recovery.

In places like Sligo Town and Gorey in Wexford, where there are targeted digital activation campaigns and physical digital hub co-working spaces, citizens and businesses have benefited from job creation, increased revenue for main street shops, and new ways of learning. With reduced commuting and time-saving digital tools, overall quality of life is better. The rest of Ireland needs to follow their example.