bredin fastcast: selling tech to smbs

Selling Tech to SMBs

September 15, 2016

Bredin, Inc.www.bredin.com617-674-7882

Content Marketing Market Research

Increasing SMB Acquisition, Engagement and Retention

Research Objective

Help tech marketers better understand and sell to SMBs

• SMB business outlook and challenges

• How SMBs learn about, research and decide on tech

• Drivers of tech purchases, and preferred channel

• Tech purchase timeframe and budgets

• Brand awareness and trust

• Use, and trust, of tech consultants

• Tech purchase attributes: importance and performance

• The role of content marketing in tech sales

Methodology

• 15-minute online survey via the Bredin.com/smbpulse

• 312 principals of U.S. companies with <500 employees (5.5%+/- CI)

• 112 with <20 employees (97.7% weighting)• 100 with 20-99 employees (1.9% weighting)• 100 with 100-500 employees (.3% weighting)• Any industry• See slides 50-54 for participant demographics

• August 3 – 8, 2016

Detailed Results

Almost two in three SMBs expect an up year

2016 Business Outlook

n=312, unweighted

What is your revenue outlook for 2016, compared to 2015?

Down by 10% or more

Down, by less than 10%

Same as 2015

Up, by less than 10%

Up by 10% or more

0% 10% 20% 30% 40%

0% 10% 20% 30% 40% 50% 60%

Down by 10% or more

Same as 2015

Up by 10% or more

1-19 20-99 100-500

0% 10% 20% 30% 40% 50% 60%

Down by 10% or more

Same as 2015

Up by 10% or more

18-34 35-49 50+

Company size Respondent Age

SMBs are most likely to learn about new

technology from their peers

Awareness Sources

n=311Top-two box

On a scale of 1 (very unlikely) to 5 (very likely), please rate how likely you are to first learn about technology products or services for your business via each of these specific sources / formats.

0% 5% 10% 15% 20% 25% 30% 35%

RadioInstagram

Audio podcastBanner / display ad

PinterestOutdoor billboard or signage

InfographicTwitter

Press releaseLinkedIn

Interactive toolBlog

Case studyAnalyst report

YouTubeOne-off email

eBook / guide / handbookWhite paper

Forum or discussion boardFacebook

Research reportExternal / third-party IT (or other) consultant

Postcard, letter or catalog in the mailTV

Webinar / webcastIn-house IT (or other) staff

Call or meeting with vendor sales representativeProduct section of vendor’s website

Print newsletterVideo on vendor’s website

Resources section of vendor’s website Newspaper / magazine (print or online)

Email newsletterEvent or trade show

Peer / colleague

SMB principals are intimately involved in tech product research

Research Lead

Once your company has decided to investigate a new technology product or service for your business, who typically leads the research?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

An external consultant

My IT manager

My office manager

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

My IT manager

My office manager

1-19 20-99 100-500

SMBs are most likely to research tech solutions via

search, and their peers

Research Sources

n=311Top-two box

On a scale of 1 (very unlikely) to 5 (very likely), please rate how likely you are to use each of these sources / formats when you are researching technology products or services for your business.

0% 5% 10% 15% 20% 25% 30%

Outdoor billboard or signagePinterest

RadioInstagram

Audio podcastBanner / display ad

TwitterInfographic

One-off emailExternal / third-party IT (or other) consultant

Interactive toolPress release

Webinar / webcastAnalyst report

In-house IT (or other) staffWhite paper

TVYouTube

Case studyLinkedIn

eBook / guide / handbookPostcard, letter or catalog in the mail

Newspaper / magazine (print or online)Blog

Forum or discussion boardCall or meeting with vendor sales representative

FacebookResearch reportPrint newsletter

Resources section of vendor’s website Video on vendor’s website

Email newsletterProduct section of vendor’s website

Event or trade showPeer / colleague

Search

SMB principals are the primary tech purchase decision-maker

Purchase Lead

Once your company has researched a new technology product or service for your business, who makes the final technology purchase decision?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

My IT manager

My office manager

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

My IT manager

My office manager

1-19 20-99 100-500

SMBs are most likely to rely on their peers to make a

final tech purchase decision

Purchase Sources

n=311Top-two box

On a scale of 1 (very unlikely) to 5 (very likely), please rate how likely you are to use each of these sources / formats to make a final purchase decision on technology products or services for your business.

