Embracing Digital Transformation for Local Businesses in 2026 - Strategies, Trends & Insights for Australian SMEs (Updated)
- Isuru De Silva
- Oct 25, 2025
- 10 min read
Updated: Feb 1
Last year at the Core Connect Business Summit, we sat down with Susie, Limon, and Ina and talked about where digital marketing was heading for local businesses. A lot of what they said at the time has now come true and some of it has moved even faster than any of us expected. So this year, we thought it was time to go back and look at everything we covered, see what’s actually happened since, and figure out what it all means for you right now in 2026.
If there’s one thing 2026 has made clear, it’s this: going digital isn’t something you can put off anymore. For local businesses across Australia, it’s no longer a nice-to-have – it’s how you stay in the game. Whether you run a café in Hornsby or a tradies supply shop in the suburbs, the way your customers find you, research you, and buy from you has changed. Fast.
This article is our way of taking you through each of those topics we discussed at last year’s summit from local search and social media to AI tools and data privacy and showing you exactly where things stand now. What’s changed, what’s stayed the same, and what you actually need to do about it. Written for one type of person: the Australian small business owner who wants to grow but doesn’t want to get lost in the jargon.
Staying Visible in the Age of AI Search
Google changed the game – here’s what it means for you
If you’ve noticed that Google searches feel a bit different lately, you’re not imagining it. Google now uses AI to answer a lot of questions on its own right at the top of the page without the user ever needing to click on a link. In fact, around 69% of Google searches now end without a single click. That’s a big deal. It means that even if your business shows up in search results, people might never actually visit your website.
Susie, one of our panel experts and a seasoned marketing pro, puts it simply:
“If you’re not visible in your own backyard, you’re letting business slip away to someone else.”
And she’s right. The good news? You don’t need to be a tech wizard to fix this. What you need is to make sure Google’s AI actually knows about you and trusts you enough to mention your business when someone asks.
So what can you actually do?
First up, make sure your Google Business Profile is up to date. This is the little card that pops up on the right side of Google when someone searches for a business like yours. If your hours, address, or phone number are wrong, Google isn’t going to trust you and neither will your customers.
Next, get your business listed on local directories. Places like TrueLocal, Yellow Pages AU, and StartLocal might sound old school, but they’re still places where Google and other AI tools go to check if a business is legit. Make sure your name, address, and phone number are exactly the same everywhere … even the little things like whether you write “Street” or “St” can make a difference.
And don’t underestimate the power of reviews. When a customer leaves you a five-star review on Google, that’s not just good for your ego it tells Google’s AI that real people like you. The more genuine reviews you have, the more likely you are to show up when someone in your area is looking for what you offer.
Writing content that Google’s AI will actually pick up
Here’s something a lot of small business owners don’t realise: the way you write on your website matters a lot more than it used to. Google’s AI doesn’t just skim your page it reads it, understands it, and decides whether your content actually answers someone’s question.
The trick? Get straight to the point. If someone asks “what’s the best plumber in Hornsby?” and your website has a paragraph that answers that kind of question within the first few lines, you’re in with a much better shot. Keep your headings clear and simple, don’t bury your key information under big walls of text, and make sure your ABN, phone number, and address are easy to find.
One more thing worth knowing: paid ads on Google have gotten more expensive costs jumped by 19% in 2025. That makes it even more important to get your organic (free) search presence right. The businesses that will do best in 2026 are the ones treating their website like a living, breathing thing keeping it updated, adding fresh content, and making sure it’s easy for both people and AI to understand.
Tell Your Story – And Sell More Because of It
Why being “real” actually makes you money
Here’s something Ina, our storytelling expert on the panel, says all the time: “People don’t just buy what you sell – they buy why you do it and who you are.” And with so much AI-generated content flooding the internet right now, customers are actually getting better at spotting the difference between something real and something that was just churned out by a machine.
As a small business owner, you’ve actually got an edge here. You have a real story. Maybe it’s why you started your business in the first place, or a funny thing that happened with a customer last week, or a look behind the scenes at how you make your product. That kind of content honest, personal, and a bit rough around the edges – is exactly what people are drawn to right now. It builds trust in a way that a polished corporate ad just can’t.
Video is king – but you don’t need a film crew
Video engagement in Australia has jumped by 41% in the past year. That’s a massive number. And the good news is you don’t need anything fancy to take advantage of it. A quick video on your phone showing how you make your product, a short clip of your team in action, or even just a 30-second chat about what’s new in your shop that stuff works. Instagram Reels, YouTube Shorts, and TikTok all reward this kind of content, and the platforms are actively pushing it in front of more people.
Facebook is still a big deal too, especially if your customers are a bit older. It’s great for local community groups, promoting events, and reaching people who have already shown an interest in your business. The key across all platforms is the same though: keep it short, make it interesting in the first second or two, and post regularly. You don’t need to be perfect you just need to show up relationships and strategy.
TikTok Shop is here – and it’s a big deal for small business
If you sell physical products, this is probably the most exciting news in this whole article. TikTok Shop has arrived in Australia, and it lets you sell products directly through TikTok – no need to send people off to another website. A customer watches one of your videos, taps on the product, and buys it right there and then. Simple as that.
