New research from global payments provider Klarna reveals that online SME retailers in the UK are increasingly open to new technologies to help drive growth over the next year.
The research with 100 UK SME decision-makers at online retailers in 2019 shows SMEs understand the need to embrace flexibility and innovation. Indeed, over the next 12 months, 49% plan to prioritise investing in flexible payment options. Equally, 48% want to invest in ecommerce capabilities to meet consumer demand for a seamless shopping experience.
Despite ambitious plans, the research also shows online retail SMEs face a host of challenges that prevent innovation. For instance, over half (53%) say the cost of introducing flexible payment options is the biggest barrier to adoption.
Furthermore, while SME online retailers have budgets set aside for investment in new technologies, almost half are halting investment due to uncertainty around Brexit. Not knowing what tech will provide the best return on investment (31 per cent) is another key consideration.
Competition from bigger players and online giants is the biggest external challenge currently impacting SMEs.
Reassuringly, the research does show that online SME retailers are thinking ahead. As well as recognising the potential of innovative technologies, they also understand the importance of an omnichannel presence. In fact, three quarters say they have created some form of physical experience for their customers in the past.
However, while customer loyalty remains stable, the research does highlight SMEs are losing more customers than they should during checkout; to be precise, one in five visits results in a dropped basket.
Commenting on the research is Luke Griffiths, UK general manager at Klarna. “Shoppers today demand a frictionless buying experience, from browsing to checkout. So, it’s encouraging to see that so many online SME retailers are looking to bring new technologies into their businesses to enhance the customer experience.
“Introducing new tech like Klarna’s Pay later and instalment options is an investment that will pay off in the long run; ultimately leading to greater sales, higher basket value and increased customer loyalty.
“Being small in size doesn’t have to mean small-picture thinking. SMEs have the advantage of agility and are often better equipped to do a fast integration than their larger counterparts.”
