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SMB Business Outlook and Spending Plans

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SMB Business Outlook and Spending Plans

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How are SMBs faring as the pandemic persists? What is their business outlook, and what are their spending plans?

In this webinar you’ll learn:

* The SMB state of mind: business outlook, operational status, and expected time to return to ‘normal’
* SMB priorities and challenges
* Key application usage and purchase plans
* Credit usage and intent – including traditional banks vs. fintech
* Job board usage and intent – including the specific sites they plan to use
* The brands that SMBs trust most
* Key differences among respondents by company size
* How all of these have changed in the past six months

You’ll get terrific insights that you can put to work in your 2022 SMB marketing plans.

Webinar recording - https://register.gotowebinar.com/recording/2253221902084314883

How are SMBs faring as the pandemic persists? What is their business outlook, and what are their spending plans?

In this webinar you’ll learn:

* The SMB state of mind: business outlook, operational status, and expected time to return to ‘normal’
* SMB priorities and challenges
* Key application usage and purchase plans
* Credit usage and intent – including traditional banks vs. fintech
* Job board usage and intent – including the specific sites they plan to use
* The brands that SMBs trust most
* Key differences among respondents by company size
* How all of these have changed in the past six months

You’ll get terrific insights that you can put to work in your 2022 SMB marketing plans.

Webinar recording - https://register.gotowebinar.com/recording/2253221902084314883

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SMB Business Outlook and Spending Plans

  1. 1. December 16, 2021 SMB Business Outlook and Spending Plans
  2. 2. INCREASING SALES TO SMBS 2
  3. 3. INSIGHT • Qualitative • Focus groups • Workshops • In-depth interviews • Quantitative • Custom online • SMB Pulse omnibus • Snap Poll • Attitudes and usage • Buyer identification • Competitive perceptions • Market segmentation • Media behaviors/ preferences • Message/positioning testing • Net promoter score • Persona/buyer journey • Purchase intent, behaviors, channels and preferences Analytics Output • Crosstab tables • Correlation analysis • Sig testing • Segmentation • Pricing • Path analysis • Factor/cluster analysis • Perceptual mapping Insight for CE/product/ marketing strategy Data for PR/content/social/ collateral programs Topics Methods
  4. 4. OUTREACH Video Email Newsletters Checklists / Worksheets Case Studies Articles Blog Posts White Papers Podcasts eBooks PR Surveys Social Media Handbooks / Guides Webcasts Slideshows Infographics Interactive Tools • Survey data • Creative brief • Editorial calendar • Content development • Content audit • Analytics Contribution • Expert • Actionable • Relevant • Easy to understand • Professional • Brand-building • Custom Principles Direct Mail Event Collateral Brochures / Sell Sheets Custom Pubs 4
  5. 5. WHAT WE’LL COVER Business status Key application usage and purchase plans 1 2 3 Priorities and challenges Credit usage and intent Brand trust 4 5 6 Job site usage and intent Business, tech, credit and hiring outlook among 500 SMB principals in the U.S and tracking change in last six months 5
  6. 6. METHDOLOGY 6 Online survey via the Bredin.com/SMBPulse Principals of U.S. SMBs with up to 500 employees WHEN HOW WHO % Indicates highest % in a column (A) / (B) / (C) Indicates statistically significant difference between columns The SMB Pulse is open to marketer participation November Pulse: October 22 to Nov 10, 2021 May Pulse: May 19 to June 11, 2021 November 2021 Pulse May 2021 Pulse Weighting ∆ needed for significance between waves 1-19 EEs Very Small Businesses or VSBs 250 250 97.7% 9 pts 20-99 EEs Small Businesses or SBs 150 150 2.0% 12 pts 100-500 EEs Mid-sized Businesses or MBs 100 100 0.3% 14 pts Where appropriate, results are compared to May 2021 Pulse Some charts in this deck do not total to 100% due to rounding.
