002528.Forrester Marketing for Smbs
-
Upload
renzo-proano -
Category
Documents
-
view
218 -
download
0
Transcript of 002528.Forrester Marketing for Smbs
-
8/8/2019 002528.Forrester Marketing for Smbs
1/12
Making Leaders Successul Every Day
Augus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig PiiiesF SMBsb Sha VaBskik Ieaive Makeig Pessias
http://www.forrester.com/ -
8/8/2019 002528.Forrester Marketing for Smbs
2/12
2010, Forrester Research, Inc. All rights reserved. Unauthorized reproduction is strictly prohibited. Inormation is based on best availableresources. Opinions refect judgment at the time and are subject to change. Forrester, Technographics, Forrester Wave, RoleView, TechRadar,and Total Economic Impact are trademarks o Forrester Research, Inc. All other trademarks are the property o their respective companies. Topurchase reprints o this document, please [email protected]. For additional inormation, go to www.orrester.com.
F Ieaive Makeig Pessias
ExEcUtIVE SUMMAry
Small and medium-size business (SMB) marketers, much like their enterprise counterparts, nd
that challenges like limited budgets, resources, and customer insight interere with their ability
to successully execute interactive marketing programs. Even so, SMB marketers are growing their
interactive marketing budgets and shiing resources away rom traditional marketing tactics. SMB
marketers should take advantage o the nimbleness o their organizations in order to innovate with
interactive marketing.
tABlE o F contEn tSSMB Mrtrs Tr T Itrtiv Mrti
SMB Makees Fae Famiia chaeges
SMBs Piiize Ieaive tais
rEcoMMEndAtIonS
SMBs Sld Ld Itrtiv Ivti
Spplmtl Mtril
notES & rESoUrcESFese ieviewe sevea ves sevig
he SMB make a use aa m he Q2 2010
US Ieaive Makeig oie Suve i he
wiig his ep.
Rltd Rsr Dmts
Fueig the new SMB: Makeig-Sevies-As-
Swae
Api 21, 2010
SMB Makeig tehg Api
Ma 22, 2009
Augus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsby Sr VBsir
wih Kae va Gee a Agie Pa
2
8
9
mailto:[email protected]://www.forrester.com/http://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/http://www.forrester.com/mailto:[email protected] -
8/8/2019 002528.Forrester Marketing for Smbs
3/12
2010, Fese reseah, I. repui PhibieAugus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
2
SMB MaRkeTeRS TuRn To InTeRacTIVe MaRkeTIng
Forrester typically writes or enterprise rms companies with 1,000-plus employees but weve
had an increasing number o requests to investigate the interactive habits o smaller marketers. So
we examined the results rom our Q2 2010 US Interactive Marketing Online Survey to determine
how SMB marketers those at rms with ewer than 200 employees worldwide think about
interactive marketing dierently than enterprise rms (see Figure 1).
Fir 1 SMB A Eepise Fim demgaphis
Source: Forrester Research, Inc.57401
SMBs* Enterprise
Company size
Primary business focus
Industry
Employees
Average 2009 revenue
Average interactive marketing budget
B2B
B2C
B2B and B2C
Retail, wholesale, and consumer goods
Construction, real estate, and engineering
Professional services
Travel, media, entertainment, and leisure
Public services
High-tech products
Financial services
Industrial, chemical, and raw material
Telecommunications, energy, and utilities
Healthcare, biotechnology, and drugs
Other
*Base: 196 interactive marketers working at companies with fewer than 200 employees worldwideBase: 81 interactive marketers working at companies with more than 1,000 employees worldwide
Fewer than 200 More than 1,000
$13.9M $665.5M
$230,000 $47.7M
57%
24%
19%
15%
12%
11%
10%
10%
9%
6%
5%
3%
2%
18%
36%
30%
35%
11%
11%
12%
9%
9%
22%
4%
4%
4%
7%
7%
Source: May 2010 US Interactive Marketing Online Survey
-
8/8/2019 002528.Forrester Marketing for Smbs
4/12
2010, Fese reseah, I. repui Phibie Augus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
3
SMB Mrtrs F Fmilir clls
Like their enterprise marketer counterparts, SMB marketers eel that several limitations hinder their
interactive marketing progress. Small and large rms alike grumble about:
Few staf members. Eighty-three percent o SMBs surveyed report that their interactiveteams have ewer than our people.1 Enterprise marketers teams arent as small, but they do
eel similarly understaed; 44% reported ewer than 20 sta members dedicated to interactive
marketing.
