If they play their cards right, small and medium-sized businesses (SMB) in the UK stand to profit from a post-lockdown spending spree, a new report from small business platform provider Xero claims.
According to Xero, many firms believing deploying the right technology will be key to taking advantage of post-pandemic spending.
The report states that consumers have saved plenty of cash in the last year, with multiple lockdowns preventing them from spending as they usually would. In January alone, accumulated household savings reached circa $25.5 billion, setting the stage for a significant spending spree once restrictions are lifted.
SMBs appear to be well-positioned to capitalize on an increase in spending, partly as a result of shifts in consumer sentiment. Half of consumers now feel greater loyalty towards local businesses over bigger firms, the report states, with more than two in five planning to shop small more often after lockdown.
But consumers want more than just a transactional relationship; they want personal interaction. That’s why SMBs should focus on relationship building, trust building and creating strong community ties, the report concludes.
To make this a reality, many SMBs are focusing on selecting the right digital tools, Xero says. A quarter have invested in cloud technology and stopped using paper payslips, while a third have stopped using paper invoices altogether. After the lockdown, 27 percent plan to focus more on increasing online sales.