  7. 7. 8% 49% 19% 15% 9% Up by more than 100% Up by 10% to 100% Up by less than 10% Same as 2020 Down compared to 2020 SAMPLE FIRMOGRAPHICS Company Age 2021 Business Outlook Title/Role Company Size 21% 21% 8% 30% 13% 7% 2-9 9% 45% 27% 19% Less than 2 years 2-9 years 10-19 years 20 years or more 250-500 20-99 10-19 Operational Status 79% 18% 3% Open for business; fully operational Open for business on a limited basis Closed, but plan to reopen 1 (just me) 100-249 7 500n 100% Principal (e.g., Owner, Founder, Partner, CEO, President) 25% 20% 17% 21% 12% 5% Less than $100K $100K to $499K $500K to $999K $1M to $4.9M $5M to $10M More than $10M Company Revenue
  8. 8. SAMPLE FIRMOGRAPHICS 8 West 22% South 39% Midwest 20% Northeast 19% Geography 42% 44% 14% Population Density Urban Suburban Rural 25% 27% 35% 13% Manufacturing Construction/ Contracting/Electrical/ Landscape/Plumbing/etc. 18% Manufacturing 5% Transportation and Warehousing 3% Automotive 3% Agriculture/Forestry/Fishing/Mining 2% Computer Hardware/Electronic Equipment 2% Telecommunications 2% Energy/Utilities 1% Pharmaceutical/Medical Devices/Biotechnology 1% Personal Services/Ed Personal Services 9% Education/Training 4% Industry Professional Services Financial Services/Accounting/Bookkeeping 4% Computer Software/Internet 4% Medical/Dental 4% Advertising/Consulting/Design/Mark eting Services 3% Banking/Insurance/Mortgage 3% Computer Services/Consulting 3% Legal 2% Architect/Engineering 1% Publishing/Printing/Media 1% Retail/Wholesale Retail 12% Real Estate 5% Food/Beverage/Restaurants 3% Entertainment/Recreation 2% Wholesale 2% Travel/Hotel/Hospitality 1% 500n
  9. 9. 24% 12% 18% 33% 8% 4% High school or lower grade Trade/technical/vocational training Associate degree Bachelor’s degree Master’s or professional degree Doctorate 78% 10% 6% 2% 1% 2% White/Caucasian Black or African American Hispanic American Asian American/Pacific Islander American Indian or Alaskan Native Multiple ethnicity/other SAMPLE DEMOGRAPHICS 9 29% 41% 30% Democrat Republican Independent Education Level Political Affiliation Race/Ethnicity 2% 23% 39% 32% 3% Gen Z (18 to 22) Millennial (23 to 38) Gen X (39 to 54) Boomer (55 to 73) Silent Gen. (74+) Respondent Age n=500 54% Male 45% Female Gender Non-binary / prefer not to say 1%
  10. 10. DETAILED FINDINGS
  11. 11. EFFECT OF COVID
  12. 12. Which best describes your current company situation, in light of COVID-19? OPERATIONAL STATUS • As in May, about three in four VSBs are fully operational • However, the proportion of SBs and MBs that are now fully open has increased significantly 78% 77% 84% 19% 20% 15% 4% 3% 1% VSBs (A) SBs (B) MBs (C) 12 May 77% C 69% 59% 21% 29% 41% A 2% 2% VSBs (A) SBs (B) MBs (C) November ; VSB (A) SB (B) MB (C)
  13. 13. SPENDING OUTLOOK ■ We are more cost-conscious and will spend more conservatively ■ We are more growth- focused and will spend more aggressively ■ N/A — it hasn’t changed How would you say your company’s spending outlook has changed as a result of COVID-19? • Roughly three in five respondents are more cost-conscious as a result of COVID-19 • However, of the remainder, SBs and MBs are significantly more likely to be growth-focused than VSBs • VSBs have become much more cost-conscious since May 13 41% 8% 52% BC VSBs (A) SBs (B) 60%A 24%A 16%C MBs (C) 70%A 26%A 4% 62% 11% 27%BC 58% 29%A 13% 60% 33%A 7% VSBs (A) SBs (B) MBs (C) November May
  14. 14. How long do you think it will take you to return to your pre-pandemic staffing/headcount? TIMING TO RETURN TO “NORMAL:” STAFFING Total 76% 66% 77% BC 66% BC 47% 56% 35% 48% 6% 6% 18% A 28% A 9% 9% 9% 9% 19% A 19% A 24% A 37% AB 6% 13% 6% 13% 12% A 20% 8% 12% 2% 7% 2% 8% B 3% 3% 4% 3% 1% 4% 1% 4% 1% 3% 1% May (500n) November (500n) May November May November May November Already have First half of this year End of this year 2022 2023 2024 or later • About three-fourths of SMBs expect to return to their pre-pandemic staffing levels by the end of the year (and 85% of MBs) • However, 2021 full staffing expectations have decreased since May, the most among VSBs 14 VSBs (A) SBs (B) MBs (C) 2021 2021 2021 2021
  15. 15. TIMING TO RETURN TO “NORMAL:” REVENUE Total 46% 42% 46% 42% 40% 45% 47% 55% A 7% 6% 17% A 24% A 24% 13% 24% C 13% 20% 26% A 12% 27% A 16% 25% 16% 25% C 17% 22% 11% 14% 4% 10% 4% 10% B 4% 4% 6% 4% 3% 10% 3% 10% BC 2% 3% May (500n) November (500n) May November May November May November Already have First half of this year End of this year 2022 2023 2024 or later • About four in 10 SMBs have already returned to their pre-pandemic revenue, and more than half of MBs • However, fewer SMBs expect to catch up in 2021 than expected to in May, with the greatest falloff among VSBs 15 VSBs (A) SBs (B) MBs (C) 2021 2021 2021 2021 How long do you think it will take you to return to your pre-pandemic revenue?
  16. 16. TIMING TO RETURN TO “NORMAL:” PROFITABILITY Total 51% 41% 51% C 41% 42% C 42% 28% 47% 9% 9% 17% A 30% AB 17% 13% 17% 12% 22% 26% A 26% 32% A 18% 26% 18% 26% 14% 25% 11% 18% 3% 11% 3% 12%BC 4% 5% 3% 2% 3% 9% 3% 9%BC 1% 2% 2% 1% May (500n) November (500n) May November May November May November Already have First half of this year End of this year 2022 2023 2024 or later • Fewer SMBs expect to return to pre-pandemic profitability in 2021 than expected to in May • As with staffing and revenue, the falloff is primarily driven by VSBs 16 VSBs (A) SBs (B) MBs (C) 2021 2021 2021 2021 How long do you think it will take you to return to your pre-pandemic profitability?
