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Ivy worldwide - Six secrets to selling to SMB

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Nick White
Nick White

This document summarizes the results of a survey of 602 small and medium sized businesses on their technology purchasing habits. The key findings are: 1. SMBs rely heavily on search engines and word-of-mouth referrals from blogs/forums and reviews to discover products. Third-party endorsements also strongly influence purchasing decisions. 2. While price is important, SMBs are influenced by dual-use products that meet both business and personal needs. 3. Traditional media and social media play a minimal role in purchasing decisions due to lack of detailed information. 4. SMB purchasing mirrors consumer behavior in emphasizing price and recommendations. 5. Most large tech companies do not effectively market

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The Six Secrets to Selling to SMBs Ivy Worldwide SMB technology purchasing survey results August 2010 info@ivyworldwide.com
SMB Secrets: #1 Search still rules Which resources do you rely on for making business purchases?* • Like consumers, search engines 60% 49% 54% 52% 50% are SMB technology buyers’ Search engines 40% 35% 34% primary resource for Review sites 30% product/service discovery 20% Blogs/forums Traditonal media 10% Twitter/ Facebook • With search results in hand, 0% First choice Second Third Fourth SMBs lean heavily on word-of- mouth referral Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) *Respondents able to submit multiple selections • Chief resources for word-of- mouth referral are blogs and forums (34%) and third-party reviews (35%) ©2010 Ivy Worldwide
SMB Secrets: #2 Third-party endorsement guides What considerations weigh most heavily when making purchasing decision-making decisions for your business ? Vendor 9% • Getting found in search engine Support 15% results merely builds the Price/TCO 33% consideration set Dual-utility Positive 18% Referral 25% • Price/TCO important, as always Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Nearly 1 in 5 (18%) base their purchasing decisions on products or services that have utility in both business and personal contexts ©2010 Ivy Worldwide
SMB Secrets: #3 Social for SMB isn’t what Which resource do you rely on most for product information? you think it is 40% 34% 29% 30% 23% 20% • Surprisingly, traditional media 10% 9% 5% (9%) and Twitter/Facebook 0% (5%) are minimal factors in Blogs/forums Search Review sites Traditonal Twitter/ engines media Facebook purchasing decisions Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Many suggest these resources lack the detail and timeliness necessary for making such decisions ©2010 Ivy Worldwide
SMB Secrets: #4 Business = personal = business • SMBs act like value-conscious consumers when buying technology… • Akin to consumer technology buyers in that price (33%) and third-party referral (25%) strongly influence their decisions • Setting them apart is preference for meeting business/personal dual-use potential ©2010 Ivy Worldwide
SMB Secrets: #5 Which companies are effective in Room for improvement? marketing to you as an SMB purchaser?* That’s putting it lightly… *Unaided response HP Microsoft • Most large companies miss the 19% 17% mark when marketing to SMBs Dell 14% Other 30% o Slightly more than 75% of SMBs Lenovo feel they’re not effectively No preference IBM 9% Apple marketed to by the companies 3% 3% 5% that target them Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Only one software company was named in unaided responses ©2010 Ivy Worldwide
SMB Secrets: #6 Brick and mortar is busted • 70% tend to purchase online • Preference for tailored service: Retailers (17%) and resellers (14%) are preferred for support and convenience • Exceptions to online preference are desire for hands-on experience or need for especially quick acquisition ©2010 Ivy Worldwide
Respondent overview • 95% have annual operating revenues of US$2M or less • 80% deliver services; 20% products • 53% have been in operation for 3 years or fewer • 54% work at home or otherwise virtually, while 40% work on-site* • 1 in 5 operate in multiple languages, including English • Respondents operate globally*: N. America (57%), Europe/Asia (27% ea.), S. America (7%), Africa (4%) • Average 12 FTEs and 3 or fewer contractors *Responses do not total 100% due to ability to submit multiple selections ©2010 Ivy Worldwide
Methodology • Ivy Worldwide surveyed SMB owners and purchasers worldwide • Over 1000 responses were collected and analyzed for relevance to SMB purchase decision-makers • Of those, 602 qualifying responses were then analyzed regarding SMB purchasing habits • More than 96% of respondents have direct input into or final purchasing decision-making responsibility ©2010 Ivy Worldwide
info@ivyworldwide.com

