#BounceBackBritain

We know that its tough out there. It is for everyone. For each of us individually, and for each of small, medium and large enterprise businesses. We have seen the impact on the travel and leisure sectors as it impacts us all. Planes are not flying, trains are still quite empty, we can’t get in the stadium to watch our football, in the theatre to see a play, and the best chance of watching a film is to find a drive-in.

Logically we know of course, that if people aren’t travelling, all those organisations involved in travel – the organisation, the operation, the cleaning, the food supply chains – all of them are affected. And this is repeated in each of the affected sectors. We also know that there are around 5-6 million small and medium businesses (SMB) in the UK, many of whom operate in these supply chains. In fact, we work with about tens of thousands of them, through our fuelGenie supermarket fuel card, so we thought we would ask them. I would like to extend many thanks to the nearly 1,000 organisations who responded to our survey.

Of those organisations that responded, the sub-sector breakdown is as follows:-

Throughout the lockdown & slow return of business as the country has opened up, we have closely tracked the recovery of these businesses through their increased use of fuel. Today (September 2020) we are now seeing fuel volumes back to about 90%. Whilst that seems positive, the words that we have heard expressed in response to our survey are a mix. They don’t make easy reading – “business closed for 3 months”, “can’t get in people’s houses”, “not able to open at all” and so on. Yet equally there are some positives expressed by some almost as a consequence of people not being able to do some of the things they usually do – for example, “high demand for allotments”, “increase in DIY”, “less accidents due to fewer vehicles on road”, “noticed an increase in people shopping locally”.

“The majority of our 800+ customers closed overnight in March ie. cafes,
restaurants, bars, clubs, gyms”

All in all, 62% of our SMB businesses have seen a negative impact on their business over the past few months, and for some that has been extreme. It is no surprise to see Sports, Media, Leisure, Hospitality and Transport at the top of those sub-sectors impacted most significantly. Across retail the picture is more balanced, demand clearly increasing in food for example, whilst fashion has been harder. A total of 18% reported a positive impact, primarily covered by retail, construction, finance, pharmaceuticals and manufacturing, and the markets seemingly least impacted to any extreme were reported as technology, utilities, telecoms and the emergency services.

There is no single reason for these impacts. We can deduce that consumers are less willing to spend (38% reporting reduced spending vs. 6% increased), that the shift to online or zero touch interactions has undoubtedly had an impact (40% reduced interaction, 4% increased) and that however we cut it there are less sales (53%), less transactions (36%) and lost customers (30%). As we have probably also experienced at times, there has been a negative impact on supply chains that have created shortages of certain goods, directly or indirectly (24%) that have impacted organisations ability to deliver their products or services.

#BounceBackBetter

We have all experienced and in previous round tables and discussions, we have talked about the strong feel of community that has run through the last few months. We are focused on getting through this together, on pivoting as we each need to do and enabling us all to #bouncebackbetter. We asked our SMB customers both what they were doing in this regard already and what they were planning to do differently going forward.

In terms of technology enabling that initial pivot, then

• 42% of organisations have implemented tools such as Microsoft Teams or Zoom
• 43% have made greater use of social media channels such as Facebook or Instagram and
• 36% have found that their online financial, or accounting packages have proved invaluable.

But in truth, many of these organisations are not primary users of technology to deliver their products or services and don’t necessarily see technology as a primary enabler of future success. In an economy that is shifting back from globalised to localised, they are often dependent on word of mouth, on the “real world”, and often only need website presence and mobile communications. The question is whether this is right, or whether they too run the risk of being disrupted by others who do make better use of the technology emerging.

When we have talked about an equitable Digital Society, and the importance of Corporate Digital Responsibility, ensuring that all parts of society are included – that all products and services are accessible by those needing to take advantage of them – is that not as important to the SMB business fighting for survival and growth, as indeed it is for an individual? Therefore, I do believe it is important to ensure that the potential upside benefits that emergent technologies can deliver all businesses are easily accessible and available to all.

Interestingly though, very few of our SMB businesses look to technology innovation as likely to assist them with their current challenges. Only 29% of all consider that innovative technology startups could help them, although this figure is much higher (40-50%) in some industries – Retail, Utilities, Technology, Telco and interestingly, Animal Services.

More specifically, in terms of the next actions,

• 15% are looking to pivot online and mobile as primary engagement channels
• 12% are looking to streamline their consumer experience to remove touch and
• 26% are looking to introduce contactless payment or new payment types.

“We have invested in a website, which we have never had in 13 years of trading
and we have upgraded our listing on Yell.com”

In essence though, many organisations are “waiting for the business to return”, “diversifying” and simply “rebuilding and starting again”.

#TakingPayment

Despite the challenges of retaining business, most organisations seemed content with the ways that they currently have to take money for products or services provided – “As long as we get paid any way we will be happy”. Indeed 86.4% of organisations stated that their payments were taken in a cost effective simple manner.

Thing is, I’m not sure that I agree. There is so much happening in the world of payments – alternate payment types, new regulations, open banking, debates about crypto and more. I’m not for a moment suggesting that our local roofing contractors should start taking Ethereum, but I do wonder if there is the visibility of the extent of change and the opportunities to drive for simplicity and reduce costs. Perhaps the counter challenge to that is volume. Where is the volume for an SMB to drive for an effective deal? Or could we aggregate them together to increase buying power.

If aggregated buying power was an option, what else could they source in a more effective way. In conjunction with Premier Inn, we have already offered our fuelGenie customers a reduction on room rate bookings. What else would help? What else have you got that could help these SMBs operate more effectively? – reducing costs, enhancing reach, pivoting to adjacent needs, engaging with consumers more safely.

Globalisation back to Localisation

The thing that shines through the feedback to our survey is that it is primarily a local marketplace. Local organisations providing local services to people who, by and large, know them. As people begin to move again, and begin to get more confidence in spending in some areas at least – some evidence for example that people are spending more on construction and property (“Business is brisk in the construction industry”) currently now that they aren’t spending as much on holidays – then there should be a return for many to at least generate some revenues.

It is a natural conclusion of the reduction in longer public travel. We are not flying as much, we are not travelling on trains and we are staying more local. “We have noticed an increase in people shopping locally since COVID-19 restrictions hit, sales have continued to remain high even when the high street reopened. We feel this is to do with more people wanting to shop locally and the extra investment we made to the business during the pandemic.”

Maybe it is the time for the small business to bounce back. The strength of local supply chains, local relationships, local trust enabling the rebirth of local communities. They will need to do so still with appropriate cost controls in place, with access to a marketplace for the products and services they need to quickly adopt, and focus on engaging with the end consumer in a safe, personal, touchless way that gives society belief again – belief to engage, to spend, to move around a little more.

In Worldline, we are trying to find a way to help create that marketplace. Trying to find a way that enables Britain to #bouncebackbetter, and for the local economies to drive the recovery. With fuelGenie our Fuel Card brand enabling the SMB businesses of the UK to get back to business, together with our partnerships with Premier Inn enabling better deals for access to hotel rooms and our wider Payment ecosystem, we are doing what we can to help stimulate this new Digital Society.

And if in some small way that helps our SMB community, then that is worth it. As one of that community stated, “Thanks for trying to find ways to help”.

If you would like to talk to us about how you could help with the growth and enabling of that marketplace with your innovative products or services, please contact us at [email protected]