BURLINGTON, Mass., March 10, 2015 /PRNewswire/ -- Endurance International Group (NASDAQ: EIGI) today released the results of a survey of its U.S.-based small business customers. The survey found that a majority of respondents (68%) believe having a mobile app would help them sell more and engage better with their customers. However, in an increasingly mobile environment where consumers are using their smart devices to find product information and store locations on the go, more than three quarters of respondents (78%) do not currently have a mobile solution or mobile app for their business.
The findings are detailed in the 2015 Small Business Perspectives on Mobile, a survey of more than 900 of Endurance's small business customers. The survey provides insight into small business owners' attitudes and beliefs regarding mobile applications and future investment priorities in mobile solutions. View the infographic to see more. The survey is part of Endurance's ongoing research on small business perspectives and priorities. In January, Endurance released a similar report detailing small business attitudes on the economy. On Friday, Endurance will participate for the first time at SXSW Interactive, where it will host an event to showcase its latest initiatives in mobile for small business.
"Creating an effective online and mobile presence is critical for small businesses to stay competitive and relevant to their customers," said Hari Ravichandran, founder and CEO of Endurance. "Historically, sales success has been driven by word of mouth, customer service, or competitive pricing. But with the rise of mobile, customers increasingly control the reins—they have access to information about competitive products and pricing at their fingertips, long before they step foot into your business."
"For small business owners, it's important that they have access to affordable, easy-to-use tools that can get them online and mobile without complication. Our survey shows that small businesses understand the growth opportunities associated with mobile applications, but many feel that they don't have the time, resources, or expertise to create or manage a mobile solution for their business. That's why Endurance continues to invest in developing first-in-class mobile tools for small business owners because every business, not just the ones with deep pockets, should be able to take advantage of the growing mobile opportunity," said Ravichandran.
The $500 Billion Opportunity
Digital devices' influence on in-store purchase behavior is growing: more than $500 billion in sales is now influenced by mobile content. By the end of 2014, the portion of mobile-influenced in-store retail sales was expected to jump to more than 50%. A vast majority of small business owners understand this opportunity—more than 70% of survey respondents feel having a mobile solution or app would positively impact their business—but they are slow to act because of the perceived barriers to entry.
The top challenges facing small businesses in regard to mobile, according to respondents, are not having a mobile presence (50%); reaching a new, younger customer demographic (37%); and too much time and resources required to enable mobile sales (37%). Despite recognition that they must have a mobile presence to stay competitive, small business owners encounter barriers before they can begin. Half of respondents cite lack of skill and knowledge as the biggest barrier to having a mobile solution or app and nearly a quarter (22%) cite concerns about cost.
Mobile Leads the Future
The outlook for small businesses on mobile is strong—survey participants are willing to explore and take advantage of an effective strategy. More than half of respondents (55%) agree that mobile tools are fundamentally changing the nature of sales for their business. As small businesses consider mobile solutions, respondents named device platform and compatibility (59%), ease of content authoring and content management system ("CMS") integration (47%) and personalization and easy customization (46%) as the top three most important features from a list of seven. Nearly three quarters of survey participants (71%) plan to make a financial investment in mobile solutions within the next two years.
About Small Business Perspectives on Mobile
Endurance International Group is a leading technology provider of cloud-based platform solutions to help small and medium-sized businesses succeed online. Endurance, through its family of brands, supports approximately 4.1 million subscribers globally.
Endurance conducted its survey of 909 U.S.-based small businesses from February 26 to March 4, 2015. For purposes of this survey, small businesses are defined as employing 10 or fewer people on either a full-time or part-time basis. View the 2015 Small Business Perspectives on Mobile infographic here.
Additional Survey Findings*
- 78% of respondents do not have a mobile solution or app for their business; 22% do
- 71% of respondents felt having a mobile solution or app would positively impact business; 29% did not
- The biggest barrier to creating a mobile solution or app for their business is lack of skill and knowledge, with concerns about security representing the smallest percentage
- Lack of skill and knowledge – 50%
- Lack of time to maintain – 23%
- Concerns about security risks – 5%
- Cost to develop – 22%
- Small business owners were asked to rank their top three challenges in regard to mobile, simply not having a mobile presence led:
- Lack of a mobile presence – 50%
- Amount of time and resources required – 37%
- Reaching a new, younger customer demographic – 37%
- Ineffective in communicating products or services on mobile – 33%
- Discoverability by potential customers outside of immediate region – 31%
- Not keeping up with rapid technological advances to grow business – 26%
- Competitors are optimized for mobile but they are not – 22%
- 65% of respondents agree a mobile presence is required to stay competitive; 35% disagree
- 87% of respondents agree they are comfortable adopting new technologies once they become mainstream; 13% disagree
- 23% of respondents agree that having a mobile app is not worth the business risk; 77% disagree
- 55% of respondents agree mobile solutions are fundamentally changing the nature of sales for their business; 46% disagree
- 68% of respondents agree having a mobile app will increase sales and engagement with customers; 31% disagree
- The most important features when it comes to considering a mobile solution are related to compatibility, integration with other technologies, and simplicity of content authoring and personalization. Respondents were asked to rank their top three:
- Device platform and compatibility – 59%
- Ease of content authoring and content management system (CMS) integration – 47%
- Personalization and easy customization – 46%
- External social media integration (e.g. LinkedIn, Twitter, etc.) – 38%
- Customer relationship management (CRM) integration – 32%
- Push notifications – 22%
- Video capabilities – 22%
- 51% of respondents plan to make a financial investment in digital tools in 2015; 49% do not
- Respondents are currently investing in the following mobile solutions:
- None – 52%
- Mobile web – 28%
- Cloud-based systems for e-commerce and e-marketing – 12%
- Mobile apps – 8%
- Respondents anticipate investing in mobile solutions:
- In the next six months – 21%
- In six months to a year – 29%
- In one to two years – 22%
- In two to three years – 7%
- In more than three years – 7%
- Never – 16%
*Due to rounding, numbers may not add up to 100%
About Endurance International Group
Endurance International Group (NASDAQ: EIGI) helps small and medium-sized business owners establish, manage and grow their businesses by harnessing the power and promise of the web. As a leading provider of cloud-based platform solutions to help small and medium-sized business owners succeed online, Endurance, through its family of brands – including Bluehost, HostGator, iPage, Domain.com, A Small Orange, MOJO Marketplace and ResellerClub – supports approximately 4.1 million subscribers and is able to tailor solutions for small businesses at every stage and level of sophistication. Endurance is headquartered in Burlington, Massachusetts, has a presence in Asia and the Americas, and employs over 2,500 people. For more information, visit endurance.com.
Endurance International Group and the compass logo are trademarks of The Endurance International Group, Inc. Other brand names of Endurance International Group are trademarks of The Endurance International Group, Inc. or its subsidiaries.
Endurance International Group
SOURCE Endurance International Group