David and Goliath: how small businesses are giving big brands a run for their ecommerce money

A new study has formulated a set of traits that can level the digital playing field for small businesses when taking on the sector-leading names.

Authenticity, simplicity and proximity are the traits that win customers' confidence with your business website. This is according to a study by Southampton University and Yell, which looked at consumer reactions to websites of big and small companies. In a series of blind focus groups, more than 200 consumers were asked to compare websites of smaller and larger competitor firms, without knowing which was the bigger enterprise.

The study found that consumers were unable to tell which site was bigger and constantly prefered sites by smaller firms. In a series of head-to-head comparisons, more respondents chose the smaller firm as their preferred supplier in almost two thirds (64 per cent) of focus groups. The larger player won out in only a fifth (21 per cent) of experiments.

Even when votes were calculated on an individual participant basis, the majority of people (51 per cent) chose the smaller business, compared to only a third (36 per cent) who opted for the larger firm.

So what are the lessons for small businesses?

Simplicity is perceived to be the most important factor, with 81 per cent saying that easy-to-find information was very important in making a purchasing decision. Personality is also rated highly, with 71 per cent saying they look for a sense of the people behind the business.

A prominently displayed address or location and phone number are also highly important influencers, as people look for indications that there is an authentic human presence behind the business. Close to half of consumers (43 per cent) also place high importance on a business being local to them.

For more guidance on online business, and avoiding the ways in which small firms typically lose customers online, click here.