  17. 17. OUTLOOK AND CONCERNS
  18. 18. BUSINESS OUTLOOK: TOTAL (1 OF 2) • Despite their delayed revenue and profitability recovery, SMBs are slightly more optimistic than they were in May of this year on all outlook metrics ■ May (500n) ■ November (500n) 66 62 63 42 39 69 64 65 50 47 Business confidence Revenue Profitability Expansion Hiring Very optimistic Very pessimistic 100 0 50 18 Please rate your business outlook from pessimistic to optimistic in each of these areas:
  19. 19. BUSINESS OUTLOOK (1 OF 2) • Their optimism has increased most in expansion and hiring, and slightly less in customer acquisition and purchasing ■ May (500n) ■ November (500n) 56 62 52 50 67 62 62 58 52 68 Very optimistic Very pessimistic 100 0 50 19 Customer acquisition Cash flow Purchasing Capital expenditures Employee retention Please rate your business outlook from pessimistic to optimistic in each of these areas:
  20. 20. BUSINESS OUTLOOK BY SIZE (1 OF 2) • This increase in optimism is reported by businesses of all sizes, with MBs the most optimistic in every metric • However, VSBs and SBs have had the greatest increase in optimism 66 61 63 41 38 74 72 71 62 64 80 79 79 75 73 69 64 65 50 46 79 77 75 67 70 82 80 80 76 75 Business confidence Revenue Profitability Expansion Hiring Very optimistic Very pessimistic 100 0 50 20 VSBs (A) – ■ May ■ Nov SBs (B) – ■ May ■ Nov MBs (C) – ■ May ■ Nov Please rate your business outlook from pessimistic to optimistic in each of these areas:
  21. 21. BUSINESS OUTLOOK BY SIZE (CONTINUED) • VSBs have had the greatest optimism increases in expansion and hiring; SBs, cash flow. • SBs and MBs report slight decreases in optimism about employee retention; MBs in customer acquisition as well 56 62 51 49 67 70 68 66 63 74 79 78 77 75 80 61 62 58 52 68 74 75 70 68 73 77 78 77 75 76 Very optimistic Very pessimistic 100 0 50 21 Customer acquisition Cash flow Purchasing Capital expenditures Employee retention VSBs (A) – ■ May ■ Nov SBs (B) – ■ May ■ Nov MBs (C) – ■ May ■ Nov A AB Please rate your business outlook from pessimistic to optimistic in each of these areas:
  22. 22. 40 31 46 50 38 48 49 39 51 62 50 54 BUSINESS CONCERNS: TOTAL Cyberattacks / data security breaches Natural disasters Government regulations Inflation Interest rates Tax changes 100 0 50 Extremely concerned/worried Not at all concerned/worried • Interestingly, although SMBs are generally more optimistic about their business outlook, they have higher levels of concerns – especially regarding inflation, interest rates and cyberattacks ■ May (500n) ■ November (500n) 22 Please rate your level of concern about how each of these might affect your business:
  23. 23. 40 31 45 50 38 48 56 45 58 61 54 59 71 64 70 70 71 72 49 38 51 61 49 54 61 52 59 66 60 64 66 59 64 70 64 68 BUSINESS CONCERNS BY COMPANY SIZE Cyberattacks / data security breaches Natural disasters Government regulations Inflation Interest rates Tax changes 100 0 50 Extremely concerned/worried Not at all concerned/worried • The increase in concerns are primarily driven by VSBs and SBs • MBs are generally slightly less concerned than they were in May 23 VSBs (A) – ■ May ■ Nov SBs (B) – ■ May ■ Nov MBs (C) – ■ May ■ Nov A AB AB A A A A A A A Please rate your level of concern about how each of these might affect your business:
  24. 24. PRIORITIES AND CHALLENGES
  25. 25. 54% 54% 50% 48% 43% 41% 36% 36% 33% 33% 33% 32% 30% 29% 26% 26% 19% 15% 86% 80% 77% 70% 73% 79% 73% 53% 60% 55% 54% 54% 43% 57% 44% 42% 42% 32% May (500n) November (500n) BUSINESS PRIORITIES % Very Important • Overall, staying in business is most important to SMBs, as it was in May • Customer retention and acquisition are close behind, with more than three-quarters rating them very important How important are each of these business issues or tasks? Staying in business Retaining customers Finding new customers Keeping our data secure Managing costs Maintaining cash flow Keeping current on customer preferences Complying with govt. and industry regulations Retaining good employees Coping with uncertainty Cost or availability of raw material/ supplies/ inventory Keeping current on technology Dealing with competition Maximizing employee productivity Finding good employees/ attracting top talent Developing new prod & srvcs/ entering new markets Access to capital/ loans/credit Creating a diverse workforce +32% +26% +27% +22% +30% +38% +37% +17% +27% +22% +21% +22% +13% +28% +18% +16% +23% +17% 25
