Small businesses shift quickly to digital as they adapt to impact of COVID-19

Small businesses have been among the hardest hit by COVID-19 in Australia but new research on the impact on their operations shows SMEs nationwide have adapted swiftly to the challenges by embracing digital commerce.

According to the Mastercard study of 806 Australian businesses about their experiences and banking needs during the pandemic, 52% accelerated their shift to ecommerce sales in response to COVID-19.

Of these organisations, 44% did so within three days of exploring the option, while 68% were online within a week, and one in five businesses (20%) were able to make the change within just 24 hours.

According to Mastercard, as consumers rethink the way they shop and pay, opening online was not the only way Aussie businesses sought to accommodate changing consumer behaviour.

COVID-19 has seen many retailers shift from cash to contactless card and digital payments as their preferred way to accept payment.

“Mobile wallets in particular saw a surge in popularity, especially with organisations with 20+ employees where that preference rose by 23%. More broadly, 17% of organisations claimed they had started taking or will continue to take mobile wallet payments in response to the pandemic,” says Mastercard.

Mastercard notes that Australian businesses are finding new ways to attract and retain customers, with three-in-five (62%) businesses adopting strategies to rebuild sales, with 31% using discounting for existing customers and 28% offering new customer discounts.

The survey also found that a quarter of organisations (25%) increased their digital marketing investment while 23% delivered more personalised offers for existing customers as a means of encouraging sales.

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Source: iTWire – Small businesses shift quickly to digital as they adapt to impact of COVID-19