Sanjeev Aggarwal's Blog

January 14, 2015

Slide Show Version! SMB Group's Top 10 SMB Tech Trends for 2015

(Originally published on the SMB Group website and available here in .pdf format).

Here are SMB Group’s Top 10 SMB Technology Trends for 2015 in slide show format!

August 6, 2012

Today’s SMB Social Media Market Creates Opportunities for Tomorrow

SMB businesses are increasing their adoption of social media solutions year over year–rising from 44% to 53% in small business (1-99 employees) and 52% to 63% in medium business (100-999 employees). But what business functions are SMBs using social media for, and what social media tools are they using in different areas?

Just released results from the SMB Group’s 2012 Small and Medium Social Business Study paints a comprehensive picture of the functions that SMBs are using and planning to use social media for in their businesses. The study, which is the second annual survey we’ve completed on this topic, queried 665 U.S. executives in detail on this topic. As we look at trends from 2011 to 2012, we see several data points that reveal interesting opportunities for vendors to better serve this market.

Data Highlights

We found that similarly to our 2011 study results, SMBs in 2012 are adopting social media mainly to help them achieve their sales and marketing goals. Only a small percentage are using social media for non-sales and marketing functions, such as human resources, customer service and product development. However, use of social media in several of these areas is rising. For instance, social media use is up year-over-year:

  • From 47.5% in 2011 to 60% in 2012 for “Generate more web site traffic”
  • From 45% in 2011 to 59% in 2012 for “Connect with people who aren’t customers”
  • From 45% in 2011 to 47.5% in 2012 for “Service/support and customer retention”
  • From 23.5% in 2011 to 28% in 2012 for “Input for product development”

SMBs are using different social media tools for particular types of business functions, as indicated in the heat map below (Figure 1), which shows which social media tools SMBs are using to accomplish different business functions. For instance, LinkedIn is a the most widely used social media tool for  “new employee recruitment” while “geo location tools” are least used in this areas. Note that the tools above the blue line on the heat map are most frequently used for each business function, while the tools below the blue line show only marginal use. LinkedIn forums, Facebook, YouTube and Blogs are most frequently used social media tools to accomplish various business functions.

Source: 2012 Small and Medium Social Business Study, SMB Group

LinkedIn has been breaking out of the employee recruitment mold as SMBs extend its use into different areas. Although everyone knows about Facebook (and may have used Facebook for personal collaboration) and some small and medium size businesses have created a business page, many are still challenged by how to utilize Facebook’s potential to increase awareness of company brand, increase leads/traffic of website and drive revenues higher–and are testing out other social media tools.

As shown in Figure 2, although Facebook continues to remain ahead of the pack, adoption is tapering off. Meanwhile, other tools, including Twitter, YouTube, company blogs and Pinterest, have seen the strongest growth over the past year.

Figure 2: Social Media Tool adoption timeline
Q. How long have you been using social media for these functions?

Source: 2012 Small and Medium Social Business Study, SMB Group

To a large extent, SMBs are still experimenting to see how social media can help them, and which tools are best suited to helping them accomplish different business goals. Relative newcomers–such as Pinterest–can have a big effect in a short time if they hit the mark for specific business needs.

Because its relatively easy and low cost to test out different tools, SMBs will remain loyal only as long as they believe that they are getting beneficial business results. Since only 7% of small and 17% of medium businesses currently measure return-on-investment from social media, this is still a decision made by and large on anecdotal evidence and gut instinct.

This means that social media vendors must not only provide tools, but also training, services and metrics to help SMBs maximize and measure the value the get from these tools. For instance, a vendor could provide tools to help SMBs perform A/B testing–similar to what’s available for landing pages today– to hone their social media efforts.

As the market matures, pressure will also increase for SMBs to more accurately measure the results they’re getting across social media platforms. They will need better, easier to use analytics than are available today–ala Google Analytics for social. Vendors that provide these next-generation social media analytics solutions can capitalize on a big and growing market opportunity to bring today’s fuzzy picture into sharper focus. In addition, if they can harness these metrics across a broad base, they have the potential to build some very interesting data aggregation services akin to Nielson ratings for television and radio.

The bottom line is that there is still a lot of play in the nascent social media market–and unbounded opportunities for vendor innovation.

September 27, 2009

Small Businesses interest in Social Media increasing rapidly

In a recent very small business (businesses with 10 employees or less), Social Media ranked at the top of the list among the tools used by small businesses to market/promote their business (see Figure 1). The use of all ‘Digital Media’ tools by SMB has seen a dramatic increase in the past 2 years at the at the expense of ‘traditional media’ tools. Many businesses are finding that marketing campaigns using traditional media tools are seeing reduced effectiveness in reaching their target audience. Consumers and businesses are placing less trust on information provided through traditional marketing vehicles, as those are mainly static tools supporting one-way conversations – other than word-of-mouth. The new digital media is changing the rules of marketing and even small businesses need to proactively participate in this change.

