Nearly half of New Zealand small businesses do not have a website, despite consumers naming a website as their most important tool for engaging with organisations, according to new research from InternetNZ.
Website lag
The study found that 47 percent of businesses surveyed operate without a dedicated website. This gap is wider among sole traders, with only one in four maintaining a website. Consumer expectations differ sharply: almost three-quarters of those surveyed cited a business or organisation's website as the most important engagement tool.
"I understand the thinking," said Tim Johnson, GM Customer and Product, InternetNZ. "You're just a one or two person operation, and most of your customers come through word of mouth so why would you need a website?
"The problem is, that's not how your potential customers see it."
The research found a disconnect in the perceived usefulness of websites for online sales. Over half of consumers said a website is valuable for purchasing online, compared to just one-third of businesses who see their sites in this way.
Social media reliance
Small businesses in New Zealand have leaned heavily on social media for customer engagement. The research highlighted, however, that customers are increasingly reducing their use of such platforms.
"There's a heavy reliance, especially for small businesses, on social media. But this research shows people are using social media less, and the last World Internet Project report found most people think social media makes the world a worse place - it's not necessarily the right place to pitch business now," said Johnson.
AI adoption
The survey, which included questions about artificial intelligence for the first time, noted uneven adoption of AI tools between businesses and consumers. While New Zealand businesses report embracing AI, consumer use varies notably by age group. Businesses appear to be adopting AI in broader operations, but it is less clear how these tools are being used for customer engagement or sales.
Domain trust
The research also measured sentiment towards New Zealand's .nz domain name. High levels of trust are associated with .nz addresses, with 74 percent of businesses and 62 percent of consumers regarding them as more trustworthy than other domains like .com.
"Trust is a really big issue for Internet users right now," said Johnson. "With AI booming, there's uneasiness about what's legit and what's not. Because we have such strong processes in place, people feel confident about websites on the .nz domain."
Survey details
The nationwide survey was conducted online, gathering responses from 750 businesses of varying sizes and 500 consumers. Respondents represented a mix of age, gender, ethnicity, and location. The margin of error was 3.6 percent for businesses and 4.4 percent for consumers.
