Get insights on what your customers really want.

Small Business Technology Impact Study - 2016

LEARNING FROM THE CUSTOMER. At Time Warner Cable Business Class, we believe in empowering small business

growth. Whether it’s by providing strong, reliable telecommunications and cloud

solutions or by offering insights and tools that small businesses can use to reach

their goals, we are committed to helping our customers succeed.

To unlock the secrets of what customers of small businesses really want, we went

straight to the source. We asked. They answered. And, it’s about a lot more than

just deals and discounts. After analyzing the results from over 800 U.S. consumers,

we developed clear, actionable steps.

In this guide, you will find out how to start making smarter, more impactful decisions about where to invest time and money in your small business.

The Bottom Line: Your customers want to feel known. They want to feel valued.

They want to feel understood. And, they want you to use technology to reach them

in meaningful ways. Now, let us show you how to do it.

THE METHODOLOGY. We conducted an online survey of over 800 U.S. consumers in February 2016. The responses were then divided into three categories: Age, Gender and Vertical.

BY AGE BY GENDER BY VERTICAL

18-34 (Millennial)35-54 (Generation X)55+ (Baby Boomer)Millenial)35-54 (Gen X)55+ (Boomers)

MaleFemale

RetailProfessional ServicesPersonal ServicesRestaurants/Bars

RESULTS YOU CAN SEE.As a small business owner, it’s vital to get the attention of new prospects— while keeping your current customers coming back for more. We distilled the data and divided the results into three categories: the impact of technology on small businesses, customer targets based on gender and age, and strategies for strengthening customer relationships.

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Overall Findings

CLOSE TO HOME.

67% know someone who owns or works for a small business.

I’M YOURS FOREVER.

55% feel that top-notch service and attitude are the best ways to win a customer for life.

FREQUENT SHOPPERS.

58% have shopped at or patronized a small business in the past week.

BE ABOUT THE BUSINESS.

42% believe that unprofessionalism is the number one mistake a small business can make.

SAFE AND SECURE.

79% say keeping customers’ personal and financial data secure is necessary for a small business.

STOP-N-SNACK.

45% of out-of-town diners tend to try local restaurants they haven’t been to before.

MAKE IT PERSONAL.

70% respond to small business marketing tactics when they feel they know the owner.

HERE FOR YOU.

80% of respondents younger than 35 and 55+ want to be able to reach a small business owner by email or phone.

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LOOKING AROUND: THE IMPACT OF TECHNOLOGY ON SMALL BUSINESS TODAY.Embracing innovative trends related to communication and technology is vital in today’s connected world. Use these insights to refresh your small business marketing efforts and get tips on improving the way you reach new and existing customers.

Top 3 Digital Must-Haves

WEBSITE

Should include a short description of your business, clear contact information, approachable design, regularly updated content and an easy-to-remember URL.

Is it worth it? You bet. More than 50% of consumers surveyed (depending on vertical) say they might not buy from a company that doesn’t have a website.

Is it necessary? Without a doubt. 66% of millennials (ages 18-34) and 55% in Generation X (ages 35-54) say a website with relevant business information is a necessity.

SOCIAL MEDIA PRESENCE

Could include popular platforms like Facebook, Twitter, Pinterest, Instagram, Tumblr or Snapchat, and should make sense for your specific business and customers.

Is it relevant? If you don’t do it, it could cost you. Up to 30% of respondents may not buy from a company without a social media presence, depending on vertical.

Is it worth your time? If your target customer skews female, definitely. 47% of women say that regularly posting on Facebook is a VERY effective way to retain their business.

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Security is Paramount.

79% of respondents say keeping their personal and financial data secure is necessary in order to attract and keep them as a small business customer.

WiFi Could Tip the Scale.

Nearly one-quarter of all restaurant goers surveyed (24%) say that a small restaurant having WiFi would make them more likely to dine there over a large chain.

54% appreciate having WiFi available while they are waiting, while 22% consider it a necessity for small businesses.

