The 2009 Business Pulse Report, the UK's largest survey of small and medium-sized businesses, surveyed over 7,000 companies and found that those businesses that have prioritised online were three times more effective at winning and retaining their customers.
Over 70% of the companies surveyed recognised that having a website or some form of online presence is very important in helping them to improve the way their business operates.
Over 70% of companies surveyed recognised that having a web site or some form of online presence is very important
Smaller organisations are investing in online marketing to help their businesses not only thrive in the present economy but also to help prepare themselves for the upturn, with almost two-thirds of respondents rating high search engine rankings on sites such as Google as very important to their business.
Social media is also moving up the agenda for these firms with one in five respondents turning to support forums, Twitter and blogs to market their business and attract and retain customers.
"Ten years ago it was difficult for small businesses to compete with their larger, more established rivals. SMEs with a limited budget relied on local advertising, generating only local leads, and thereby limiting growth opportunities," said Matt Brittin, head of UK operations at Google.
"But consumer behaviour is changing rapidly as people turn to the Web to find businesses in their local area or discover businesses based elsewhere that can serve their needs. By having a good website and marketing it effectively, small businesses can be 'found' online and quickly win customers both within and outside of their traditional markets."