1&1 has conducted a research study of 390 UK firms that finds that UK small business owners have experienced wide ranging benefits from implementing eBusiness solutions such as a website, online shop or email package. 41 per cent of owners admit that the ability to communicate or sell to consumers online has improved their work/life balance. Two thirds (67 per cent) feel that email has allowed them more flexibility to shape their work and 23 per cent believe that their private lives have been enhanced through leveraging email.

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2. Online business 2005-2010
Results of launching a website …
Increased awareness for the business 76 %
Better image for the business 65 %
Greatly increased sales revenue 36 %
New types of domestic customer 41 %
Access to overseas customers 35 %
Access to overseas suppliers 10 %
Source: 390 UK companies using a website for 5+ years in March 2010 via electronic feedback form
© 1&1 Internet Ltd 2010

3. eBusiness in 2010 - State of Play
Enquiries handled from website Online activities
eCommmerce 36 %
Search engine marketing 23 %
Biz blogging / social networks 21 %
Customer administration online 17 %
Banner adverts 12 %
Real-time chat with customers 8%
Average firm now handles 21-30 % of enquiries from website
93 % report positive impact, 59 % “huge” or “sizeable” positive impact
Success on web has led 54 % to change business plan in recent years
Source: 390 UK companies using a website for 5+ years in March 2010 via electronic feedback form
© 1&1 Internet Ltd 2010

4. eBusiness in 2010 - State of Play
Revenue currently generated from website Online revenue over past 3 years
Average firm now raises more than 10 % of total revenue from website
For 46 % of firms, online sales revenue is higher than before recession in ‘07
Investing in website – 59 % of businesses feel “Positive“, online 3 % “Negative“
Source: 390 UK companies using a website for 5+ years in March 2010 via electronic feedback form
© 1&1 Internet Ltd 2010

5. eBusiness 2010 – Investment in eBusiness
“How do you feel about investing in facilities for shifting customer processes
to your website – e.g. customer self-administration, order processing, payments,
feedback etc?”
Highly positive 52 %
Open to idea 30 %
Indifferent 14 %
Negative 3%
Other 1%
Source: 390 UK companies using a website for 5+ years in March 2010 via electronic feedback form
© 1&1 Internet Ltd 2010

6. Online business 2005-2010
The entrepreneur – impact on work / life balance
Effect of using a website Effect of using email
For 41 %, launching a website has improved work/life balance
Two thirds believe email has improved work/life balance, and 1 in 4 gained
an enhanced home-life
Source: 390 UK companies using a website for 5+ years in March 2010 via electronic feedback form
© 1&1 Internet Ltd 2010

7. Online business 2005-2010
The entrepreneur – impact on skills & outlook
“Made more of a
mark on my “Driver of my personal
“Better perspective on
industry” – 76 % entrepreneurship”
customer needs” – 40 %
– 75 %
“Made me personally
“More creative” – more successful” –
54 % 76 %
“Made me more
ambitious about
“Value each individual
financial goals” –
customer more” – 25 %
68 %
Source: 390 UK companies using a website for
5+ years in March 2010 via electronic feedback form
© 1&1 Internet Ltd 2010

8. Online business in 2010
The consumer – impact on buying behaviour
49 % of consumers now regularly buy from Internet-only firms
48 % of Britons expect all businesses to have a website
1 in 3 have ‘concerns’ about using a firm that has no website
52 % prefer online facilities to check/amend their customer admin
Consumers now actively seek online methods
Source: 1428 UK adults surveyed by OpinionMatters via electronic feedback form
© 1&1 Internet LtdLtd 2010
© 1&1 Internet 2010

9. Online business since the start...
The consumer – impact on expectations
65 % admit to becoming
43 % expect a quicker
more ‘demanding’ since
turnaround of orders
starting to buy online
than before online
retailing
29 % now respond
better to electronic
display adverts
over printed ones
30 % expect a better
total customer-
experience overall
Online business has changed Britons’ consumer expectations
Source: 1428 UK adults surveyed by OpinionMatters via electronic feedback form
© 1&1 Internet Ltd 2010

10. Online business since the start...
The consumer – route to entrepreneurship
83 % believe Internet
58 % now view running
has made it more achievable
an Internet-based business
for average person to succeed
to be a mainstream career
type with a business idea
1 in 3 believe that ability to
1 in 5 people have sell to others online is a
considered starting significant motivator for
their own online less privileged to be
business involved in business
Britons believe ‘online business’ has increased access to entrepreneurship
High public understanding of how achievable it is to launch a business online
Source: 1428 UK adults surveyed by OpinionMatters via electronic feedback form
© 1&1 Internet Ltd 2010

11. Any questions?
© 1&1 Internet Ltd 2010