Has Martech Moved the Needle for SMBs?
Transcript of Has Martech Moved the Needle for SMBs?
Guiding Media. Inspiring Innovation. Leading Local.
Has Martech Moved the Needle for SMBs?
OMMA Marketing TechNew York, NY
Rick DuceyManaging Director
May 18, 2016
@rducey@biakelsey
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About BIA/KelseyAdvisory research firm helping clients with strategies and local market intelligence
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Martech LandscapeSMBs Are Big Part of Ad EconomyBeyond AdvertisingSMBs Disrupted and Disrupting
Topics for Today
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Martech Starts With Knowing Who Your Customer IsLots of “tech stacks” to do martech, typically starts with a good CRM system
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Martech is an Easy Space to Follow . . . Not!
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SMBs are an Impactful Part of the EconomyProvide over half of all jobs and sales in the U.S. According to US Small Business Administration: “Small business is BIG!” The 28 million small businesses in America account for 54% of all U.S. sales. Small businesses provide 55% of all jobs and 66% of all net new jobs since the 1970s. The 600,000 plus franchised small businesses in the U.S. account for 40% of all retail
sales and provide jobs for some 8 million people.
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2015 2016 2017 2018 2019 2020$0
$20$40$60$80
$100$120$140$160$180
$50.3 $52.4 $53.7 $56.4 $57.9 $60.9
$34.7 $33.0 $33.3 $32.0 $32.8 $34.6
$56.3 $61.2 $62.7$67.9 $69.7
$73.4
SMB Advertisers Non-SMB Local Advertisers
Billi
ons
SMBs Increasing Ad Spend by $10.6B 2015-2020BIA/Kelsey Defines SMBs as Under 100 Employees
Source: BIA/Kelsey, October 2015
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Martech is Moving the Needle for SMBsSMBs are shifting their marketing strategies to embrace digital Tech platforms and solutions that used to be “enterprise sized” are becoming increasingly
right sized for the SMB market. It’s about the DATA. Martech solutions are bringing customer data full bore into the marketing mix to evolve
customer relationships and engagement. But what has been the affect of these solutions on small-to-medium-sized businesses? How have SMBs combined martech solutions with paid search and other digital marketing
platforms?
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In 2011 Gartner’s Laura McLellan predicted the rise of technology spending in marketing budgets due to the rising strategic importance of marketing and tech.
80% of companies now have a “chief marketing tech” by title or role. Companies are reducing their sales budgets in favor of marketing budgets. Gartner’s latest CEO survey shows that, “CMO budgets are increasing, distinctions
between digital marketing and marketing are vanishing, and digital commerce has become the mandate for driving profitable growth.”
What is the Role Marketing in Companies These Days?“By 2017 the CMO will Spend More on IT Than the CIO”*
*2011 Gsrtner survey.
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ActiveCampaign AutoPilot BoingNet Intellasphere InTouch JumpLead Leadsius Nurture SalesAutopilot SimplyCast Spokal Wishpond
Martech Platforms Targeting SMBsExamples of Vendors Offering Free to Under $100/Month Platforms for SMBs
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Scott Brinker asks, “where is all this spend going?” Gartner responded:
• Labor — 35%• Marketing technology — 33%• External marketing services (e.g.,
advertising, paid search, consulting) — 32%
So by Brinker’s calculations based on Gartner data, Marketing departments are spending 33% of their budgets on martech and 32% of advertising.
Martech has been eating the CIO’s budget, now it’s eating the advertising budget.
But It Gets More Interesting Than That“Whoa: marketing technology budgets are now surpassing advertising”
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http://www.fiercecmo.com/special-reports/gartners-laura-mclellan-digital-marketing-budgets-climb-sales-budgets-are-c
Traditional marketing is about the “4 Ps” – Price, Product, Promotion, Place.
McLellan notes that for Gartner’s last eight surveys they’ve asked CMOs about the 4 Ps and she concludes, “the results are astonishing.”
