2018

Telstra Small
Business
Intelligence
Report
Are SMBs keeping up with
consumer expectations?

Make this year ‘that’ year you clicked with more customers.

SMARTER
BUSINESS™
Foreword. 3
Introduction. 4
Finding Customers. 6
Introduction: ‘Word of mouth’ means different things to different people. 7
Small businesses underestimate the importance of being online. 8
Most customers use search engines to find a product or service. 12
Customers overwhelmingly use mobile devices to find information. 15
Customers are more likely to continue engaging with brands that are 17
active on social media.
The online reputation of small businesses is increasingly important. 20
Recap: What have we learned? 22
Selling to Customers. 23
Small businesses failing to deliver the e-commerce experience 24
customers expect.
If you want customers to come back, offer a personalised service. 27
Recap: What have we learned? 28
Retaining Customers. 29
Introduction: Customers want business relationships to be easy. 30
Customers want to get in touch – but not in the way you think. 31
Small businesses are not using customer data to its full potential. 33
Customers expect you to deliver on your promise. 36
Recap: What have we learned? 38
Future Customers. 39
Most businesses aren’t future-ready. 40
Recap: What have we learned? 43
 Foreword

Make this year ‘that’

year you connect with
more customers.
The 2018 Telstra Small Business Intelligence Report delves into the complex
relationship between consumers and small businesses, exploring the various challenges
and opportunities in how they find, communicate and transact with each other.
While plenty of reports analyse business trends, and plenty more survey customer
behaviours, this report compares both to see where they agree and where they differ.
Last November, Telstra’s Smarter Business™ conducted two parallel surveys: one
targeting more than 1000 small businesses; the other targeting more than 1000
consumers across Australia. The consumer survey asked about their expectations and
behaviours when finding and transacting with small businesses. Meanwhile, the small
business survey asked what they believe customers want and explored the tactics they
currently use to hopefully meet these needs.
A comparison of the results reveals a number of differences, representing a gap
between customer behaviours and wants on one side and what small businesses are
delivering on the other. How do businesses find customers? Where do customers look for
products and services? What do customers value most when selecting a small business,
and what is more likely to put them off? And, yes, how does technology potentially
enhance or hinder the experience for both?
However, it would be extremely frustrating for a time-poor, budget-strapped small
business if this report merely pointed out where the differences or gaps are. That’s why
we’ve interviewed an assortment of experts and award-winning small businesses to
provide informed insight into these findings while presenting practical advice on what
you can do to address them.
Reading this report will help you turn this year into ‘that’ year you click-start your
business – and become ‘that’ business people remember and keep coming back to.

Jeremy Nicholas
Executive Director of Brand, Consumer and Business Marketing, Telstra

SMARTER BUSINESS™ 3
 Introduction

Introduction
Customers are the Problems are best solved and relationships made stronger by exploring both points of
view. In planning this report, we conducted simultaneous surveys with customers and
cornerstone of any small business owners, so we could get both sides of the story.
successful Of course – as this is Telstra’s Smarter Business™, after all – we were especially
business, but the enthusiastic to learn more about how small businesses could better find and nurture
relationship more loyal customers and how technology can help.

between the two Perhaps unsurprisingly, small businesses identified their top three challenges as:
isn’t without its 1. Developing new revenue streams
challenges. Both 2. Sourcing new customers
sides can have very 3. Increasing revenue from existing customers
different agendas Comparing the responses to the two surveys reveals that small businesses have a
– the customer to mixed approach to their digital or online presence. What we found was that small
businesses are out of step with customer expectations and behaviours in many
solve a need or important areas.
want; the business In some areas, they do understand what their customers want from them. In
to make a return. others, there is a wide divide between customer expectations and small business
implementation. There are a couple of reasons why this might be:
• Some small businesses recognise the need for change but feel they lack the time,
budget, expertise or confidence for implementation. That’s why we’ve included
simple advice and tools throughout this report to help even the smallest business
get started.
• Some small businesses may choose to see their own situation as an exception to
these trends – justifying their lack of implementation. We’ve addressed a few of
the common objections at various points throughout this report.

This report reveals opportunities to tackle these challenges through the

effective use of technology. That means:
• Understanding how customers are using technology (and why)
• Learning how to reach those customers using related technologies
• Discovering how to implement these tactics within your business
In this report, we will take you through the customer experience – the wins, the losses,
and all the gaps. This document is packed with insights into how customers really feel
about the way they use technology to engage with small businesses, and where they
see opportunities for small businesses to improve.
We’re highlighting the gap between what customers say they want, and what
businesses think they want.
Finding ways to close these gaps, improving existing relationships and nurturing new
ones, doesn’t have to be difficult, as you’ll find out.

SMARTER BUSINESS™ 4
 Introduction

Who is this report for?

This report is for all small businesses: from qualified tradies to entrepreneurial sole traders; from rapidly-growing
retailers with multiple staff to work-from-home freelancers with a few loyal clients. While small businesses
may differ in many ways, their customers have more in common – particularly in how they find, research and
communicate with a business and increasingly in how technology is changing the marketplace.
This report is especially for those small businesses who may think technology isn’t for them, because they may be
surprised what their customers think about that. For example, we found that sole traders were much less likely
than other small businesses to use online tools within their business and this can have a negative impact on
customer or client relationships.
If you’re still not convinced that technology is relevant to your customers, consider that the average Australian
owns three internet-enabled devices, with 84 per cent of us accessing the internet every day from at least one
of them1. This report is for small businesses who want to understand how this ubiquitous access to technology
can help them find new customers (or, more accurately, help customers to find them) while strengthening
relationships with those they already have.

1
Sensis Social Media Report 2017

Methodology
The research consisted of two quantitative surveys conducted online during November 2017, using the TEG
Rewards online research panel. Survey one was conducted with over 1,000 consumers across Australia and the
results were weighted by age, gender and state. Survey two was conducted with over 1,000 small business owners
and operators across Australia.

Definitions
For the purposes of this study:
• a small business is defined as having 1-19 employees. This is further categorised as sole traders (owner only),
2-4 employees, and 5-19 employees.
• technology encompasses everything from the internet to the telephone, from mobile devices and computers
to future concepts like artificial intelligence (AI) and virtual reality. In this report, technology refers to any
device or digital tool that might be used to operate a business.
• the word customer is used to describe both existing and potential customers as well as consumers in general.

SMARTER BUSINESS™ 5
Finding
customers.
 Finding customers: Introduction

‘Word of mouth’
means different things
to different people.
While customers Only 34 per cent of small business respondents ranked ‘attracting new
use technology as a customers’ as a primary role of technology within their business. This result
suggests a couple of possible conclusions.
primary tool to find • Many small businesses don’t consider tools they already use to reach
products and customers – such as phones, internet, email, etc. – to be ‘technology’,
services (or, more potentially missing opportunities to use them more effectively.
accurately, to solve • Many small businesses are reliant on more ‘traditional’ methods of
finding customers, which may be less effective as customer behaviours
problems and meet evolve.
needs), the majority While many small businesses might not currently use technology as a way
of small businesses to find customers (or at least might not think they do), their customers are
risk lagging behind. definitely using technology to find the right businesses! And if you’re not
easily found online, then it may be your competitors they find instead. Expert Advice
One common theme throughout the research was small businesses –
particularly sole traders – stressing the importance of word-of-mouth
Alecia Hancock
referrals above all other forms of marketing. In reaching new customers,
Director
76 per cent of small businesses listed word-of-mouth recommendation
Hancock Creative
(asking friends/peers/colleagues) as ‘important’ or ‘very important’– higher
than any other response. Yet, while customers also ranked word of mouth “It took me a long time to
highly (71%), they ranked it third behind online search and online reviews. realise that word of mouth
While word of mouth definitely plays a part, often this still happens online. only gets you so far and if
Even then, a recommendation may only prompt the potential customer you want to grow past that
word of mouth point, you do
to further research a business or product – using a search engine to find need a bigger strategy.”
the website or address, or comparing online reviews. In fact, there may
be many more steps and a variety of technologies between the initial
recommendation and the eager customer turning up on the doorstep.
In short, technology is now interwoven throughout the typical customer
experience in ways that are hard to separate (and probably shouldn’t be).
More and more customers now find, recommend, research and contact new

39%
businesses online.
In this first section, we will look at what customers really want from your
online activity, and a few simple things you could do that might help you to
of small businesses
see ‘helping to retain meet these expectations. We will look at how to maximise the value of your
customers’ as a website (and why you really do need one), why search engine marketing is
primary benefit of important, and how to make the most of your social media activities.
technology. But let’s start at the beginning. What does it mean to “be online” as a small
business?