0% 5% 10% 15% 20% 25%

Outdoor billboard or signagePress release

RadioInstagram

InfographiceBook / guide / handbook

TVAudio podcast

Banner / display adTwitter

Forum or discussion boardLinkedIn

Case studyBlog

PinterestInteractive tool

White paperWebinar / webcast

Analyst reportPostcard, letter or catalog in the mail

YouTubeNewspaper / magazine (print or online)

External / third-party IT (or other) consultantPrint newsletter

In-house IT (or other) staffResearch report

Call or meeting with vendor sales representativeOne-off email

FacebookVideo on vendor’s website

Email newsletterResources section of vendor’s website

Product section of vendor’s website Event or trade show

SearchPeer / colleague

SMB Purchase Process Map

Resources section of vendor’s website

Newspaper / magazine (print or online)

Email newsletter

Event or trade show

Peer / colleague

New Product Awareness

Email newsletter

Product section of vendor’s website

Event or trade show

Peer / colleague

Search

New Product Research

Resources section of vendor’s website

Product section of vendor’s website

Event or trade show

Search

Peer / colleague

Purchase Decision

Video on vendor’s website Video on vendor’s website Email newsletter

Data security is a key driver of new tech purchases

Tech Purchase Drivers

n=311Top-two box

On a scale of 1 (not at all important) to 5 (very important), please rate each of these possible reasons for purchasing new technology for your business:

0% 10% 20% 30% 40% 50% 60%

Reduce IT costs

Current solution is dated / not working well

Improve employee productivity

Keep up with changes in customers’ use of technology

Take advantage of a growth opportunity

Improve performance / business processes

Improve data security

0% 20% 40% 60% 80% 100%

Reduce IT costs

1-19 20-99 100-500

Smaller SMBs are less motivated to buy technology

Tech Purchase Drivers: Company Size

n=311Top-two box unweighted

0% 10% 20% 30% 40% 50% 60% 70% 80%

Reduce IT costs

No growth Slow growth Fast growth

Fast growth is a strong driver of tech purchasing

Tech Purchase Drivers: 2016 Business Outlook

n=311Top-two box

0% 10% 20% 30% 40% 50% 60% 70% 80%

Reduce IT costs

18-34 35-49 50+

Baby Boomers are least motivated to buy technology

Tech Purchase Drivers: Respondent Age

n=311Top-two box

SMBs are most likely to buy or upgrade cellphones this year

Tech Purchase Timing

n=varies

What is your best guess as to when you will buy new / additional, or upgrade, each of these technologies for your business? Please pick the most likely option in each row; pick the soonest option if you will do any given thing multiple times.

0% 10% 20% 30% 40% 50% 60%

Phone system

Other system software, e.g. virtualization, network management

Database software

Routers / switches / wireless access points

Operating systems

Tablets

Onsite servers and storage

PCs / laptops / desktops

Printers / copiers / faxes

Cellphone(s)

By the end of 2016 In 2017 After 2017

SMBs are most likely to get inventory mgmt., marketing automation and survey SW this year

Software Status

n=varies

Which, if any, of these kinds of software or apps do you currently have, or will you acquire?

0% 10% 20% 30% 40% 50% 60% 70%

Survey administration

Fleet management

Marketing automation

Analytics (other than website analytics)

CRM / sales force automation

Production management

Web / video conferencing

Social media management

Website analytics

Inventory management

Mobile payments

HR / payroll / benefits administration

Design / illustration

File sharing

Expense management

Accounting / financial management

Office productivity suite

Storage / file backup

Security software

Already have Will get by the end of the year Will get in 2017 Will get after 2017

SMBs are most likely to invest in new or upgraded software / apps

Tech Budgets

n=varies

0% 10% 20% 30% 40% 50% 60% 70% 80%

New / upgraded hardware

New / upgraded software / apps

Other IT maintenance / consulting / support

Custom software / app development

$0 / n/a Less than $1,000 $1,000 to $4,999 $5,000 to $9,999 $10,000 to $49,999$50,000 to $99,999 $100,000 to $499,999 $500,000 to $1 million More than $1 million

Roughly how much will your company spend in total this year on:

Tech spend correlates with company size…

Tech Budgets: Company Size

n=varies, unweighted

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

100-500

…and respondent age

Tech Budgets: Respondent Age

n=varies

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

The purchase process is fastest for printers

Purchase Process Length

n=varies

On average, how long does it take from beginning to conduct research on these technology products and services for your business until you make a purchase or upgrade decision?