Limited budget. SMB marketers are working with inadequate unds 84% report interactivebudgets under $250,000 in 2010.2 O course enterprise marketers have larger budgets $47.7
million on average but they also wish they had more to work with.
Poor customer insight. SMB marketers say that their biggest challenges include: measuringmarketing program results (56%), creating a single view o the customer (52%), using customerinsight to drive marketing decisions (49%), and managing data quality (47%).3 Enterprise
marketers top challenges are similar; they also list measurement and creating a single view o
the customer as top concerns.
Losing customers in the recession. Small and large marketers alike prioritize generating newcustomer sales, increasing brand awareness and overall sales, and generating leads to help
replace customers lost during the economic downturn (see Figure 2). SMBs, though, weigh lead
quality, partnerships, and understanding buyer behavior more heavily than do enterprise rms,
in part because smaller companies have ewer key clients to lose.4
Lacking specialized skills. Regardless o size, marketers need specialized skills to execute wellin dierent interactive marketing tactics. But SMBs cant aord several specialists. Tey can only
hire a small sta o marketers to wear multiple hats, limiting their ability to master mainstay
interactive tools or trial emerging ones.
-
8/8/2019 002528.Forrester Marketing for Smbs
5/12
2010, Fese reseah, I. repui PhibieAugus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
4
Fir 2 new cusme Saes tps SMBs Busiess Piiies
Source: Forrester Research, Inc.57401
SMB*
Enterprise
Which of the following business objectives are the most important when determining
how to invest in interactive marketing?
*Base: 196 interactive marketers working at companies with fewer than 200 employees worldwideBase: 81 interactive marketers working at companies with more than 1,000 employees worldwide
Source: May 2010 US Interactive Marketing Online Survey
New customer sales
Brand awareness
Overall sales
Leads
Return customer sales
Cost savings/efficiency
Loyalty
Engagement
Sponsorship/brand association
Brand sentiment
Dont know2%
5%
11%3%
11%7%
11%11%
36%17%
23%
19%
15%25%
17%35%
38%36%
53%36%
37%60%
-
8/8/2019 002528.Forrester Marketing for Smbs
6/12
2010, Fese reseah, I. repui Phibie Augus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
5
SMBs Priritiz Itrtiv Ttis
O course, SMB customers are online. So despite the above challenges, SMBs know they must create
relevant, customer-centric interactive marketing programs. Tey do this by prioritizing (see Figure 3
and see Figure 4):
Interactive over traditional tactics. Seventy-seven percent o SMBs surveyed reported their2010 interactive marketing budgets increasing or staying the same as compared with 2009. O
those increasing budgets, 54% said they will decrease budget or traditional marketing tactics
like V, radio, direct mail, and print, in order to und the increases in interactive.5
Display, email, and search. Email remains the mainstay o enterprise and SMBs alike 75% oSMBs currently use or plan to use email marketing, and 16% increased their email budgets rom
2009 to 2010. Natural search is also a staple o the SMB marketer toolbox, with 63% currently
using or planning to use it. Additionally, display media is one o the largest areas that SMBsgrew over the past year, with 19% increasing that budget.
Social media and mobile experiments. Social media is an area o rapid growth or SMBs.Fiy-our percent o SMBs surveyed currently use or plan to use created social media and
another 30% currently use or plan to use paid placement in social media. Social tied with
display media as the areas o largest budget growth in the past year, and 17% plan to increase
their social budget again rom 2010 to 2011. SMBs are also dipping their toes in the water o
mobile marketing 9% o SMBs are currently using it, and an additional 11% plan to use in the
next 12 months. About 8% increased their mobile budgets over the past year, and 10% plan to
increase mobile budgets into 2011.