14%
of small businesses
see technology as
increasing their
competitive
advantage.

16%
of small businesses
see technology as a
tool for innovation.

SMARTER BUSINESS™ 7
 Finding customers: Introduction

Small businesses
underestimate the
importance of being online.
Mind the gap

62% of customers will stop considering a business if

they can’t find information about it online.

Vs

50% of small businesses have a website.

Being an online business can mean different things: having a website, running an e-commerce store, using social
media, sending email newsletters, selling on eBay – the list goes on. However, websites continue to be the easiest
way for small businesses in particular to build legitimacy for the digital customer.
While 50 per cent of small businesses say acquiring new customers is a challenge, many are missing
opportunities to attract them online. Only half of all small businesses have a website, and that number drops to
36 per cent for sole traders.
However, more small businesses have a social media presence, with 66 per cent having a Facebook page, and
80 per cent saying they update it at least once a week. On the other hand, with 65 per cent of customers visiting
Facebook at least daily, is a weekly update enough?
Overall, small businesses are struggling to match customer expectations of what it means to be ‘online’, missing
opportunities to be found by new customers and to build legitimacy.
With the number of connected users in Australia still growing 1, it’s time to take some steps towards
online success.
1
ABS, Internet Activity, Australia, June 2017

How many small businesses have a website?

of sole traders 36%

2-4 employees 51%

5-19 employees 74%

SMARTER BUSINESS™ 8
 Finding customers: Getting online

Objection - “…but I don’t NEED a website?” 48%

of customers will stop
considering a business
You’re not alone in thinking that. Our survey found 43 per cent of small businesses don’t want a website. Even so, if it doesn’t have a
customers are still going online to look for businesses like yours! Instead of picking up the printed directories or website.
browsing high street shops, many customers now go to the internet or pick up their mobile phone to find a business
with the right item or service they need.
And don’t think it’s only retailers who can benefit from having a website. Freelancers, tradies, consultants – in fact,

60%
just about anyone with an ABN – can use a website to be more easily found when a potential customer or client is
looking for exactly their service.
Marc Tan, General Manager – Business Applications and Systems at Telstra, says even a very simple business of small businesses
website will give your one-person business credibility, while offering customers an easy way to contact you – that want a website
something 71 per cent of customers say is important when looking for a product or service. say they don’t have
And don’t forget that your business may be one of many vying for the same customer. A website can also provide time to launch one.
plenty of information to help customers compare your offering with the many others they may find online.
Showcase your portfolio of previous work, list details about your services, demonstrate your expertise with articles
and handy tips, or simply highlight your competitive pricing and unique selling points – a website is one of the most
effective ways to not only get your business found but also noticed.

SMARTER BUSINESS™ 9
 Finding customers: Getting online

Getting online still

a challenge for
small business.
“A website is a really important part of our journey,” says Ben Summons, Managing Director at beer manufacturer Stone
& Wood Brewing Company. “In the craft beer category, a lot of consumers really want to explore and learn more about the
brewery and the style of beers. Being a smaller business, it was an efficient way for us to tell the story of who we are and
the different layers of our business.”
While 40 per cent of small businesses without a website would like to follow Stone & Wood’s example, 60 per cent of those
say they don’t have time to launch one. Meanwhile, cost is another factor, with 57 per cent planning to spend less than
$5000 on technology in the coming year. However, a website doesn’t have to break the budget.
Launching a simple website can give you a foothold online that you can then build upon, as Elizabeth Abegg, Director of
fashion brand Spell and the Gypsy Collective, discovered. “[The website] was super clunky and ugly, but it was there. And
once we started to see those orders ticking in we were like, ‘Hold on a second. We just made money while we were sleeping.’
That was really cool.”
Marc Tan, General Manager – Business Applications and Systems at Telstra, points out that there are many low-cost online
services available to small businesses, even if they’re not tech-savvy. “There are entry points for every budget. A simple
‘business card’ style website can be a great starting point.”
But what should a good website include? Small businesses agree with customers on the importance of many website
features. However, they’re often not meeting those expectations on their own websites.
If your website doesn’t have every hoped-for feature straight away, that’s okay. Starting small is a great step
towards getting your business online. Once you have a website, you can add new features as your time and
budget allow.
Benny Ausmus, Founder and CEO of Big Change Agency and a Telstra Business Awards judge, recommends focusing on
a couple of key areas for quick wins – and that means first considering what your own customers might appreciate most.
“Look at what’s going to make the difference. Get started with what will pay dividends in the short-term, then start rolling
out the strategy over time.”

For example, you might consider:

• 89 per cent of customers say they want a website that’s easy to navigate. What information are they looking for? How
can you make it simple to find?
• 84 per cent of customers want a trustworthy website. What options are available to you? Can you get an SSL
certificate (a ‘padlock’ that reassures customers of secure transactions) to improve security?
• How can your website help you respond quickly to customer enquiries? Are your contact details easy to locate?
• Complement your website with social media activity. If you have a Facebook page already, consider updating it more
frequently, to align with the way customers use it.
If you don’t have one, head to Facebook for Business to get started.
For more on website features – including customer expectations and the business reality – see page 24.

Expert Advice Expert Advice

Elizabeth Abegg Marc Tan

Director, Spell and the Gypsy General Manager, Business
Collective Applications and Systems, Telstra

“If small businesses are not using the
digital marketing tools that are out
there and available to drive traffic
to their websites, they’re potentially
missing out on so many customers
finding them.”
“Increasingly you’ll find customers will
begin by searching for businesses,
products and services online. The
question I have to ask any small business
is, ‘can you afford to not be online if
everyone is searching there?’”

SMARTER BUSINESS™ 10
 Finding customers: Getting online

How to ...

Simplify your customers’ mobile experience:

Choose a domain name

Keep it short, memorable and descriptive. Check if it’s available with a domain
name search.

Plan the site map

You can start with as few as three simple pages: homepage, products/services,
and a contact page.

Select a web design template

Most website platforms include a library of design templates. For example, choose
from the wide range of designs offered by Telstra Online Essentials®.

Gather the copy and images

Whether building yourself, outsourcing to a developer or subscribing to a web design
service, having all the assets before the build starts can reduce mistakes and get you
online faster.

Build
Who has time? A service like Telstra Online Essentials® handles the build for you,
saving time while reducing the risk of amateur mistakes.

Launch
Before hitting ‘Publish’, check for broken links and images. And once it’s online,
start promoting your new website so everyone knows about it.

SMARTER BUSINESS™ 11
 Finding customers: Search engines

Most customers use

search engines to find a
product or service.
Mind the gap 52%
of small businesses

83% of customers say search is ‘important’ or ‘very important’

when finding or considering a business.
have no intention of
using Search Engine
Optimisation.

Vs

26% of small businesses currently use SEO and only

9% use Search Engine Marketing.
72%
of small businesses
have no intention of
using Search Engine
Marketing (paid
search).

