UK SMEs miss out on digital export opportunities
UK SMEs could be missing out on international sales by not ‘internationalising’ their digital channels, research by Barclays has found. The study reveals that from assuming English is understood worldwide to focusing solely on UK sales, businesses are overlooking customers in global markets.
The top five reasons given by UK SMEs polled as to why they are not using social media to target international customers are:
1. The UK is my biggest market
2. What works in the UK will work just as well overseas
3. I have no interest in exporting abroad
4. There is no need to as English is an international language
5. I have never thought about exporting abroad
Source: One Poll: 19 – 26 February 2016
The poll also found that while a number of businesses are using online platforms like Facebook and Instagram to attract domestic custom, when asked if they use the same channels to attract overseas customers, this falls by as much as half on average. This means businesses could be missing a key export opportunity to boost not only brand awareness, but market share and profitability.
Just 28% of SMEs use a website to market themselves to overseas customers. On other digital channels, such as Facebook and Twitter, a similar picture emerges. Two thirds (66%) use Facebook for attracting UK customers compared to the 31% who do the same for international customers. Over a third (36%), market themselves to UK consumers through Twitter but only 17% do so with shoppers abroad. Overall, Facebook topped the poll as the channel that SMEs use to market to both domestic and international customers, ahead of their own website or Twitter.
Top digital channels UK SME use Top digital channels UK SME use
to reach domestic customers to reach international customers
Facebook (66%) Facebook (31%)
Website (43%) Website (28%)
Twitter (36%) Twitter (17%)
LinkedIn (21%) LinkedIn (12%)
Instagram (16%) Instagram (10%)
Source: One Poll: 19 – 26 February 2016
To help SMEs learn how to attune their online presence for an international audience, Barclays and the Department for International Trade have teamed up to create two online courses on the Barclays Digital Wings site. The short courses offer practical tips to help businesses develop their international growth strategy via digital channels.
Steve Childs, head of international at Barclays Business, said:
“A website or Instagram page can be your shop window to the world, delivering growth and bigger market share with minimal costs. With more consumers shopping online, business owners are missing out on sales if they aren’t using or tailoring their digital platforms and targeting international e-marketplaces to attract customers abroad. Worse still, by not understanding your target market you could even be putting off customers through unintended translation or currency errors. Our Digital Wings online training offers key guidance to help avoid such pitfalls and maximise your international potential online so that your digital window can shine the brightest.”
Barclays Digital Wings offers two online training courses for businesses to help them maximise their sales abroad. The courses form part of a wider industry-leading partnership3 between Barclays and the Department for International Trade (DIT) agreed in January 2016 to help further develop international trade and inward investment for UK businesses. Barclays joined forces with the DIT as the bank aspires to help over 15,000 SMEs to export in the next five years under its Exporting is great campaign. As part of this commitment, Barclays has also introduced new features to its Business Abroad service, driving greater solutions for business wanting to export. The service offers free access to expert guidance, advice, workshops and tools. The latest features include discounted shipping and credit insurance through partnerships with DHL and Coface, and a free app that provides live mid-market rates across 90 currencies, to support businesses with their export ambitions.
Steve continued:
“We want to help more businesses start and succeed with exports, which in turn will boost the UK economy.”
