Member News

E-commerce gives shoppers certain expectations when it comes to customer service interactions. Here’s how to tailor your service for online.

In a recent survey of over 200 consumers, 28% said they preferred buying from a small business on the high street than from a large retailer, because of a perceived higher standard of products. This was underpinned by 27% saying that customer service was extremely important to them – small businesses, they added, seemed to go out of their way to help make the shopping experience memorable.

For small businesses that receive all or most of their business online, there are additional challenges: first, standing out from the thousands of other websites; second, competing against larger firms with a bigger and more consistent online presence.

We look at ways to tailor your customer service to ensure a high satisfaction rate and, ultimately, increase sales.

Optimise web design and layout

Many businesses on the high street invest a considerable amount of time and money into the layout of their premises. Products are often strategically placed throughout the shop with the hope that shoppers are funnelled with full baskets to the checkouts.

However, businesses that don’t have a bricks-and-mortar store – and indeed those with both physical and digital stores – will have to optimise their web presence in order to attract customers and ensure that they don’t abandon their cart before reaching the checkout page.

E-commerce businesses should try to recreate the offline shopping experience as best as they can, and a tailored customer service is an essential part of this.

“You need to make customers’ lives easier wherever possible, whether this is designing your website to make it easy to click through to the checkout or having some form of after-sales support,” says Lesley Bambridge, founder and director of marketing consultancy We Mean Business. “By making it a breeze to buy from you and giving customers the help they need, they’re more likely to sing your praises and return time and again.”

Create buy-in

While a shopfront will be presented in a such way to attract customers inside, online businesses have to be smarter when it comes to making sure browsers don’t exit before they buy.

Charlotte Jamme, director and founder of handbag brand Mia Tui, has found that an effective way to reduce bounce rate is to create some sort of buy-in.

“We have a loyalty scheme where customers receive points as soon as they sign up to the site, which they can then use on their first purchase. This incentivises customers more than gifting them points only once they’ve completed the purchase would,” says Jamme.

Deal with complaints competently

One sticking point of the online shopping experience for customers will often be not being able to try before they buy. Research by online retail giant Rakuten has concluded that 86% of shoppers consider buying clothes online a gamble. Indeed, products bought over the internet cost the UK economy an estimated £20bn in returns every year.

Like clothing, food items can also be susceptible to unhappy customers. Andy Lawson, founder and CEO of BoroughBox, a marketplace for independent food producers including Rubies in the Rubble and Snact, believes that while this isn’t completely avoidable, it’s important to show customers how competent you are.

“For us to create and maintain trust with our customers online, we can’t be hiding in the virtual shadows”Andy Lawson, founder and CEO, BoroughBox

BoroughBox delivers many of the products itself, but some are distributed by the producers. This has the potential to cause issues, especially if sellers were to fail to meet the standards expected.

“We’re here to provide a service and, ultimately, like any supply chain with moving parts, any one part can have an issue,” says Lawson. “But we want this to be as infrequent as possible and we want our customers to have faith that when something does go wrong, we’ll work tirelessly to make it right again – just like if they walked into a physical shop with an issue.”

Lawson adds that it’s important to always have multiple communication channels open, especially direct telephone numbers.

“For us to create and maintain trust with our customers online, we can’t be hiding in the virtual shadows,” he says.

It’s also vital that you make it clear on your website what your delivery terms and returns policy are.

React swiftly

“It’s not just how you put it right that matters, but also how quickly,” says John Armstrong, co-founder of Newcastle-based printwear and branding specialist Custom Planet. “If you prolong it or make it difficult for the customer, then they’ll walk away and you’ll lose their business.”

Customers have come to expect that they can have anything delivered pretty much instantly with as minimal fuss as possible – Armstrong puts this down to the way technology has revolutionised the online buying and browsing experience.

Professor Phill Dickens discusses the use and development of 3D printing – but warns not to believe the hype.

Phill Dickens, professor of manufacturing technology at the University of Nottingham, started work in rapid prototyping [3D printing] in 1990. In the early 1990s, he founded the Rapid Manufacturing Research Group (RMRG), leading various research projects and securing an international patent that is still being used. The first recipient of the International Freeform and Additive Manufacturing Excellence (FAME) Award in 2009, Professor Dickens is also founder and director of Added Scientific, a spin-out from the University of Nottingham that helps companies in the supply chain for additive manufacturing (AM) with technical assistance in developing materials and processes.

So what is AM?

It’s quite different from most other manufacturing processes in that we make parts by adding layers of material. Where other manufacturing processes take material and deform it or machine it away, we build up the material as we go along to get the final shape. The first commercial rapid prototyping machine was launched in 1987, so it’s been 30 years in the making.

There has been a lot of talk about AM, or 3D printing as it is frequently referred to, but is it delivering on its promise?

Some people say 3D printing is going to solve all our problems and we’re going to be doing everything by AM in the future. It has perhaps been hyped too much, but there is a lot to be gained by using the technology. It can eliminate tooling and give you greater flexibility over your design. It can produce shapes that would have been difficult or impossible in the past. It also presents the opportunity to change business models. In the pharmaceutical world, for example, we’re doing a lot of work at the university on printing pills. AM offers many opportunities, some on cost, some on lead time and some on design.