With customers valuing search tools above all else when looking for a product or service, small businesses
are at risk of missing the opportunity to be found.
It’s clear that search engines (Google, Bing, Yahoo! and more) are by far the most popular method for
customers to find information about a small business. Yet only 26 per cent of small businesses currently
use Search Engine Optimisation (SEO), with 52 per cent expressing no interest or intent in using it. This
47%
of customers under 40
represents a huge gap between how customers seek out products and services and how small businesses use a search engine to
expect to be found. find or research a
small business at
The results of any online search are in response to the specific keywords or phrases the user might enter least once a day.
– like the type of service or location of a small business – to find information. If your business isn’t easily
found in the search results for relevant (particularly localised) keyword searches, you may as well be
invisible. And if they can’t find you, they might find your competitors instead.
Therefore, SEO involves identifying the best keywords and phrases customers might typically use to find
a business like yours (e.g. ‘Western Sydney gardening’) and adjusting the text and other elements on your
website so that search engines identify it as more relevant to that particular search query and rank it
Objection - “…but
higher – hopefully high enough to be noticed by more people.
I don’t have time to
Even appearing in the right search results might not be enough, as most customer clicks can happen within do Search Engine
the first page of 10 links. Every increase in rank can potentially impact the amount of traffic your website Optimisation!”
receives from the search results – sometimes dramatically, which is why many businesses devote a little
With the majority of
time to ongoing optimisation.
Australian customers
Every time you use a search engine, you’ve probably noticed the text ads sitting above and to the right of using search engines
the search results. By targeting specific keyword searches, these search engine adverts – the most popular to find and research
being Google AdWords – are a highly effective way for your business to appear in front of more potential potential suppliers and
customers as they actively search for what you’re offering. And yet 72 per cent of small businesses say they other businesses, you
have no intention of ever paying for Search Engine Marketing (also known as paid search). can’t afford not to.
Start small: choose one
keyword to focus on,
So which small businesses are currently using SEO? update your website,
and use a free analytics
of sole traders 18% tool like Google Analytics
to measure changes in
100% traffic to track the impact
2-4 employees 25% over time. Even a few
tweaks here and there
5-19 employees 41% when you have a little
time free can add up over
time.

SMARTER BUSINESS™ 12
 Finding customers: Search engines

Getting started
with Search
Engine Marketing.
Yes, it can take time for your SEO efforts to gradually rank your website higher within the relevant keyword
searches, particularly for highly competitive keywords and phrases. But even a little bit of SEO here and
there is certainly preferable to none at all, and can still gradually improve your search rankings over time.
Search engines are more likely to ‘crawl’ your website more often if they detect that you regularly add new
content or update existing copy – and these changes can result in updates to your relevant search engine
rankings. While some websites, particularly e-commerce stores, routinely update their content with new
stock and other content, other small business websites might publish a blog or gradually add new pages
with additional information to keep the site content fresh and to target specific keywords.

How to ...

Get started with Search Engine Optimisation: Expert Advice

Research keywords and phrases potential customers might be using

Tony Nash
There are various online tools to explore potential search terms, such as Übersuggest, WordTracker and, CEO, Booktopia
of course, Google Trends.
“Google understands
Consider how customers may actually look for a business like yours customer intent. If
Localised and specific terms are more likely to represent potential customers for you. Do they search for [customers] include ‘buy’ in
the search term, it knows
“mechanics” or “Brisbane CBD smash repairs”? they’re looking to shop and
not just for information.”
Include the target keyword in the page title and meta description
Your website editor or Content Management System (CMS) may include fields to easily edit these
elements. Focus each page of the website on a different keyword.

Weave the keyword(s) into the copy, particularly headings and subheadings
Avoid adding too many (‘keyword stuffing’). The copy should still read as if it’s intended for your ideal
customer to read, not a computer algorithm.

Meanwhile, Search Engine Marketing services, such as Google’s AdWords platform, allow you to create short
text ads to appear next to your selected keywords. Search engine adverts are charged on a ‘pay per click’
basis, meaning that you’re only charged when someone actually clicks on your ad, instead of merely seeing
it. The cost per click can range between a few cents and a few dollars, depending on how competitive each
keyword is.
In fact, experimenting with a few campaigns can help to identify the keywords most effective at attracting
paying customers that you can then include in your SEO strategy.
Of course, you still need potential customers to click on your ads. Test a few different adverts over time to see
which are most effective. Some might attract a lot of visitors to your website with only few resulting in a sale,
giving you a lower return on your cost per click. Meanwhile, others may attract fewer clicks but more sales,
making them a much better investment.
This might sound complex but even with a very small budget it’s possible to find customers ready to buy
your product right now. Tony Nash, CEO of Booktopia, started his online bookstore with a Google AdWords
campaign of only $10 per day. He says it took him three days to sell his first book, in 2004. “By the end of the
year I was up $100,000 [in sales] a month, and by the end of two years $200,000 a month.”

SMARTER BUSINESS™ 13
 Finding customers: Search engines

How to ...

Get started with Search Engine Marketing:

Identify keywords likely to attract customer clicks

When you’re paying for each click, you don’t want curious visitors but
customers ready to buy. Research keywords and their cost per click with
Google’s Keyword Planner.

Set maximum daily budgets

Capping your daily budgets keeps you in control and avoids overspending should
a campaign suddenly attract a lot of clicks.

Test, measure, analyse and optimise your campaigns

Try running several ads at once to see which perform best. Then direct more
budget to the high performers (and turn the others off!).

Case study

How Search Engine Marketing helped Booktopia find its customers.

Business: Booktopia
Industry: Retail
Founded: 2004
Staff: Started as a sole trader. Now 180 FT employees
Booktopia is one of Australia’s best-known e-commerce businesses. They have never had a shopfront, starting out as an online store in 2004.
CEO Tony Nash invested his allocated daily marketing budget of $10 entirely into Google AdWords, targeting keywords like specific author names
and book titles instead of chasing broad terms. He says this helped to establish a reputation as a bookseller with a vast catalogue.
Booktopia continues to invest heavily in paid search and social marketing, and in adapting its offering to suit customer expectations. By using
remarketing ads, they can sell to readers based on past purchases or website traffic. This is coupled with targeted and trigger emails, meaning
customers only receive communications relevant to them.

SMARTER BUSINESS™ 14
 Finding customers: Mobile devices

Customers overwhelmingly
use mobile devices to
find information.
Mind the gap

48% of customers shop at least once a week on a mobile device. 1

Vs

57% of small business e-commerce websites are mobile-friendly.

The shift by customers to mobile devices reflects the changing way they are engaging with businesses in general
– using email, online chat, e-commerce and social media to discover and purchase. E-commerce businesses are
largely aware of the importance of having a mobile-optimised site (80%) and it’s not hard to see why.
80%
of small businesses
According to online payments provider PayPal, 72 per cent of Australians shop on a mobile device and 62 per cent with an e-commerce
use mobile apps to do so1. website say being
mobile-friendly is
However, our own research found only 42 per cent of customers agree that a mobile-optimised site is important important, but only
to them. Rather than this reflecting a lack of priority, it might suggest that many of them haven’t recently visited 57% have
a website that didn’t render correctly or perform as expected on a small screen. And there may be one important implemented one.
reason why this might be…
Search engines – and Google in particular – have long recognised the importance of mobile optimisation. Google
adopted a ‘mobile-first’ policy in 2016 that penalises or reduces the search engine rankings of websites that aren’t
designed to be accessed by mobile devices. Other search engines also now prioritise mobile-friendly sites.
Therefore, if your website isn’t mobile-optimised, it’s going to have a much harder time being found by anyone using
a smartphone or tablet. And if a few mobile users somehow still manage to stumble across your website, the poor
experience may quickly drive them away.
If a little over half of small business e-commerce websites are mobile-optimised, that’s a lot of potentially poor
customer experiences happening on smaller screens and devices – and probably a lot of lost customers too.
Don’t fret. Treat mobile optimisation as an opportunity to improve the experience for your potential customers – and
be more easily found on mobile devices – by updating your website with a mobile-responsive design.
1
PayPal mCommerce Index Australia 2017

Did you know?