The ranking of “Customer Experience” declined in importance in Gartner’s surveys from 1st to 5th. What does this mean?
Customer Experience is no longer something singularly abstract, it’s being subsumed into specific marketing strategies and implementations.
Martech as strategy has the goal of helping companies reengineer the customer experience.
What is Martech Trying to Accomplish?Martech’s Job is to Reengineer the Customer Experience
Laura McLellanVP of Marketing Strategies
Gartner
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So, Where Are We Headed in All This? Beyond Advertising.
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Martech is Leveling the Playing Field, Not Just for Big CompaniesMartech Solutions Are Now “SMB- Sized” The strategic role of marketing is to create bonds between the brand and the customer. Technology platforms, data science and mediated customer touchpoints are core to the
marketing function Martech increasingly bonds strategy to execution. Martech solutions now available to not just to big companies, but affordable to SMBs.
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Less than One in Four SMBs Using a CRM System
More than 2 Years
1-2 Years
Less than a Year
No, considering within the next 12
months
No
0% 10% 20% 30% 40% 50% 60%
10.4%
9.0%
3.9%
20.7%
55.9%
Q510A Does your business use a CRM system?Sample Size = 1010
CRM systems are the “gateway drug”
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Maintenance of Customer Lists
14.5%
78.6%
6.9%
NoYes A Year or MoreYes Less than a Year
Q112 Do you keep a list of customers?Sample Size = 1010
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Offers A Customer Loyalty Program
Currently have
Don't have, but likely to get
Don't have, and not likely to get
Not sure
0% 10% 20% 30% 40% 50% 60%
23.3%
21.6%
53.0%
2.0%
Q114 Do you offer a customer loyalty program?Sample Size = 1010
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Customer Loyalty Program Management
Operate Ourselves Paper Tracking
Operate Ourselves Digital Tracking
Credit Card Company linked to Customers Credit Card
3rd Party other than Credit Card Company
0% 10% 20% 30% 40% 50% 60% 70%
59.8%
32.0%
9.6%
3.1%
Q114B Who manages your loyalty programs?Sample Size = 236
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Method of Tracking Lead Sources
Other Tracking
Call Tracking
Promotions or Direct Mail
Clicks or Email
Ask Customers
0% 10% 20% 30% 40% 50% 60% 70% 80%
3.8%
9.9%
20.6%
36.3%
75.5%
Q204 How do you track leads?Sample Size = 791
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Importance of Websites with Customer Opinions
Facebook Google LinkedIn Blog Yelp Twitter Yahoo Other Sites
Angie's List
Other Social
Citysearch FourSquare
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
19.5%28.7% 29.5% 31.8%
39.4% 33.8% 36.4% 36.0%44.7%
38.6%46.5% 48.8%10.0%
13.5% 15.0% 13.3%
15.5%15.4% 15.1% 13.6%
13.9%16.7%
16.6%18.2%
20.7%
22.7%24.1% 25.4%
17.5% 23.2% 21.0% 24.2%17.6% 21.9%
17.2%17.1%
26.6%
21.1% 18.1% 17.6% 15.4% 15.7% 17.6% 14.9% 12.9% 12.6% 12.1% 10.1%23.3%14.0% 13.3% 11.8% 12.2% 11.9% 10.0% 11.3% 11.0% 10.2% 7.7% 5.8%
Not at all important Not too important Somewhat importantVery important Extremely important
Q312 How important are reviews/comments on each of these sites to your business?Sample Size = 1010
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Monitor Customer Comments About Business
58.7%16.1%
23.3%
1.9%
YesNo, likely next 12 monthsNo, and not likely to do in next 12 monthsNot sure
Q324 Do you monitor customer comments about your business?Sample Size = 1010
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Methods Used to Monitor Customer Comments8.8%
11.1%
