Podium payment platform revealed in its second edition of the Annual State of Local Business research that Australians are supporting their local businesses more than ever. The research complements what the Australian Bureau of Statistics has found over subsequent months, that consumers are avoiding department stores in favour of independent retailers.
The data showed that seven out of 10 consumers would buy from their local supplier at least once a week while over nine out of 10 consumers go out of their way to do business locally, and three in four consumers are more likely to spend money at a local business if it supports community and/or charitable causes. Additionally, 78 per cent of local businesses said their business actively supports local charities or causes.
Local businesses said they now differentiate on reputation (79 per cent), customer experience (74 per cent) and expertise (69 per cent).
“When the pandemic first hit, many of us went out of our way to support a local business and had to adjust to new ways of interacting with them from click-and-collect to payments via text,” Dave Scheine, country manager in Australia at Podium, said.
“What this latest research shows is that ‘supporting local’ wasn’t a short-term trend; it’s here to stay, and so are COVID-safe services.
“Consumers are deeply invested in supporting the businesses that keep their local communities thriving and they’ve come to expect digital-friendly ways of doing business with them, especially early in 2022 as local cases surge.”
The research has found that after nearly two years of lockdowns, consumer sentiment has changed and many people are now veering towards businesses that offer convenience and efficiency such as contactless payment options and click and collect that 68 per cent of respondents said were now necessary in their day-to-day consumer habits.
On the flip side, 92 per cent of businesses believe customer expectations have changed since the pandemic, with 48 per cent of consumers saying their new expectations are permanent.
Despite the growing support for local businesses, the sector still faces challenges from the pandemic such as skilled worker shortages (52 per cent) fuelled by hard border closures, supply chain/inventory (48 per cent) and COVID restrictions (45 per cent), compounded by a marked increase in demand. As a result, 75 per cent of Australian businesses made technology purchases in the past 12 months to help their teams work more efficiently.