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other system software, e.g. virtualization, network management

Database software

Onsite servers and storage

Operating systems

Phone system

Tablets

PCs / laptops / desktops

Cellphone(s)

A week A month Three months Six months A year More than a year

SMBs are most aware of Google

Brand Awareness

n=varies

On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these technology firms:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

GoDaddyCisco

Pitney BowesSymantec

LenovoTwitter

LexmarkIntuit

LinkedInComcast

EpsonPanasonic

XeroxAdobe

SonyCanon

FacebookIBMIntelDell

VerizonAT&TApple

HPPayPal

MicrosoftAmazonGoogle

5 (Very aware) 4 3 (Somewhat aware) 2 1 (Not at all aware)

Awareness varies greatly among tech companies

Brand Awareness (continued)

n=varies

On a scale of 1 (not at all aware) to 5 (very aware), please rate your awareness of (or familiarity with) each of these technology firms:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Zenefits8x8

RingCentralConcur

HootsuiteBox

WeeblySage

AvayaIngram Micro

ZendeskEMC

Tech DataVMware

WixCox Business

CitrixDocuSign

SalesforceCharter / Spectrum Business

SAPKonica Minolta

RicohCenturyLink

OracleBrother International

Dropbox

5 (Very aware) 4 3 (Somewhat aware) 2 1 (Not at all aware)

Amazon is the most trusted brand

Brand Trust

n=varies

Using the scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these technology firms:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

OraclePanasonicSymantec

AT&TBrother International

CiscoFacebook

CitrixHootsuite

IntuitZenefits

DocuSignEpson

DellEMC

XeroxVerizonGoogleCanonAdobe

SonyApple

HPPayPal

IBMIntel

MicrosoftAmazon

5 (Trust very much) 4 3 (Trust somewhat) 2 1 (Do not trust at all) Don't know / no opinion

As with awareness, trust varies widely

Brand Trust (continued)

n=varies

Using the scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in each of these technology firms:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Tech DataZendesk

CenturyLinkConcur

Charter / Spectrum BusinessTwitter

Cox BusinessSalesforce

WeeblyPitney BowesIngram Micro

SAPAvayaSage

WixRingCentral

ComcastRicoh

DropboxKonica Minolta

Lexmark8x8

GoDaddyLinkedInLenovo

BoxVMware

5 (Trust very much) 4 3 (Trust somewhat) 2 1 (Do not trust at all) Don't know / no opinion

Amazon, Microsoft and PayPal are best positioned

Brand Awareness vs. Trust

Awareness

High awareness, high trustLow awareness, high trust

High awareness, low trustLow awareness, low trust

SMBs are most likely to buy printers direct from the manufacturer

Tech Purchase Channel

n=varies

For each of these product categories, please indicate whether you would rather purchase them from a tech consultant or direct from the manufacturer:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Servers and storage

System software (e.g. operating systems, databases etc.)

Application software (e.g. office productivity, email marketing, etc.)

Phone systems

Cellphones / tablets

PCs, desktops, laptops

Direct from the manufacturer Tech consultant

Larger businesses are generally more likely to buy from consultants…

Tech Purchase Channel: Company Size

n=varies unweighted

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

100-50020-991-19

Servers and storage100-500

20-991-19

System software100-500

20-991-19

Application software100-500

20-991-19

Routers / switches / wireless access points100-500

20-991-19

Phone systems100-500

20-991-19

Cellphones / tablets100-500

20-991-19

PCs, desktops, laptops100-500

20-991-19

Printers / copiers / faxesDirect from the manufacturer Tech consultant

…as are younger SMB principals

Tech Purchase Channel: Respondent Age

n=varies

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

50+35-4918-34

Servers and storage50+

35-4918-34

System software50+

35-4918-34

Application software50+

35-4918-34

Routers / switches / wireless access points50+

35-4918-34

Phone systems50+

35-4918-34

Cellphones / tablets50+

35-4918-34

PCs, desktops, laptops50+

35-4918-34

Printers / copiers / faxesDirect from the manufacturer Tech consultant

Most SMBs do not use a tech consultant

Tech Consultant Status

What, if any, kind of tech supplier / consultant do you have? (select all that apply)

0% 10% 20% 30% 40% 50% 60% 70%

Phone hardware / software consulting, installation, service etc.

Hardware repair ("break / fix")

Hardware / software consulting, installation, service etc.

