Cook: Deloitte report shows digital adoption on the increase, but still room for improvement

Bonfire CEO Clay Cook says this year’s Deloitte Connected Small Business Report contains some positive indicators but also some warnings for small-to-medium businesses.

Adoption of digital strategies and technologies by Australian SMB’s has increased in recent years, but there’s still plenty of room for improvement. The Deloitte Connected Small Businesses 2016 report has found that over half of Australian SMB’s are still operating at a basic to intermediate level of digital engagement, with only nine percent at an advanced level.

However, the good news is that digital engagement has increased in recent years. Since the previous report in 2013, there has been a fifty percent increase in the number of businesses boasting an advanced level of digital engagement through activities like online advertising and search engine optimisation.

It’s unsurprising that a greater level of digital engagement pays off. Revenue growth, innovation and increased employment are some of the key benefits.

SMBs at an advanced level of digital engagement were one-and-half times more likely to have experienced revenue growth over the previous twelve months compared to those with only basic engagement. This same level of engagement sees the business being more than fourteen times more likely to display innovation in new products or services and more than eight times more likely to experience employment growth.

Digital strategies and tools are also helping Australian SMB’s to diversify their customer base. This includes new markets that had previously not been accessible, such as customers from new geographic locations, demographics or other market segments.

The main stumbling block to increasing digital engagement among Australian SMB’s is convincing these businesses of its value and relevancy to their business.

The whole industry has a role to play in this area. We are fully aware that there are still many business owners who are sceptical about digital. We have a responsibility to properly educate them on the value associated with digital engagement. This includes addressing and breaking down the misgivings and barriers that are preventing businesses from increasing their adoption.

However, before diving into digital, they need to have a clear understanding of their market and any possible threats.

The key take away from the Deloitte report is the need for businesses to adopt a solid digital marketing strategy. With a rapidly changing Australian business landscape, we’re seeing more and more international players entering our client’s markets. Businesses that are reluctant to accept that digital marketing is now a staple in any marketing plan will simply be left behind.