Your customers definitely use mobile devices.

The average Australian has three internet-enabled
devices.
81% own a smartphone and 45% own a tablet device*.
This year, smartphone ownership increased by
five points, and mobile internet connections also
increased by 3.4%**.
Your customers definitely use mobile devices.
Source:
* Sensis Social Media Report 2017
** ABS, Internet Activity, Australia, June 2017
http://www.abs.gov.au/ausstats/abs@.nsf/mf/8153.0

SMARTER BUSINESS™ 15
 Finding customers: Mobile devices

Optimise your
website for any
sized screen.
First things first: your website might already be mobile-friendly. Google has a handy tool to check.
If not, getting set up doesn’t have to be difficult. Many website services, including Telstra Online Essentials®,
have mobile-friendly website templates. Also called ‘responsive’ templates, they check to see if a visitor is using
a phone or tablet, then shift website elements around to be most accessible on a smaller screen.
Some websites have separate templates for mobile users, requiring you to set up a mirror of your website.
When configured correctly, visitors are redirected to one or other version of the site depending on their screen
size and device. A separate mobile site can also allow you to offer more than just an optimised design, such as
alternative content, simplified forms or a different user experience for mobile visitors.
Finally, think about where your customers are when using their mobile devices (instead of their laptop or
desktop). They might be on public transport, out and about or in bed. What information or content might they be
looking for there? How can you make sure it’s easy to find?

Expert Advice
How to ...
Marc Tan
General Manager,
Simplify your customers’ mobile experience:
Business Applications
and Systems, Telstra
Does your website use a responsive design template?
A responsive design detects the visitor’s screen size, reconfiguring the website to fit. “If your website is not
mobile-optimised,
Should you create a separate mobile version of your site? customers using their
Alternatively, redirect mobile visitors to an optimised mirror site. phones are going to click
into it and straight out
Are your forms easy to use on a small screen? again.”
Try to include fewer fields while limiting the amount of typing required.

Are your images and video optimised for mobile use?

Smaller file sizes are nicer when using mobile data.

Are important links easy to find?

Make it simple for customers to tap on ‘Submit’ and ‘Checkout’ buttons.

Is your website easy to navigate?

Mobile-friendly ‘hamburger’ menus and fewer clicks make it simple to browse.

SMARTER BUSINESS™ 16
 Finding customers: Social media

Customers are more likely to

continue engaging with brands
that are active on social media.
Mind the gap

of customers say an up-to-date website and social media

presence are important factors to keep them coming back.

Vs
66%
41% of small businesses maintain a social media page to attract customers. of small businesses
have a Facebook
page.

As mentioned in the introduction, 76 per cent of small businesses cite word of mouth as ‘important’ or
‘very important’ in acquiring new customers. While customers do rely on word of mouth, the nature of those
conversations is changing – and they are increasingly happening online.
As with websites, being found on social media isn’t as simple as just setting up a page. All social media platforms,
such as Facebook, LinkedIn or Instagram, use their own technology to determine what users see in their feeds.
According to Sensis , 59 per cent of social media users say they are more likely to trust a brand that updates its
content regularly, and 63 per cent are more likely to trust a brand if its content is relevant and engaging to them.
The question is: how do you do it well?

Expert Advice
Did you know?
Ben Summons
59% of Australians Managing Director,
use social media five Stone and Wood Brewing
times a day or more. Company

Source: Sensis Social Media “The great thing for us with

Report 2017 social media is it gives
us the chance to tell our
story, and we know people
want to hear stories. It also
allows us to really care
about our customers – if
someone reaches out to us
we respond to them within
24 hours.”

Objection - “…but social media is just a fad, isn’t it?”

Elizabeth Abegg of Spell and the Gypsy Collective doesn’t think so. Her small business has approximately 831,000 followers on Instagram and
237,500 followers on Facebook, with thousands more following the brand on Twitter and YouTube.
Spell and the Gypsy has integrated these platforms with their e-commerce website, allowing customers to buy products directly from their
Facebook and Instagram pages.
79 per cent of Australians now use social media, with the number of people using social media to follow or find out about businesses increasing
year on year*.
“Social media platforms are accessible to everybody and are really easy to get your head around. If you can harness those and use them to connect
with your customers, then the sky’s the limit.”
Source: *Sensis Social Media Report 2017

SMARTER BUSINESS™ 17
 Finding customers: Social media

Attracting an
audience in
social media.

The best way to be visible on social media is to update regularly, with relevant and interesting content. Most
small businesses (80%) already update their Facebook pages at least weekly, but is once a week enough when
most Australians are accessing social media every day?
80%
of small businesses
update their
Paid social, such as advertising on Facebook, is a cost-effective way to increase the visibility of social media Facebook pages at
content, promote offers and reach more people. However, 67 per cent of small businesses say they have no least weekly.
intention of using paid social.

Kaylie Smith, Head of SMB (AU/NZ) at Facebook, says this is a missed opportunity. “Facebook offers the largest
group of Australian consumers of any platform,” she says, and paid social advertising allows businesses to
target them by interest area, demographic group and more. “It also offers businesses the chance to talk to
customers again, through remarketing. That means being able to target ads to someone who has previously
67%
of small businesses
visited your website or interacted with your Facebook page.” say they have no
intention of using
“Personalisation has really changed the nature of marketing to people,” says Smith. “It’s no longer only about paid social media.
showing an ad. It can be showing interesting content, a video, or something to help build a community. It really
can change that customer relationship.”

And while building relationships is important, ultimately any social media strategy needs to provide a tangible
business benefit – and that usually means converting at least some followers into customers.

“There are a lot of [Facebook] tools that can help you see that entire purchase path: where do people drop off;
where do they not; whether it’s on the Facebook page, or your own website. So, I think that we will see more and
more businesses actually selling within our platform because it is more of a seamless experience.”

How to ...
Expert Advice
Get started with social media marketing:

Launch a Facebook page for your business at http://business.facebook.com/ Kaylie Smith

Head of SMB (AU/NZ),
Set up an ad account at Facebook for Business Facebook

Check out how similar businesses engage their customers on social media “Businesses shouldn’t
be afraid of customer
Create attractive social media images with a service like Canva dissatisfaction on their
Facebook pages – it’s
actually an opportunity.
Try out a few Facebook ads to see which are most successful Resolving a customer
service problem in a public
space is actually a positive
for other customers. You’re
seen as approachable and
proactive.”

SMARTER BUSINESS™ 18
 Finding customers: Social media

Case study

Provide value first, extract value second

Business: Hancock Creative
Industry: Service / training and development
Founded: 2010
Staff: 4-5 FT employees
“The truth is, it’s a noisy digital world. There’s so much information out there. So, before you can ask for something, you need people to understand
why you do what you do. You need to have a conversation with them, build a bit of trust, and make them feel like you care. Then you need to give them
value, whether it’s entertaining them or teaching them something.”
Hancock Creative trains not-for-profits to use social media to tell a powerful brand story. Their free event, Change the World, is an in-person
conference promoted and extended through digital channels like email, LinkedIn connections, and social media advertising. “Most of our
methodology is around educating, because if people love what we’re teaching and what we’re doing they’re going to want more.”
Alecia says social media is an important part of their everyday communication. “We’re active on Facebook, Instagram, Twitter, and Snapchat. People
message us directly through all of those channels, and it really helps us to keep in touch with customers.”
“Storytelling is everything,” says Hancock. “A lot of people don’t understand where storytelling fits in. They just use social media to sell and to
promote and ask for donations and ask for volunteers. But if you’ve built a great community who already love what you do, when you do announce a
new product, they’re more likely to check it out.”