  26. 26. November – % Very Important VSBs (A) SBs (B) MBs (C) Staying in business C 32% C 21% 7% Retaining customers C 27% 15% 11% Finding new customers 27% 17% 5% Keeping our data secure 22% A 21% 2% Managing costs C 30% 11% -5% Maintaining cash flow C 38% C 25% -9% Keeping current on customer preferences 37% 23% 11% Complying with govt. and industry regulations 17% A 17% -1% Retaining good employees 28% AC 21% A 13% Coping with uncertainty 23% 8% AB 14% Cost or availability of raw material/supplies/inventory 21% 13% -1% Keeping current on technology 21% A 16% A 9% Dealing with competition 13% A 7% -7% Maximizing employee productivity 29% A 9% A 11% Finding good employees/attracting top talent 18% A 7% A 3% Developing new prod & srvcs/entering new markets 16% 1% A -2% Access to capital/loans/credit 23% A 29% A 17% Creating a diverse workforce 17% A 10% A -1% 83% 77% 77% 80% 69% 78% 78% 68% 86% 53% 63% 67% 56% 70% 69% 51% 67% 51% 71% 68% 73% 70% 59% 60% 74% 59% 75% 67% 64% 73% 51% 70% 62% 60% 71% 58% 86% 80% 77% 70% 73% 79% 73% 52% 60% 55% 54% 53% 43% 57% 43% 42% 42% 32% How important are each of these business issues or tasks? BUSINESS PRIORITIES BY COMPANY SIZE 26 • The top priority for VSBs is staying in business, followed by retaining customers and maintaining cash flow • For SBs and MBs, the top priority is retaining good employees Change from May Change from May Change from May 1 2 3 2 3 1 1 2 3
  27. 27. SPENDING OUTLOOK
  28. 28. 10% 7% 6% 6% 7% 10% 6% 8% 6% 7% 5% 6% 5% 6% 4% 7% 31% 32% 24% 18% 21% 18% 20% 18% 21% 19% 13% 19% 15% 14% 17% 12% 42% 39% 30% 24% 28% 28% 26% 27% 27% 25% 17% 25% 20% 20% 21% 19% How do you anticipate your company’s spending on these products and services in 2021 will compare to 2020? 7% 6% 5% 5% 3% 4% 3% 4% 4% 3% 4% 2% 2% 2% 3% 3% 21% 17% 11% 12% 13% 11% 11% 10% 9% 9% 8% 9% 7% 6% 6% 5% 28% 22% 16% 16% 16% 15% 14% 14% 13% 12% 12% 11% 9% 9% 8% 8% PCs/laptops/desktop computers Internet access Marketing/e-commerce applications Videoconferencing software Accounting/financial management software Document creation, storage/backup, sharing… Merchant processing IT/data security solutions Design/illustration software Loan or line of credit Telecoms/VoIP service Customer service software CRM/salesforce automation software Hiring sites/job boards Collaboration software Payroll/PEO/HCM/workforce scheduling… Increase significantly Increase somewhat SPENDING OUTLOOK: TOTAL Net • Further showing their optimism, the SMB spending outlook across all categories has significantly increased since May, especially for Internet access, computers, customer service software and marketing/e-commerce applications May (500n) Net November (500n) Increase in Anticipated Spending +14% +17% +14% +8% +12% +13% +12% +13% +14% +13% +5% +14% +11% +11% +13% +11% 28
  29. 29. November – % Increase Significantly/Somewhat VSBs (A) SBs (B) MBs (C) PCs/laptops/desktop computers 14% 17% -6% Internet access 17% 7% -10% IT/data security solutions 13% 13% -5% Videoconferencing software 8% -2% -10% Marketing/e-commerce applications 14% -1% -13% Document creation, storage/backup, sharing... 13% 9% -6% Accounting/financial management software 12% 16% -1% Merchant processing 12% 5% -9% Telecoms/VoIP service 5% 8% -4% Loan or line of credit 13% 9% -9% Design/illustration software 15% 6% -12% Customer service software 14% 14% -3% Payroll/PEO/HCM/workforce scheduling apps/srvcs 11% 15% -6% CRM/salesforce automation software 11% 7% -15% Collaboration software 12% 11% -1% Hiring sites/job boards 12% 6% -11% 41% 39% 26% 24% 29% 27% 27% 25% 17% 25% 27% 24% 18% 19% 20% 19% 63% 51% 57% 45% 48% 53% 56% 50% 41% 49% 45% 54% 55% 48% 52% 51% 69% 66% 72% 66% 66% 66% 72% 59% 64% 65% 60% 71% 68% 65% 70% 66% SPENDING OUTLOOK BY COMPANY SIZE 29 Change from May Change from May Change from May How do you anticipate your company’s spending on these products and services in 2021 will compare to 2020? • In every case, spending plans increase significantly with company size • VSBs and SBs will increase spending most on computers; MBs, IT/data security solutions and accounting and financial management software A AB AB AB AB AB AB A AB AB AB AB AB AB AB AB A A A A A A A A A A A A A A A A 1 2 3 1 2 3 3 1 1
  30. 30. APPLICATION USAGE AND INTENT
