.IE Tipping Point Report 2022

Section 1 Preparing for the post-Covid era While the worst of the Covid restrictions may be over, Irish businesses must now work to capture the attention and sales of a consumer whose behaviours and attitudes have been irrevocably altered by digital technology and changing sociocultural priorities. 1. Hybrid shopping will be the default According to a 2021 survey by Morgan McKinley, given the option, most employees prefer a hybrid working model, whereby they can work from home some days of the week, without the need to commute, and work in the office on others, enjoying the productivity and social benefits that come with it. Employees value this hybrid model primarily because it gives them flexibility and the freedom to choose. The same is true of the way we shop - we enjoy the experience and the convenience of in-store shopping while simultaneously valuing the ease and speed of e-commerce. We gravitate towards retailers that give us the best of both worlds. SMEs that provide the best hybrid shopping experiences seamlessly link their physical shop with their digital presence, such as their website and e-commerce store. They cater to consumers who prefer to browse online then buy in-store, as well as those who like to get a sense of what they’re buying in person and then complete the purchase in the comfort of their own home. They may use novel technologies, such as AR, to further enhance this experience. However, despite pandemic trends showing a preference for a convenience-first hybrid shopping model, just 10% of the SMEs we surveyed regard the fuller integration of their physical shop with their online premises, and vice versa, as a priority digital investment area over the next five years. 2. Cybersecurity is non-negotiable In an era of high-profile cyberattacks, consumers place value on the integrity of their personal data. 75% said they were ‘very’ or ‘somewhat concerned’ about the security of their personal information when shopping online, a trait shared broadly by all demographics. However, the majority (62%) of Irish SMEs either take no special steps to secure personal data or don’t know how to. Just 15% confirmed the use of basic but effective measures such as a firewall or antivirus, and only 11% the use of two-factor authentication. Only 4% have trained staffed in cybersecurity best practice. This is dangerous. We know from the HSE ransomware attack in 2021 that a small error, linked to a lack of employee awareness of common cyberthreats, led to a prolonged paralysis of critical State infrastructure. Similar incidents within businesses are increasingly common. While it might be tempting for an SME to postpone expenditure on anything that doesn’t have a measurable impact on the here and now, a cyberattack can be devastating and lead to permanent destruction of customer trust. It is the duty of SMEs to protect their customer or user data. Through national and EU legislation, such as the Data Protection Act and GDPR, businesses that shirk this are likely to find themselves subject to penalties. .IE Tipping Point 2022: Irish e-commerce and digital business in the post-Covid era | 4 Levels of consumer concern about the security of their personal data when shopping online 27% Very concerned 48% Somewhat concerned 21% Not particularly concerned 4% Not at all concerned Base: 1,000 consumers