SMARTER BUSINESS™ 19
 Finding customers: Online reputation

The online reputation of

small businesses is
increasingly important.
Mind the gap

of customers won’t consider a business with unfavourable online reviews.

Vs

of small businesses believe online reviews are important to customers.

Customers will routinely research a product or business before they make a decision – often before they first contact your
business. How you appear online – even in places you can’t control – can mean they go somewhere else.
Customers expect you to have an up-to-date online footprint: as mentioned previously, 54 per cent of customers say a
well-maintained website and social media presence is a consideration when deciding whether to use a business again.
They are often looking for reassurance that, when necessary, they can get in touch and that their problem will be solved.
How a business handles enquiries, complaints and other relationships in public fora such as social media will also provide
clues to what future customers might expect. Ultimately, the relationship they build with an online business has the same
foundations as an offline relationship: can they rely on you?

Objection - “…but I can’t control what people say online!”

Kaylie Smith of Facebook says that solving problems in public spaces – for example, on social media or review websites – can actually improve
customer sentiment when researching your business.
“I’ve had customers say to me, ‘There are people complaining on there. I might just take [the page] down.’ Think of your website. You don’t go take your
website down just because you got some bad feedback. You don’t close a store because people didn’t like a display.”
Instead, these are opportunities to not only display customer service values but also expertise.

Which factors can cause a customer to stop considering a small business?

Survey Question (Consumer): Other than price and product quality, what factors stop you from considering a small business you haven’t used before? (Select all that apply)

SMARTER BUSINESS™ 20
 Finding customers: Online reputation

Building trust
and credibility.
There are many factors to building credibility online.
49 per cent of customers say they’re unlikely to consider a business they can’t call, so adding a phone
number or Skype contact to your website could make them more likely to consider your business.
Meanwhile, publicly addressing customer concerns – such as negative Facebook comments – can
demonstrate your willingness to solve problems while showcasing your responsiveness, expertise and
customer service values. On the other hand, deleting or ignoring uncomfortable feedback or concerns will
send a message to others that you’re not interested in what your customers have to say.
Public discussions in social media and elsewhere can also provide plenty of rich market research. The
real-time feedback on likes and dislikes, suggestions and complaints can guide your future business
decisions, product updates and messaging.
Above all, by showing you listen and are willing to act upon this feedback (where relevant or practical to do
so) builds trust that you want to provide the best possible experience for the customer.

How to ...

Demonstrate that your business can be trusted

Have a plan for addressing customer complaints on social media

Make it clear how customers can contact you if they have an issue

Legitimise your business with a phone number or physical address

Highlight customer testimonials on your website

Expert Advice

Hana-Lia Krawchuck
Founder, Love To Dream

“We know that 80% of purchases happen when somebody recommends the product,
so word of mouth is absolutely critical. But how do you do that online? Reviews are the
best way! If you Google Love To Dream you’ll see that we’re consistently 4.5 stars out
of 5 from thousands and thousands of reviews. Those stars are actually what makes
the difference to our customers because the product is being endorsed; not by a brand
telling them it’s great, but by fellow Mums.”

Expert Advice

Alecia Hancock
Director, Hancock Creative

“It’s about staying in front of them. You’ve got to give value before you ask for
anything back.”
“By putting out so much free information, people are seeing us for a long period of
time. They’re coming to one of our events, they’re watching the webinars, they’re getting
our emails, or watching us on social media. And then when they’ve decided to invest,
we’re the people they call because we’ve built that trust.”

SMARTER BUSINESS™ 21
 Finding customers: What have we learned?

Recap:
What have
we learned?
You don’t need to be a digital business for your customers to look for you online. Will they find you or your competitors?

Small businesses do need a website, even sole traders

Most customers look for information online before deciding on a business

Small businesses need to be easily found by potential customers using search engines

SEO and paid search are largely overlooked by small business

A website needs to be mobile optimised to be accessible on mobile devices

Keep your online presence up-to-date so customers can see you’re still active

Customers want online interactions to be simple and secure

There are easy ways to get started!

Create your business

website in ten steps.
With the right tools and a clear plan, launching your online presence with a business website might be easier than you think.

Download the Smarter action plan: Create a website for your business to discover how to pull together everything you
need in a few simple steps.

Click-start your business with

Telstra Online Essentials .
®

Telstra Online Essentials® can help you to launch your website quickly and easily in only ten days. Telstra’s expert
web builders will work with you to build, write, design and launch your website. We’ll take care of the technical bits,
including your domain name, hosting and email, to help your business thrive.

Find out more

SMARTER BUSINESS™ 22
Selling to
customers.
 Selling to customers: The e-commerce experience

Small businesses failing to

deliver the e-commerce
experience customers expect.
Mind the gap 72%
of small businesses
of customers say the ability to buy or book online is why they continue using a business. believe 24/7
customer service is
important, but only
47% of customers
expect it to be
Vs offered.

of small businesses say selling or taking bookings online is important

for customers to continue using their business.

E-commerce is a growing market in Australia. As it reaches maturity, online customers are pretty clear about
what they expect from their shopping experience.
Understanding – and then implementing – these customer needs is vital. At the moment, small businesses are
really out of step. They actually overstate the importance of most e-commerce features (see the graph on the
next page) but, in reality, aren’t delivering the experience they know their customers want.
For example, 79 per cent of customers say a shipping calculator is important to them, and 72 per cent of small
businesses agree. Yet only 42 per cent of small businesses offer this functionality. 80 per cent of customers
say status updates on orders are important and 84 per cent of small businesses agree, but only 41 per cent
currently offer this.
There are also gaps in available payment methods. 70 per cent of customers prefer to use PayPal, but only 45
per cent of businesses offer it. On the other hand, only 10 per cent of customers want to use direct transfer, but
67 per cent of businesses offer it. These mismatched priorities suggest some small business choices may be
driven by their own convenience rather than that of the customer or that they have failed to update their options
as technologies and trends have evolved.

Did you know?

In the 12 months to November

2017, Australians are estimated to
have spent $23.4 billion in online
retail in 2016.
SOURCE: NAB Online Retial Sales Index,
Quarterly Update: September 2017; 2 Nov 2017.

SMARTER BUSINESS™ 24
 Selling to customers: The e-commerce experience

Objection - “…but I know what my customers want from my store!”

Actually, when it comes to e-commerce functionality, small businesses are over-valuing certain website features – possibly at the expense of
others that customers care more about.
For example, 61 per cent think flexible payment terms are important, but only 38 per cent of customers agree, while 75 per cent of small
businesses think express delivery availability is important, compared to only 54 per cent of customers.
It’s easy to lose sight of the ideal customer experience when you’re viewing your business from an entirely different perspective. Spend a little
time surveying your customers to canvas their opinions on what they like and what frustrates them about your website. Also consider different
customer types – particularly if you offer products and services that might appeal to multiple demographics.

Business Expectation:
% of small businesses who responded ‘important’ or ‘very important’ for each statement in response to the question: Which of these features do you believe are important to your customers when they
use an e-commerce website?
Customer Expectation:
% of consumers who responded ‘important’ or ‘very important’ for each statement in response to the question: When you shop online from a Small Business, how important are the following factors?
Small Business Reality:
% of small businesses who selected each option in response to the question: Which of these features do you have on your e-commerce website? (Select all that apply)

SMARTER BUSINESS™ 25
 Selling to customers: The e-commerce experience

An opportunity to
improve your customers’
e-commerce experience.
The massive disconnect between customer expectations and business reality might seem scary but it
actually represents a big opportunity for those small businesses willing to close the gap and provide more
customer-pleasing online shopping experiences. Many of the most demanded features are readily available in
e-commerce platforms like Neto, and can be relatively simple to implement.
• Find out how to connect payment options customers really want
• Research ways to implement personalised features such as purchase history and order status
• Make it easy for customers to contact you, ideally within their preferred channel
• Use previous order information and website traffic data to highlight popular products or key information

Which payment methods should small businesses offer?