Why should you care? Because TikTok is no longer just an entertainment app. Shopify’s latest report flags it as one of the biggest forces shaping small business retail in 2026. And here’s a stat that might blow you away: 74% of Gen Z consumers now use TikTok as a search engine. More than half of them prefer it to Google. If your customers are younger, this is a channel you really can’t ignore anymore.
The best part? It’s not expensive to get started. You don’t need a big budget or a fancy setup. Just create content that feels natural on the platform – show your products in action, be yourself, and let the algorithm do the rest. It’s one of the best low-cost ways for a small business to reach a brand new audience in 2026.
Using AI Without Losing the Human Touch
AI isn’t just for big companies anymore
A year or two ago, AI tools felt like something only big corporations could use. That’s not the case anymore. Limon, our digital strategy expert on the panel, has seen the shift first hand: small businesses across Australia are now using AI every day, and the tools available are genuinely affordable. We’re not talking about anything complicated here. We’re talking about things that save you real time like a chatbot that answers common customer questions after hours, or a tool that helps you write your social media posts in half the time.
Most of the popular marketing platforms like HubSpot, Salesforce and now Gohighlevel already have AI features built right in. And if you want something more focused on a specific job, like writing website copy or managing your SEO, there are specialist tools that typically cost between $80 and $300 a month. For most small businesses, that’s a pretty reasonable investment if it’s saving you hours of work each week.
Showing up where people are now searching
The way people search for things has changed quite a bit. It’s not just Google anymore. More and more people are asking questions through tools like ChatGPT or other AI-powered apps to find what they need. If your business only shows up on Google and nowhere else, you might be missing out on a growing chunk of potential customers.
The smart move in 2026 is to think about “where do people search for businesses like mine?” and make sure you’re visible there. That might mean making sure your website is easy for AI tools to read and understand, keeping your online listings consistent, and building up your reputation through reviews and mentions across the web. It’s not about being everywhere at once it’s about being findable wherever your customers happen to be looking.
Let the robots do the boring stuff
“Adopt automation to handle the busywork, so you can focus on the human side of your business,”
Limon says and it’s advice worth taking seriously. Think about all the little tasks you do every week that eat up your time but don’t actually grow your business: scheduling social posts, sending reminder emails, following up with leads. AI and automation tools can handle a lot of that for you.
That said, Limon is also quick to point out that you shouldn’t just download every shiny new tool that comes along. Ask yourself: does this actually solve a problem I have? If it does, great give it a go. If not, don’t bother. The goal isn’t to use as much tech as possible. It’s to use the right tech so you can spend more time on the things that actually matter like talking to your customers and growing your business.
Data Privacy – Why It Matters More Than Ever
This one might not sound as exciting as TikTok Shop or AI tools, but stick with us because getting this wrong could actually hurt your business. Australia’s privacy laws have had their biggest shake-up in years, and more changes are coming. By the end of 2026, if your business uses any kind of automated tool to make decisions about customers even something as simple as an AI chatbot you’ll need to be upfront about that in your privacy policy.
Right now, businesses with a turnover under $3 million are mostly exempt from the full Privacy Act. But the government has made it pretty clear that exemption won’t last forever. It’s worth getting ahead of that now rather than scrambling later. And here’s the thing it’s not just about following the rules. Australians are getting a lot more aware of what happens to their personal information, and they’re choosing to stick with businesses they trust to handle it well.
So what does that look like in practice? Being honest on your website about what data you collect and why. Choosing tools and platforms that take privacy seriously. And generally just treating your customers’ information the way you’d want your own handled. It’s not complicated and in 2026, it’s actually one of the easiest ways to stand out from your competitors.
So What Does All This Mean for You?
The big takeaway from Susie, Ina, and Limon is this: the digital world is changing fast, but it’s not as scary as it sounds. You don’t need to understand every piece of technology out there. You just need to know what’s changing, pick the things that make sense for your business, and take action.
Start by making sure you’re easy to find online especially now that AI is doing a lot of the searching for us. Layer on some genuine storytelling and start showing up on social media in a way that feels real. If you sell products, take a look at TikTok Shop it could open up a whole new sales channel without costing you much at all. And if there are repetitive tasks eating up your day, check out what AI tools can do for you.
Oh, and don’t put off thinking about data privacy. It’s not glamorous, but it’s only going to become more important and getting ahead of it now puts you in a stronger position with both regulators and customers.
Everything we’ve covered here is just a taste of what’s coming at the Core Connect Business Summit. If you’re a local business owner or you’re thinking about becoming one come along and hear Susie, Ina, and Limon talk through all of this in person. They’ll be sharing real examples, practical tips, and the kind of straight-talk advice that actually helps. 2026 is shaping up to be a big year for Aussie small business. The ones who take a few smart steps now are the ones who’ll come out on top. We look forward to seeing you at the summit.
Sources
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[2] Marketing Eye – “The 2026 Marketing Strategy Blueprint for Australian Businesses” (Jan 2026)
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