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Ivy worldwide - Six secrets to selling to SMB

  • 1. The Six Secrets to Selling to SMBs Ivy Worldwide SMB technology purchasing survey results August 2010 info@ivyworldwide.com
  • 2. SMB Secrets: #1 Search still rules Which resources do you rely on for making business purchases?* • Like consumers, search engines 60% 49% 54% 52% 50% are SMB technology buyers’ Search engines 40% 35% 34% primary resource for Review sites 30% product/service discovery 20% Blogs/forums Traditonal media 10% Twitter/ Facebook • With search results in hand, 0% First choice Second Third Fourth SMBs lean heavily on word-of- mouth referral Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) *Respondents able to submit multiple selections • Chief resources for word-of- mouth referral are blogs and forums (34%) and third-party reviews (35%) ©2010 Ivy Worldwide
  • 3. SMB Secrets: #2 Third-party endorsement guides What considerations weigh most heavily when making purchasing decision-making decisions for your business ? Vendor 9% • Getting found in search engine Support 15% results merely builds the Price/TCO 33% consideration set Dual-utility Positive 18% Referral 25% • Price/TCO important, as always Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Nearly 1 in 5 (18%) base their purchasing decisions on products or services that have utility in both business and personal contexts ©2010 Ivy Worldwide
  • 4. SMB Secrets: #3 Social for SMB isn’t what Which resource do you rely on most for product information? you think it is 40% 34% 29% 30% 23% 20% • Surprisingly, traditional media 10% 9% 5% (9%) and Twitter/Facebook 0% (5%) are minimal factors in Blogs/forums Search Review sites Traditonal Twitter/ engines media Facebook purchasing decisions Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Many suggest these resources lack the detail and timeliness necessary for making such decisions ©2010 Ivy Worldwide
  • 5. SMB Secrets: #4 Business = personal = business • SMBs act like value-conscious consumers when buying technology… • Akin to consumer technology buyers in that price (33%) and third-party referral (25%) strongly influence their decisions • Setting them apart is preference for meeting business/personal dual-use potential ©2010 Ivy Worldwide
  • 6. SMB Secrets: #5 Which companies are effective in Room for improvement? marketing to you as an SMB purchaser?* That’s putting it lightly… *Unaided response HP Microsoft • Most large companies miss the 19% 17% mark when marketing to SMBs Dell 14% Other 30% o Slightly more than 75% of SMBs Lenovo feel they’re not effectively No preference IBM 9% Apple marketed to by the companies 3% 3% 5% that target them Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Only one software company was named in unaided responses ©2010 Ivy Worldwide
  • 7. SMB Secrets: #6 Brick and mortar is busted • 70% tend to purchase online • Preference for tailored service: Retailers (17%) and resellers (14%) are preferred for support and convenience • Exceptions to online preference are desire for hands-on experience or need for especially quick acquisition ©2010 Ivy Worldwide
  • 8. Respondent overview • 95% have annual operating revenues of US$2M or less • 80% deliver services; 20% products • 53% have been in operation for 3 years or fewer • 54% work at home or otherwise virtually, while 40% work on-site* • 1 in 5 operate in multiple languages, including English • Respondents operate globally*: N. America (57%), Europe/Asia (27% ea.), S. America (7%), Africa (4%) • Average 12 FTEs and 3 or fewer contractors *Responses do not total 100% due to ability to submit multiple selections ©2010 Ivy Worldwide
  • 9. Methodology • Ivy Worldwide surveyed SMB owners and purchasers worldwide • Over 1000 responses were collected and analyzed for relevance to SMB purchase decision-makers • Of those, 602 qualifying responses were then analyzed regarding SMB purchasing habits • More than 96% of respondents have direct input into or final purchasing decision-making responsibility ©2010 Ivy Worldwide