Rogers small business report

Rogers Communications Inc.Small Business ReportAugust 15, 2013

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Table of Contents

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Executive Summary

Page 6

Background & Methodology

Background -Methodology -

Page 4

Detailed Findings

Section 1: Small Business

Page 8

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Background and Methodology

Research Methodology

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• A total of n=1,437 interviews were conducted online (CAWI) in both English and French.• Responses were collected between August 1st and August 12th, 2013.• The small business survey was conducted among a general population sample of online adults

aged 18+ in Canada.

• The Small Business survey garnered n=1,001 completes. • Quotas were placed on region to allow for geographic profiling while a quota of n=200 completes

per section was administered to ensure we had a voice from the Gen Y cohort.

• Data was weighted based on age, gender and region to be representative of the online Canadian population.

Sample Quotas Small Business

BC 125Alberta 100Manitoba/Saskatchewan 100Ontario 325Quebec 250Atlantic 100Total 1000

Executive Summary

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Executive Summary (Small Business)Frequency and Motivations for Shopping Local• The frequency at which Canadians shop at local/small versus big businesses is relatively equal when examined

among all respondents. However, Canadians over the age of sixty, those who reside in Atlantic Canada and those do not have children living in the household are the most likely to shop at local/small businesses at least once per week.

– Canadians who shop at local/small businesses at least once per month do so for the local economic benefits (64%) and personalized customer service (58%), whereas less frequent small business shoppers attribute price (50%) and convenience (43%) as key barriers to not shopping at local/small businesses more often. These factors (price and convenience) do not appear to be major motivators for the higher frequency small business shoppers.

Local/Small Business vs. Big Business• Two-thirds (73%) of online Canadians agree (strongly or somewhat) that ‘local/small businesses provide better

and more personalized customer service than do big businesses’. Online Canadians also tend to agree that ‘Employees at local/small businesses are much more knowledgeable about the products and services they carry than are big businesses’ (65%) and that they ‘feel a sense of pride when I shop at a local/small businesses’ (62%).

Statement Importance• Although Convenience is not stated as a top reason for why Canadians shop local, it’s deemed as one of the most

important attributes for local/small businesses to deliver on. Virtually all online Canadians (89%) think it is important for local/small businesses to have ‘flexible and convenient hours of operation’. Of almost equal importance is for local/small businesses to ‘provide personalized customer service’ (89%).

– Lastly, Canadian consumers attribute high importance for local/small businesses to ‘offer special promotions and discounts on a regular basis’ with eight-in-ten (81%) deeming the attribute important.

Detailed Findings

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Q1. On average, how often would you say you shop for goods and/or services at…? Base: All small business respondents, n=1,001

Once per Month (%)

80%

83%

• Almost half of online Canadians (46%) say they shop at local/small businesses at least once a week. This is almost identical to the percentage who say they shop at big businesses at the same frequency (43%).

• The most frequent local/small business shoppers (i.e. those who shop at local/small businesses at least once a week) are Canadians over the age of sixty (58%), reside in Atlantic Canada (55%) and do not have children living in the household (50%).

Frequency of Shopping Small vs. Big Business Relatively Equal for Canadian Consumers

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Q2. Why do you shop at local/small businesses? Base: Those who shop at local/small businesses at least once a month, n=797

Note: responses under 2% not shown

• About two-thirds (64%) of Canadians who shop at local/small businesses at least once a month do so for the economic benefits it provides their community.

• Customer service is also a key factor in shopping local/small with six-in-ten (58%) Canadians selecting one of the two associated statements below.

Canadians Shop at Local/Small Businesses for the Local Economic Benefits and Personalized Customer Service

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Q3. Why is it that you don’t shop at local/small businesses more often? Base: Those who shop at local/small businesses less often than once a month, n=204

• When asked to identify why they don’t shop at local/small businesses more often (among those who shop local/small less often than once per month), half indicate ‘the prices are higher at local/small businesses’, while slightly fewer (43%) say, ‘it’s not convenient for me’.

