New Zealand is 9th in the world for internet usage, which is well ahead of the UK at 15th, Australia at 21st and the USA running along in 23rd position. Sounds good right? And it is good, but according to a research report published by MYOB in October 2012, only 35% of New Zealand businesses and only 36% of Australian businesses have their own website.
With broadband market penetration at 91% (as of 2011), in terms of internet use and economic activity, New Zealand is one of the world leaders in eCommerce. 60% of NZ internet users conduct online banking at least weekly, with 58% of users paying bills online at least monthly.
37% of New Zealand internet users purchase something online at least monthly, which may be lower than Australia (of which 52% purchase at least monthly), the USA (49%), and the UK (47%), but is ahead of all other countries around the world.
The Internet is by far the most important source for information in New Zealand and Australia. While television, newspapers and radio were an important source of information, New Zealand and Australia are notable for just how much more the internet was considered to be important when compared to traditional media sources.
What we are seeing here is the fact that people in New Zealand and Australia want to do it all online. What this means to businesses is that it opens up a huge opportunity to capitalise on this obvious demand just by meeting the market where they want to do business – i.e. “online”. You will note that I said “businesses” and not “New Zealand” or “Australian” businesses. That is because it doesn’t matter so much ‘where’ these businesses come from; with good strategic use of the internet any business (by and large) can set up and sell to the New Zealand and Australian markets. Any New Zealand or Australian business therefore that does not have a solid online presence and on-going strategy is leaving not only the doors wide open to competitors (both domestic and foreign) but all the windows too.
As the recent MYOB report showed, having an effective online presence saw 43% of New Zealand and Australian businesses surveyed report significantly more customer leads. Businesses with a website were also 31% more likely to be able to convert those leads into sales. What other business activity can you think of that can potentially increase your revenues by almost one third?
It is important that businesses look to put in place a digital strategy and make a long term commitment to it. As the saying goes, “you can’t get half pregnant”. That is why it is important to budget properly, not half-heartedly – you reap what you sow.
If you would like to discuss your situation and your goals for your business, call us at Exceed Online. We are New Zealand’s and Australia’s leading eCommerce agency and we do this stuff every day for our clients.
[Data Sources: The World Internet Project and MYOB]