Managed service provider, for any kind of service

…although the larger the company, the more likely they are to use a tech consultant

Tech Consultant Status: Company Size

n=310 unweighted

0% 10% 20% 30% 40% 50% 60% 70%

1-19 20-99 100-500

Older respondents are less likely to use a tech consultant

Tech Consultant Status: Respondent Age

0% 10% 20% 30% 40% 50% 60% 70% 80%

18-34 35-49 50+

SMBs generally trust tech consultants

Tech Consultant Trust

n=variesTop-two box

Using the same scale of 1 (do not trust at all) to 5 (trust very much), please rate your trust in your local tech supplier / consultant:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Hardware repair (“break / fix”)

‘Simple pricing’ is most important to SMBs when considering a tech purchase

Tech Purchasing: What’s Important

n=308Top-two box

On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of purchasing technology:

0% 10% 20% 30% 40% 50% 60% 70%

Online service / support / maintenance

Tailored to companies my size

Tailored to my industry

Vendor is a leader in its sector

Easy upgrade path

Phone service / support / maintenance

Vendor is easy to do business with

Compatibility with my existing technology

Low initial cost

Easy to learn / use

Proven technology

Easy to set up / implement

Low lifetime cost

Vendor pricing is simple, clear and all-inclusive

Discounts and trials are not perceived as critical

Tech Purchasing: What’s Important (continued)

n=308Top-two box

On a scale of 1 (not at all important) to 5 (extremely important), please rate the importance of each of these aspects of purchasing technology:

0% 10% 20% 30% 40% 50% 60% 70%

Vendor provides business management advice, i.e. articles andtips on technology, marketing etc.

Vendor provides case studies or access to reference customers

Large market share / install base

Recommendations / ratings by third-party experts

(for software) Hosted in the cloud

Vendor provides a free trial or money-back guarantee

Vendor provides a special offer / discount / incentive

Recommendations / ratings by peers

Availability of training

New / cutting edge technology

(for software) Resident on my PCs / servers / mobile devices

Vendor’s brand / reputation

Onsite service / support / maintenance

SMBs rate tech vendors highest on solution setup

Tech Purchasing: Vendor Performance

n=307Top-two box

On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your technology vendors / consultants in general perform on each of these aspects:

0% 10% 20% 30% 40% 50% 60% 70%

Onsite service / support / maintenance

Tailored to companies my size

Vendor is a leader in its sector

New / cutting edge technology

Phone service / support / maintenance

Online service / support / maintenance

Vendor pricing is simple, clear and all-inclusive

(for software) Resident on my PCs / servers / mobile devices

Compatibility with my existing technology

Vendor’s brand / reputation

Proven technology

Easy to learn / use

Vendor is easy to do business with

Easy to set up / implement

Access to reference customers is an area of opportunity for tech vendors

Tech Purchasing: Vendor Performance (continued)

n=307Top-two box

On a scale of 1 (not at all well) to 5 (extremely well), please rate how well your technology vendors / consultants in general perform on each of these aspects:

0% 10% 20% 30% 40% 50% 60% 70%

Vendor provides case studies or access to reference customers

(for software) Hosted in the cloud

Large market share / install base

Vendor provides business management advice, i.e. articles andtips on technology, marketing etc.

Recommendations / ratings by third-party experts

Vendor provides a special offer / discount / incentive

Low lifetime cost

Vendor provides a free trial or money-back guarantee

Tailored to my industry

Easy upgrade path

Recommendations / ratings by peers

Low initial cost

Availability of training

SMBs see costs as the biggest disparity when buying tech

Importance vs. Performance

39 Importance

…however, they are generally satisfied with IT value

Tech Perceptions

n=306Top-two box

On a scale of 1 (strongly disagree) to 5 (strongly agree), please rate each of these statements about technology vendors and technology solutions for your business:

0% 10% 20% 30% 40% 50% 60%

Our company prefers hosted or cloud-based technology solutions

Our company prefers to outsource as much technology aspossible

Our company struggles with using / integrating many differentsoftware solutions / applications

Mobile technology / applications are essential to our businesssuccess

New technology is exciting for our business

Our company is reluctant to move to the cloud because ofsecurity, performance or disaster recovery

I am happy with the customer service / problem resolution that ourtechnology vendors provide

It is important to our company to customize technology for ourneeds

Our company sees technology as essential to our businesssuccess

Our investments in technology have generally been positive /worthwhile

Better access to product information and purchase would facilitate sales

Simplifying Tech Purchasing

What could technology vendors do to make it easier to buy from them? Please select all that apply.

0% 5% 10% 15% 20% 25% 30%

Make it easy for me to select the right configuration / specs for mycompany, for example through an interactive quiz or configurator

Recommend solutions for my company based on prior purchases, orpurchases of companies like mine

Better describe how their solutions help my company achieve its businessgoals

Provide more / better articles, research reports, tips etc. to help meunderstand how technology can help me achieve my business goals

Let me chat with customers whose businesses are like mine

Provide an easy, consistent purchase experience across multiple channels(e.g. online, mobile, in store, call center etc.)