Specialized vendor partners. SMBs outsource their interactive marketing since they dont haveenough specialized internal sta. For the most part, SMBs select point solutions vendors
that specialize in discrete unctions like local search, small business email, review sites, or
directories although a ew players, like Intuit and HubSpot, oer more complete suites o
interactive marketing tools (see Figure 5).6
-
8/8/2019 002528.Forrester Marketing for Smbs
7/12
2010, Fese reseah, I. repui PhibieAugus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
6
Fir 3 Emai Is the Ms Wie Use Ieaive Makeig tai B SMB Fims
Source: Forrester Research, Inc.57401
26%
29%
38%
38%
47%
37%
58%
46%
55%
57%
64%
65%
72%
76%
70%
77%
82%
83%
80%
85%
95%
10%
9%
11%
14%
10%
21%
5%
21%
13%
17%
10%
12%
9%
9%
17%
11%
7%
6%
11%
8%3%
65%
62%
52%
48%
43%
42%
37%
33%
32%
27%
27%
22%
19%
15%
13%
12%
12%
11%
9%
8%
2%Game marketing
Display media through demand-side platforms
Mobile
Television
Outdoor
Display advertising through exchanges
Paid placement in social media
Radio
Telemarketing
Display advertising through ad networks
Newspapers
Paid search listings
Magazines
Created social media
Yellow pages
Search engine optimization (SEO)
Display advertising directly through publishers
Online classifieds or directory listings
Direct mail
Print
Email marketing(including email for acquisition and retention)
Base: 196 interactive marketers working at companies with fewer than 200 employees worldwide(percentages may not total 100 because of rounding)
Does your company use the following in its US marketing?
Source: May 2010 US Interactive Marketing Online Survey
Currently using Plan to use in the next 12 months No plans to use
-
8/8/2019 002528.Forrester Marketing for Smbs
8/12
2010, Fese reseah, I. repui Phibie Augus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
7
Fir 4 dispa A Sia tp Aeas F Gwh I SMBs Buges
Source: Forrester Research, Inc.57401
19%
19%
16%
15%
8%
28%
28%
20%
23%
15%Mobile
Search
Email
Social
Display
How does your total US budget in 2010 compare with the 2009 budget
for each of the following tactics?
SMB*
Enterprise
Note: percent who indicate budget increased slightly or budget increased significantlySource: May 2010 US Interactive Marketing Online Survey
*Base: 196 interactive marketers working at companies with fewer than 200 employees worldwideBase: 81 interactive marketers working at companies with more than 1,000 employees worldwide
Fir 5 A Sapsh o Ve Paes I the SMB Makeig Spae
Source: Forrester Research, Inc.57401
Category Example providers Services Beneft to SMBs
Directories
Consumer reviewaggregators
Email marketingservice providers
Search/displaysolutions
Online marketingsuite
Yahoo! Local
ValueStar
ThomasNet
Local.com Yelp
Judys Book
Angies List
Citysearch
Constant Contact
VerticalResponse
Clickable
Yodle
Centro
WebVisible
Reply.com
HubSpot
ReachLocal
Intuit
Zoho
Organize and present businessproles, often including adescription, address, phonenumber, and URL for each listing
Aggregate reviews or deals forlocal businesses, often throughsocial and mobile
Provide email marketingtemplates, delivery, andreporting
Support paid search, SEO, mediabuying, or lead generation
Integrate interactive marketingsolutions through a singleplatform or suite
Reasonably priced listings can bepurchased similarly to oineYellow Pages ads
These highly trafcked sitesprovide rich and user-generatedcontent to extend SMB Webvisibility
Simple, inexpensive messagingsolutions that aid customerretention
Ooad online marketing eortsfor SMBs who need expertise ormore sta
Help SMBs manage multipleinteractive initiatives through asingle solution
-
8/8/2019 002528.Forrester Marketing for Smbs
9/12
2010, Fese reseah, I. repui PhibieAugus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
8
r E c o M M E n d A t I o n S
SMBS ShouLD LeaD InTeRacTIVe InnoVaTIon
Ahugh imie i sme was b hei size a buge sais, smae makees a
geea e ase ha eepise ms ue ess bueaua a me ie eaiships
wih usmes. Beause his, we hik SMBs ae bee pise ha age ms ivae
wih ieaive s. t his, SMB makees mus:
Tl t lw-i rit. SMB makees shu us s pgams ha equie huge ivesmes high speiaize ski ses, ike sia meia. Su
ueiuiive? Fis , epeimes wih sia meia pia equie ve sma
iemea buge. Makeig a saes sa ae ike aea amiia wih sia ues
ike twie a Faebk beause hei pesa epeiee wih hem. A smae
mpaies e have me pesa ei wih hei usmes ha bigge ms,s ieig hem Faebk wks as a aua eesi eisig eaiships. 7
explit xisti itrl rsrs. SMBs ma eve have eugh buge a a ieaieaive makeig sa a ki. S we emme muipupsig ski ses, ab,
