Small Businesses Going Online

November 30, 2007

Allison MnookinVice President, Small Business Division

Who We Are…

Intuit Company Information

Intuit has 26M consumer users

Founded in 1983

FY 2006 revenue of $2.3 billion … more than half from small businesses

The leading provider of small business financial solutions… and now going beyond finance as well…

7 million Small Business users

Intuit’s Small Business Mission

Empowering Individuals in Small Business to Achieve their dreams

Source: Intuit’s Small & Simple Quant Survey 2006, Main Street Quant Survey 2006, Mid Market Quant Survey 2006

Acquiring Customers is #1 Pain

68% New-to-the-world and 75% Established Firms Say Finding Customers Is Biggest Limiting Factor to Growth68% New-to-the-world and 75% Established Firms Say

Finding Customers Is Biggest Limiting Factor to Growth

$110B Annual Spend on Marketing

$110B Annual Spend on Marketing

~60% spent marketing $ in the last 12 months

~60% spent marketing $ in the last 12 months

Sources: Intuit Quantitative research 2006. 2005 City Business Journal Study of U.S. SMB Spending.

Small Businesses Spend on Marketing …

Sources: Marketing spending from City Business Journal Network, 2005. Percent of small business from Intuit Quantitative research 2006.

… But The Web is Way Behind

Sources: Intuit Quantitative research 2006, Kelsey Group.

Percent Marketed Online in the Last 12 Months = 22%

Percent Marketed Online in the Last 12 Months = 22%

Percent of Marketing Budget Online <5%Percent of Marketing Budget Online <5%

0%

10%

20%

30%

40%

50%

60%

70%

Personal Business

25%

52%

63%

Main Street Mid-market

Far Less than Half of Small Businesses Have a Web Site

22M 3.2M 0.6M

Source: Intuit’s Small & Simple Quant Survey 2006, Main Street Quant Survey 2006, Mid Market Quant Survey 2006

+95% of customers

say they want a site

Why Do Small Business Owners Create Websites?

Allow customers to get information about our products & services at any hour

Build awareness of our business

Establish ourselves as a legitimate business

Show customers our products over the Internet

Increase number of customers

Increase sales

Extend our customer base beyond our local geographic area

Stand-out from our competitors

Customers kept asking for our website address

TO DRIVE GROWTH

Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

But It Isn’t That Easy!

“I’m not interested in advertising on the world wide web and reaching a broad audience when the target we’re after is so small.”

“I don’t really know what’s involved in getting a site up and going. I’d need to get that figured out, I would find someone to do it for me.”

“I don’t know the right term, but you know, I want everyone to be able to find the website no matter what”

Sources: Intuit Qualitative Research

“Having a webstore is like having a 2nd store but it’s in a language I don’t speak”

Now… How do I get Traffic?

Handed out business cards

Sent emails

Sent postcards, letters or brochures to customers

Added metatags & specific keywords on my website to make sure I show up at the top of

pages when people search

Bought online pay per click keyword ads

Bought Online banners ads

Bought online local listing placement like Internet yellow pages, CitySearch or Yahoo!

Local

Other

Have not taken any steps

Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

But What Was Most Effective?

Added metatags & specific keywords on my website to make sure I show up at the

top of pages when people search

Handed out business cards

Sent emails

Sent postcards, letters or brochures to customers

Other

Bought online pay per click keyword ads

Bought online local listing placement like Internet yellow pages, CitySearch or Yahoo!

LocalBought Online banners ads

Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

Which Tactics Are Likely to Yield Results Beyond Expectations?

Keyword Searcha

(n=76)

Direct Marketingb

(n=104)

Bothc

(n=163)

Much higher than expected

Somewhat higher

About what expected

Somewhat less

Much less

Amount Business Has Increased

Source: Intuit’s Web Site Net Promoter Research, June 2007 (n=500)

Dilbert’s Understanding

3 Lessons Intuit’s learned in winning over Small Businesses

1. Solutions for Experts don’t Win

QuickBooks was the first solution with no debits and credits

2. Provide Help… then let me do it myself

Net Promoter scores of new users on financial software improve 40% when someone helps with set-up

3. Solve integrated problems well

1 Million Small businesses use Intuit Payroll

…more than Paychex & ADP combined

Intuit helping small businesses

get online

JumpUp Small Business Community

WebListings

Empowering individuals in small businesses to achieve their dreams

Q&A