“We have an opportunity in the UK to exploit the capability within R&D, but we only have a small window of opportunity, maybe three or four years, to do this” There are various AM technologies available, but which offers the greatest opportunity?

It depends on the application. Probably the most advanced are either the vat photopolymerisation, in which liquid photopolymer in a vat is selectively cured [hardened] by light-activated polymerisation, or powder-bed fusion, where thermal energy selectively fuses regions of a powder bed using a laser or electron beam. The powder-fusion technology is probably used the most for manufacturing at the moment.

The focus appears to be on plastics right now, but is the technology moving on to other materials?

Metals tend to be more difficult because their operating processes are at a higher temperature, so you are building tensile overload. Having said that, the progress that has been made in metals in the past five to 10 years is phenomenal. People are now making metal parts in a range of industries, using these techniques for manufacturing.

Most current applications focus on prototype or low volume. Can you envisage AM moving into mass-market production?

I have no doubt about that at all. What we’re seeing now are companies that are attempting to manufacture using processes that were developed for rapid prototyping, but processes are coming about that are designed for manufacturing in high volumes. There’s a company called Photocentric that is undertaking some very interesting work in this area. Once those technologies [become more mainstream] then the economics will change and things will become more suited to high-volume manufacturing.

Why is AM so attractive?

AM gives companies the opportunity to go into low-volume, customised products and produce parts and products that have much greater performance. It also offers a reduction in cost and lead time, as well as real opportunities in terms of new products, new businesses and new ways for businesses to operate.

Are there any areas that AM is more suitable for than others?

There are various areas of industry that AM can offer an advantage in, such as prototyping, design freedom, customised products, high-value manufacturing and applied topology optimisation. In some situations, some of these will be irrelevant and in other situations one of them might be the only reason you’re using AM. It depends on individual products rather than companies.

What can be gained by applied topology optimisation?

Topology optimisation is where you take a design and add or remove material where it makes sense, normally to increase the strength-to-weight ratio. By doing that, you can reduce the weight of parts by about 50%. The best examples of topology optimisation are people. Take bone structure, for example, and the internal geometry of bones, which is highly optimised because we’ve gone through millions of years of optimising bone geometry. What we’re doing [with AM] is taking that principle and applying it to engineering parts.

What do people mean when they talk about ‘state of the art’ in AM?

One thing we really have to do in AM is switch from prototyping to manufacturing, and to do that we need machines designed for manufacturing. They need to be more automated, they need real online control and inspection, and they need to eliminate a lot of the post-processing we currently have to do.

We also need more simulation so we can predict what’s going to happen when we build a part because sometimes you plug in the process parameters, but the part that’s produced is not very good. It might have porosity, cracking or other faults. We need much more upfront simulation so we know it’s going to be right first time. That’s more important in additive manufacturing than conventional manufacturing because with conventional manufacturing you’re often looking at big numbers, maybe thousands or hundreds of thousands of parts, so you can afford to make the first 10 or 20 and sort out your process parameters. But with AM, we’re often only going to be making one so it must be right first time.

How strong is AM in the UK?

In terms of research, the UK is pretty strong, on a par with the US and Germany, but if you look at application, we’re quite a bit behind those two countries. When it comes to actually making money out of AM, I’d put the US quite a long way ahead of us at the moment, and we’re some way behind Germany.

We have an opportunity in the UK to exploit the capability within R&D, but we only have a small window of opportunity, maybe three or four years, to do this. If we haven’t caught up with the US or are well on the way to catching them up within the next three or four years, we’re going to have a serious problem.

What’s holding the UK back?

The short answer is a lack of skills. We simply don’t have the qualified workers to take advantage of the new technology that’s being developed. They’re not coming out of schools and not studying the right courses at university. There are moves to address that, but it will take at least four years, more likely seven, before we see the benefits. By that time it will be too late for the UK to take advantage of the technology.

The UK economy faces several headwinds, including tightening monetary policy, low productivity, geopolitical instability and, of course, Brexit. But Rowan Austin, NatWest’s head of trade and working capital, had positive news for attendees at the EEF National Manufacturing Conference 2018, as he revealed his seven key tips for the sector. 1. Capitalise on export markets and global growth

“We’re all aware of the headwinds facing the UK economy. We also know about the following winds, such as low unemployment, possible fiscal easing and record low-interest rates,” said Austin.

“Most importantly, we’re seeing a strong global recovery of our key export markets, including the US and Europe. This, along with the devaluation of sterling since the Brexit vote, has led to a boom in UK exports. Export orders are at the highest levels for 30 years, and some suggest global growth could offset any short-term negatives of Brexit on the UK economy.

“So it’s time to capitalise. Businesses should think about building beachheads in new markets and having a clear export strategy to target these markets.”

2. Line up your stakeholders early

“Three key stakeholders are there to help you tap into export markets. The first of these is the banks. We’re here to provide funding and risk-management tools to facilitate trade and to support investment in domestic infrastructure.

“Second is UK Export Finance – UKEF’s mission is that no viable British export should fail for a lack of finance. Working closely with the banks, UKEF is becoming more ambitious and innovative in supporting UK exports.

“Third is the Department for International Trade. DfIT has experts placed in embassies across the world. It’s a fantastic network that gives practical support and advice for exporters and guidance around local practices.