Small Business Reality:

% of small businesses that selected each option in response to the question: Which payment methods do you offer? (Select all that apply)
Customer Preference:
% of consumers who selected each option in response to the question: Which payment methods do you prefer to use? (Select all that apply)

Expert Advice Expert Advice

Ryan Murtagh
CEO, Neto
“The reward for the customer
is that it’s easier. If a retailer
already knows what a
customer wants before the
customer wants it, that’s the
ultimate convenience for the
consumer. They don’t even
have to think about it.”
Paul Greenberg
Founder, National Online Retailers
Association (NORA)
“The top definer of excellent business still
remains the customer connection. What we’re
seeing is that it goes beyond the traditional view
of customer service, to a real understanding of
a customer in the most personalised way. They
create a one-to-one connection.”

SMARTER BUSINESS™ 26
 Selling to customers: Personalised service

If you want customers

to come back, offer a
personalised service.
Mind the gap 49%
of customers want
of customers say a rewards program is important to them. customised offers.

Vs
22%
of e-commerce
of small businesses currently offer a rewards program.
small businesses
currently use
customised offers.

Depending on your product or service, it’s often easier to retain and extract more value from existing customers
than to constantly search for new ones. And retaining customers could be as simple as listening to them.
Neto’s Ryan Murtagh says personalisation is the key to e-commerce success, which is why the Neto platform
offers a number of add-ons to help retailers to personalise the experience. Customers expect the process to be
easy for them first and foremost. Past data makes it simple to automatically show products they may like, or
new release recommendations.
Customers also want to have a long-term relationship with their favourite online retailers, with 39 per cent
saying that a rewards program is important to them.
Targeted and triggered promotions are also a winner with customers. 49 per cent say customised offers are
important in keeping them coming back.
Booktopia CEO Tony Nash says this is really about respecting the customer. “We don’t waste their time by not
taking any sales history or browsing history. Our customers receive a very targeted email.”
Murtagh says customers want their previous information to make their next transaction simpler. “Make it easy
for people to check out the second time they buy from you by remembering their details.”
Show customers you understand what they want, through personalising their experience and communications,
and you’ll have a customer for life.

SMARTER BUSINESS™ 27
 Selling to customers: What have we learned?

Recap:
What have
we learned?
Customers love shopping online. There are many ways to potentially improve their e-commerce experience.

Provide online booking or purchasing facilities

Allow customers to see past activity and track orders

Offer personalised product recommendations, based on previous purchases

Have a fast, trustworthy website for quick and seamless transactions

Make it easy for them to contact you if they have a problem

Create customised, tailored offers just for them

Ready to get started in

e-commerce?
If you’re inspired to launch or update your online store, check out our three-part e-book series on everything you
need to plan, build and market an online retail business.

The Smarter Business™ definitive guide to selling online

Part 1 – Talking shop: Plan your e-commerce business

Part 2 – Set up shop: Build and launch an e-commerce website
Part 3 – Top shop: Help attract more e-commerce customers

Launch your e-commerce

website with Neto Online Store
With more and more customers buying online through multiple channels and across multiple devices, retailers
need a complete integrated e-commerce platform that can take care of everything. From the website to the
point of sale system in your store, from eBay to social media, Neto connects all of your sales channels into a
single one-stop-shop!

Find out more

SMARTER BUSINESS™ 28
Retaining
customers.
 Retaining customers: Introduction

Customers want
business relationships
to be easy.

Fact:
A business being ‘too hard to deal with’ is the number one reason customers decide to find a
different business next time (see page 36).
Why?
Today’s customer wants you to understand their needs without having to spell it out.
Having an ongoing relationship with one business can actually make their life easier, but only
39 per cent of small businesses agree that a primary benefit of technology is to help retain
existing customers.
Let’s look at some opportunities you might be missing.

How do small businesses use technology to retain customers? Expert Advice

Small businesses spend 25 per cent of their time and effort on retaining existing customers. Can technology help?
Michael O’Keefe
Small business Customer Director of Product
reality expectation
Marketing, Dynamics
365, Microsoft
Send customised offers to customers 22% 49 %
“[Small businesses] need
to think about how they
100%
Send generic customer communications 24% 34% take a customer on a
journey – they have to use
digital to nurture their
Maintain and update website or social media page 42% 54% customers. It doesn’t matter
whether they are a retailer
in bricks and mortar, or
Engage with customers via social media channels 34% 31% whether they are selling a
service like lawn mowing or
mortgage brokering. They
Use live chat to service customers 11% 34% have to show value in their
service and they need to do
that through their digital
Rewards/loyalty program 14% 39% platforms.”

Small Business Reality: % of small businesses that selected each statement in response to the question: Think about your existing customers.
Which of these activities do you use to RETAIN and keep your existing customers? (Select all that apply)
Customer Expectation: % of consumers who responded ‘important’ or ‘very important’ for each statement in response to the question:
How important are the following factors in making you want to use a small business again?
SMARTER BUSINESS™ 30
 Retaining customers: Flexible communication

Customers want to
get in touch – but not
in the way you think.
Mind the gap 71%
of customers want to
of customers say ‘face-to-face’ is preferable to other communication channels. contact businesses
through multiple
channels.

Vs

of small businesses use face-to-face communication often.

53%
of customers still
prefer to be able to
contact businesses
by phone.

Being online doesn’t mean losing the human element. Customers want to be able to speak directly with
Top three contact
businesses, and some of their preferences may surprise you.
methods preferred
Small businesses are out of step when it comes to communicating with customers. While 52 per by customers:
cent see the value of technology as a customer service tool, many are failing to communicate in
customer-friendly ways. 1 Email
28 per cent of customers want to be able to contact a business via online chat – while only 9 per cent
of small businesses currently use it regularly; a whopping gap in expectations that could present an 2 Phone
opportunity for those able and willing to adopt the technology.
On the other hand, 74 per cent of small businesses cite face-to-face as an often-used communication
3 Face-to-face
channel – which shouldn’t be too surprising in bricks and mortar industries such as retail or hospitality
in particular, as well as some service-based businesses. However, only 33 per cent of customers say they
prefer face-to-face communication. This might come as a shock to any retailers betting on their customers
valuing a personal in-store experience over the convenience of e-commerce – particularly with the arrival
of Amazon in Australia.
Objection
It’s possible that some small businesses are overstating the importance of communication channels - “…but I
that are more convenient to them – and not necessarily considering those preferred by their customers. prefer these
The only contact method small businesses and customers agree on is email: 78 per cent of both groups channels, not
prefer it and use it often. those!”
Our research shows
Customer preference small businesses
aren’t listening to
Small business reality Customer what customers say
about communication
Use often Occasional Don’t use Preference (ironically). Your
customers want to be
Social media 30% 23% 47% 15% able to reach you in
multiple ways using
Telephone 75% 19% 7% 53%
their preferred channels
– whether online and
Video conferencing 4% 17% 79% 2%
offline – and they want
you to make it easy for
Email 78% 17% 5% 78%
them to do so.
Online/live chat 9% 18% 73% 28%

SMS 39% 39% 22% 16%

Face-to-face 74% 17% 8% 33%

Small Business Reality: % of small businesses that selected each option in response to the question: How does your business respond to customers? (Select all that apply)
Customer Preference: % of consumers who selected each option in response to the question: What do you prefer to use when you need to communicate with small
businesses (either for purchasing or customer service)? (Select all that apply)

