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What Can Offline Businesses Learn from Online Competitors?

September 22, 2020 Business News No Comments Email Email

Established businesses are not bulletproof. According to a recent study by money.com – you can find the full details by clicking the link – only 22% of them make between 10%-20% on their revenues. More surprisingly, 26% of Australian companies fall within the make 5% to 10% category, while 15% make less than 5%.

In comparison, online businesses are growing bigger with each passing year. The Super Retail Group’s internet sales increased by 44% in 2020, for example, whereas Netlinkz revenue has recently skyrocketed by over 800%.

It’s clear that online businesses’ models lead the way, but why are they more successful?

Source: Pexels

Increased Flexibility

The market never stands still, but brick-and-mortar stores can stale and begin to plateau. Online shops don’t allow this to happen as their strategies are inherently flexible, providing customers with better accessibility and improved consumer experience. No organisation does this better than supermarkets and their digital shopping services.

As the Morning Herald points out, consumer habits change, and businesses must be able to react. Currently, stores are seeing increased traffic during the hours of 12 pm to 3 pm. However, while lots of physical companies would struggle to connect with the rest of their base, supermarkets leverage their online presence to ensure everyone can purchase the essentials at any time of day.

This is one of the main reasons online grocery shopping traffic has boomed.

Source: Pexels

The Loyalty Factor

The online gambling industry is a business model that has been as successful as any other in the last five years, with a recent study putting the sector’s valuation at $160 billion by 2026. And, although advancements in technology, such as 5G infrastructure and mobile apps, have played a part, physical companies shouldn’t underestimate the loyalty factor.

As you can see here, the sector works on tiered loyalty programs where players receive points as rewards for their activity. Not only are they offered daily and weekly, cementing the benefit of sticking with a user’s brand of choice, but the operators go the extra mile by personalising bonuses and highlighting VIP programs.

Promotions that centre on loyalty are common in brick-and-mortar shops. However, the lack of range and instant rewards is an element that lets them down as eCommerce platforms prosper.

Source: Pexels

Tech Boost

Australia and Oceania must modernise to ensure other countries don’t leave them in their rear-view mirror.  To do this, Australia and New Zealand are rolling out 5G networks across a range of cities. And that is proving to be extremely important.

Essentially, it’s up to 100 times faster than 4G networks, increasing network efficiency, and therefore battery life, by 10%. Online businesses are already at the front of the queue concerning implementation thanks to applications and mobile websites, which will only make them stronger since accessibility will improve as costs lower.

For established, physical enterprises, the adoption and implementation of advanced tech, enhanced loyalty programs and greater flexibility are vital if they want to compete with their digital cousins.

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