.IE Tipping Point Report 2022

Section 3 The Covid SME The pandemic forced many SMEs to rethink the way they do online business. Digital change is rapid and constant, and the need for investment is greater now than ever before. SMEs must remain agile and open to innovation. Despite a clear path out of Covid restrictions, SMEs are somewhat less positive about their commercial outlook in 2022. 57% were either ‘very’ or ‘quite positive’ about their prospects this year compared to 69% in 2021. A slightly higher number are uncertain (32% vs 26% in 2021), while the number explicitly negative in outlook has increased by 6 percentage points (11% vs 5% in 2021). Exactly three-quarters of SMEs have a website. Encouragingly, the number of SMEs who now claim to use their website to generate sales is increasing. Those who said their website was important in driving future sales growth of their business increased from 72% to 77%, and as a driver of individual sales from 66% to 72%. Just over a third (34%) of businesses have an online store; of that figure, more than 8 in 10 sell directly through a store on their website. Since the beginning of the pandemic, 55% have reported an increase in the number of sales from their online store, with 36% of that figure recording an increase of 51%+. The clear benefits of investment SMEs that invest in developing their website beyond a simple static brochure with basic business and contact information clearly reap financial rewards. Among SMEs that have invested in their website since the pandemic, 71% said they have spent on online advertising and marketing, 61% on an email newsletter, and 61% on their website. Almost half (48%) said they have invested in software that improved their understanding of customer behaviour, such as data analytics software. Investment in data analytics software is particularly encouraging. Deeper insight into customer interactions will allow SMEs to proactively measure their digital ROI, allowing them to invest more money in features that work and quickly drop those that do not. Because of this investment, 30% of SMEs said they were busier than before the pandemic, and over two-thirds (36%) said it had allowed them to maintain a level of business that was similar to before the pandemic. 50% have invested in their online presence since the start of the pandemic 31% have spent between €500 and €2,499 The average investment is €2,218 Base: 203, SMEs that have invested since Covid .IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 10