Download - Small Businesses Then & Now
Small Businesses
Then & Now
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How are things different for small business owners than they
were five years ago, when the economic crisis started to unfold
and social media gained a foothold with Facebook? Constant
Contact surveyed small businesses to find out. Their answers
provide an inside look at their evolving challenges and
opportunities…
3
No one said it would be easy.
Harder, 59%
About the same, 30%
Easier, 12%
When asked if they feel it’s easier or harder to run a small business
today than it was five years ago, here’s what they said:
“Five years ago I felt like I was in a marathon, but not yet running. We were doing good, but I felt I had hit the wall with market share. I was a little old fashioned, but decided to try using email marketing. Once we mastered that, we started to explore what was next on Facebook and Twitter. Now social media is critical to our success. I’m even teaching bookbinding classes real time via Skype. “ -Michael Chrisman, Bookbinders Workshop
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Why do you think it’s harder to run a business today?
Challenges Abound
5
0%
10%
20%
30%
40%
50%
60%
Economy has hit my business
hard
Harder to keep pace
with technology
More direct competitors
More competition
from big business
Other Harder to attract good employees
Harder to secure loans
55%
49%
40%
34%
19% 19% 18%
Yes, 51%
No, 30%
Not sure, 15%
Not locally owned or operated,
4%
Do you feel that being locally owned and operated is a
major reason why your customers support your business
today?
Buy Local
“People want to shop local, they want to eat local. People come to our store specifically looking for Minnesota beers.” -Bryan Buser, The Four Firkins
Some good news - the buy local movement is gaining steam.
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Biggest changes in how you do
business today vs. five years ago
“Business today can’t be scared by
change. Sure, it can be frustrating
sometimes, but businesses really need to
embrace change and find out what’s new
and where technology or best practices
for using tools is going.”
-Seth Tower, GunnDesign
Change is Inevitable
7
0%
10%
20%
30%
40%
50%
60%
70%
80%
90% 84%
59%
27% 26% 22% 21%
16% 11%
1%
“We’re using about the
same amount of digital
marketing tools as five
years ago, we’re just using
them differently. Five years
ago we just had Facebook
and Twitter accounts, but
today we’re making a point
to post every day.”
-Bryan Buser, The Four
Firkins
Marketing tools used today vs. five years ago
Social Media Explodes
8
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
64%
10%
20%
6%
21%
12% 6%
2%
12%
2%
22%
98%
87%
44% 38% 36%
31%
24% 23% 20%
8% 0.50%
5 years ago
Today
0%
10%
20%
30%
40%
50%
60%
70%
80%
Finding new customers
Having enough time
Retaining existing customers
78%
61%
49%
75%
65%
58%
5 years ago
Today
Top business concerns five years ago vs. today
Business Concerns
Their primary concerns have remained virtually the same.
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Easier, 30%
Harder, 35%
About the same, 35%
“We’re always concerned about finding
new customers because in our industry
you never know when a current customer
or project will go away. It’s a revolving
door, so we can never stand still and
always need to be pushing forward. As a
result, we’re always looking at ways to
engage with our current customers so
they can tell others about the great work
we’ve done for them.”
Seth Tower, GunnDesign
Do you think it is harder or easier to find
customers today versus five years ago?
Customer Insights
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Why is it harder to find customers today versus five
years ago?
The Customer Dilemma
11
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Customers pay less
attention to marketing
More direct competition
More expensive to do marketing
Can't keep pace with all of the online marketing
tools
None of these
49% 45%
23% 23% 20%
0%
10%
20%
30%
40%
50%
60%
More affordable
online marketing tools
Time-saving marketing tools
Customers respond to marketing
None of these Less direct competition
53%
40%
28%
22%
5%
Why is it easier to find customers today versus five
years ago?
Finding Customers with Tech Tools
13
14
0%
10%
20%
30%
40%
50%
Yes No Not sure
49%
38%
13%
Are your customers spending more money at your
business today than five years ago?
Spending Patterns
15
0%
10%
20%
30%
40%
50%
60%
70%
Yes No Not Sure
63%
22% 16%
Do you feel your customers have higher
expectations today than they did five years
ago?
“Customers are more demanding.
They’re seeking fresh marketing
formats and ideas, and they expect
a fast turn-around. Like everyone,
really, customers want more to
maximize their spend.”
-Debra Farrell, Diverse Resources
Customer Demands
16
Great Expectations
Why do you feel customers have higher expectations
today than they did five years ago?
17
0%
10%
20%
30%
40%
50%
60%
70%
80%
Expect more value
Expect better customer service
Expect more deals and coupons
Expect better quality
goods/services
Other
71%
48% 44%
42%
14%
How has the volume of new customers changed?
Increased, 55% Decreased, 26%
Stayed the same, 19%
More is Better
18
0%
10%
20%
30%
40%
50%
60%
Thriving, with more
customers and/or more employees
Holding steady Possibly closed Don't know
58%
26%
8% 7%
Where do you see your business five years from now?
Optimism Reigns
Despite the challenges they face, small businesses
maintain a positive outlook.
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This Constant Contact-sponsored survey was administered in May of 2013 to 917 small business participants in the Constant Contact Small Biz Council – a research panel of US small businesses recruited from the Constant Contact customer base. This survey was fielded to those panel members who have been in a decision-making role in a small business for at least five years, and they were asked their opinions on how operating a small business today differs than five years ago. This survey is part of an ongoing series about the state of small businesses and the ways they connect with, and grow, their audiences. Results include responses from respondents across a range of business-to-business and business-to-consumer industries.
About the Survey