Small firms do want to spend
A recent report suggests that SMB tech spend may expand the fastest over the next five years, says Mike Worby
In April, Gartner released figures suggesting that over the next five years SMBs will expand their IT spend faster than large companies. While no business is immune from the current economic pressures, smaller firms are generally optimistic and looking to invest in the right IT. This is great news for the channel.
In the first place, SMBs want and need enterprise technologies. The web has been a great leveller, enabling start-ups to compete with established powerhouses. Investment in the right enterprise technologies changes the game for many businesses, and they know it.
Secondly, vendors of technologies from security to virtualisation to business intelligence now offer an array of options at a price that makes them accessible to SMBs. In addition, the advent of cloud services is easing the sales cycle for a range of technologies.
SMBs also need support and guidance on decision making and implementation. Few small companies can afford to hire a full-time IT specialist, so getting up to speed on the latest innovations and understanding what will be the best fit for the business is a huge challenge for them.
SMBs have long appeared a sweet spot for resellers. So what’s the catch?
Attracting SMBs and connecting with their buyers is no mean feat. SMBs are diverse, presenting a series of tricky issues when it comes to marketing our wares. There are one-man bands, micro-businesses, enterprises with a few dozen employees and small companies with perhaps 100 people, in a multitude of different sectors.
When marketing budgets and resources are already stretched to the max, targeting and engaging with such a broad market can be difficult. As a result, there is often a tendency to simply broadcast marketing messages to the masses and hope that some will take root and grow.
To overcome such issues, we would do well to look at the characteristics smaller firms share. Most recognise the need to be technologically up to date, yet many are so absorbed in their day-to-day work that IT issues are considered low priorities. When the need to invest arises, getting the information they need to make the right decisions can be difficult and time consuming.
Much SMB fact-finding is done online or by using recommendations from friends or fellow businesses. A recent Vanson Bourne poll noted that most buyers search the web, while three quarters look to speak to a vendor, peers or colleagues to find the information they need.
The same Vanson Bourne report also looked at how buyers consume technology content, suggesting that opportunities to convert willing prospects are being missed. It has never been more important to be discoverable online, either as a company or in terms of information provision, through accessible and tailored content.
Team up with vendors and combine your resources to communicate a common message that should help SMBs find the information they need more quickly. Shared platforms, search, social media and other web channels can drive customers directly to you - facilitating wide-reaching but cost-effective and manageable marketing.
Online lead generation activity should add value to the buying process by incorporating information on products and services provision.
Mike Worby is business manager at ComparetheWare.com