  31. 31. Please select all of the applications/software, services or technologies your business has. APPLICATION USAGE • SMBs are most likely to use Internet access, computers and financial management software • Significantly more report using financial management software, document management software, merchant processing, loans/LOCs, marketing/e-commerce software, customer service software and design software than in May 79% 71% 34% 31% 30% 24% 21% 20% 18% 17% 15% 13% 12% 11% 8% 76% 63% 48% 40% 29% 31% 25% 27% 19% 22% 26% 23% 12% 26% 17% May (500n) November (500n) Internet access PCs/ laptops/ desktop computers Accounting/ financial management software Document creation, storage/ backup, sharing and signing software Video- conferencing software Merchant processing IT/data security solutions Loan or line of credit Telecoms/ VoIP service Payroll/ PEO/ HCM/workforce scheduling applications or services Marketing/ e-commerce applications Customer service software Collaboration software Design/ illustration software CRM/ salesforce automation software 31
  32. 32. APPLICATION USAGE BY COMPANY SIZE 32 Please select all of the applications/software, services or technologies your business has. • Of all the application/software surveyed, the biggest increase in usage vs. May is in financial management software for companies of all sizes 76% 63% 47% 40% 29% 24% 31% 18% 26% 21% 26% 26% 22% 12% 16% Change from May Change from May Change from May 73% 61% 69% 51% 42% 51% 43% 32% 37% 50% 32% 32% 44% 29% 45% 65% 53% 67% 36% 30% 52% 24% 32% 37% 48% 37% 24% 42% 29% 54% November VSBs (A) SBs (B) MBs (C) Internet access C -3% 7% 7% PCs/laptops/desktop computers -8% -9% 2% Accounting/financial management software 13% A 16% A 22% Document creation, storage/backup, sharing... 8% AC 7% -5% Videoconferencing software 0% A -4% -18% IT/data security solutions 4% A -1% A -16% Merchant processing 8% AC 8% -12% Telecoms/VoIP service 1% A -3% A -8% Loan or line of credit 7% A 10% A 4% Payroll/PEO/HCM/workforce scheduling apps/srvcs 5% A 3% A 0% Marketing/e-commerce applications 11% 3% A -6% Design/illustration software 15% 7% -1% Customer service software 10% A 5% A -15% Collaboration software 0% A 4% A -10% CRM/salesforce automation software 9% A 8% A 3%
  33. 33. APPLICATION UPGRADE INTENT: TOTAL 27% 25% 24% 20% 17% 15% 15% 15% 13% 13% 11% 11% 11% 10% 10% 34% 36% 32% 42% 39% 34% 33% 32% 24% 35% 33% 24% 30% 25% 42% 13% 15% 7% 18% 8% 17% 14% 15% 18% 19% 31% 12% 13% 19% 16% 26% 24% 38% 19% 36% 34% 37% 37% 45% 32% 25% 53% 47% 46% 32% Collaboration software (62n) CRM/salesforce automation software (83n) IT/data security solutions (125n) Customer service software (113n) Marketing/e-commerce applications (131n) Payroll/PEO/HCM/workforce sched. apps/srvcs (109n) Document creation, storage/backup, sharing... (199n) Loan or line of credit (133n) Telecoms/VoIP service (94n) Accounting/financial management software (239n) PCs/laptops/desktop computers (316n) Internet access (382n) Merchant processing (157n) Videoconferencing software (147n) Design/illustration software (129n) 50% By the end of 2021 In 2022 n=varies Don’t know/ no plans/ never After 2022 33 IF USE When are you most likely to upgrade these applications/software, services or technologies? Please pick the most likely option. • The solutions most likely to be upgraded by 2022 are collaboration software, CRM software and customer service software November
  34. 34. 58% 52% 51% 51% 42% 40% 37% 37% 36% 36% 35% 35% 34% 29% 12% Marketing/e-commerce applications (76n) CRM/salesforce automation software (40n) IT/data security solutions (104n) Design/illustration software (54n) Customer service software (65n) Merchant processing (119n) Loan or line of credit (99n) Payroll/PEO/HCM/workforce sched. apps/srvcs (84n) PCs/laptops/desktop computers (357n) Videoconferencing software (150n) Accounting/financial management software (172n) Collaboration software (62n) Document creation, storage/backup, sharing... (157n) Internet access (394n) Telecoms/VoIP service (90n) 2021-2022 APPLICATION UPGRADE INTENT: CHANGE VS. MAY n=varies “By the end of 2021” + “In 2022” (Net) IF USE When are you most likely to upgrade these applications/software, services or technologies? (IN 2021-2022) • Among those using software/applications, the ones most likely to be upgraded by 2023 are customer service software followed by CRM and collaboration software – the latter of which saw the biggest increase in intent vs. May 56% 61% 55% 52% 62% 40% 47% 49% 44% 35% 48% 61% 49% 35% 37% Marketing/e-commerce applications (131n) CRM/salesforce automation software (83n) IT/data security solutions (125n) Design/illustration software (129n) Customer service software (113n) Merchant processing (157n) Loan or line of credit (133n) Payroll/PEO/HCM/workforce sched. apps/srvcs (109n) PCs/laptops/desktop computers (316n) Videoconferencing software (147n) Accounting/financial management software (239n) Collaboration software (62n) Document creation, storage/backup, sharing... (199n) Internet access (382n) Telecoms/VoIP service (94n) 34 May November 2 2 1 Change in Plans to Upgrade -2% +9% +4% +1% +20% 0% +10% +12% +8% -1% +13% +26% +15% +6% +25%
