.IE Tipping Point Report 2022

Insights [continued] .IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 3 Consumer preferences are not static For a time-poor SME, finally getting an e-commerce- enabled website online and functioning can seem like a heroic accomplishment. And it is. But the work doesn’t stop there. Consumer expectations change as technology evolves and new features provide more benefits. Our research shows, for example, that consumers are increasingly interested in paying for goods and services with a digital wallet, open to subscribing to their preferred retailers for exclusive offers, and willing to use AR to ‘try on’ or sample certain products, such as clothes and furniture. Rather than constantly engaging in a game of technological catch-up with bigger retailers, SMEs should, as much as possible, take note of what it is that consumers truly value in a digital shopping experience and find affordable, scalable ways to meet that demand, even on a trial or experimental basis. Digital service provision is a strong growth area In many cases, the pandemic made physically visiting a service provider, such as a GP or solicitor, impossible. Adapting to a restricted trading environment, many of these businesses were forced to find ways to provide their service digitally, such as over Zoom or via a website portal. This appears to have worked. 3 in 10 Irish consumers bought a service from an Irish business during the pandemic, a figure that rises to more than 4 in 10 among Millennials. Half of SMEs that provided digital services reported an increase in sales over the course of the pandemic. While full digital service provision is still relatively immature, it is likely to emerge as a growth area in the post-Covid era. SMEs who invest in this technology early are likely to gain traction among hybrid shopping-oriented consumers eager for more choice and flexibility. Digital mastery through persistence It may sound like a truism, SMEs that invest time and money in digital, say they continuously reap rewards, including increased revenue, more customers, and a greater ability to withstand sudden change, such as a pandemic lockdown. Like a saver who starts putting money away in their twenties rather than later in life, the SME that has continuously looked after their website, online store, and other digital technologies is likely to be the one that has managed to weather the toughest pandemic restrictions. Many businesses, which after years of steady investment are naturally attuned to changes in digital consumer demands and trends, have actually flourished since Covid, some exceeding 50% online sales growth. 4 5 6