As part of their plans to improve customer experience and drive business growth, small businesses in the UK are planning to invest in new technology, according to new research from American Express.

The survey focused on independent and hospitality businesses throughout the UK, which found that spending on new technology topped the list of 2024 priorities (30%).

Just over a quarter (26%) plan to ramp up sales and marketing activity, while a similar amount (24%), said they would bolster their online sales capabilities as they look to unlock additional consumer spending.

Overall, more than a quarter of those surveyed (28%) said attracting new customers is a challenge.

Further, the survey highlighted that just over a third (34%) will be sharpening their focus on customer experience in 2024, with the goal of building loyalty and further boosting sales.

Technology spend could play an important role in achieving this, with over two-fifths (43%) of retailers indicating that they had bolstered their business tech ahead of the festive peak period in an effort to improve customer experience.

Previous research has shown that small businesses are remarkably upbeat about their 2024 growth prospects in 2024, with nearly nine in 10 (89%) expecting growth in the next twelve months, and 93% confident about the future of their business.

“It’s encouraging to see so many of the UK’s small retailers entering 2024 with an optimistic outlook,” Dan Edelman, general manager, UK merchant services at American Express, said.

“However, they know that they can’t stand still if they want to grow their business. Investing in new technology unlocks operational efficiencies, frees up valuable resource and ultimately improves the customer experience.”

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Besides technology, small businesses in the UK are also looking to embrace collaboration, with just under eight in ten (79%) of owners surveyed agreeing that collaboration between local community businesses had increased over the past year.

Almost three quarters (74%) said they always try to work with local, independent suppliers where possible, and the same proportion (74%) agreed it was important that small businesses team up to navigate the current uncertain economic climate.