Insights into Small Business Owners, Google/Slack ...Google Confidential and Proprietary 22 SMB...
Transcript of Insights into Small Business Owners, Google/Slack ...Google Confidential and Proprietary 22 SMB...
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Insights into Small Business OwnersHow SMBs Make Procurement & Business Information Decisions Google/Slack BarshingerU.S., June 2009
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Google Confidential and Proprietary 2 2
SMB Research: Google Objectives
We set out to answer 4 key questions:• For purchase decision makers at Small to Medium Size Businesses
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
1 What is the role of the Web overall?
2 What is the role of Search in finding suppliers?
3 How is Local Search used?
4 What is the value of Social Media?
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Google Confidential and Proprietary 3
Research Methodology
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
Methodology Online survey (Avg. time = 21 minutes)
Timing March 11 -13, 2009
Quantitative Sample
444 purchase decision makers (US)•<5 employees: 38%•5-99 employees: 32% •100-499 employees: 31%•Respondents drawn from national research panel, invited to participate by email
Qualitative Sample
22 respondents participated in 20-minute phone interview (March 17 - 26) • Provided more information on particular actions identified in quantitative portion of
survey
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Google Confidential and Proprietary 4
Key Findings
• Small Business Owners rely on the Web to run their businesses.– 93% use the Web to find work-related information
– 54% go online at least weekly to solve a specific business problem
– Nearly half this audience uses the Web to research as well as purchase
• Search is the go-to source for SMBs making a purchase decision.– Search engines are the most relied upon, first-used, and most effective
tool for finding suppliers
– It’s more important that suppliers have an online presence than be local
• An emerging group of SMBs are finding business value in social media.– SMBs are using blogs, social networks, and video sites like YouTube as a
business information resource
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The Role of the Web for Small Business Owners
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Google Confidential and Proprietary 6
Radio
49%
Small Business Owners Rely on the Web
94% use the Internet for work-
related information
General Business Magazines
69%Newspapers
69%
Television
62%
Trade Publications
76%
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Which of the following sources do you use to get work-related information?
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Google Confidential and Proprietary 7
SMBs Go Online Frequently for Business Advice
• 59% of Small Business Owners go online at least weekly to solve a specific business problem
• For 20%, solving business problems online is a dailyactivity
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: How often do you go online to find information a bout how to improve various aspects of your business or to get information about how to solve a specific problem in your business?
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Google Confidential and Proprietary 8
The Web: Part of SMB’s Typical Work Day
• Small Business Owners are online during business hours and beyond
.
0%
10%
20%
30%
40%
50%
60%
12am 1a
m2a
m3a
m4a
m5a
m6a
m7a
m8a
m9a
m10
am11
am12
pm 1pm
2pm
3pm
4pm
5pm
6pm
7pm
8pm
9pm
10pm
11pm
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Which hours of the day are you typically online for work reasons?
Hours of the Day When Small Business Owners are Online for Work-Related Reasons
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Google Confidential and Proprietary 9
The Web Aids SMBs Across Purchase Funnel
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Which (purchase category) do you research or buy online?
46% of Small Business Owners
research onlinefor shipping/logistics
providers
51% of Small Business Owners
purchase onlinefrom shipping/logistics
providers
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Google Confidential and Proprietary 10
27%
30%
43%
64%
41%
51%
45%
56%
35%
64%
61%
43%
69%
54%
31%
33%
39%
40%
43%
46%
48%
49%
49%
52%
55%
56%
58%
60%
0% 10% 20% 30% 40% 50% 60% 70% 80%
Professional services
Contractors
Printing services
Office supplies
Outsourced business functions
Shippping, supply chain, logistics
Telecom
Office equipment
Document mgmt services
Promotional products
Computers/IT hardware
Graphic/Web design services
Software
Webhosting services ResearchPurchase
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
% who Research Online vs. % who Buy Online
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Google Confidential and Proprietary 11
Web Visits Also a Top Response to Seeing an Ad
After seeing an ad, Small Business Owners respond most often by…
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: What actions did you take in response to an ad?