“These three stakeholders are working closer than ever before. So make use of them, and the key is to engage them as early as possible so they can support you from the very beginning of the deal.”

3. Pick your partners carefully

“Businesses have rigorous processes to select those that supply raw materials, equipment and services. In the same way, companies should choose their financial partners very carefully. For example, most people have longer relationships with their bank than they do with their spouse. Surprising but true.

“The world of banking has changed dramatically since the financial crisis. While the world has globalised, lots of banks have gone the other way, and many banks now focus solely on their domestic markets.

“Export orders are at the highest levels for 30 years, so it’s time to capitalise. Businesses should think about building beachheads in new markets”

“To support you in global growth, it’s critical to find the right banking partner – one with knowledge, sector expertise and cross-border product capability. Be demanding of your banks and change banks if you’re not getting what you need.”

4. Stay sharp on financial risk management

“The world might seem like a relatively benign place at the moment, but now is the time to prepare for financial risk. There are three key areas – the first of which is interest rates. The Bank of England has already signalled that rates will rise, so lower for longer won’t mean lower forever, and borrowing costs will increase.

“Second is currency risk. Sterling devaluation has helped exporters, but where will it go next? Having strategies to manage currency risk in a volatile environment is critical.

“Third is counterparty risk. Supply chains have become increasingly globalised. Trading with a counterparty in Boston, Lincolnshire, is very different from trading with a counterparty in Boston, Massachusetts. So managing the financial risks of trading with overseas counterparties is essential.”

5. Keep your eye on working capital

“In the UK, it’s estimated that £150bn is locked up in excess working capital. In Europe, this could be as high as €1trn. Poor working capital management can mean sacrificing investment to maintain cash flow – or, to put it another way, tied-up working capital is a resource that can be used to fund growth.

“It can be easy to take your eye off the working capital ball when interest rates are low. It means getting finance can be easy and cheap, but rates are rising from historical lows, and optimising working capital management can deliver real competitive advantage, so it’s crucial to get into the right habits and practices now. Developing a cash culture and improved discipline in working capital management should be a priority.”

6. Embrace technology

“Whether it’s the products you sell or how you run your business, technology is changing our world faster than we can imagine. AI, blockchain, VR, robotics and nanotech – they’re all in vogue, but which are going to be fads, and which are on an exponential growth path? That’s difficult to predict, although it’s not a new conundrum.

“Business models are changing incredibly fast. There’s a lot of disruption. Uber is now the world’s biggest taxi firm without taxis. Airbnb is the world’s largest provider of rooms without owning a hotel. We also see in banking how fintech is changing the way we operate and how we think. So embrace technology and the growth mindset. Make it work for you professionally and personally: prototype and experiment, test stuff, play around and be prepared to fail.”

7. Cyber security

“Technology brings great opportunities but also brings threats. Cyber security is a growing risk to us as individuals and also as companies. Europol estimates that more money is made from cybercrime than the entire international drugs trade. Hacking is a risk that affects brands, customers and businesses.

“In 2017, we saw WannaCry cripple the NHS. We also saw NotPetya spread to 100 countries in just a couple of days and hit some of the biggest corporates, such as Maersk, Reckitt Benckiser and FedEx. It’s estimated the cost of that outbreak was hundreds of millions of dollars, just for those three companies. So in a world where we’re becoming ever more connected, the need for vigilance and cyber security is critical.”

On 19th June during Men’s Health Week (15th to 21st June), two novice cyclists, who discovered the new hobby during lockdown, successfully challenged themselves by taking on an attention-grabbing 120-mile bike ride around the Norfolk and North Suffolk coastline on behalf of Big C.

Simon Gooch, Big C’s Health and Education Office and friend, Aaron Wheaton, both 29, cycled from King’s Lynn to Southwold to raise awareness of male cancers. Both wore bright and striking t-shirts featuring the bold design of a giant pair of testicles.

Simon said, “The idea of the t-shirts is to make sure nobody misses us and we get our message across loud and clear! We want men across the region to be body aware and seek prompt medical support if they are concerned by any symptoms. When cancer is diagnosed at an early stage, treatment is more likely to be successful.” There are around 130 newly diagnosed cases of prostate cancer in the UK every day, 6 new cases of testicular cancer and 2 of penile cancer. Prostate cancer is now the most commonly diagnosed cancer in the UK. (Prostate Cancer UK) Simon continues, “There is some positive news amongst these worrying statistics, as the rise in prostate cancer can be partly attributed to the fact that men have become better at seeking medical advice, leading to increased levels of earlier diagnosis. With the intimate nature of male cancers however, some men are worried or embarrassed to seek support. This situation is steadily improving, but there is still some way to go to ensure the best possible outcomes. We hope our cycle-ride will draw attention to this issue and help reinforce this crucial message – Take Action, Talk to Your Doctor.”   Dr Melanie Pascale, Director of Charitable Operations at Big C, said “This was a fantastic and timely initiative during Men’s Health Week. The t-shirts are both fun and a very effective way of delivering this crucial message for men’s health and making sure it gets the attention it deserves! A very well done to Simon and Aaron and thank you for your support.”   A Big C thank you to Adnams who kindly met Simon and Aaron at the finish line in Southwold with some beer to celebrate!   To find out how to access support from Big C please visit support.big-c.co.uk   Simon and Aaron are raising funds for Big C . Their target is £966 to represent that more than 966 male cancers are diagnosed each week. If you would like to donate to support Big C’s local work supporting all those affected by cancer, please visit Justgiving.com/menscancer

We want to alert businesses who trade with or through Northern Ireland to a simple but important job. HMRC is asking all businesses who move goods between GB and NI to fill in a short questionnaire. This will allow them to keep you updated as and when important information is released.

