Dive Brief:
- Customer support and accounting needs mainly drive the acquisition of new software amid the pandemic, according to a survey of 503 small- to mid-size business leaders conducted by Capterra in March released this week.
- Collaboration, videoconferencing and e-commerce software packages are the top three software verticals SMBs purchased in response to the pandemic, according to the report.
- Among small businesses, 62% plan to spend "somewhat or significantly more" on technology this year due to the impact of the novel coronavirus pandemic. And 61% plan to or have offered a product online, either temporarily or permanently.
Dive Insight:
With a recession looming, 70% of digital small businesses expect decreased revenue, while another 71% are concerned their business won't survive longer than six months under current conditions.
For these businesses, an IT backbone will become crucial for long term survival as they respond to changes in demand. Their tech priorities are also changing, with 46% of small businesses deferring or cutting their IT spend projections as the pandemic rages on, according to GetApp.
With 2020 modernization projects falling by the wayside at the enterprise level, vendors can make up some of the lost ground by connecting with small companies, as they look for software to boost efficiency.
"A digital business strategy is the best lifeline available for small businesses," said Olivia Montgomery, senior content analyst at Capterra, in an email to CIO Dive. "Even a local bakery can take their storefront online and engage with customers virtually with videos sharing the baking process."
The tech tool boost is especially true among frontline employees, with 72% of companies reporting productivity spikes after equipping front-liners with software.
"Most business owners knew digital transformation was coming, but this pandemic has made it the only way to survive now," said Montgomery. "All functions of the business must shift online now and there's software available to support every one of them."