SOCIAL MONITORING

Requires the use of social media channels to locate, track and gather information, with the end goal being to learn what customers are saying about your business.

Is it important? Yes. Nearly 1 in 5 consumers surveyed won’t frequent small businesses that don’t respond to comments on Yelp or other review sites.

Is it valuable? Absolutely. Knowing what customers are saying about your business is a great way to address concerns or even get new ideas for improvements.

Top 3 Digital Must-Haves, continued

LOOKING AHEAD: THE FUTURE OF TECHNOLOGY AND SMALL BUSINESS.The future is streamlined and simplified. Consumers are looking for faster ways to purchase products and plan their schedules. Based on our findings, small businesses should plan to offer mobile payment options and online appointment booking.

WHY MOBILE PAYMENTS? 27% of millennial shoppers currently expect small businesses to be able to accept payments via a mobile device, such as a smartphone or tablet. And you can be sure that number will rise as time goes on.

THE MOBILE PAYMENT ADVANTAGE. It’s a win-win. Not only do mobile payment services simplify the checkout process for shoppers, but many of these systems also make it easier for your small business to set up loyalty programs, create coupons and gather email addresses or other important information from your customers.

WHY ONLINE APPOINTMENTS? 25% of men who frequent professional services, personal services (e.g., haircuts, massage therapy) and dog care want to book appointments online, compared to 19% of women.

THE ONLINE APPOINTMENT ADVANTAGE. Want happier employees and happier customers? By enabling online appointments for your business, you can reduce call volume for your staff and ensure they have access to the most up-to-date information about their clients. At the same time, your customers who prefer online scheduling will have an added level of satisfaction in their experience with your small business.

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MORE ADVENTUROUS. Women are 50% more likely than men to shop at a new local stop or boutique.

DEAL CHASERS. 71% of women say that special offers are an effective way to attract/retain them, compared with only 59% of men.

SOCIALLY SAVVY. 47% of women said that posting specials, top-selling items or photos on a small business’s Facebook page is effective at keeping them as a customer, compared with 32% of men.

FREQUENT SHOPPERS. 63% of men reported having shopped at or visited a small business in the past week, compared with only 54% of women.

SMALL > BIG. 31% of men prefer to eat at a local restaurant rather than a chain restaurant, compared with 24% of women.

OWN IT. 23% of men are more likely to own or work for a small business, compared with 15% of women.

HE SAID, SHE SAID: COMPARING RESULTS BASED ON GENDER.During the course of our survey, we noticed that men and women seemed to differ on their expectations of small businesses. The insights below can help maximize your efforts, minimize your overlap and ensure that you reach the right people, the right way.

We’re all convinced.

Regardless of gender, 70% of consumers surveyed say knowing the owner is an effective way to attract them and then keep them coming back. So, make an effort to introduce yourself and give your customers an authentic, personal experience every time they visit your small business.

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DIFFERENT AGES, DIFFERENT PREFERENCES: USING MILESTONES TO TARGET MORE EFFECTIVELY. Yes, age is just a number. However, the trends we found in our survey illustrate some clear preferences for small businesses based on age group. Our recommendation? Embrace the latest technology to reach a millennial audience, and consider more traditional advertising in local publications if your target market is baby boomers.

Small Business Survey Respondents By Age

#YUM. Millennials are nearly 50% more likely than baby boomers to eat at a local restaurant they’ve never tried before.

BUY LOCAL. Millennials are nearly 70% more likely than baby boomers to shop at a local store or boutique.

YOU’RE INVITED. 51% of millennials are likely to attend special seasonal events, compared with only 32% of baby boomers.

OWNER APPRECIATION. 75% of baby boomers feel like knowing the business owner keeps them coming back for more.

SAVING BIG. 61% of baby boomers like when small businesses offer coupons or promotions.

PRINT, PLEASE. 41% of baby boomers appreciate seeing advertisements for your small business in local publications.

Good to Know.

50% of millennials find it effective when small businesses post regularly on Facebook.

Bottom Line: Stay in Touch.

