Small Business Pulse Report

Constant Contact Small Business Pulse
The Health and Wellness of Small Businesses

Based on Research Conducted in May 2012

Copyright © 2012 Constant Contact Inc. 1

In This Report

 What’s Keeping SMBs Up at Night?
 Small Business Resources and Hiring
 SMB Marketing Activities
 About This Report


1. What’s Keeping Small
Businesses Up At Night?


Attracting new customers, engaging existing customers, and getting
referrals are the top concerns for small businesses surveyed

When you think about how to run your organization most effectively, which
of the following “keeps you up at night”?
90%
79%
80% 76%
71%
70%
60%
49% 48% 50%
50% 43%
41%
38% 38%
40% 34% 33%
31%
30% 26% 27% 26% 28% 26% 24%
23% 25%
20% 20% 20%
20% 17% 18% 16%

8%
10% 5% 4%

0%

Total B2C B2B

Attracting new customers is the #1 challenge facing SMBs;
getting funding is also a large challenge

Of the items that keep you up at night, which do you rank #1?
80%
69%68%69%
70%

60%
52%
50% 45%
41%
40%
29%
30% 26%24%
18%20%16% 18%
20% 14%11% 14%15%13%
10%11% 9% 11%11%11% 12%12%12%
10%

0%
How to attract Getting How to Having a more How to get How to stay on How to identify How to How to make
new customers funding connect and integrated referrals from top of the and select the measure the my marketing
better engage communication current latest in online best marketing impact of my dollars go
with existing strategy customers marketing tools marketing further
customers trends campaigns

Total B2C B2B


Attracting new customers, engaging existing customers, and
getting referrals are the top issues for small businesses

When you think about how to run your organization most effectively, which
of the following “keeps you up at night”?
90%
79%
80% 76%
71%
70%
60%
49%48%50%
50%
41%43%
38% 38%
40% 34%
31%33%
26% 27% 26%28% 26%24%
30% 23% 25%
20%20%20%
17%18%16%
20%
10% 5% 4% 8%

0%

Total B2C B2B


2. The Health of Small
Businesses


The majority of small businesses surveyed are stable or
growing compared to 2011

How has your organization done so far this year?
70%
59% 59% 60%
60%

50%

40%
Total
30% 31%
28% B2C
30%
B2B
20%
11% 10% 12%
10%

0%
Revenues increased Revenues remained flat Revenues decreased


Many SMBs are expecting significant revenue growth this
year, few are expecting a major decrease

 79% of small businesses expect 2012 revenues to increase over their 2011
revenues with 52% expecting revenues to increase more than 10%.

What are your revenue expectations this year compared to last year? I
expect my revenues to…
60%
54%
52% 50%
50%

40%
30%
30% 27% Total
23% B2C
20% B2B
13% 13% 14%
10%
4% 4% 5% 3% 4% 3%
0%
Increase more than 10% Increase less than 10% Remain flat Decrease less than 10% Decrease more than
10%


Cash flow is affecting growth for over 40% of small
businesses

 Despite operating costs having increased for 45% of small businesses, 57% of
small businesses have adequate cash flow to run their business effectively.

 19% of small businesses have sought funding this year, of which 16% got
some or all of the funding they needed.

Is your cash flow sufficient to run your organization effectively?
70% 63%
60% 57%
53%
50%
40%
30% 32%
30% 27% Total
B2C
20% 13%
11% B2B
8%
10%
0%
Yes, I have adequate cash flow No, my cash flow is inadequate and is No, my cash flow is inadequate and is
preventing me from growing barely enough to maintain current
operations


Over half of small businesses are not planning to hire more
FTEs in the next 6 months

 So far this year 63% of small businesses have kept the number of
employees the same. 27% of small businesses have increased the number
of employees.

 50% have kept payroll the same, while 38% have increased payroll.