HMRC questionnaire here UK’s approach to the NI Protocol In the meantime, the government has released a policy paper setting out how Brexit will fit into the objectives of the Good Friday Agreement, with information vital to importers and exporters. So you don’t have to plough through the entire document, we’ve summarised the key points. No hard border in Ireland or the Irish Sea

• Creation of a customs territory which means:
• Removal of internal tariffs & trade barriers
• Common approach to external trade partners
• Trade deals: NI will benefit from preferential access that the UK negotiates

Supplies from UK to NI: no changes

• No import/export customs or safety and security declarations
• No customs check
• No tariffs – only goods which ultimately enter Ireland/EU, or are at a clear and substantial risk of doing so, will face tariffs

Supplies from UK to NI: changes

• UK must apply EU rules to goods which enter NI
• When goods leave the UK to NI, no export or exit declaration or customs clearance is needed
• When goods enter NI, they will need customs declarations and safety and security information
• The customs duties in respect of a good being moved by direct transport to Northern Ireland other than from the Union or from another part of the United Kingdom shall be subject to the duties applicable in the United Kingdom unless that good is at risk of subsequently being moved into the Union, whether by itself or forming part of another good following processing.

Agri-food To ensure that Irelands status as a Single Epidemiological Unit (SEU) is maintained, some kinds of products will have additional border inspection checks.

• NI will align to the EU Sanitary & Phytosanitary rules
• Agri-food products entering NI from GB will be done via a BCP Border Control Point or Designated Point of Entry*
• They will be subject to physical examination & identity & documentary checks, frequency and process of these TBC

*Belfast Port/Belfast Airport/Larne Port – TBC Regulation of goods

• NI to align with the EU rules relating to the placing on the market of manufactured goods
• Enforcing and authorising authorities will be the same as they are now
• Checks can continue away from the ports as they do now, dependant on risk
• The UK will recognise NI/EU approvals and certifications for the purpose of placing goods on the GB market

VAT and Excise

• NI remains aligned to some EU rules on VAT/Excise
• HMRC not the EU will be the tax collector
• Although bound by the EU VAT rules, NI can match exemptions, reductions and zero rating applied by the UK government
• For excise goods, a movement from GB to NI will be regarded as an ‘import’ into NI and a movement from NI to GB will be regarded as an ‘export’ from NI
• Whereas, excise goods moving from NI to an EU Member State and vice versa will be regarded as an intra EU movement

HMRC questionnaire here Full policy document here We can expect further developments during the transition phase, we will endeavour to keep you updated. As always, please call or email me with comments or questions, we’re always happy to discuss individual issues. Import Export Support website here

A new survey on the impact of COVID-19 for the Tourism, Leisure and hospitality sector indicates the significant financial consequences of lockdown and the ongoing impact it is having, even with the easing of regulation, enabling businesses to at long last open, and longed for reductions of the social distancing rules.

Key highlights

• The turnover of the businesses surveyed anticipated income in 2020 to total £189m but latest forecasts, even with June and July openings, to fall to £97m.  If that value is extrapolated, across the whole sector, then the economic value lost to Norfolk and Suffolk would be over £1.8bn.
• Expectations of sample alone are for lost profits to exceed £26m.
• Of those businesses surveyed they employed over 2,400 in the high season last year. At the end of May 2020 less than 10% of that number were working.
• As furlough support reduces, and employer contributions rise, businesses fear up to 22% of staff (518) could be made redundant between July and October alone.

“The true cost to the sector of this pandemic is going to be huge” said Chris Scargill of MHA Larking Gowen, who have led the production of the survey results.

“This sector is facing challenges that nobody would ever have imagined and while some parts of the sector are in the early stages of re-opening, the vast majority are still hoping the potential date of 4 July is a reality, but it is accepted that any form of normality is way off and some parts of the sector are likely to be last to be released from lockdown.” 

“There can be little doubt that COVID-19 is having a dramatic financial impact on the sector”, he added.  “The local impact has not been measured before, and the numbers are quite frightening. Extrapolate these results – which in themselves represent just over 4% of the direct economic impact of Norfolk and Suffolk – and the numbers become quite scary”.

The survey was facilitated by a group of local tourism leaders and included; Ian Russell, MBE of Wroxham Barns and Chairman of ‘Where to Go in North Norfolk’, and Director of Visit East Anglia; Chris Scargill of MHA Larking Gowen, Chartered Accountants and  Business Advisors; Dr Andy Wood, CEO of Adnams,  Chair of Visit East of England and a member of VisitEngland Advisory Board; Andrew Hird, Chair of Visit North Norfolk; Martin Dupee. Director of both, Norfolk & Suffolk Attractions and Visit East of England; Peter Williamson, Chair of Norfolk & Suffolk Tourist Attractions and Greg Munford, Chief Executive Director of Richardson’s Boating Holidays and Holiday Parks and also President of British Marine.