SMARTER BUSINESS™ 31
 Retaining customers: Flexible communication

At the heart
of any good relationship
is open communication.
So, your customers want to communicate with you, but they want to use their preferred platforms.
Social media is often used by customers as a last resort. They like well-maintained websites and social media
pages (54%), but only 15 per cent prefer to use it to contact businesses directly – for example, to resolve a
support issue.
More than half of customers still prefer the telephone when contacting businesses. If you’re one of the 75 per
cent of small businesses that still pick up the phone, make sure the number is easy to find in each of your
online spaces – from your website to your Facebook page. Leasing a 1300 or 1800 number can be a simple way
to offer support to national customers.
While there are many everyday scenarios where face-to-face contact is preferred, consider which tasks
really need you and the customer to be in the same room. Can the same outcomes be achieved with a digital
communication channel, such as discussing a quote via email or using video conferencing or online chat
to share your latest designs? Customers overwhelmingly prefer the convenience of digital channels when
practical. Plus digital channels prevent geography from restricting your ability to communicate with customers.
Online chat can be a great way to engage with customers with quick enquiries, or who don’t want to or can’t talk
on the phone. A variety of tools already exist and are simple to implement.
You’re most likely already on top of email, so keep doing what you’re doing!

Expert Advice

Pam Brook
Co-Founder, Brookfarm

“We don’t have a call centre. Every consumer issue is always answered directly.
So, when someone makes an internet enquiry, a social media enquiry, or a website
enquiry they’ll get a personal message back and usually a phone call as well to
follow up. That personal touch is really important. We’ll follow through until a
customer is completely satisfied.”

Expert Advice

Jen Geale
Co-founder, Mountain Bikes Direct

“We have live chat and customer service that really goes off between six and
ten o’clock on a weeknight. But we don’t have to be running a store with all the
overheads, the lighting and all that kind of stuff at ten o’clock at night.”

SMARTER BUSINESS™ 32
 Retaining customers: Customer data

Small businesses are

not using customer data
to its full potential.

Mind the gap

of customers want to receive offers customised to them.

Vs

of small businesses are sending them.

Offering a great service can be easy: it’s all about knowing your customer.
Customers are more aware than ever of the value of their data. They know you want it, but they also know that,
when used in the right way, data can make their own experience more satisfying.
Small businesses are pretty close to hitting the mark here. Most (68%) recognise that customers want to have
access to past information, such as their purchase history.
But the biggest gaps are between what small businesses know their customers want and what they actually
provide. For example, while 38 per cent of small businesses believe customised offers are important to their
customers – and they are (49%) – only 21 per cent currently use them.
This might be a combination of factors: lack of access to data, not having the technology to implement the
necessary features, and failing to recognise the wealth of data already available.

Objection - “…but customers don’t want businesses keeping their data. It’s creepy!”

63 per cent of customers want customer service staff to know and, more importantly, act upon their prior
activity – particularly when solving problems. They also want access to past order information (68%), and to
receive marketing that’s personally relevant (45%).
Less than half of businesses have implemented these features, even though many website and e-commerce
platforms already contain this functionality.

SMARTER BUSINESS™ 33
 Retaining customers: Customer data

Turn customer data

into more valuable
customer experiences.
The value of customer data grows as you explore other channels. If you know that most people view your
“contact us” page, you can add other features to that page to help them to get in touch or answer queries
– such as online chat. If the data tracks which products customers are viewing on your website, you can
automatically serve them a Facebook ad for the same product. If you’ve captured data around what a
customer booked or ordered last time, you can trigger a targeted email for their next appointment or follow-up
service two weeks later. You can also import your email marketing list into Facebook to create ads specifically
for your newsletter recipients.
There are almost limitless ways to make sure your customers get what’s relevant to them and enjoy a
smoother, more personalised experience.
This web of data is usually captured and analysed in a central platform such as a Customer Relationship
Management (CRM) system. While CRM systems used to be about storing phone numbers and keeping
warm leads, these days they can give a quite detailed view of the whole customer journey – and provide
opportunities to personalise and improve it.

Expert Advice Expert Advice

Marc Tan Michael O’Keefe

General Manager, Business Applications Director of Product Marketing,
and Systems, Telstra Dynamics 365, Microsoft

“You have to ask yourself, why would customers “There is an opportunity for small businesses
share their personal information with you? And to start with digital CRM platforms that
the answer is: they can get access to exclusive already exist for their industry. They’re lower
information or offers that your business offers.” cost and work straight off the shelf.”

SMARTER BUSINESS™ 34
 Retaining customers: Customer data

How to ...

Even if you don’t have a CRM system (yet), you can learn about your
customers in other ways:

Website traffic
Basic analytics can show you the path visitors take while
they’re on your site

Social media
Facebook breaks audiences down by demographics and geography

Sales records
Your sales records can show what are your best-sellers and what
people come back to buy again

E-mail lists
Newsletter analytics can show you what customers are clicking on
 Retaining customers: Fulfilling the promise

Customers expect
you to deliver on
your promise.
Top four reasons
Mind the gap customers think a
business is hard to
deal with.
of customers will go elsewhere if a business is too hard to deal with.
1 Unsatisfactory
with a problem
help

Product or service

Vs
2 wasn’t as promised
online

Dissatisfaction with
3 an
of small businesses undertake activity to re-engage lost or lapsed customers.
item or service
they purchased

4 Poor
money
value for

By now, you know your customers are making well-informed decisions, with plenty of research, word of
mouth and exploring online. They’ve looked at your website, read online reviews, followed your social media
accounts, and maybe even got in touch directly. They’re pretty sure they know what to expect from you.
Now you have to deliver on their expectation – that’s anything from product inventory and delivery times to
cost and availability.
A great customer engagement strategy will help make them like you, but delivering a hassle-free outcome is
where true love happens.

Expert Advice Expert Advice

Tony Nash Ryan Murtagh

CEO, Booktopia CEO, Neto

“Our business grew “Businesses know they need to remain

dramatically after automating
logistics and fulfilment
equipment. Orders are shipped
faster and without human
error.”
competitive and encourage loyalty. What’s
high priority for our clients is finding ways
they can better fulfil what they’re delivering to
their customers, and beat their competitors
in that way.”

SMARTER BUSINESS™ 36
 Retaining customers: Fulfilling the promise

Case study

Delivering the premium service customers expect.

Business: Brookfarm
Industry: Online retail/wholesale
Founded: 2000
Staff: 70 FT employees

“Keeping ahead of any orders is really, really important so that we can always fulfil a customer on a same day basis,” says Brookfarm
co-founder Pam Brook.
Being rurally-based, technology plays a huge part in how Brookfarm delivers on this promise of premium macadamia products available
Australia-wide – particularly their use of a cloud-based software system to handle orders and fulfilment. “Place orders from anywhere in Australia
and it goes straight through to our system. We can make products to order, or we can draw from existing stock. From there, we dispatch to either our
distributors, or direct to customers.”
“Because we make everything ourselves, we really need to have fast information so that we can be working with immediate data and plan
really well.”
Part of the Brookfarm promise is a down-to-earth human touch – “it’s always about what will make the customer happy.” Promise (and muesli)
delivered!

SMARTER BUSINESS™ 37
 Retaining customers: What have we learned?

Recap: What have

we learned?
There are many ways to encourage loyalty in your customers. Some are simple, others are more complex.

Focus on a great customer experience

Create tailored offerings

Make it easy for customers to contact you

Grow a customer database

Communicate regularly

Keep your online presence up-to-date

Small businesses know a lot of this already. It’s not always easy to match the dream to the reality, but by being
customer-led and focusing on a few key areas, there are many wins to be had.

