Online turnover set to grow, but tight labour market dampens ambitions
SIDN Panel looks ahead to 2022
Last month, we asked SIDN Panel members how they expect the online business market to develop in 2022. Where are they looking to invest? What do they see as the biggest challenges? Our questionnaire went out to 254 Panel members. The 107 who completed it tell us that 2022 looks like being a good year for online business. However, price rises and difficulties findings staff are putting a brake on ambitions. The Panel's feedback is summarised below.
Positive turnover forecast for 2022
Respondents are cautiously optimistic about online turnover in 2022, most saying they expect income to be the same or slightly up on this year. The few that anticipate contraction are mainly businesses that plan to cease trading this year, or expect to revert to physical trading after lockdown. Most of the large group forecasting growth are enterprises whose turnover already comes mainly or entirely from the internet, in the form of online sales and/or lead generation.
Findability, security and personnel
However, even those expecting growth see 2022 as a challenging year. From the open-format answers, three issues stand out: findability, security and staffing. Recruiting enough suitable personnel was flagged up more than any other challenge. One respondent said,
"I won't be able to grow the business very much, because we've already got a lot of work and not enough people to do it. We can't really take on new clients. The labour market shortage makes it pointless to invest further."
Website investment more popular than promotion
Our respondents' investment appetite – and particularly their choice of investment areas – reflects the labour supply challenges they face. While 42 per cent plan to increase website investment in 2022, only 22 per cent expect to invest more in promotion. Many of those that do plan to boost promotion say that recruitment is the main objective. The much larger group planning to concentrate on their websites frequently cite improvements to business processes, cybersecurity and support for remote working as drivers. Such respondents are often aiming to generate more turnover from – and provide a more efficient service to – existing clients.
"I'm focusing on the 'drive to digital': getting customers to do things online rather than over the phone."
Findability is the number-one investment goal
Despite the reluctance to invest in promotion, respondents are very interested in search engine optimisation (SEO). Sixty per cent of them identify SEO as the top online improvement sought in 2022. And the second most commonly mentioned improvement – redesign – is seen as a way of supporting SEO goals. Our questionnaire went out just when Google Analytics' incompatibility with European privacy laws was making headlines. Many of our business respondents see possible curbs on use of the tool as a serious threat to their online activities. Another interesting point is that, although a lot of open-format responses mentioned the importance of cybersecurity, that's barely reflected in Panel members' investment plans.
Most respondents not worried about the pandemic
How likely is it that coronavirus-related issues could spoil things for online businesses? The majority (63 per cent) expect the pandemic to have little or no influence on their online activities and plans. The 8 per cent who envisage considerable impact foresee both positive effects, including a shift to online shopping, and negative effects, such as event cancellations.
"If there's another lockdown, that'll mean interacting with customers more online and less face-to-face. So it would be good news for the website."
Overall, the survey feedback is positive about the year ahead, but the positivity is qualified. The business community sees opportunities online, but also recognises that its ability to exploit those opportunities is limited by labour market problems. That's reflected mainly in respondents' appetite to invest in online advertising.
Join the SIDN Panel
This article is based on a survey of SIDN Panel members. As the organisation behind the .nl domain, we like to hear what internet users, domain name registrants and entrepreneurs think about the internet and its use, and about topics such as security, privacy and domain names. Would you be interested in sharing your views with us, maybe anonymously? Use the link to see what Panel membership involves and apply to join.