Will you be hiring additional full-time equivalent (FTE) employees in the
next 6 months?
60%
52%
50% 47%
40% Total
40%
B2C
30% 25% B2B
18% 19% 21% 20%
20% 13% 15% 16% 13%
10%

0%
No, I’m doing fine as is Yes No, I need to but can’t Unsure


3. Small Business Marketing


Marketing spend has stayed steady for most small
businesses surveyed

So far this year, the marketing budget
has...
70%
60% 59% 61%
60%

50%

40%
29% 29% 28%
30%

20%
12% 12% 11%
10%

0%
Increased Decreased Stayed the same

Total B2C B2B


Email marketing, websites, and in person interactions are
most often effective for small businesses

Which marketing activities do you find to be effective for
your organization today?
90%
83% 84%
81%
80% 75%
71% 72% 70%
68%
70% 64%

60% 56%

49% 49%
50%
43%
41%
38% 38%
40%
33%

30%
23% 22% 22% 22% 21% 22% 22%
19%
20% 17% 17% 18%
15%
10%
8% 8% 9%
10% 5% 5% 4%

0%
Email marketing Website
In-person interactions
Social media marketing
Phone calls (for lead generation, etc.) Traditional advertising (print, radio, TV, etc.) surveys Other, please specify
Events Public relations Direct mail Online advertising (paid search, etc.) polls
Online and

Total B2C B2B


Small businesses are still most driven by in
person interactions

Of the items you find to be effective, which do you rank as
the #1 most effective?
70%
59%
60%
48%
50%
40%
40% 33%
28% 27%
30% 21% 23%
20% 20% 18% 18%
20%
17% 15% 17% 14% 17% 17% 15%
13%
17%
13%
11% 11%12% 10%
8% 8% 6% 3%
10%
0%
In-person interactions ebsite Email marketingDirect mail
W Traditional advertising (print, radio, TV, etc.)
Online advertising (paid search, etc.)
Phone calls Events
Social media marketing relations
Public

Total B2C B2B

B2Bs are even more in person focused
80%
59%
60%
40%
20% 17% 15% 14% 17% 17%
20% 8% 8% 10%
0%
In-person interactions
WebsiteEmail marketing
Traditional mail Online (print, radio,(paidetc.)
Direct advertising advertising TV, search, calls
Phone etc.) Events
Social media marketingrelations
Public


Of those using social media, Facebook is far and away the
most effective, even for B2Bs

If social media is ranked in the top 3, which tool do you find
the most effective?
90% 83%
80% 75%
70%
60% 55%
50% Total
40% B2C
30% 25% B2B
20% 11%
7% 6% 10%
10% 3% 1% 1% 0% 1% 2% 1% 3% 2% 6% 2% 2% 0% 2% 2% 2%
0%
Facebook Twitter LinkedIn Pinterest Google+ YouTube Yelp Other, please
specify


Still, SMBs need more help with social media marketing

Which marketing activities do you need help with?
70% 66%

59%
60%

50% 47%
42%
40%38%
40%
33%
30% 29%
30% 25% 25%
23%
19% 19% 19% 18%
19% 19%
20% 17% 16% 16%
12% 13%
11% 12%
11% 11%
9% 9% 8% 9% 9% 9% 8%
10% 5%
4%

0%
Social media marketing
Email marketingWebsite
Online advertisingOnlinesearch, etc.) pollscalls (for lead generation, etc.)Direct In-person interactions Other, please speci
(paid surveys and
Public relations
Phone Events mailTraditional advertising (print, radio, tv)

Total B2C B2B

59% of Small Business ranked social media as the
marketing channel they need the most help with


About this study
 This is the first wave of an
ongoing study about the
state of small businesses and
the ways they connect with
and grow their audiences.

 We surveyed over 1000 participants in the Constant Contact Small Biz Council – a
research panel of US small businesses and nonprofits recruited from the Constant
Contact customer base – between April 24 and May 8, 2012.

 This preliminary report includes responses from 728 participants including 448
business-to-consumer organizations and 280 business-to-business organizations.

 Media Contact Number of employees for
Erika Dornaus businesses included in this study
Constant Contact 6%
6%
(781) 482-7039 0-10
pr@constantcontact.com 14% 11-25
26-50
74% 51+


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