12.5%
67.6%
Paid Standalone ServiceNot sureBundled ServiceFree service/DIY
Q324AA How do you monitor customer comments?Sample Size = 756
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Other Martech/Advertising Services Considered
Analytics, Performance TestLead Scoring
Online SchedulingPassword Management Program
Reputation MonitoringSocial Media Monitoring
Listings ManagementService that Keeps Customer Records
Analytics, Customer or Market SegmentAnalytics
Online Leads Mgt.Online Satisfaction Survey
Email Marketing
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%13.8%
13.7%
11.3%
12.2%
11.3%
11.5%
11.3%
9.7%
11.7%
10.8%
11.0%
11.5%
9.9%
59.2%
58.6%
60.0%
57.3%
57.3%
55.4%
55.0%
55.1%
52.2%
53.0%
51.8%
50.0%
44.5%
17.0%
19.3%
14.1%
13.6%
21.7%
20.4%
23.3%
17.7%
19.0%
20.1%
21.2%
23.1%
25.1%
10.0%
8.4%
14.5%
17.0%
9.7%
12.7%
10.3%
17.5%
17.0%
16.1%
16.0%
15.4%
20.5%
Not sure Don't use, not likely to in next 12 monthsDon't use, likely to in next 12 months Use
Q510 What ad related services do you use or are considering?Sample Size = 1010
Most SMBs Not Using or Considering Martech Services at the Moment
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Use of Cloud Based Services
HR Service
Payroll Service
Ecommerce Services
Telecom Services
Business Software
Online/Cloud Storage
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
6.9%
6.4%
5.7%
6.6%
6.4%
6.4%
72.6%
62.2%
59.3%
53.6%
50.6%
46.3%
9.3%
10.4%
12.7%
12.4%
13.7%
14.0%
11.2%
21.0%
22.3%
27.5%
29.3%
33.2%
Not Sure No, not likely to add next 12 monthsNo, likely to add next 12 months Yes
Q512 Does your business use any of these cloud based services?Sample Size = 1010
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Create Customer Specific Marketing
Customer Loyalty Program
Other
Inventory or Ordering System
Plan Operations or Marketing
Effectiveness of Advertising or Marketing
Not sure
0% 5% 10% 15% 20% 25% 30%
13.1%
13.8%
18.6%
21.1%
21.8%
23.4%
25.7%
Q605A Use of customer data from POS systemSample Size = 1010
SMB Use Of Customer Data from Point of SaleWe do see some effective use of customer data by a minority of SMBs
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Source: BIA/Kelsey Local Commerce Monitor™ (LCM) Wave 19, Q3/2015 (and prior waves, if relevant). Methodology: Online panels.
Reliable Easy To Use Most Cost Effec-tive
Integrates Easily With Other Tech
Powerful Comparable To What Competi-
tors Use
Newest 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
1.6% 1.5% 1.7% 1.6% 5.1% 5.4% 9.4%6.2% 6.4% 8.4% 11.0%
21.4%26.8%
32.2%24.6% 26.9%
28.7% 29.1%
33.5% 25.6%
28.6%59.3% 57.2% 52.9% 48.1%
29.2%27.1%
19.5%
Strongly/Somewhat Disagree Neither agree nor disagreeSomewhat agree Strongly agree
Q615 With new advertising and marketing technology what is the most important to you?Sample Size = 1010
Top Opinions for New Technology For Advertising & PromotionWhat it’ll take to disrupt the SMB space with martech – reliable, easy, cheap
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Take- AwaysSMBs – a sector of the economy ready for disruption1. Martech Landscape – complicated but moving towards affordable and interoperable
platform stack solutions2. SMBs Are Big Part of Ad Economy – Whatever happens in the long-tail SMB space
will have an outsize. They may be small businesses, but there are a LOT of them.3. Beyond Advertising – SMBs will have more data, analytics, insights and platforms to
create touchpoints to better understand and enhance the customer experience.4. SMBs Disrupted and Disrupting - as SMBs adopt more martech, this will drive the
needle in the shift toward data-driven marketing, this will impact roles of advertising and marketing in the customer journey.