The economic value of the sector to Norfolk and Suffolk is £5.4bn of which £3.83bn is direct revenue and employs approximately 120,000 people both directly and indirectly. The turnover of the businesses surveyed totalled £171.6m in 2019, and with investment and expansion those surveyed had initially forecasted 2020 turnover to be £189.2m but now they anticipate, even with June/July opening, that turnover would fall to £97m. If that informed value is extrapolated, then it would mean this sector alone could shrink by one-third (lost economic impact of £1.8 bn).

Those surveyed employed over 2,400 in the high season last year, but at the end of May less than 10% of that number were actually working. The partial furlough regulations will offer some respite, with 53% of businesses saying its introduction has helped stop some redundancies. The report also shows that some 20% of the workforce being seasonal and zero-hour labour and have therefore not been able to be on the furlough scheme.

The sector is keen to see further changes to the regulations, as with the current restrictions in place, as government furlough support reduces, and employer contributions start from 1 August (estimated to be 5% initially rising to 25% in October, when the current support system ends), businesses fear up to 22% of staff (518) could be made redundant between July and October alone.

“Even when they open, businesses will have to operate in a completely new way, with greatly reduced capacity and revenue, whilst working with expensive and challenging guidelines. Those businesses surveyed already anticipated spending over £160K to facilitate the re-opening.  A tough call when the expectations are that lost profits will exceed £26m” said Chris Scargill.  The redundancies are sadly inevitable if the level of business is not there, as there is no income to pay the staff. It is unsurprising therefore that 81% of business felt the sector needed a furlough scheme to see them through the winter. If nothing is done in this regard the simple fact is that some of the Government’s efforts to stop redundancies and keep jobs open will simply have been a deferral of the inevitable”.

One of the key players, party to the creation of the survey and the importance of this research, is Ian Russell MBE of Wroxham Barns and Chairman of Where to Go in North Norfolk. He said “the numbers involved in creating the economic value to the counties are of an unimaginably huge scale, and the sum of thousands of small mainly family owned businesses. These businesses are in it for the long term, they are resilient, loyal to their staff and have seen ups and downs over many decades, but nothing has prepared us for what is coming down the track over the next nine months.

In the absence of Government guidelines we have to assume our capacity will be reduced to circa 30%,  .resulting a huge reduction in summer revenues. Like many attractions, we have been encouraged to weatherproof our visitor experience but those all important indoor spaces, playbarns and entertainment facilities will not be able to open.

The cold reality is that we (the sector) are on the floor, winded, bruised and running dangerously low on fuel. We are not in the shape we need to be to lead the economy back from the cliff edge. But being the optimists that we are, I believe that with some specific interventions we can fight back; we have the spirit, the self-belief and we have our loyal teams and communities on our side.”

Ian Russell concluded: “to cut to the chase, this is what I believe we need to give us a fighting chance:

1.     Reduce VAT for Tourism, Leisure and Hospitality to 5% for the next 12 months

2.     Extend the flexible furlough scheme for Tourism, Leisure and Hospitality businesses until Spring 2021

3.     Extend CBILS payment terms to 10 years”  

Andrew Hird, Chair of Visit North Norfolk said “I think we all have an understanding of some of the issues surrounding the individual elements covered by this survey, but by pulling them together it brings home the enormity of the issues facing the sector and its impact on the wider economy. This will affect so many people and so many livelihoods that have invested everything into the sector. Put simply, even with some reduced social distancing provisions, businesses will need extended help and support to retain staff and give them a fighting chance of surviving through to next April. The road to recovery is looking to be a long one.

Martin Dupee, Director of both, Norfolk & Suffolk Attractions and Visit East of England said “we know our local attractions have been working hard to open and operate safely but businesses face further financial hardship due to investment and management of those provisions,  outdoor catering can only be considered for so long. I am feeling sorry for the attractions with substantial indoor areas. I am confused why the High Street can open, yet walk through indoor attractions areas are being forced to remain closed”

Peter Williamson, Chair of Norfolk and Suffolk Tourist attractions added “We are really pleased with the support our members gave to the survey. They have entrusted their private and sensitive information to allow a further understanding of the numbers to be represented. The “three winters” scenario will put a significant number of businesses and jobs at risk.”

Greg Munford, Chief Executive Director of Richardson’s Boating Holidays and Holiday Parks and also President of British Marine said “The future of Inland waterways hire companies is at risk, action needs to be taken to mitigate what is in affect three winters in one year. Boating operators have large costs in preparing for the season – these costs are already sunk. If action is not taken many operators may not survive”

Chris Scargill, Tourism Partner of MHA Larking Gowen concluded “The Government is making announcements all the time that affect the economy and this sector. We appreciate the support given to the survey, which needed a quick turnaround and I am grateful to all those in my team who have helped publish the data.” 

You can download the full survey results report here. 

With ESG an increasingly pressing concern, charities need to be ethically sound to ensure they survive into the future.

Last updated: 19 Jun 2020

8 min read

• Charities are expected to actively promote environmental, social and corporate governance (ESG)
• This extends to ensuring that investments align with the values of the charity and its supporters
• The impact of coronavirus will cost UK charities an estimated £4bn in three months

It’s estimated that the coronavirus crisis will cost charities in the UK as much as £4bn in the 12 weeks to mid June. While the government’s pledge of a £750m pot to support charities will help many continue their vital work in the short term, voluntary organisations need to work harder than ever to ensure their sustainability in the years to come.