Visiting the advertiser’s
website
Doing an online search to learn
more
Other actions:• Saving the provider’s
information (34%)
• Calling service provider via phone (30%)
• Asking network about the provider (17%)
59% 39%
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Google Confidential and Proprietary 12
Search Helps SMBs Close the Loop
• SMBs indicate that many different events drive them online to search for more information
9%
10%
13%
14%
26%
27%
30%
39%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Work-related radio program
Work related radio ad
Work-related TV program
Work-related TV ad
Work-related website ad
Work-related website
Work-related magazine ornewspaper
Conversation with a colleague
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: During the past week, which, if any, of the following events have prompted you to use a search engine to find more information?
Events That Prompt SMBs to Use a Search Engine to Find More Information
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Google Confidential and Proprietary 13
SMBs Visit Diverse List of Online Destinations
• Opportunity to reach this audience not just on major business portals, but throughout the long-tail
21%
30%
44%
44%
46%
47%
53%
79%
82%
89%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Photo sites
Video sites
Chat / Instant Messaging
Blogs
Social Networks
Forums
General news sites
Industry news site
Provider's web site
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: How frequently do you visit each of the following websites for work-related reasons? (Any usage)
Types of Sites SMBs Visit to Find Work-Related Information
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The Role of Search in SMB’s Purchase Decisions
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Google Confidential and Proprietary 15
Search: The Go-To Source for Procurement
77% of Small Business owners
use Search engines to find
business suppliers
For 52%,Search engines
are the tool they turn to
first
99% find Search engines to be
the most effective tool
for finding suppliers
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
#1 !
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Google Confidential and Proprietary 16
Search Engines: Most Relied Upon Tool
• Search engines are used even more than past suppliers and referrals to find suppliers
21%13% 10% 6%
23%
50%
77%
33% 33% 32%
49%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Searchengines
Pastsuppliers
Asked forreferrals
Networking YellowPages
Onlinedirectory
Online Ad Online Map Chamber ofCommerce
SocialNetworking
sites
Other
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: In the past 6 months, what methods have you used to locate product or service suppliers?
Methods Used to Find Suppliers in the Past 6 Months
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Google Confidential and Proprietary 17
Search Engines: Tool Used First
• Small Business Owners indicate that a Search Engine is their go-to source for finding suppliers
15%
2%3%7%
52%
15%
4%
0%
10%
20%
30%
40%
50%
60%
Search engine Contacted pastsuppliers
Asked for referrals Printed YellowPages
Online directory Contacted peoplefrom networking
Other
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Which of these methods do you usually turn to first when looking for a service provider?
Methods Used First to Find Suppliers in the Last 6 Months
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Google Confidential and Proprietary 18
Search Engines: Most Effective Tool
• Small Business Owners find Search Engines to be the most effective tool for finding suppliers
43% 41%32%
75%
52%55%64%
99%
77%
50%
0%
20%
40%
60%
80%
100%
120%
SearchEngine
Asked forreferrals
Contactedpast
suppliers
LocalChamber ofCommerce
Used onlinemap
Networking YellowPages
Provider ad Onlinedirectory
SocialNetworking
sites
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: How effective was this method for finding a supplier?
Methods Found to Be Effective for Finding Suppliers in the Last 6 Months
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Google Confidential and Proprietary 19
SMBs Find Value in Sponsored Links
One-third of Small Business Owners searching for providers often or always click on paid search listings
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: When using search engines to find service providers, do you…(often/always clicks on paid listings)?
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Google Confidential and Proprietary 20
28%
28%
28%
29%
29%
30%
30%
30%
31%
33%
33%
33%
33%
34%
36%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Total
Office Supplies
Office Equipment
Software
Professional Services
Promotional Products
Printing Services
Computers/IT
Web Hosting Services
Graphic Website Design
Contractors
Telecom Services
Shipping/Logistics
Outsourcing
Document Mgmt
% of SMBs who click on Paid Listings When Researching a Supplier
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
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Google Confidential and Proprietary 21
Online Maps Help SMBs Find Suppliers
Of the nearly 20% of Small Business Owners who use online maps to find suppliers…
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Have you used an online map to find suppliers?
