NCR Corporation has released research revealing a variety of challenges facing UK SMEs as they strive to remain profitable in an increasingly competitive market. The survey found that keeping up with customer expectations, particularly in relation to next gen payment options, is leading to an estimated revenue loss of up to £28.5bn per year.
The study also found that offering limited payment options results in an average loss of 68 million² transactions per month and up to 820 million³ customers a year. Also contributing heavily to profit losses for nearly a quarter (26 percent) of those surveyed is unsold which leads to deficits of over £2.2bn* per month.
While half of those questioned recognised the importance of choosing the right commerce platform and understanding how it impacts profitability, 42% confirmed it wasn’t a priority for them. However, using a commerce platform could streamline processes for the 23% who spend more than 20 hours per month compiling reports. It also provides business owners with important data on best-selling products and staff performance to help make informed decisions and increase their bottom line.
Perhaps unsurprisingly, customer retention was found to be a key contributor to annual growth alongside competitive pricing and a successful marketing programme. However, half (49%) admitted to not understanding their customer’s needs and 1 in 4 report losing £20k per month by not meeting their demands – a simple fix for any business with a commerce platform.
Notes:
Findings based on a survey of 1,000 decision makers across hospitality, retail and consumer facing UK SMB’s (0-250 employees). Commissioned by NCR and carried out by Censuswide, April 2018.
¹ Figure based on 25% of the UK’s 5.7 million SMBs with an average loss of £20,000 a year (number of UK SMBs supplied by house of commons document briefing paper, December 2017)
² Figure based on 26% of the UK’s 5.7 million SMBs with an average unsold stock loss of £1500 per month (number of UK SMBs supplied by house of commons briefing paper, December 2017)
³ Figure based on average number of monthly transactions lost by the UK’s 5.7 million SMBs (number of UK SMBs supplied by house of commons briefing paper, December 2017). Actual figure = 68.4 million
* Figure based on average number of customers lost, per year, by the UK’s 5.7 million SMBs (number of UK SMBs supplied by house of commons briefing paper, December 2017). Actual figure = 820.8 million
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