New study shows UK businesses lack basic understanding of online business operations
As UK businesses continue to operate remotely, relying heavily on digital strategies, new research shows many struggle to fully understand and manage their digital operations.
The study carried out by Gareth Hoyle Digital Due Diligence surveyed 1,000 UK senior business leaders and decision-makers about their knowledge of their digital business operations. Findings reveal 54% have little to no understanding of how their online operations work. Plus, 32% admit they are not familiar with online marketing techniques.
From website development to back-end connectivity, with business systems such as ERP, warehousing and logistics; 38% of decision-makers say they are unsure about the key digital services that drive their business.
As well as digital operations, business owners also show a considerable lack of understanding of digital marketing. Instead, they often rely on “blind trust” of the digital partners and marketing agency network.
Despite this lack of clarity, 63% have already invested in digital marketing for their businesses or are planning to in the next three months.
The research found that 46% of decision-makers say motive to enlist the help of a digital agency is to increase sales or revenue. Following this at 41% are those with the objective of improving brand awareness. An additional 39% say they would hire a digital agency to improve site rankings. However, only 19% can identify how google rankings work and in turn improve their site’s visibility.
More than 1 in 4 (27%) business leaders state they are unable to understand their digital agency’s terminology. Meanwhile, a fifth of respondents admit that sometimes, through a lack of understanding, they agree to progress with suggestions and recommendations made by their digital agency without querying.
Commenting is Gareth Hoyle, founder and managing director of Gareth Hoyle Digital Due Diligence. “It’s concerning to see that some businesses are now running largely digital operations without complete understanding and control of how everything works and interrelates; investing in digital infrastructures such as websites and online marketing with very little knowledge and understanding of how it may benefit their business.
“Digital is more important now than ever. It’s something a vast majority of businesses are heavily relying on in the current climate to continue to operate day-to-day.”
“It’s important to remember that there is more to running an online business than digital marketing. A complete understanding of online operations is needed before decisions are made about marketing. This clarity allows for better decision making about digital marketing otherwise investment decisions can be thrown down the drain.
“Often private equity, administrators and other investors are acting blindly on good faith without a true understanding. No one wants to blindly make an investment decision. Yet our research shows that far too many decisions are being made without crystal clear clarity. Many firms undertake financial due diligence at a balance sheet level. However, few really have the experts in place to ensure the online operations and digital assets are in shape.”
To find out more about the digital due diligence process, please click here.