– Price and Convenience are seen as the biggest barriers to shopping local for those who shop at big businesses at least once a week (59% and 57%, respectively) .

Price and Convenience Stated as Key Barriers to not Shopping at Local/Small Businesses More Often

Note: responses under 2% not shown

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Q4. Using the scale below, please tell me how much you agree or disagree with each of the following statements. Base: All small business respondents, n=1,001

• Two-thirds (73%) of online Canadians agree (strongly or somewhat) that ‘local/small businesses provide better and more personalized customer service than do big businesses’. This perception increases with age as those over the age of 50 are the most likely to agree with the statement.

Canadians Agree that Local/Small Businesses Offer Better Customer Service than Big Box Stores

Somewhat/ Strongly Agree

73%

65%

62%

39%

52%

41%

43%

31%

35%

27%

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Top 2 Box % (Somewhat/Strongly Agree) Totaln=1,001

Age

18-29n=186

30 plusn=815

Local/small businesses provide better and more personalized customer service than do big businesses 73% 68% 74%

Employees at local/small businesses are much more knowledgeable about the products and services they carry than are big businesses 65% 67% 64%

I feel a sense of pride when I shop at a local/small businesses 62% 60% 63%I am attracted to the idea of shopping local, but the overall incentives to shop at big businesses are much more enticing 52% 65% 49%

I would rather pay a little bit more for goods and services at a small/local business than shop at a big box-store/business 43% 43% 44%

Most local/small businesses are not active enough online (i.e. no social media presence) 41% 60% 36%

I would shop at local/small businesses more often if they rewarded me for my business (e.g. loyalty program, points program, etc.) 39% 56% 35%

I don't get the best value for my money when I shop at local/small businesses 35% 46% 32%I would shop at local/small businesses more often if they offered more of their products and services online 31% 51% 26%

Local/small businesses don't offer enough flexibility in their policies and services 27% 43% 23%

Denotes significantly higher than all others within its category

Gen Y Cohort Attracted to the Idea of Online Shopping and having Local/Small Businesses Introduce Incentive Programs

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Frequency of Shopping Local/Small Once/Week

n=447Once/Month

n=350> Once/Month

n=204

Local/small businesses provide better and more personalized customer service than do big businesses 73% 78% 74% 58%

Employees at local/small businesses are much more knowledgeable about the products and services they carry than are big businesses 65% 65% 68% 59%

I feel a sense of pride when I shop at a local/small businesses 62% 69% 62% 47%I am attracted to the idea of shopping local, but the overall incentives to shop at big businesses are much more enticing 52% 45% 57% 62%

I would rather pay a little bit more for goods and services at a small/local business than shop at a big box-store/business 43% 51% 43% 26%

Most local/small businesses are not active enough online (i.e. no social media presence) 41% 45% 40% 34%

I would shop at local/small businesses more often if they rewarded me for my business (e.g. loyalty program, points program, etc.) 39% 40% 44% 29%

I don't get the best value for my money when I shop at local/small businesses 35% 31% 35% 43%

I would shop at local/small businesses more often if they offered more of their products and services online 31% 35% 31% 24%

Local/small businesses don't offer enough flexibility in their policies and services 27% 25% 24% 36%

Incentives Offered by Big Businesses Considered a Barrier to Higher Frequency Local/Small Bus. Shopping

Denotes significantly lower than all others within its categoryDenotes significantly higher than all others within its category

• Six-in-ten (62%) non-frequent local/small business shoppers (i.e. those who shop at these stores less than once per month) say they are attracted to the idea of shopping local, but consider the overall incentives to shop at big businesses much more enticing.

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Q5. How important is it to you that local or small businesses…? Base: All small business respondents, n=1,001

Somewhat/ Strongly Agree

86%

89%

81%

77%

51%

38%

36%

25%

• Almost nine-in-ten (86%) online Canadians think its important (very or somewhat) that local/small businesses ‘provide personalized customer service’, while slightly more (89%) think it is important that they have ‘flexible and convenient hours of operation’.