80% of customers under age 35 and over 55, regardless of gender, say that being able to reach the owner via email or phone is effective at attracting or keeping them as a customer.

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AGE 18-24

AGE 25-34 AGE 35-44

AGE 44-54

AGE 55-64AGE 65 +

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CULTIVATING CUSTOMER RELATIONSHIPS: MAKING THE MOST OF YOUR SMALL BUSINESS. Customers turn to small businesses because they appreciate the personal touches, accessibility and special offers. Since every small business has a unique value proposition, each is in a position to be highly effective with customers across the board by integrating a few easy tactics into their marketing plan.

Three Universal Marketing Strategies for Small Businesses:

On your website, create a clear picture of yourself as the small business owner and share why you are passionate about your business.

Provide exclusive offers tailored specifically to your small business.

Ensure your customers know how to reach your business directly, both by phone or email—and on social media if your target audience skews millennial.

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Get to know your ideal customer.

If it’s worth doing, it’s worth measuring. The most effective small businesses will regularly take stock of the types of customers who are making purchases, what they are purchasing, how frequently they are coming back and what initially got them in the door.

Start with the basics.

Begin by gathering as much information about your customers as you can. Use any existing data your small business has available, or begin collecting basic demographics like age, gender and how the customer heard about your business. Then review your findings, look for trends and start shaping your tactics according to the needs and expectations of your average customer.

EXEMPLARY CUSTOMER SERVICE: ACHIEVING THE RIGHT MIX OF “THERE FOR YOU” AND “WE HAVE IT COVERED.”The best thing you can do for your small business customers is to be there for them. By making it easy for customers to reach your business, it can help to ease concerns and address any problems, and it shows them that they are valued and appreciated. The best way to get a customer to become an advocate for your small business is by building a one-on-one relationship with them.

HAVE THE RIGHT ATTITUDE. 55% of all respondents said that providing a high level of customer service and exhibiting a positive attitude are the best ways to keep them as customers for life.

HIGHLIGHT RELATIONSHIPS. Showcase the way your small business interacts with your customers — and community. Build relationships that are genuine and authentic by getting to know the likes and dislikes of your frequent customers. They’ll appreciate the effort and keeping coming back for more.

GO ABOVE AND BEYOND. No small business operates perfectly all of the time. So when problems arise, such as missed shipping dates or overbooked appointments, be a proactive, solution-oriented advocate for your customer. Own up to your mistakes and do everything you can to make it right. Every customer matters, and more often than not, the ones you make it up to will become your biggest supporters in the future.

BE CONSISTENT. Do everything you can to ensure that your small business offers unique products or services at a consistent high quality. If you are transparent about your pricing and the way you bring your offerings to market, customers will frequent your small business.

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Remember, every customer wants to

feel special. Find a way to make them

love your small business, and they will

be a customer for years to come.

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WANT MORE SMALL BUSINESS INSIGHTS?

ABOUT THE SURVEY. Time Warner Cable Business Class conducted an online survey of over 800 U.S. consumers in February 2016. Offered through Harte Hanks, the survey asked a series of questions about small business shopping preferences and concerns, aimed at identifying the key factors affecting their patronage and loyalty.

WHO WE ARE.Time Warner Cable Business Services, a division of Time Warner Cable, offers a full complement of business communications tools to small, medium and enterprise-sized companies under its Time Warner Cable Business Class brand. Its Internet, voice, television, network and cloud services are enhanced by award-winning customer service and local support teams. Through its NaviSite subsidiary, Time Warner Cable Business Services also offers scalable managed services, including application services, enterprise hosting and managed cloud services primarily in the U.S. and U.K. Time Warner Cable Business Services, founded in 1998, serves more than 700,000 business customers throughout Time Warner Cable’s service areas. For more information, visit business.twc.com.

©2016 Time Warner Cable Enterprises LLC. Time Warner Cable and the Time Warner Cable logo are registered trademarks of Time Warner, Inc.

Go to business.twc.com/nsbw2016 for more resources on attracting and retaining customers.

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