ehg, a e aea empe i he aeas i he gaizai. F eampe,
a usme sevie ep, amiia wih pu imai, mm aske quesis, a
usme ae, u speahea he mpas twie pesee.8 o Web evepes u
hep wih seah egie pimizai b eaig seah egie-ie sie suue a
e. teeHeah Sevies ve a 12.5% pe ae a quai ew eas b epupsig
bie aies as emai ewsees.9
Priritiz tlis tt rt fiis. A eseah su ue b ce,a pvie meia buig aumai swae, u ha 85% meia paig
pessias wa spe me ime saeg bu a beause he heaahes
pgam amiisai.10 t ue his mm we, SMBs shu ives i ehgies
ha seamie pess a fa pgam maageme. F eampe, cikabes
AEgie aumaes pai seah bi pimizai a epig a eius pess i
maage maua.11
utiliz -dmd mpi tmti sltis. o-ema suis ee bves suh as daa Meia, Eiea, a lis ae wh epig SMB makees wih
imie esues beause he e subsipi-base piig mes ha aw makees
es suis wih imie ivesme.12
-
8/8/2019 002528.Forrester Marketing for Smbs
10/12
2010, Fese reseah, I. repui Phibie Augus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
9
SuPPLeMenTaL MaTeRIaL
Mtdly
Forrester elded its Q2 2010 US Interactive Marketing Online Survey to 309 interactive marketingproessionals. For quality assurance, panelists are required to provide contact inormation and
answer basic questions about their rms revenue and budgets.
Forrester elded the survey in May 2010. Exact sample sizes are provided in this report on a
question-by-question basis. Panels are not guaranteed to be representative o the population. Unless
otherwise noted, statistical data is intended to be used or descriptive and not inerential purposes.
I youre interested in joining one o Forresters research panels, you may visit us at http://Forrester.
com/Panel.
cmpis Itrviwd Fr Tis Dmt
Centro
ClickFuel
Intuit
Reply.com
TomasNet
Vertis Communications
Yodle
enDnoTeS
1 Source: Q2 2010 US Interactive Marketing Online Survey.
2 Source: Q2 2010 US Interactive Marketing Online Survey.
3 Forrester surveyed 224 direct marketers in Q3 2008 about their technology adoption plans. Tis report
drills into the technology adoption trends o our SMB respondents. SMB marketers continue to pursue
improvements to the online customer experience with a high level o adoption o email and Web analytics
technologies. However, moderate to low adoption o marketing automation and data mining technologies
limit SMB marketers abilities to grow the volume and sophistication o their programs. Forrester
recommends that SMB marketers: 1) continue to ocus on online marketing channels; 2) add social media
marketing techniques to their arsenal; and 3) explore on-demand technology solutions to balance limited
budgets with a need or greater customer insight. See the May 22, 2009, SMB Marketing echnology
Adoption report.
4 Te new SMBs are polar opposites o their mom-and-pop predecessors theyre marketing rock stars (or
at least see themselves as such) and they place a high degree o importance on technology to uel their
newound marketing appetites. In many respects, particularly in digital marketing, small companies are
outperorming enterprises. ech vendors are trying out an assortment o technology, service, and channel
models on this burgeoning market. As with any new market, though, the integration o those technologies,
services, and channels is a challenge or users and tech vendors alike. See the April 21, 2010, Fueling Te
New SMB: Marketing-Services-As-Soware report.
http://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=56775&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdf -
8/8/2019 002528.Forrester Marketing for Smbs
11/12
2010, Fese reseah, I. repui PhibieAugus 13, 2010 | Upae: Sepembe 7, 2010
Ieaive Makeig Piiies F SMBsF Ieaive Makeig Pessias
10
5 Source: Q2 2010 US Interactive Marketing Online Survey.
6 oday interactive marketing is a ragmented discipline in which marketers work with many dierent
vendors to develop and execute marketing programs. But as the number o channels and programs grow,
this situation becomes untenable. odays interactive marketers have ew options as neither enterprise
marketing suites nor interactive specialists address their needs. Forrester believes that the time is right or
the online marketing suite to emerge. Tis suite, underpinned by a central hub, is the eventual destiny or
all online marketing technology and will enable a single view o the customer across channels, provide
process tools to support collaboration, centralize optimization, and support a partner ecosystem. See the
October 17, 2007, Dening Te Online Marketing Suite report.
