Electric Scooters For Kids

Market Large

Marketing to SMB companies

On it's surface, it appears to be a distinct channel and that marketing to smb accounts will be fairly straightforward. Numerous Fortune 1000 companies attempt to increase their sales and market share with the small to medium business (SMB) channel. The majority of companies in the world are actually smb customers.. Often times, Fortune 1000 companies will take the same product line, price points, and value proposition and present it to the smb channel. Unfortunately, this strategy will typically end in failure. What are large companies doing wrong when marketing to smb channel customers?

 

The first focus should be to view the smb channel as a highly fragmented market. Large companies view every smb customer as the same and inevitable product marketing to smb channel customers that is uniform.  With proper segmentation, its important to understand the differences between companies at various revenue streams. An SMB company that is doing 15 million in sales and has stagnant growth is considerably different from the smb company that is doing 7 million in sales and at a year over year growth rate of 80% +.  When marketing to smb customers, you will typically want to only aim at the high growth or hyper growth segment.

 

The second focus when marketing to smb customers should be on having a product positioning and message that will actually resonate with smb channel customers. Many large companies make the mistake of shifting their existing product line aimed at other channels and bringing them over to the smb channel at the same price point. A high priced product may be insignificant to larger customers, but value matters immensely when marketing to smb customers. It's important to make sure that your product pricing is viewed as a value to the smb customer.

 

Additionally, when marketing to smb customers you should consider the product positioning and marketing message. SMB customers will buy products for one of three reasons.  First, It will help them increase their revenues. Second, It may help them to reduce their line item expenses. Third, it improves their quality of life. If large companies are going to be successful in marketing to SMB channel customers, it is vital that the marketing department convey one of those three messages.

 

In our experience, large companies that have fairly insular cultures have the most difficulty in understanding the needs and pains of smb customers. Inevitably, their programs marketing to smb customers are flawed, as the misperception between what they think the smb customer wants to hear versus what the smb customer actually needs is considerable. This misperception gap can be easily addressed if the management spent time with the small to medium business customer. Then, they would truly understand the wants and needs of the smb customer. The efforts and time spent with smb customers will be well worth it. Corporate management will discover incredible insights in to what the small to medium business entrepreneur or management want and more importantly, what they are willing to issue a purchase order to buy.

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