.IE Tipping Point Report 2022

SME adaptation: short or long game? The majority of SMEs have felt the benefits of sustained digital investment. Almost three-quarters will continue to invest in their online presence in 2022. Just over half of SMEs (54%) are planning a significant digital project over the next five years. Most are considering building a new website, improving their existing website, or building a dedicated app. Despite the consumer demand for hybrid shopping and SME recognition of this, just 10% are planning on better integrating their physical shop with their online channels, and vice versa. Fewer plan to invest in other technologies, such as AR experiences (8%), digital automation and productivity tools (7%), and customer chat software, such as a chatbot (4%). While an increasing number of SMEs are now selling online with modern e-commerce software, digital investment should be a proactive and sustained part of business spending. Digital change is constant and rapid, and Irish businesses must be careful not to stagnate - international retailers will be more than eager to snap up Irish customers frustrated with a lack of innovation at home. The Covid SME [continued] 74% .IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 12 of SMEs will continue to invest in their online services in 2022 Base: 502 SMEs SMEs’ top 6 digital priorities over the next 5 years 23% Launching a new website 15% Improving design/navigation of existing website 13% Building a dedicated app 12% Accepting more customer payment methods 10% Investing in better cybersecurity 10% Better integrating physical shop with online channels and vice versa Base: 502 SMEs SMEs’ top 5 digital investment areas since the pandemic 71% Online marketing/ advertising 61% Launched/ improved email newsletter 61% Launched/ improved website 57% Launched/ improved social media page(s) 48% Customer behaviour analysis software (e.g., data analytics) Base: 203, all SMEs that have invested in their online presence