Getting Bigger in the SMB Market
One could argue that there has never been a better time to market technology, software and financial services to small and midsize businesses (SMBs).
SMBs are facing ever-increasing disruption in every aspect of their business – marketing, HR, finance IT, to name a few. Technology, data and digital solutions are driving much of this disruption, and many of these new solutions can not only help SMBs deal with disruption, but even capitalize on it. Additionally, products and services that may once have been too expensive or designed for the enterprise market are now optimized and priced within reach of most SMBs.
So, why is it not simpler to sell to SMBs today? A few key reasons:
SMBs often don’t know what the possibilities are, let alone what solutions are available, or who can be trusted
They find the selling journey is too complex, and often not relevant (as a solution to their problem) until the end of the sales cycle
They worry that they won’t be able to get full use or value from the solution
Only a small percentage of the market is ready to buy at any given time
Nevertheless, there is plenty of opportunity in SMB. Over 10% of annual banking revenue in the US, 54% of US tech sales, 57 mm small-sized and 15 mm mid-sized company employees, and the significant number of 2,000+ employee companies with $100K in annual revenue per employee that still rely on paper-based and manual processes. As many clients have discovered, these significant proportions contradict prioritizing SMB’s at the bottom of the customer pecking order.
SMBs generally require a different approach, one that reflects the priorities of SMB owners. They’re chiefly concerned with stability and profitability and often have limited business and tech knowledge. But, they’re ready to spend if they can see the benefits, sales cycles are short, relevant to their position and relatively simple.
By developing stronger, more integrated analytics, Marketing & Sales organizations can become more effective in communicating, acquiring, up-selling and serving SMB customers. Advanced analytic solutions can provide:
Stronger analysis skills, improved segmentation of SMB markets, more tailored customer value models, and a deepening understanding of marketing strategy, program activation and testing
Support for dashboards and reporting to help centralize SMB decision making, and to inform and enable areas such as digital activation, and sales effectiveness and resource allocation
Simplification of product and service portfolios for SMB: eliminating low-impact items and realigning towards cross-sell or bundling opportunities
Leading Marketers can transform their efforts to sell and work with SMBs by introducing advanced analytics-based improvements, simplifying service and product portfolios, improving media, messaging and content, and increasing process efficiency. Our experience at Truesight Consulting suggests that the above areas can lift revenues and reduce the cost to market, sell and serve SMB customers, and cut wasteful, siloed, and non-performing marketing and sales practices.
For many industries the SMB segment holds a lot of value and future competitive advantage for those who can model and optimize their approach.