It sounds counterintuitive given all the shuttered retail storefront in cities, but consumers were drawn to small businesses during the global health crisis, according to Small Businesses & The
Pandemic, a global study from Sendinblue, conducted by CITE Research.
In fact, 44% have been purchasing more from small brands than they did prior to COVID-19, and younger people more
than anyone.
That includes 46% of Gen Z and 51% of millennials. Only 8% plan to spend less.
The biggest drivers were wanting to help the local economy (57%) and
feeling a greater bond with small businesses (52%).
Not that this entails simply walking into a store: Digital communications are driving these sales, and email above
all.
Email is preferred by 30%, with Facebook a distant second at 13%. In addition, 62% of consumers rank email as one of their top three channels for small business communications,
compared to 40% for SMS/Text, 37% for Facebook and 32% for Instagram).
And email is ranked among the top three in the U.S. (66%), UK (70%), France (62%) and Germany (58%). But Instagram
is a close second in Germany. YouTube is also very popular there.
All demographics prefer email — except for Gen Z. Within that cohort, 23% choose Instagram and 59% rank that as a
top three method.
Moreover, 27% are opening email updates more often during the pandemic. Another 45% are doing so more frequently.
In contrast, 26% use QR code scans
more often, 24% SMS notifications, 20% app push notifications and 17% website push notifications. Also, 17% have turned more to live chat on small business websites.
They are even likely to share data with small businesses despite greater fears about privacy, with 78% saying they would do so if the company guaranteed it would not sell their information to other
firms. They also agree that:
- I am more willing to share data with small businesses if I can get discounts or deals —
70%
- I am more concerned with online privacy now than pre-pandemic — 68%
- I trust third-party applications less now than I
did a year ago — 65%
- I prefer to share my personal data with small businesses over big brands — 61%
- I am willing to
exchange some personal data for personalized ads from small businesses — 59%
- I am not at all concerned with online privacy with small businesses — 50%
German consumers are least likely to be worried about digital privacy — 60% say so. But only 46% of UK and U.S. shoppers agree.
In contrast, 75% of
U.S. consumers are more worried, along with 73% in the UK. Only 58% feel the same way in Germany.
Here’s more good news if you’re a small business: 46% prefer the online shopping
experience provides small businesses.
What prompts shoppers to spend more with small businesses? Globally, it takes:
- Promotions/discounts —
68%
- Loyalty/rewards programs — 56%
- Information/advice — 41%
- Inspiration on how to use
products/services — 31%
- Supports the same values I do — 25%
- Entertaining content — 24%
- Humorous content — 24%
- Tutorials — 22%
- Is transparent with data policies — 14%
Among
nationalities, German consumers are most likely to be swayed by entertaining content (30%), humorous content (33%) and tutorials (22%).
Here’s more on privacy.
Despite widespread fears among businesses about Apple IDFA (Identifier for Advertisement), U.S. consumers seem largely out of touch with it. They say:
- I do not know what the
Apple IDFA is — 38%
- I do not own Apple products so it does not apply to me — 31%
- I opted into Apple IDFA — 24%
- I
opted out of Apple IDFA — 7%
However, 58% are reviewing policies more carefully since IDFA opt-out.
What kind of information are they willing to share with
small businesses? They select:
- Gender — 80%
- Age — 78%
- Product preferences — 77%
- Email
address — 74%
- Race — 64%
- Ethnicity — 63%
- Sexual orientation — 54%
- Home address
— 57%
- Location — 59%
- Religious beliefs — 53%
- Cell phone number — 50%
- Browsing
activities — 47%
- Political opinions — 48%
- Income — 45%
- Search history — 45%
CITE
Research surveyed 4,199 consumers, including 1,000 each in the U.S., France, UK and Germany, in June 2021. The research was commissioned by Sendinblue.