A small group accesses
maps from their mobile device
21%
They often click on a map that appears
in Search Results
54%They typically go directly
to an online map site
90%
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Google Confidential and Proprietary 22
However, Local Not Priority When Choosing Suppliers
% who say it is important for supplier to be local
• Majority of categories do not place high importance on a supplier being local
2%
4%
7%
9%
9%
10%
12%
12%
13%
15%
18%
24%
39%
42%
0% 10% 20% 30% 40% 50% 60%
Webhosting Services
Software
Promotional Products
Computers / IT hardware
Outsourced business functions
Shipping, supply chain, & logistics services
Telecom service or equipment
Document management services
Graphic and/or Website design services
Office equipment
Office supplies
Printing Services
Contractors
Professional services
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Is it important to find a local supplier? Base: Those involved in the purchasing category and do research or buy online
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Google Confidential and Proprietary 23
Price, Availability Outweigh Local Presence
“...Local companies just can’t match price and breadth of products.”
“I would prefer to do anything with a local vendor but unfortunately, cost-wise that is not always feasible.”
Wholesale distributor of bicycle parts2-4 employees, California
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
“... No one locally can accommodate what I am looking for.”
“They don’t have all the supplies I need, and I usually have to wait 2 weeks for a large order. I have a specific thing I need and it’s quicker to get that online.”Music studio owner25-49 employees, Maryland
Pressure washing50-74 employees, Tennessee
Fitness equipment manufacturer100-499 employees, Missouri
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Social Media as an SMB Information Tool
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Google Confidential and Proprietary 25
SMBs Find Business Value in Social Media
I seek various
business resources on video sites
44%
I visit social networking sites for business purposes
47%
I seek out work-related information on
blogs 46%I visit
online forumsfor business-related
info
53%
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009
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Google Confidential and Proprietary 26
Blog Usage Growing Rapidly Amongst SMBs
Despite a slower adoption rate, participation in blogs for business purposes have skyrocketed in the last 12 months
Source: Warrillow Market Insights, April 2009, n=1,210; March 2008, n=2,036
18%in
2008
40%in
2009
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Google Confidential and Proprietary 27
SMBs Are Active in the Blogging Community
Source: Warrillow Market Insights, April 2009, n=1,210; March 2008, n=2,036
46%of Small Business
Owners visit blogs to find
business information
Of those, 13%
maintain their own blog to
promote their business
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Google Confidential and Proprietary 28
SMBs Find Value in Social Networks
Source: Warrillow Market Insights, April 2009, n=1,210; March 2008, n=2,036
47%of Small Business
Owners visit Social
Networks for business
information
Of those,40%
maintain a profile for business purposes
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Google Confidential and Proprietary
Customer Research 32%
Customer Feedback 30%
Tutorial, How-to videos 46%
Business & Finance News
35%
Competitor Research 35%
Conference events 17%
29
Online Videos Provide Business Information
Source: Slack Barshinger study commissioned by Google, “Procurement & Business Information Research,” March 2009Q: Which, if any, of the following types of work-related information do you typically look for on video sites like YouTube?
Types of Information SMBs Seek on Video Sites
Customer Research 32%
Customer Feedback 30%
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Google Confidential and Proprietary 30
Key Findings
• Small Business Owners rely on the Web to run their businesses.– 93% use the Web to find work-related information
– 54% go online at least weekly to solve a specific business problem
– Nearly half this audience uses the Web to research as well as purchase
• Search is the go-to source for SMBs making a purchase decision.– Search engines are the most relied upon, first-used, and most effective
tool for finding suppliers
– It’s more important that suppliers have an online presence than be local
• An emerging group of SMBs are finding business value in social media.– SMBs are using blogs, social networks, and video sites like YouTube as a
business information resource
![Page 32: Insights into Small Business Owners, Google/Slack ...Google Confidential and Proprietary 22 SMB Research: Google Objectives We set out to answer 4 key questions: • For purchase decision](https://reader035.fdocuments.us/reader035/viewer/2022070108/60259b1c186afd16661e79a4/html5/thumbnails/32.jpg)
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