Small Biz Survey Presentation

VistaprintSmall Business Survey

Project Objectives
Assess the overall importance of marketing to small businesses
Understand what marketing tools small business owners are currently using, and which tools they plan to or would like to use in the future
Gauge marketing spend in 2009 vs. 2008, and what tools small businesses are using more (or less) of because of the downturn
Measure marketing budget and time spent

Survey Methodology
300 respondents
5-minute online survey
To qualify, respondents must self-report as either a sole proprietor, independent contractor, owner or general manager of a business with less than 100 full- or part-time employees

Respondent Base
300 individuals are represented in the Small Business Survey
54% male / 46% female
73% of respondents are over 45 years old
Of the total sample, 56% work for a business with only one employee; 35% with 2-10 employees; 9% with 10+ employees
The mean company size in the 2-10 employees segment is 4 employees; mean in the 10+ employee segment is 33 employees.
Respondents’ small businesses are 13 years old, on average

Small Businesses’ Marketing

Half of small business decision-makers consider marketing a major success factor, but over half have a marketing budget of < $500
About a quarter of these small businesses have marketing budgets of $1000 or more
17% of small businesses feel that marketing is the major success factor, while a third feel that marketing is not a major success factor
2008 Marketing Budget
Overall, How Important is the Marketing of Your Business?

Marketing budget is positively correlated with business size
Though the majority of small businesses have a budget of less than $500, over 40%spend more
10+ employee businesses are significantly more likely to have a marketing budget over $2500
By contrast, single employee businesses are significantly more likely to have a marketing budget between $0 - $499
What Was Your Total Marketing Budget for 2008?
CD
A = Total Sample
B = One Employee
C = 2-10 Employees
D = 10+ Employees
BC
D
B
B
B
ABC Significantly higher/lower than corresponding row at 95% confidence level

Decision-makers in larger companies are particularly likely to consider marketing important to the success of their businesses
88% of small businesses with 10+ employees consider the marketing of their business either the major success factor or a major success factor
By contrast, 41% of single employee businesses feel the marketing of their business is not a major success factor
Overall, How Important is the Marketing of Your Business?
B
BC
ABC Significantly higher/lower than corresponding row at 95% confidence level

Small business decision-makers spend an average of four hours per week on marketing and advertising
Decision-makers in small businesses with fewer employees tend to spend less time and money on marketing and advertising
Decision-makers in single employee small businesses spend an average of 3 hours per week on marketing/advertising
Decision-makers managing 10+ employees spend almost 7 hours per week on marketing/advertising
On Average, How Many Hours Per Week Do You Spend on Marketing/ Advertising?
SB Average: 4.1 hours
BC
ABC Significantly higher/lower than corresponding row at 95% confidence level.

Email marketing is the most commonly used marketing tactic among small businesses in general
Social media seems to be a planned “next step” for many, while direct marketing (online and print) has a relatively high dropout rate
Understanding why postcard/catalog marketing has a high dropout rate could help Vistaprint offer new solutions
Do You Use the Following Marketing Devices?
In the past, but not currently
No, but plan to in the next 12 months
Yes, currently

Almost a third of 10+ employee businesses plan to try TV/radio/print advertising in the next year
A = One Employee
B = 2-10 Employees
C = 10+ Employees
Online/paid search and social media also seem to be areas of interest.
Do You Use the Following Marketing Devices?
Yes, currently
In the past, but not currently
No, but plan to in the next 12 months
Email Marketing to
Customers/ Prospects
Yellow Pages
Social Online Media
(Facebook, Linkedin,
Twitter)
Electronic/ Online/
Paid Search Ads
Postcard Marketing,
Catalogs, etc.
TV, Radio, and/ or
Traditional Print Media
Significantly higher than corresponding rows at 95% confidence level.

Only 38% of small businesses have websites; likelihood to have one increases with business size
Small businesses with 10+ employees are significantly more likely to have websites
Only 28% of single employee small businesses have a website
Small businesses with marketing budgets less than $500 are significantly less likely to have a website, perhaps due to perceived or actual cost barriers
Companies who expect to spend more on marketing in 2009 vs. 2008 are significantly more likely to have a website
Does Your Small Business Currently Have a Website? (% Yes)
AB
A
SB Average: 38%
ABC Significantly higher/lower than corresponding row at 95% confidence level.

While no marketing tactic stands out as being overwhelmingly important, certain tactics are seen as more important than others by specific types of SB decision-makers
Respondents with a marketing budget over $2500 are more likely to consider TV/radio/print media most important (20%)
SB decision-makers who believe that marketing is the major success factor for their businesses are more likely to feel that online advertising/paid search is most important (20%)
Unsurprisingly, under-30 SB decision-makers are more likely to think that social online media is most important (33% - caution: very small #)
Small businesses see direct email marketing to customers/ prospects as their most important marketing tool
Which Marketing Tactic is Most Important to Your Business?

Almost half of small business decision-makers report testing their marketing campaigns
Single employee businesses are significantly less likely to test their marketing campaigns – only 36% report testing
Additionally, companies with marketing budgets of less than $500 are significantly less likely to test their marketing campaigns
Decision-makers who believe that marketing is not a major success factor are also less likely to test
When You Engage in Marketing Campaigns, Do You Test the Results to Determine What Is and Isn’t Working?
Significant Difference within Group ABC. Upper case at 95%

1/3 of SMB decision-makers look to the Internet for information about marketing
Though almost half of the small business decision-makers say that they don’t regularly seek counsel on the topic, the internet and other SBs are the most common sources of marketing information
“Other” sources of knowledge/ counsel about marketing include ad agencies, networking groups and customers
Who Do You Regularly Seek Knowledge or Counsel From with Regards to Marketing Campaigns and Efforts?

The recession has led small businesses to increase their use of the marketing technique they see as most important – direct email
Although the majority of small business decision-makers are not increasing their marketing budgets during the recession, over 20% of respondents are increasing their use of direct email marketing campaigns
What methods of marketing have you used (more) because of the recession?

Small businesses would most like to spend additional money and time building their company websites
Which of the Following Would You Do More of if You Had More Money/ Time to Spend?
If more time
If more money

Small business decision-makers would do more traditional and direct marketing if they had more money to spend
Social media is seen as more of a time issue than a money issue
Which of the Following Would You Do More of if You Had More Money/ Time to Spend?
One Employee
2-10 Employees
10+ Employees
Building Company Website
Social Online Media (Facebook, Twitter, Blogging)
Email Marketing to Customers/ Prospects
Postcard Marketing, Catalogs, etc.
Electronic/ Online/ Paid Search Advertising
TV, Radio, and/ or Traditional Print Media
Yellow Pages
None of the Above
If more time
If more money

Summary and Implications

Summary and Implications
Small businesses are using more direct email marketing because of the recession – since direct email is also seen as the “most important” marketing tool small businesses use, it may be that small businesses are shifting rather than cutting marketing investment
Small businesses are interested in testing their marketing efforts – about half are doing so now
When small businesses look for information about marketing, many look online
About a third of small businesses would spend more time and money on building websites if they could
Only 38% of small businesses have a website currently
About a third of small businesses would spend more time and money on building websites if they could
Small businesses with 10+ employees tend to spend more money and time on marketing, use more marketing tools, and think of marketing as more important than businesses with fewer employees

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Small Biz Survey Presentation

by Vistaprint on Dec 10, 2009

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Small Biz Survey Presentation — Presentation Transcript