7 Because o the recession, this year marketers decline their use o brand-oriented display media and are
particularly shy to adopt emerging channels like online video and mobile marketing. Instead, they cling
to direct response specialists email and search and place their bets on social media applications. We
recommend that marketers maintain their branding investments and emulate small rms social media
developments in order to innovate with interactive channels now, when other marketers arent. See the June
4, 2009, Interactive Marketing Channels o Watch In 2009 report.
8 Te Carphone Warehouse (CPW), Europes leading independent retailer o mobile phones and services,
ound that witter oers a new opportunity to truly listen and engage in customer conversations, address
customer complaints and eedback more quickly, and proactively provide inormation to customers, as well
as positively infuence customers opinions. See the January 26, 2010, How Carphone Warehouse Uses
witter And Social Media o ransorm Customer Service report.
9 Source: Reormat, Reuse, Recycle: 5 Strategies o Stretch Your Marketing Content,Marketing Sherpa,
October 21, 2009 (http://www.marketingsherpa.com/article.php?ident=31399).
10 Source: New Study Highlights Need or a Reevaluation o Current Digital Media Processes, Centro pressrelease, June 9, 2010 (http://www.centro.net/news/pr/new-study-highlights-need-or-a-reevaluation-o-
current-digital-media-proce).
11 Source: New Version O Clickables Award-Winning Search Advertising Solution Introduces Sophisticated
Reporting And Custom Metrics, Clickable press release, June 1, 2009 (http://www.clickable.com/corp/
press/2009-06-01.aspx).
12 Forrester surveyed 224 direct marketers in Q3 2008 about their technology adoption plans. Tis report
drills into the technology adoption trends o our SMB respondents. SMB marketers continue to pursue
improvements to the online customer experience with a high level o adoption o email and Web analytics
technologies. However, moderate to low adoption o marketing automation and data mining technologies
limit SMB marketers abilities to grow the volume and sophistication o their programs. Forrester
recommends that SMB marketers: 1) continue to ocus on online marketing channels; 2) add social media
marketing techniques to their arsenal; and 3) explore on-demand technology solutions to balance limited
budgets with a need or greater customer insight. See the May 22, 2009, SMB Marketing echnology
Adoption report.
http://www.forrester.com/go?docid=43678&src=57401pdfhttp://www.forrester.com/go?docid=53721&src=57401pdfhttp://www.forrester.com/go?docid=55956&src=57401pdfhttp://www.forrester.com/go?docid=55956&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=54529&src=57401pdfhttp://www.forrester.com/go?docid=55956&src=57401pdfhttp://www.forrester.com/go?docid=55956&src=57401pdfhttp://www.forrester.com/go?docid=53721&src=57401pdfhttp://www.forrester.com/go?docid=43678&src=57401pdf -
8/8/2019 002528.Forrester Marketing for Smbs
12/12
Forrester Research, Inc. (Nasdaq: FORR)
is an independent research company
that provides pragmatic and orward-
thinking advice to global leaders in
business and technology. Forrester
works with proessionals in 19 key roles
at major companies providing
proprietary research, customer insight,
consulting, events, and peer-to-peerexecutive programs. For more than 27
years, Forrester has been making IT,
marketing, and technology industry
leaders successul every day. For more
inormation, visit www.orrester.com.
Headquarters
Forrester Research, Inc.
400 Technology Square
Cambridge, MA 02139 USA
Tel: +1 617.613.6000
Fax: +1 617.613.5000
Email: [email protected]
Nasdaq symbol: FORR
www.orrester.com
M a k i g l e a e s S u e s s u E v e d a
5740
For inormation on hard-copy or electronic reprints, please contact Client Support
at +1 866.367.7378, +1 617.613.5730, or [email protected].
We oer quantity discounts and special pricing or academic and nonprot institutions.
For a complete list of worldwide locations
visit www.forrester.com/about.
Research and Sales Ofces
Forrester has research centers and sales ofces in more than 27 cities
internationally, including Amsterdam; Cambridge, Mass.; Dallas; Dubai;
Foster City, Cali.; Frankurt; London; Madrid; Sydney; Tel Aviv; and Toronto.
mailto:[email protected]:[email protected]://www.forrester.com/