New GoDaddy Survey Finds Small Businesses Cutting Costs, Canadians Choosing Cost-Efficient Shopping

New GoDaddy Survey Finds Small Businesses Cutting Costs, Canadians Choosing Cost-Efficient Shopping

As small businesses and consumers cope with post-pandemic economic challenges, including inflation and rising interest rates, both are looking for ways to save this holiday season, according to a new survey. In October, GoDaddy Canada commissioned Maru/Blue to explore how the purchasing behaviour of Canadians has changed. The brand also ran a survey of Canadian small business owners to compare any differences in response to the post-pandemic economic challenges. 

Unsurprisingly, cost-efficiency has a major impact on shopping choices for consumers. Over two-thirds (72 per cent) indicated they are decreasing their everyday spending in response to interest rate hikes. However, when it comes to holiday spending, the majority (61 per cent) of Canadians plan to keep their holiday spending on friends and family the same as previous years. This reinforces the importance of the holiday shopping season for small businesses. 

For small business owners, 38 per cent said they have reduced spending or cut costs to deal with the current economic climate but the majority (76 per cent) are confident about their revenue growth in 2023. Over two thirds (64 per cent) of small business owners credited their growth in 2022 to their online presence.

The survey also revealed: 

  • Convenience is top of mind: Canadians 34 and under are relying heavily on the convenience and accessibility of a business when making shopping choices. Features such as online shopping and delivery rank higher than price for this age group while only 4 per cent of Canadians plan to use curbside pickup, which was popular in 2021. 
  • Credit is king: Over half of Canadians (54 per cent) prefer to pay for their holiday shopping by credit card this year. The only exception to this trend is Gen Z who rely on debit cards due to their age. Despite economic uncertainty, only 1 per cent of respondents plan to use “buy now, pay later” payment solutions this holiday season.
  • Websites are crucial: Over half of Canadians (57 per cent) agree that a company is more trustworthy if it has a website and 59 per cent of Canadians prefer a transactional website to shop online versus in store. Canadians 34 and under are most likely to visit a business’s website to learn more about the products and services prior to purchasing. 
  • Security is undervalued: Almost 60 per cent of Canadians will only shop from a website that they know is secure (SSL Certificates). Twelve per cent of Canadians admitted they do not know how to tell if a website is secure, potentially putting their credit or debit card information at risk.

To find small local businesses to support this holiday season, follow @GoDaddyCanada for some local loves in your area. To learn more about how GoDaddy can help you get online and grow your business this holiday season, visit godaddy.ca. 

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