Provide examples of how their solutions have helped companies in myindustry

Make it easy for me to get questions answered on their site via instantonline / phone chat

Make it easy for me to research and buy their products online withouthaving to talk to a sales rep

SMBs are most likely to have read marketing content from PC manufacturers

Content Consumption, by Vendor Type

Please select all of the kinds of vendors you have read business and technology management advice (articles, blog posts, tips etc.) from:

0% 10% 20% 30% 40% 50% 60% 70%

Local telephone consultant

Managed service provider

Server / storage manufacturers

Router / switch / wireless access point manufacturers

Local IT consultant

Phone system manufacturers

Application software (office productivity, email marketing, etc.)manufacturers

System software (operating systems, databases etc.) manufacturers

Printer / copier / fax manufacturers

Cellphone / tablet manufacturers

PC / desktop / laptop manufacturers

…however, they rate content from router manufacturers as most useful

Content Value, by Vendor Type

n=varies Top-two box

On a scale of 1 (not at all useful / valuable) to 5 (extremely useful / valuable), please rate the overall value of the business and technology management advice you’ve read from each of these kinds of technology vendors:

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Phone system manufacturers

Local telephony consultant

Printer / copier / fax manufacturers

PC / desktop / laptop manufacturers

Cellphone / tablet manufacturers

System software (operating systems, databases etc.)manufacturers

Server / storage manufacturers

Managed service provider

Application software (office productivity, email marketing, etc.)manufacturers

Local IT consultant

Router / switch / wireless access point manufacturers

Preferred Topics: General

44 n=312Top-two box

On a scale of 1 (never) to 5 (very often), how often do you go online to find content on the following topics to help you manage and grow your business?

SMBs are most interested in content on technology, and their industry

0% 5% 10% 15% 20% 25% 30% 35%

Import / export

Human resources

Leadership and management

Law and taxes

Financial planning and management

Operations

Sales and marketing

Industry news and trends

Technology

From tech vendors, SMBs want tech and operations advice

Preferred Topics: Tech Vendors

n=310Top-two

Please rank-order these topics on which you would like technology vendors to provide business and technology management advice, from most important (top) to least important (bottom)

0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50%

Import / export

Human resources

Leadership and management

Sales and marketing

Law and taxes

Industry news and trends

Financial planning and management

Operations

Technology

SMBs most want an email newsletter from tech vendors, followed by print pieces

Preferred Formats

n=308Top-two

Please rank-order the formats in which you would like technology vendors to provide business and technology management advice from most preferred (top) to least preferred (bottom)

0% 5% 10% 15% 20% 25% 30%

LinkedIn post

Twitter

Audio podcast

Blog post

Webinar / webcast

Infographic

Facebook post

Interactive tool, e.g. quiz, calculator, configurator

Peer forum or discussion board

Analyst report

Checklist / worksheet

Online eBook / guide / handbook

Case study

Article

White paper

Research report

Printed sheet, booklet or guide

Email newsletter

Content marketing drives acquisition, retention and brand perception

Effect of Content Marketing

n=varies

Please indicate whether the business and technology management advice you’ve read from technology vendors:

0% 10% 20% 30% 40% 50% 60% 70%

Makes me more likely to become a customer of that vendor

Makes me more likely to remain a customer of that vendor

Makes me think more favorably of that vendor

Your To-Do’s

Stu Richards, CEOstu@bredin.comTwitter: @SBDF

✔✔✔✔

✔ Take advantage of peer reference, and events / trade shows

Provide robust product information and easy online purchase

Keep your content focused on your brand domain

Get the full report at bit.ly/2cMbrrS

Offer an email newsletter, resource center and videos if you’re not already

Sample Characteristics

Owner, Founder, Manager, Partner, CxO, etc.

100%Title Principal

Industry

PS: Educational services, Finance & insurance, Health care & social assistance, Information technology, Management of companies & enterprises, Professional servicesRW: Accommodation & food service, Arts, Entertainment & recreation, Real estate, rental & leasing, Retail trade, Transportation & warehousing, Wholesale TradeM: Construction, Manufacturing, Mining, Scientific & technical services, UtilitiesOther: Administrative, support, waste management & remediation service, Other services (except public administration)

45% MaleFemale

37% 18-34

Gender

45% 0 to 5 Years6 to 10 Years10+ Years

32% 1-19 Employees

20-99 Employees

100-500 Employees

Company Size

Years in Business

Up by 10% or more

Same as 2015

Down by 10% or more

2016 Revenue Growth

2015 Revenue

Less than $500k

$500k to $999k

Region

Midwest20%

West21%

South40%

Northeast19%

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