SMARTER BUSINESS™ 38
Future
customers.
 Future customers: Are you ready?

Most businesses
aren’t future-ready.
Mind the gap

of customers believe voice commerce will enhance

experiences with businesses in the near future. Objection - “...but
my customers
don’t care
about future
technology!”
Vs Customers are definitely

16%
adapting to new
of small businesses believe voice commerce will provide technologies faster than
value to customers in the near future. small business – and
their expectations are
changing as a result!
49 per cent of them
expect the Internet of
Things will enhance
Mind the gap their experiences with
businesses in the next
of customers expect on-demand delivery as part of the two-to-five years.
e-commerce experience in the near future.

Vs
of small businesses believe on-demand delivery will provide
value to customers in the near future.

Over the next five years, as with the last, we are likely to see enormous changes in the way businesses use technology.
Yet, our research suggests that small businesses haven’t properly considered the potential impact of this technology. Less than a quarter believe
technology trends like virtual reality and on-demand delivery will have some impact on their business.
Customers think differently. Almost half of them believe this technology will enhance the way they interact with businesses in the next two-to-five
years. They’re keen on artificial intelligence (AI), on-demand delivery, voice commerce, and marketing automation.
Some of these ideas might seem a long way off, or not directly applicable to your business. However, AI expert Ian Aitken, Managing Director of
Sofihub, says the opposite is true. “Don’t be afraid if you don’t understand it. You’ve just got to know that it’s there, and look with an open mind for
where it can improve your business outcome.”
Concepts such as artificial intelligence may seem like the stuff of sci-fi nightmares – such as the malfunctioning HAL 9000 in 2001: A Space
Odyssey – and not to be trusted. However, you’re probably already using some of these technologies in your business and your daily life. You
might use automated search functionality on your tablet device, while artificial intelligence drives the virtual assistant in your phone to give you
directions on command. Even email spam filters are a form of machine learning.
The systems you use are already learning, improving and delivering better value as a result.
And the shift is happening fast. Customers already use these technologies for everyday tasks, such as asking their phone to order a cab. While
robot butlers and flying cars are a way off yet, food delivery services such as Uber Eats, Deliveroo and more already combine mobile apps with AI
and the Internet of Things to allow on-demand delivery in most capital cities. And this has allowed many smaller businesses to offer food delivery
services to their customers that may have previously been impractical or prohibitively expensive. How long before it isn’t just food being delivered
on demand? Could your product be delivered on demand with the right set-up? How might it impact your business if your competitors start to offer
a convenient and fast home delivery service before you?
Plus, with the Google Home smart speaker and voice assistant launched in Australian stores last Christmas (and Amazon’s Echo not far behind),
voice commerce is already here for many customers. Right now, it is possible to use voice technology and the AI found in the Google Assistant or
Amazon’s Alexa to order from Woolworths, Officeworks and, of course, Amazon.
How long will it be before potential customers begin routinely asking their smart speakers to recommend a local plumber or book a table at a café or…
Aitken says the reason we don’t think of these existing trends as ‘voice commerce’ or ‘artificial intelligence’ is that, when a technology becomes
accepted, we stop using the technical term and start referring to it by what it does. “Instead of people calling it AI, they call it facial recognition, or
fingerprint recognition or speech recognition. Autonomous vehicles for example. All of the assisted driving technology – cruise control, adapted
cruise control, adapted braking – they’re all AI. But we’re not calling them AI anymore because they have a function. We call it the function.”
Technology will continue to improve. Innovations will continue to find new ways to solve old problems or easier ways to achieve otherwise difficult
tasks. While not every new technology or device will change the world like the invention of the car, internet or smartphone, even incremental
change can either improve or erode a competitive advantage over time. It’s up to you which of those will happen to your business.

SMARTER BUSINESS™ 40
 Future customers: Are you ready?

Experimenting
with future
technology.
This wouldn’t be the first time that businesses large and small have been sceptical towards new technology
only to lag behind customer trends, adoption and behaviour. Ten years ago, many businesses dismissed the
arrival of the first smartphone as a fad. Yet, it spawned a plethora of new business models – often at the
expense of old ones. The smartphone revolutionised the gaming industry, ushered in a new era of mobile-driven
e-commerce that has transformed retail, and created entire new industries, such as app development.
Of course, not every business should research and experiment with every new technology, even if it can afford
to. But it is worth approaching each trend with the question of ‘what if?’ Only then can you consider the potential
impacts and imagine how you might turn them into opportunities instead – not only for you, but for your
customers.

How much impact will future technology have?

Small business Customers

Some + huge Some + huge

No impact No impact
impact impact

Internet of things 31% 25% 8% 49%

Virtual reality 37% 19% 9% 39%

Artificial intelligence 37% 18% 9% 41%

Voice commerce 36% 16% 8% 45%

Marketing automation 30% 23% 7% 43%

On-demand delivery 38% 22% 7% 54%

Instant message purchasing 33% 22% 8% 45%

Small Business: % of small businesses who selected ‘No Impact’, ‘Some Impact’ or ‘Huge Impact’ from five possible responses for each option in response
to the question: How strongly do you feel the following technology trends will provide value to your customers in the next 2-5 years?
Customer Expectation: % of consumers who selected ‘No Impact’, ‘Some Impact’ or ‘Huge Impact’ from five possible responses for each option in response
to the question: How strongly do you feel the following technology trends will enhance your experience with businesses in the next 2-5 years?

Expert Advice Expert Advice

Ryan Murtagh Michael O’Keefe

CEO, Neto Director of Product Marketing, Dynamics 365,
Microsoft
“Products will come to
consumers before they “The fastest growth in customer management will
even realise they need be feeding back into the ‘experience loop’. Customers
them. It’s critical that will use their voice to order a product and that will
retailers have systems to become part of the loop, enabling small businesses
enable it.” to learn and offer repeat experiences.”

SMARTER BUSINESS™ 41
 Future customers: Are you ready?

How to ...

Where to start with future tech?

With so many technologies (and their marketing departments) insisting that they are the next
big thing, you’ll need to prioritise those that present the greatest opportunities for your business.
While implementing some of these new technologies can be relatively simple, now is a good time
to think about:

How can I improve the experience for my customers on every device?

How can I better understand and respond to my customer’s preferences and needs?

How can I use automated marketing to create a more personalised customer experience?

Can I offer transactions in places other than my website?

How can I help customers understand my products through virtual and augmented reality?

Can I fulfil orders faster and more accurately with on-demand delivery services?
 Future customers: What have we learned?

Recap: What have

we learned?
The future is coming fast – and businesses need to make sure they’re ready

Technology means constant change – for both customers and businesses

Many supposedly future technologies are already used every day

Customers already want to use on-demand delivery, voice commerce and many others

Focus less on the tech (e.g. artificial intelligence), and more on the function
(e.g. a voice-controlled assistant)

Consider how new technologies can improve or simplify the experience for your customers

Expert Advice

Ian Aitken
Managing Director, Sofihub

“AI is going to change pretty much everything. If you

resist it because you don’t understand it, you’re a
failure waiting to happen.”

SMARTER BUSINESS™ 43
 About Smarter Business™

SMARTER
BUSINESS™
Chances are you own a smartphone. In the office you might plan projects on a smart whiteboard. At home, you may have
a smart TV or drive a smart car. Meanwhile, smart fridges and smart toasters are already on the market.
All around us, the familiar is becoming smarter through connected technology, transforming how each of us goes about
even the most routine of tasks. And that means businesses are becoming smarter as well.
Smarter Business is your guide to working effectively in this more connected, more automated and more mobile world.
Our team of technology and business writers is dedicated to bringing you well-researched, high-quality opinion and
actionable advice without the jargon or the hype.
Smarter Business is brought to you by Telstra.

Make this year ‘that’ year you clicked with more customers.