Australian business owners know what it means to face a challenge head-on. From navigating a global pandemic to operating in an environment where customer spending is impacted by cost-of-living and rising inflationary pressures. And yet, no matter what comes their way, business owners continue to show up with passionate determination and inspiring perseverance; working hard to ensure their doors remain open.
The latest Amex Trendex: B2B Edition research from American Express shows that for almost half (45 per cent) of Aussie business decision-makers, the path forward requires increased investment in new growth opportunities, as they fight to secure a competitive edge.
According to the Amex Trendex: B2B Edition, Australian businesses intend to invest more on technology in the next six months, most with the goal of improving productivity, including when it comes to the speed and effectiveness of making and receiving payments.
Businesses also expect to spend more on advertising, sales and marketing, with the goal of differentiating themselves from competitors. 40 per cent of businesses expecting to spend more in these areas are focusing their investment on new marketing and advertising channels.
Leah Kress, Founder and Director of Sydney-based retailer The Corner Booth, has been investing in her business’ digital strategy, with a focus on marketing and social media advertising.
“There is a lot of uncertainty in the market, but we’ve decided to invest in advertising as opposed to holding back,” Kress says. “We want to stand out from the crowd and foster brand loyalty, so we’ve upped our spend on things like Google Marketing Platform and Meta ads. It’s absolutely paid off.”
When businesses face financial stress, advertising, sales and marketing budgets are often among the first cuts they make. That’s a common mistake as it can hurt brand recognition and trust. As consumers face pressure from the current economic climate, it presents an important opportunity for businesses to fight for market share and provide value-based offerings.
“We’ve changed the structure of our product offerings to offer cheaper options and better value, which we amplify through our marketing efforts,” Kress adds. “We want to build trusted relationships and stay at the front of people’s minds, so they’ll remember us when the market picks up again.”
Boston Consulting Group research shows reducing investments in brand marketing during downturns hurts growth, reduces shareholder returns and increases long-term costs, with every $1 saved from near-term reductions requiring an investment of $1.85 to regain lost market share.
Payment automation is another major driver of productivity for Australian businesses. 67 per cent of decision-makers in American Express’ research agreed that the digitisation and automation of payments had become a higher priority, while 66 per cent say they will start automating or further automate customer payments, invoicing and purchase orders over the next six months.
Automation has also made businesses more efficient. 47 per cent of decision-makers who have automated their payments process reported reduced human error and 45 per cent, said it led to more accurate invoicing.
“We’ve already invested in payment automation, but we’d like to do a little bit more,” Kress says. “We want to make things as seamless as possible for ourselves and our customers, so they can easily complete sales with a simple-to-follow process.”
Despite the pressure that Australian businesses are under, they’re looking forward to the future. Three-quarters of local decision-makers feel optimistic about the future success of their company over the next 12 months, up from 69 per cent last year.
That’s great news and speaks to the remarkable job that they’ve done over the last few years. Through smart investments and strategic decision-making, they’ll be better positioned to handle whatever the next 12 months throws at them, emerging stronger and more adept than ever.