As well as donations, grants and other sources of income, one of the most effective ways for charities to fund their work is through investments. This can maximise charities’ funds over the long term and generate a regular income to support and expand their activities. 

Charities’ investments depend on their objectives and needs, whether that’s immediate access to funds, longer-term spending commitments or funds for emergencies. Many investments, especially by charitable foundations, are endowed funds that have been donated to support a specific cause over the long term. Charities can also opt for programme-related investment, which supports the delivery of a charitable purpose as well as offering a possible financial return. 

But even setting aside the issue of coronavirus (if such a thing is possible), charities are coming under increasing scrutiny from supporters, grants bodies and other stakeholders to invest in companies that promote responsible environmental, social and corporate governance (ESG). This enables charities to practically support the planet and its people (and be seen by supporters to do so) and provides an effective measure of the invested company’s own sustainability and ability to continue to provide a sound return for years to come.

“Our investments are absolutely vital to the conservation work we do,” says National Trust director-general Hilary McGrady, “but they have to be aligned to our mission to protect special places forever.”

Last summer the trust announced a more ESG-focused investment strategy after the press reported its portfolio included fossil-fuel companies – which surprised and angered many donors to a charity with a commitment to conservation and preservation.

“None of us liked reading those headlines,” McGrady told supporters. “We hear your feedback loud and clear and will stop investing in fossil-fuel companies.”

The National Trust had actually been reducing such investments for a while, with a previous policy that forbade it from putting money into companies that derived more than 10% of their turnover from the extraction of thermal coal or oil. In practice, before the announcement, only 4% of its indirect investments were in fossil fuels – but the ire of the trust’s supporters, and its potential implications, was sufficient to reduce that to zero.

“We are a conservation organisation and so are rightly held to account about the environmental impact of everything we do,” admitted McGrady. “We know this is a complex issue and we are learning, along with the rest of the world.”

Changing public sentiment

Everyone wants a greener world, and public and government commitments to tackle climate change have changed immeasurably over the past five years. But there is an inevitable debate about whether charities have an obligation and moral duty to try to get as much financial return on their investments as possible, or back greener, more ethically sound companies, even if that means a significant drop in that return.

Current guidance from the Charity Commission (which was last updated in 2016) is that “the purposes of the trust will be best served by the trustees seeking to obtain therefrom the maximum return, whether by way of income or capital growth, consistent with commercial prudence” rather than trying to conform to “a supposedly homogenous ‘public opinion’.” It does allow charities to invest ethically, but suggests this can only be justified if the invested business doesn’t conflict with the charity’s aims, such investment doesn’t alienate supporters or beneficiaries, or “there is no significant financial detriment”.

But many charities are calling for a clearer legal ruling that more clearly reflects the public’s increasing expectation of responsibility to the planet. A coalition of 20 charitable organisations, including the 14,000-member National Council for Voluntary Organisations, recently asked the attorney general and the Charity Commission for England and Wales for a legal ruling on whether “the public benefit of charities means they should be required to align their investment policies with their own objectives and commitments to wider society”.

Sian Ferguson, who represents three Sainsbury Family Charitable Trusts that backed the campaign, and have recently taken their £100m investments out of fossil fuels, said: “The trustees were frustrated that the advice they were given suggested they didn’t need to think about where their investments were and should just concentrate on giving. That didn’t make sense because some of their investments were causing the problems they were trying to solve.”

The case for a cultural shift

Charities wanting to be seen as promoting sustainability may need to do more than just look at their investments. A recent report claimed that, of the UK’s largest fundraising charities, just three – Cancer Research UK, Oxfam GB and the Royal National Lifeboat Institution (RNLI) – had publicly available corporate responsibility (CR) policies, only 10 had a named sustainability lead and just 13 had an employee whose role involved CR.

Matching Method to Mission, published by social change PR agency Forster Communications, concluded after examining the charities’ annual reports, websites and LinkedIn profiles that “clearly the disciplines of sustainability and corporate responsibility have barely made a dent in the cultures of the UK’s largest charities”.

The report added: “Whether it’s not being more inclusive in their hiring, not paying a living wage or using suppliers that are flagrantly contributing to climate change, those day-to-day decisions have huge knock-on effects. They mean the charity is not meeting the public’s expectations.”

Katie Buchanan, head of sustainability at Virgin Media, warned in the report that charities that remained behind the curve risked alienating potential business partners with a focus on corporate social responsibility (CSR). “Social sector organisations need to give the same attention [as CSR-focused businesses] to how they conduct themselves, otherwise they may find it difficult, if not impossible, to find progressive businesses to build long-term, sustainable and productive partnerships. Ultimately, charities don’t have a monopoly on creating social change and businesses may choose to take on a social issue without them.”

“Our investments are absolutely vital to the conservation work we do, but they have to be aligned to our mission to protect special places forever” Hilary McGrady, director-general, National Trust  

At the RNLI, sustainability manager Anna Frizzell says: “We are working hard to fully integrate sustainable principles and ways of working so we can save lives at sea indefinitely. We already have a really positive impact on many people and communities, but it’s how we do this that makes a difference to the future of our service.”

