Digital Strategy Post-COVID-19: How UK SMEs are Bouncing Back

Small businesses in the UK feel confident about their digital investment, prioritising Omnichannel and Email Marketing strategies to compete with larger companies

LONDON, Oct. 11, 2022 /PRNewswire/ -- Capterra UK conducted two surveys on nearly 300 professionals from SMEs to find out how companies have developed their digital presence since the COVID-19 pandemic and what digital investment plans are in the pipeline.

According to the first survey, one in five businesses (23%) did not have a digital strategy before COVID-19 but had to define and implement one as a result of the pandemic. For more than half of companies, COVID-19 accelerated their digital transformation because their initial digital strategies were not sufficient.

COVID-19 accelerated digital strategies, but most SMEs say it was worth it

The majority (56%) of the surveyed respondents thought that their company would have been worse off or even not exist today had they not carried through with these digital initiatives. However, nearly two-thirds (64%) of respondents found it extremely or somewhat difficult for their company to implement its digital strategy.

A combined total of 55% said they recruited new employees (36% hired more people and 19% hired and fired staff) to help them carry out the digital migration, with 58% identifying Digital Marketing Specialists as the top recruited role. Meanwhile, 19% of SMEs still have somebody in charge of digital strategies who is not an expert in the field.

Omnichannel strategies are being used to meet customer demands

According to 38% of the respondents, the top reason for the companies' digital transformation was to respond to customer demands, with over half (51%) saying customer service support tools, including customer relationship management (CRM) and chatbots, are focal points that needed improving.

In particular, the pandemic accelerated the deployment of omnichannel strategies to cater to users: While 31% of businesses had these strategies in place already, the number rose to 37% during the pandemic.

SMEs' investment in Email Marketing and Data Collection will be key to success

Capterra UK's second survey shows that while many businesses invested in digital strategies to adapt to the pandemic, most UK SMEs will maintain (46%) or increase (50%) these investments for at least the next two years, with 55% saying the strategy is working well and that more investment means more revenue.

According to 35% of the respondents, the main reason a digital strategy helps businesses is that it increases sales opportunities by reaching new people from different channels. A combined total of 91% of the respondents say email marketing is an important element of their company's digital strategy (39% say it is somewhat important and 52% say it is very important), followed by Data Collection (90%).

Big companies are competition for SMEs but are also beneficial

Nearly three-quarters (72%) of the surveyed professionals somewhat or strongly agreed that "big companies are more favoured than SMEs in the digital age" and a quarter (26%) of respondents said their company adopted a digital strategy to keep up with competitors.

However, others are leveraging the benefits: The results show that 15% of SMEs see the existence of big companies as beneficial to their company, with 42% of this group saying that they observe and learn from the way big companies work.

About Capterra:

Capterra helps organisations around the world find the right software for their needs. Founded in 1999, Capterra's global product footprint, verified user reviews backbone, independent research, and tailored comparison tools, provide more than five million in-market buyers with a confidence-building discovery experience every month. For more information, visit www.capterra.co.uk.  

Contact:
Rachael Taylor, rachael.taylor@gartner.com

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