• Overall, loyalty programs and online services (i.e. e-commerce, social media, etc.) were viewed as less important for local/small businesses.

Convenience and Personalized Customer Service Deemed Most Important Attributes for Local/Small Businesses to Deliver On

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Q5. How important is it to you that local or small businesses…? Base: All small business respondents, n=1,001


Age

18-29n=186

30-39n=167

40-49n=195

50-59n=230

60 plusn=223

Have flexible and convenient hours of operation 89% 89% 91% 92% 91% 86%

Provide personalized customer service 86% 81% 80% 85% 87% 94%

Offer special promotions and discounts on a regular basis 81% 84% 85% 80% 83% 74%

Breakaway from the mold and offer unique products and services 77% 75% 82% 80% 76% 75%

Offer some type of loyalty rewards program 51% 68% 57% 57% 45% 35%

Allow consumers to pay for goods and services online(e-commerce website) 38% 60% 50% 40% 24% 25%

Have a strong social media presence 36% 51% 40% 36% 28% 28%

Provide consumers the option to pay with their smartphone 25% 47% 28% 24% 16% 13%

Denotes significantly higher than all others within its category

• Online Canadians aged 18 – 29 are more likely than any other age cohort to perceive the following loyalty or technology related attributes as important; ‘Offer some type of loyalty rewards program’ (68%), ‘Have a strong social media presence’ (51%) and, ‘Provide consumers the option to pay with their smartphone’ (47%).

• There appears to be a pent-up demand from young Canadian consumers for businesses to offer online retail solutions. Technology has been integrated into their lives and they expect businesses to follow suit.

Convenient Hours a ‘Must Have’ for All Age Cohorts; Loyalty Programs/Online Services Appeal to Gen ‘Ys’

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Q6. Using the list below, please indicate which words/phrases you associate with local/small businesses and which you associate with big businesses/big box stores. Base: All small business respondents, n=1,001

• Online Canadians associate local/small businesses with attributes like ‘unique’, ‘provide personalized service’, ‘friendly’, and ‘honest’ whereas big businesses are more closely associated with attributes like ‘have the lowest price’, ‘successful’, ‘good value for money’, and ‘convenient’.

Local/Small Businesses are Perceived Much Differently from Big Business/Big Box Stores

Local/Small Business

Big Business/Big Box Stores

Gap Local/Small Business

Big Business/Bo

x Stores

Unique +65% 78% 12%Provide personalized service +63% 80% 17%Friendly +55% 84% 28%Honest +43% 74% 30%Knowledgeable +41% 78% 37%Trustworthy +38% 73% 35%Ethical +37% 67% 30%Provide highly reliable customer service +29% 68% 38%

Exceed your expectations +29% 51% 22%Socially responsible +21% 57% 36%Are easy to do business with +18% 69% 52%Have flexible policies and services -1% 47% 48%Convenient -7% 55% 61%Successful -26% 45% 71%Good value for money -28% 42% 70%Have the lowest price -61% 16% 77%

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Q7. If you had to choose between each of the following options, which would you choose? Base: All small business respondents, n=1,001

Personalized

Customer

Service

Loyalty

Rewards

Programs

57%43%

A local experience

where I deal

with the same

people every

time I shop at

that business

I don’t care

about who I

am dealing with, I only care about the product

I’m searching for

54%46%

If you had to choose between each of the following options, which would you choose?

• On the surface there appears to be little difference between whether respondents prefer personalized customer service or loyalty rewards programs. However, when looking at the data from a demographic perspective, we find that as age increases, so does the priority placed on personalized customer service.

• Furthermore, the older the respondent the more likely they are to prefer ‘a local experience where they deal with the same people every time they shop at that store’.

Online Canadians Polarized Between The Benefits of Local/Small Business versus Larger Businesses

OR OR

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