The institution’s sustainability plan sets out short-, medium- and long-term goals against local, national and global issues. It includes: protecting the environment through maximising energy and fuel efficiency, using renewable technologies and eliminating waste (it has ditched plastic and recycles all its life jackets); creating, developing and protecting a diverse workforce through a range of initiatives and policies, improving the safety and physical and mental well-being of its staff and volunteers; and a commitment through its supply chain to eliminate modern slavery and human trafficking.

“We’re always looking for more solutions to make the RNLI more sustainable,” says Frizzell. “We’re absolutely committed to ensuring our supporters’ donations are spent wisely.”

Unsurprisingly, the RNLI also ensures its investments are ethical in terms of ESG policies – it constantly monitors the managers of its active funds, who are all signed up to the UN’s Principles of Responsible Investment. And, although the charity says it cannot influence the investment managers’ individual discretion, the RNLI would have no hesitation “to withdraw from any pooled fund if we identified an investment that conflicted with our charitable objectives”.

Investing in values

In response to the coalition’s call, the Charity Commission published a blog – its preferred method of communication – in January, asking for organisations’ views on how the balance might be achieved. It did, however, say “it will always be for trustees to decide what is right in their specific case, and what that means in practice will vary between different charities… What is of principal concern to supporters of a health charity will differ to that of a conservation charity, and the balancing act will play out in different ways…. what is ethical may not always be universally accepted.”

But it says charities need to look at a raft of different ethical responsibility measures. “This is not solely about climate change,” said the blog. “A range of social and other issues, such as human rights records or treatment of workforce, may need to be considered if a charity is to live out its values.”

The Divorce, Dissolution and Separation Bill has concluded its journey through the Parliamentary process and should receive Royal assent shortly. Indications suggest that the new rules could be ready to be implemented from the Autumn of 2021. Time will be needed to draw up the new rules and create new forms, for example.

Hatch Brenner Head of Family Law and specialist Divorce Solicitor Richard Dilks comments:

“The introduction of a No Fault Divorce/Dissolution process will be welcomed by many. The current process requires one party to point the finger of blame or wait for a minimum of two years before commencing proceedings on the basis of two years separation with consent. Having to point the finger of blame can inflame an already difficult situation for both parties and hinder discussions in relation to the arrangements for any children of the family or their financial arrangements. For those who don’t want to wait for two years but want to separate amicably, they are forced to spend time and money negotiating over the wording of unreasonable behaviour that will be sufficient to evidence the breakdown of the relationship but which will not create unwelcome dispute during an already difficult time.

“Under the new rules, irretrievable breakdown of the relationship will remain the basis for the proceedings but it will no longer be necessary to provide evidence of conduct – so no longer necessary to point the finger of blame. Couples who want to separate amicably will be able to do so without having to wait for two years.

“Concerns have been raised that the new rules will lead to an increase in divorce or civil partnership dissolution proceedings as it will in some way be easier to end the relationship. However, the ending of a relationship is a significant event which happens for many different reasons and which often has an emotional and financial impact on those involved. If the new rules remove a potential area of conflict then, in this writers’ opinion, they should be welcomed.”

If you would like to speak to Richard about your own personal situation, you can contact him at richarddilks@hatchbrenner.co.uk, or call 01603 660 811.

A group of nineteen of Norfolk & Suffolk’s most-loved performance venues have come together to assess the devastating impact caused by the COVID-19 crisis and shutdown and collectively call on local, regional and national government to support a specific sector intervention for venues.

Every year these venues entertain and engage over 1 million people with a huge variety of gigs, concerts and performances as well as workshops and participatory activities for people of all ages. The region’s venues are also major economic players, collectively generating £43.5m in income in the 2018/19 financial year and directly sustaining over 500 full-time equivalent jobs.

The venues are: Dance East, Ipswich; Diss Cornhall; Eastern Angles Theatre Company, Ipswich; Fisher Theatre, Bungay; Maddermarket Theatre, Norwich; Marina Theatre, Lowestoft; National Centre for Writing, Norwich; New Wolsey Theatre, Ipswich; Norwich Arts Centre; Norwich Puppet Theatre; Norwich Theatre; Quay Theatre, Sudbury; Seagull Theatre, Lowestoft; Sheringham Little Theatre; Snape Maltings; St George’s Theatre, Great Yarmouth; The Garage, Norwich; Theatre Royal, Bury St Edmunds and Wells Maltings, Wells-next-the-Sea.

Since the closure of these venues in mid-March, 1,605 performances have been caused to cancel and just 700 have been able to be re-scheduled. This has resulted in the venues projecting a total collective loss of income until the end of September 2020 in excess of £15million.

The impact survey and analysis was undertaken as part of the work of the New Anglia Culture Board and its chair, Helen Wilson, said: “The cultural sector is a vital part of both the social and economic fabric of our region and our performance venues are at the heart of that. The interventions so far have been very important, but are clearly not enough. A strong cultural sector coming out of this crisis is critical to our region’s recovery and regrowth as a key contributor to the visitor economy sector, the second largest employment sector in the region.”