  35. 35. 2022 APPLICATION UPGRADE INTENT BY COMPANY SIZE 35 n=varies IF USE When are you most likely to upgrade these applications/software, services or technologies? (IN 2022) • Overall, VSBs are most likely to upgrade design, customer service and marketing/e-commerce software in 2022 • SBs are most likely to upgrade collaboration, customer service and marketing/e-commerce software • MBs are most likely to upgrade design, customer service and their loan/line of credit 38% 42% 31% 32% 42% 33% 25% 29% 32% 34% 33% 35% 35% 24% 24% Change from May Change from May Change from May 48% 42% 41% 45% 48% 51% 35% 42% 34% 31% 35% 47% 46% 31% 31% 46% 71% 44% 43% 64% 48% 53% 50% 59% 42% 42% 36% 50% 43% 41% November VSBs (A) SBs (B) MBs (C) Marketing/e-commerce applications 11% 18% 4% Design/illustration software 15% 13% AB 31% IT/data security solutions 5% 12% 3% PCs/laptops/desktop computers 7% A 14% 12% Customer service software 19% 9% A 29% Collaboration software 10% 24% 18% Videoconferencing software 3% 4% A 14% Merchant processing 11% 15% 6% Loan or line of credit 13% 5% AB 14% Payroll/PEO/HCM/workforce scheduling app/srvcs 19% 1% 8% Document creation, storage/backup... 19% 3% 0% Accounting/financial management software 21% 17% -2% CRM/salesforce automation software 24% 19% 7% Internet access 11% 3% A 5% Telecoms/VoIP service 19% -6% 8% 1 2 1 1 2 2 1 3 2
  36. 36. • Most application non-users have no adoption plans, except for Internet access and computers, followed by document creation/sharing/backup solutions APPLICATION ADOPTION INTENT: TOTAL n=varies 36 IF DON’T USE When are you most likely to adopt these applications, services or technologies? Please pick the most likely option in each row; pick the soonest option if you will do any given thing multiple times. 32% 16% 8% 7% 7% 7% 6% 6% 6% 5% 5% 5% 5% 4% 4% 18% 33% 18% 26% 21% 18% 19% 20% 19% 15% 17% 26% 23% 15% 16% 12% 19% 13% 15% 12% 9% 15% 12% 12% 11% 10% 11% 12% 11% 13% 38% 32% 61% 52% 61% 67% 60% 63% 64% 69% 68% 58% 60% 70% 67% Internet access (118n) PCs/laptops/desktop computers (184n) IT/data security solutions (375n) Document creation, storage/backup, sharing... (301n) Merchant processing (343n) Design/illustration software (371n) Loan or line of credit (367n) Videoconferencing software (353n) Collaboration software (438n) Telecoms/VoIP service (406n) Customer service software (388n) Accounting/financial management software (261n) Marketing/e-commerce applications (369n) Payroll/PEO/HCM/workforce sched. apps/srvcs (391n) CRM/salesforce automation software (417n) 50% By the end of 2021 In 2022 Don’t know/ no plans/ never After 2022 November
  37. 37. 2021-2022 APPLICATION ADOPTION INTENT: CHANGE SINCE MAY n=varies IF DON’T USE When are you most likely to adopt these applications, services or technologies? (IN 2021-2022) • Among those not using software/applications, the ones most likely to be adopted by 2023 are Internet access and computers, followed by document creation/storage/backup solutions 35% 34% 23% 20% 19% 19% 17% 14% 14% 14% 12% 12% 12% 11% 11% PCs/laptops/desktop computers (143n) Internet access (106n) Accounting/financial management software (328n) Document creation, storage/backup, sharing... (343n) Marketing/e-commerce applications (424n) IT/data security solutions (396n) Videoconferencing software (350n) Telecoms/VoIP service (410n) Merchant processing (381n) Collaboration software (438n) Customer service software (435n) Design/illustration software (446n) Payroll/PEO/HCM/workforce sched. apps/srvcs (416n) CRM/salesforce automation software (460n) Loan or line of credit (401n) 49% 50% 31% 33% 27% 26% 26% 20% 27% 24% 22% 24% 19% 21% 25% PCs/laptops/desktop computers (184n) Internet access (118n) Accounting/financial management software (261n) Document creation, storage/backup, sharing... (301n) Marketing/e-commerce applications (369n) IT/data security solutions (375n) Videoconferencing software (353n) Telecoms/VoIP service (406n) Merchant processing (343n) Collaboration software (438n) Customer service software (388n) Design/illustration software (371n) Payroll/PEO/HCM/workforce sched. apps/srvcs (391n) CRM/salesforce automation software (417n) Loan or line of credit (367n) 37 May November “By the end of 2021” + “In 2022” (Net) 3 2 1 Change in Plans to Adopt +14% +16% +8% +13% +8% +7% +9% +6% +13% +10% +10% +12% +7% +10% +14%