Figure 1photoshop-1

Why has social media seen this dramatic increase? This is primarily driven by 3 factors:

  • Change in the consumer and business workers personal communication environment and habits
  • Low barrier to start participating in the social media communications – tools like Twitter, Facebook, WordPress are free. Social media is much more than traditional forms of viral marketing – it is an effective and inexpensive way to convert contacts into a referral network
  • Much more real-time communication support to start conversations with existing customers and prospects

As the data shows, most small businesses are already participating in social media to varying degrees. Most of the social media adoption by small businesses is happening in an adhoc and sporadic manner. Majority of it is being driven by their use of of these social networking sites for personal communications. This use of social media in business today is more experimental, some to get a feel of the type of small businesses that are starting to participate in such communications and others to experiment with the type of conversations that are taking place and the type of communications they could have using this medium. As small businesses get more comfortable with these communications media over time, their importance in the marketing communications mix will increase. However, there are several issues that need to be resolved before they become mainstream communication tools for the small businesses. Some of them are:

  • Efficient and productive ways to monitor and participate in social media – small business do not have the time to individually monitor the various social media sites like Twitter, Facebook, LinkedIn, Blogs, etc. They need tools that can integrate with their existing business solutions to pull-in conversations that could have relevance to them. Some new solutions from vendors like Salesforce.com will help small businesses harness the power of social media through solutions like Service Cloud, Salesforce Answers and Salesforce for Twitter and Ideas. New vendors that provide some solutions in this area include Lithium, Helpstream and Elgg.
  • Finding areas where social media can add value and provide business benefit – potential areas include product marketing and customer service
  • Integrating Social Media solutions with current marketing tools – Now that we know small businesses are interested in social media, it would be a good (for ISVs) to integrate social media interaction with your current marketing solutions like CRM, e-mail marketing, marketing automation, etc.
  • Customer sentiment monitoring – This is area small businesses can monitor conversations that are taking place about their products, brands and competition. Although this area today is primarily leveraged by larger consumer focused companies, over time this information can be leveraged by small businesses also.

To make this communication and collaboration effective and supportive of key business objectives, small businesses need to craft a social media strategy as part of a marketing plan to positively reinforce brand awareness and improve customer relationships.

Key elements to this plan should include:

  • Integrate social media into your current marketing plan, don’t abandon what is working to get on the social media band wagon
  • Find out where your target audience (existing customers and prospects) gathers online and learn how they are engaged. Start by asking your current customers where they are and then join in.
  • Match your audience to the social media tools they use – some people like Twitter other prefer Facebook or LinkedIn. Focus on relationship building.
  • Don’t limit yourself to most immediate “universe” of your target. Find people who touch your universe and engage them too.
  • Listen to what people are saying about you in the social media world
  • Use social media to drive traffic to your website
  • Develop plan to measure the success of your social media efforts (topic for another blog)
     

June 3, 2009

Social Networking – The SMB challenge and how the SMBs can gain value from Salesforce.com Cloud Service solution

Social networking sites like Twitter, Facebook, LinkedIn, WordPress are all the range in the B2B and B2C world today. But does the SMB business owners/CEOs or a lone marketing person have the time to devote to track and follow these sites without spending an inordinate amount to time and effort – especially when there is no clearly identifiable direct linkage that this leads to increased sales. How can SMBs participate in and leverage these market trends effectively to address their business and marketing needs?

All these social networking sites present vast amount of unstructured information to the SMBs. In addition, SMBs are also beginning to see a large number of e-mails sent to our e-mail In-boxes from these social sites – leading to information overload, and in many cases turning away the SMB that could benefit from it. What is needed is a solution that aggregates information from all these social networking/community knowledge sites and presents it to the SMBs in a manner that make the information (which at times is very valuable) more easily consumable and easily searchable.

I was at the Salesforce.com CloudForce.com seminar some time ago, where they showcased their social networking integration and service cloud strategy. The Service Cloud shows an elegant and easy-to-use dashboard to present and search the popular social networking sites to the SMB and mid-market enterprises – this will help the SMBs take advantage of all the community knowledge without spending a lot of time and effort following individual solutions like Twitter, Facebook, LinkedIn, WordPress, etc. CRM platform has the potential to pull together information/community knowledge from the various social networking sites and meaningfully relate it current customers, prospects, and partners to deliver more engaging conversations and communications – providing significantly better ROI compared to an ad-hoc social networking access.

Social networking & community services do have the potential to:

  • Improve customer interactions and relationships
  • Actively engage customers and partners
  • Engage potential customers in technology education and learning
  • Interacting with the channel/VARs for information exchange and support

SMBs are actively exploring how to participate and incorporate all of these social networking sites/feeds to develop a social networking strategy that drives a broader marketing and services strategy.

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