The government’s Coronavirus Job Retention Scheme has been a lifeline for the venues with almost 700 people currently on furlough leave from the venues’ workforces and an anticipated drawdown from the scheme of c. £3.6milion across the venues by the end of September 2020. However, due to the nature of these buildings and organisations, the venues still collectively carry £2.5million of unavoidable staff costs over the same period associated with continuing to safely maintain buildings, process refunds and exchanges for customers and plan for the speedy re-opening of venues.

The venues have also been able to benefit from other government initiatives including £365,000 from the Retail, Hospitality & Leisure Business Grants scheme and £215,069 in support to the venues from Business Rates relief. The Emergency Funding Packages from Arts Council England have also seen £283,540 of additional support come into the region for the venues to date.

The incredible generosity and loyalty of theatre, concert and gig lovers from across the region and beyond has seen an incredible £420,000 of support reach the venues, particularly through donations in lieu of refunds as well as responses to direct appeals for support.

To date, the total value of government interventions to the region’s venues until the end of September and their own fundraising efforts is estimated at £4.8million leaving a huge gap of £10.5million in their collective finances over the period.

The lack of certainty around viability of re-opening and the ending of the Coronavirus Job Retention Scheme in October is likely to see venues’ losses further increase significantly and many will cease to be financially viable before the end of 2020.

The venues are now collectively calling on local, regional and national government to support a specific sector intervention for venues, which are likely to be the last business to be able to open at full scale operation.

The venues fear that it will take time for attendance levels to return to pre-shutdown levels and, if current social distancing restrictions remain in place until the end of 2020 and there is no sector-specific intervention, 85% will be forced to make major and potentially devastating organisational changes in order to still be financially viable at the end of October 2020 when the Coronavirus Job Retention Scheme runs out.

If the venues are not able to stage their Christmas seasons, 15% will have no choice but to close permanently by January 1st and if there is a prolonged period of closure, 50% will close by 1st April 2021.

The safety of their staff, volunteers and visitors remains the primary consideration for all venues and many venues will need additional financial support in order to make them COVID-secure if they are able to re-open in the short term. 85% of venues remain unsure whether they will be able to re-open their bars, cafes and retail spaces in early July with many only able to re-open in a limited way and 15% unable to open any parts of their buildings at all whilst social distancing measures remain in place.

On behalf of the venues, Stephen Crocker, Chief Executive of Norwich Theatre said: “Our region’s venues are at the heart of life across Norfolk and Suffolk and make these counties the incredible places that they are but the risk to their future is stark. What we do goes way beyond the act of staging performances or delivering activities, it is about bringing people together to share in an experience. In a post-Coronavirus world when social distancing is a thing of the past, I cannot imagine something more important than this. It is clear we need further interventions and this comes at a cost, but the value of the role we have to play as we recover is inestimable.”

Norfolk County Council has produced a toolkit for supporting businesses when re-opening premises after the closure restrictions. 

This month, Method Marketing asked its audience to share its top marketing tools on social media. They shared the platforms they can’t live without, their secret weapons and their unsung heroes.

Scroll down to find out about their faves…

Tomas Hinz

One that I have found super useful over the past year is a Google Chrome extension called Keywords Everywhere. It has loads of features but I use it specifically for longtail keyword research. On a SERP, the tool lists lots of other related keywords that you can grab and use as you wish!

Kelly Cookson, From Spam to Wham!

I’d say ConvertKit. I use it for setting up all my email automations to nurture my list. It’s just not possible to do that stuff manually!

Once you get people subscribed, it’s crucial that you create a welcome series of emails to help them get to know you. ConvertKit has been great for doing that and sending out my weekly email broadcast.

Read more: Best Marketing Advice

Kate Smoothy, WebHive Digital

Pinterest! It isn’t social media, it’s a search engine. The average pin has a lifespan that is 1600 times longer than a Facebook or Instagram post. You can share your content on there and still receive traffic/sales months down the line! If you’re not on Pinterest – get on it now!

Rebecca Broad

Buffer, for sure. It’s simple to use, well-designed, and in my experience is the most reliable of all the scheduling tools. All of my social media clients use it.

Lucy Mowatt, Method Marketing

My favourite tool is IFTTT. I’ve been using it for years to automate various repetitive tasks. For instance, I use it to natively share social media posts across multiple platforms. It saves a lot of time!

What are your favourite marketing tools? What should be on the list? Tell Method Marketing on LinkedIn!

The May NatWest UK Small Business PMI pointed to an improvement in business activity since April, with the downturn in private sector output levelling out from the record pace reported at the peak of the coronavirus outbreak. 

However, small businesses continued to experience a severe shortfall of new work in May and reported widespread business closures across their supply chains, despite a boost as some parts of the UK economy began to reopen with social-distancing measures. While employment trends among small businesses appeared more resilient than in other areas of the economy, a reliance on the government’s furlough scheme was widely cited as helping limit redundancies.

“The data and economic findings in this report help build the picture of why it’s so important to stand behind our small businesses and help them through the difficulties,” said Andrew Harrison, head of Business Banking at NatWest. 

Stephen Blackman, NatWest’s principle economist, added: “The slight uptick in May’s Small Business PMI tells us that, at least, the worst should be behind us.

“The pandemic’s longer-term and wider impacts depend, in large part, on the scale of permanent job losses as businesses operations and models adapt to new rules, behaviours and options.”

The full report is available to read below