  38. 38. 2022 APPLICATION ADOPTION INTENT BY COMPANY SIZE 38 n=varies IF DON’T USE When are you most likely to adopt these applications, services or technologies? (IN 2022) • Adding new computers is in the top three technologies that businesses plan to adopt in 2022, regardless of size • VSBs and SBs also mention adopting financial management software; MBs mention CRM and payroll solutions 33% 17% 22% 26% 19% 26% 20% 18% 15% 18% 16% 17% 17% 15% 18% Change from May Change from May Change from May 39% 45% 39% 36% 36% 39% 29% 34% 31% 36% 31% 35% 31% 35% 41% 51% 37% 38% 42% 39% 33% 47% 33% 41% 39% 57% 40% 47% 52% 43% November VSBs (A) SBs (B) MBs (C) PCs/laptops/desktop computers 20% 0% A -16% Internet access 5% A 5% A 1% Marketing/e-commerce applications 10% A 17% A -1% Document creation, storage/backup... 16% 1% A 12% Videoconferencing software (350n) 10% A 7% A -19% Accounting/financial management software 17% 3% 2% Merchant processing 13% -3% AB 7% IT/data security solutions 10% A 4% A -7% Telecoms/VoIP service 8% A -1% A -7% Collaboration software 12% A 2% A -10% CRM/salesforce automation software 10% A -2% AB 14% Customer service software 11% A 8% A -14% Design/illustration software 13% A 6% AB 10% Payroll/PEO/HCM/workforce scheduling apps/srvcs 10% A 3% A 10% Loan or line of credit 14% A 11% A -14% 2 1 2 1 2 3 1 3 2 3 3
  39. 39. CREDIT USAGE AND INTENT
  40. 40. Do you have a loan or line of credit? CREDIT USAGE AND INTENT: TOTAL 80% 73% 20% 27% May (500n) November (500n) Yes No 19% 15% 19% 32% 14% 15% 48% 37% May (99n) November (133n) By the end of 2021 In 2022 After 2022 Don’t know/ no plans/never If Yes If No 71% 19% 10% 56% 20% 24% A traditional bank An alternative or online lender like Kabbage, etc. A credit union May (44n) November (155n) • Overall, one-quarter of SMBs have a loan or line of credit – an increase since May • Of those, about half say they’ll upgrade by 2022; of those without, one-quarter expect to have one by end of 2022 When are you most likely to upgrade your LOC or loan? When are you most likely to apply for a LOC or loan? 6% 6% 5% 19% 7% 15% 82% 60% May (401n) November (367n) By the end of 2021 In 2022 After 2022 Don’t know/ no plans/never IF APPLYING FOR A NEW LOAN OR UPGRADING IN 2021 Where are you most likely to apply for a loan or line of credit? 40
  41. 41. CREDIT USAGE AND INTENT BY COMPANY SIZE (1 OF 2) 80% 74% 73% 63% 67% 63% 20% 26% 27% 37% 33% 37% May Nov May Nov May Nov Yes No 18% 15% 22% 21% 36% 30% 18% 32% 29% 34% 45% 59% 14% 15% 10% 25% 12% 5% 49% 38% 39% 20% 6% 5% May Nov May Nov May Nov • SBs and MBs are more likely to have loans than are VSBs • Credit usage and intent have all increased since May When are you most likely to upgrade your LOC or loan? When are you most likely to apply for a LOC or loan? 41 By the end of 2021 In 2022 After 2022 Don’t know/ no plans/never VSBs (A) SBs (B) MBs (C) VSBs (A) SBs (B) MBs (C) 6% 6% 23% 15% 28% 30% 4% 18% 30% 41% 57% 43% 7% 15% 9% 10% 7% 10% 83% 61% 38% 34% 7% 17% May Nov May Nov May Nov A A A AB BC C A AB A A BC C A C C AB C BC BC A A C A Do you have a loan or line of credit?
  42. 42. IF APPLYING FOR A NEW LOAN OR UPGRADING IN 2021 Where are you most likely to apply for a loan or line of credit? CREDIT USAGE AND INTENT BY COMPANY SIZE (CONTINUED) • SMBs are most likely to say they’ll apply for loans at traditional banks, but more say they’ll apply at a credit union than in May. Also, fewer MBs say they’ll pursue loans at alternative lenders than indicated so in May 42 VSBs (A) SBs (B) MBs (C) 42% 42% B 16% 53% 16% 30% May Nov 71% C 19% 10% 57% 20% 24% A traditional bank An alternative or online lender like Kabbage or Lendio A credit union 74% C 18% 9% 55% 14% 31%
  43. 43. JOB SITE USAGE AND INTENT
  44. 44. Which best describes your use of hiring sites/job boards such as CareerBuilder, Dice, Indeed, LinkedIn, ZipRecruiter, etc.? • Very few of these SMBs are using hiring sites/job boards – less than one in 10 overall. • However, a greater number say they have used them in the past than in May 7% 1% 4% 5% 8% 6% 4% 66% Currently using, and plan to continue using as needed Currently using, but have no plans to continue using after this use Have used in the past, and plan to use again sometime after this year Have used in the past, and plan to use again this year Have used in the past, but no plans to use again Have never used, but plan to use sometime after this year Have never used, but plan to use this year Have never used, and have no plans to use JOB SITE USAGE: TOTAL Have used in the past Have never used Currently using 7% 2% 9% 12% 8% 10% 6% 46% May (500n) November (500n) 44 8% 9% 17% 29% 76% 62%
  45. 45. 7% 2% 9% 12% 8% C 10% 6% 46% BC 32% A 9% A 11% 14% 6% 8% 7% 13% 34% A 7% A 16% 9% 2% 13% 7% 12% VSBs (A) SBs (B) MBs (C) Which best describes your use of hiring sites/job boards such as CareerBuilder, Dice, Indeed, LinkedIn, ZipRecruiter, etc.? • Current job site usage is significantly higher by SBs and MBs than VSBs • Over half of VSBs are non-users JOB SITE USAGE BY COMPANY SIZE Have used in the past Have never used Currently using 6% 1% 4% 4% 8% 6% 4% 67% BC 23% A 9% A 11% A 15% A 12% 6% 9% A 15% C 29% A 21% AB 13% A 10% A 12% 6% 5% 4% Currently using, and plan to continue using as needed Currently using, but have no plans to continue using after this use Have used in the past, and plan to use again sometime after this year Have used in the past, and plan to use again this year Have used in the past, but no plans to use again Have never used, but plan to use sometime after this year Have never used, but plan to use this year Have never used, and have no plans to use May November 45
  46. 46. BRAND TRUST
  47. 47. BRAND TRUST VS. AWARENESS: TOTAL 47 % Trust very/somewhat % Aware 8x8 Adobe Amazon/AWS American Express Apple AT&T Box Carbonite CenturyLink Cisco Comcast Dell DocuSign Dropbox Facebook Freshbooks GoDaddy Google Gusto HubSpot Indeed.com Instagram Intuit Kronos/UKG LinkedIn Mailchimp Mastercard Microsoft NetSuite Ooma Paychex PayPal Pinterest RingCentral Salesforce Shopify Slack Sprint/T-Mobile Square Stripe Verizon Visa Vonage Wordpress Workday Zendesk ZipRecruiter Zoho Zoom 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% November (500n) • Awareness corresponds strongly with trust • Visa, Mastercard and PayPal are the most trusted brands overall, followed by Microsoft and Adobe
  48. 48. 11%10% 13%14%12%12% 17%18%18% 15% 18%18% 23% 16% 28% 34% 23% 29% 26% 40% 49% 58% 34% 32% 49% 56%55% 58% 41% 60%60%60% 67% 62% 69% 67% 75% 72%73% 79% 75% 14%15%16% 18%18% 20%21%23%23% 25%26%27% 30%30%31% 35%35% 40%40% 43% 50%50%52% 54%55%56% 58% 60%60% 64%66%66%66%66%66%68%69%70%71% 73%73% 76%76%78% 82%82% 87%88%88% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% May 2021 November 2021 BRAND TRUST: VSBS Please rate how much you trust each of these brands: • Among VSBs, there is a large range of brand trust, from 14% to 88% • Trust has generally increased since May, with some notable jumps such as Indeed, Shopify and Square 48
  49. 49. 41% 36% 49% 45% 47%47% 44% 55%54%55% 52% 60% 54% 56% 66% 69% 52% 58% 69% 76% 70% 69% 72%71% 75% 73% 75% 73% 69% 83% 80% 83% 85%84% 81% 85%86% 85% 90% 83% 91% 35% 37% 41%42% 45%46%47% 49%50% 52% 54%54%55% 57%59%60%61%61% 65%67%67%67% 72%73%73% 75%76%77%77%78%79%79%79%79%80%80% 82%82%83%83%84%85%86%87%88%89%89%89%90% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% May 2021 November 2021 BRAND TRUST: SBS Please rate how much you trust each of these brands: • Brand trust is generally higher among SBs than VSBs, with a smaller range – from 35% to 90% • Trust has also changed less among SBs than VSBs since May, and with more decreases in trust 49
  50. 50. 73% 67% 77% 68% 65% 75%75% 80% 84% 77% 72% 78% 84%84%83%82% 80% 89% 86%86% 89% 82% 90%91% 90% 90% 83% 87% 92% 94% 96% 93%93% 91%92% 93%94%94% 95%94% 92% 60%61%62% 64%64%64% 69%70%70%70%71%71%72%73%74% 77%77%78% 80%80%80%80%81%81%81%81% 83%83%83%84%84%84% 88%88%89%89%90%91%91%91%91%92%92%92%92%93%94%94%95% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% May 2021 November 2021 BRAND TRUST: MBS Please rate how much you trust each of these brands: • Brand trust is generally higher still among MBs, with a smaller range – from 60% to 95% • MBs also report the largest decrease in trust of the three size groups 50
  51. 51. 99% 79% 80% 70% 75% Gen Z Millennial Gen X Boomers Greatest Generation Generation 78% 73% 79% 72% West Midwest South Northeast Region 76% 83% 95% VSBs SBs MBs Company Size BRAND TRUST: 51 63% 78% 87% 79% Professional Services Retail/Wholesale Manufacturing Edu/Personal services Industry Group 86% 66% 63% <10 years 10-19 years 20 years or more Age of Business 66% 79% 83% No Growth Slow Growth Fast Growth Business Outlook
  52. 52. BRAND TRUST: 52 82% 68% 79% 79% 67% 64% High school or lower grade Trade/technical/vocationa l training Associate degree Bachelor’s degree Master’s or professional degree Doctorate Education Level 84% 75% 72% Democrat Independent Republican Political Affiliation
  53. 53. Research • Product / go-to-market strategy / CE / NPS • Persona / buyer journey • Original data for standout content and PR Strategy • Content strategy • Creative brief / ed cal Content • Original content development • Exclusive SMB focus HOW BREDIN CAN HELP Stu Richards, CEO stu@bredin.com Work with the experts in SMB insight and engagement 53
  54. 54. THANK YOU

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