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The Six Secrets to
                                 Selling to SMBs

                        Ivy Worldwide SMB technology
                             purchasing survey results


                                             August 2010



info@ivyworldwide.com
SMB Secrets: #1


Search still rules                               Which resources do you rely on for
                                                  making business purchases?*
• Like consumers, search engines        60%
                                              49%
                                                                            54%          52%
                                        50%
  are SMB technology buyers’                                                                     Search engines
                                        40%                   35% 34%
  primary resource for                                                                           Review sites
                                        30%
  product/service discovery             20%
                                                                                                 Blogs/forums
                                                                                                 Traditonal media
                                        10%
                                                                                                 Twitter/ Facebook
• With search results in hand,           0%
                                               First choice    Second      Third        Fourth
  SMBs lean heavily on word-of-
  mouth referral                         Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602)

                                           *Respondents able to submit multiple selections

• Chief resources for word-of-
  mouth referral are blogs and
  forums (34%) and third-party
  reviews (35%)

                                   ©2010 Ivy Worldwide
SMB Secrets: #2


Third-party endorsement guides                           What considerations weigh most
                                                         heavily when making purchasing
  decision-making                                          decisions for your business ?
                                                                      Vendor
                                                                        9%

• Getting found in search engine                               Support
                                                                 15%
  results merely builds the                                                    Price/TCO
                                                                                  33%
  consideration set
                                                            Dual-utility                   Positive
                                                               18%                         Referral
                                                                                            25%
• Price/TCO important, as always
                                              Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602)


• Nearly 1 in 5 (18%) base their
  purchasing decisions on products or
  services that have utility in both
  business and personal contexts

                                   ©2010 Ivy Worldwide
SMB Secrets: #3


Social for SMB isn’t what                        Which resource do you rely on most
                                                     for product information?
 you think it is                           40%       34%
                                                                 29%
                                           30%                               23%
                                           20%
• Surprisingly, traditional media          10%
                                                                                            9%
                                                                                                         5%
  (9%) and Twitter/Facebook                 0%
  (5%) are minimal factors in                    Blogs/forums   Search    Review sites   Traditonal    Twitter/
                                                                engines                    media      Facebook
  purchasing decisions
                                           Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602)


• Many suggest these resources
  lack the detail and timeliness
  necessary for making such
  decisions

                               ©2010 Ivy Worldwide
SMB Secrets: #4


Business = personal =
business
• SMBs act like value-conscious
  consumers when buying
  technology…

• Akin to consumer technology
  buyers in that price (33%) and
  third-party referral (25%)
  strongly influence their decisions

• Setting them apart is preference
  for meeting business/personal
  dual-use potential

                                  ©2010 Ivy Worldwide
SMB Secrets: #5


                                                           Which companies are effective in
Room for improvement?                                   marketing to you as an SMB purchaser?*
  That’s putting it lightly…                                                                *Unaided response


                                                                                    HP
                                                                      Microsoft
• Most large companies miss the                                         19%
                                                                                   17%


  mark when marketing to SMBs                                                             Dell
                                                                                          14%
                                                                   Other
                                                                    30%
   o Slightly more than 75% of SMBs
                                                                                          Lenovo
     feel they’re not effectively                           No preference           IBM     9%
                                                                              Apple
     marketed to by the companies                                3%            3%    5%

     that target them                        Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602)




• Only one software company was
  named in unaided responses

                                  ©2010 Ivy Worldwide
SMB Secrets: #6


Brick and mortar is busted

• 70% tend to purchase online

• Preference for tailored service:
  Retailers (17%) and resellers
  (14%) are preferred for support
  and convenience

• Exceptions to online preference
  are desire for hands-on
  experience or need for especially
  quick acquisition

                                 ©2010 Ivy Worldwide
Respondent overview


• 95% have annual operating
  revenues of US$2M or less
• 80% deliver services; 20% products
• 53% have been in operation for 3
  years or fewer
• 54% work at home or otherwise
  virtually, while 40% work on-site*
• 1 in 5 operate in multiple languages,
  including English
• Respondents operate globally*: N.
  America (57%), Europe/Asia (27%
  ea.), S. America (7%), Africa (4%)
• Average 12 FTEs and 3 or fewer
  contractors
*Responses do not total 100% due to ability to submit multiple selections


                                                                        ©2010 Ivy Worldwide
Methodology


• Ivy Worldwide surveyed SMB owners and purchasers worldwide

• Over 1000 responses were collected and analyzed for relevance to
  SMB purchase decision-makers


• Of those, 602 qualifying responses were then analyzed regarding
  SMB purchasing habits


• More than 96% of respondents have direct input into or final
  purchasing decision-making responsibility


                              ©2010 Ivy Worldwide
info@ivyworldwide.com

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Ivy worldwide - Six secrets to selling to SMB

  • 1. The Six Secrets to Selling to SMBs Ivy Worldwide SMB technology purchasing survey results August 2010 info@ivyworldwide.com
  • 2. SMB Secrets: #1 Search still rules Which resources do you rely on for making business purchases?* • Like consumers, search engines 60% 49% 54% 52% 50% are SMB technology buyers’ Search engines 40% 35% 34% primary resource for Review sites 30% product/service discovery 20% Blogs/forums Traditonal media 10% Twitter/ Facebook • With search results in hand, 0% First choice Second Third Fourth SMBs lean heavily on word-of- mouth referral Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) *Respondents able to submit multiple selections • Chief resources for word-of- mouth referral are blogs and forums (34%) and third-party reviews (35%) ©2010 Ivy Worldwide
  • 3. SMB Secrets: #2 Third-party endorsement guides What considerations weigh most heavily when making purchasing decision-making decisions for your business ? Vendor 9% • Getting found in search engine Support 15% results merely builds the Price/TCO 33% consideration set Dual-utility Positive 18% Referral 25% • Price/TCO important, as always Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Nearly 1 in 5 (18%) base their purchasing decisions on products or services that have utility in both business and personal contexts ©2010 Ivy Worldwide
  • 4. SMB Secrets: #3 Social for SMB isn’t what Which resource do you rely on most for product information? you think it is 40% 34% 29% 30% 23% 20% • Surprisingly, traditional media 10% 9% 5% (9%) and Twitter/Facebook 0% (5%) are minimal factors in Blogs/forums Search Review sites Traditonal Twitter/ engines media Facebook purchasing decisions Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Many suggest these resources lack the detail and timeliness necessary for making such decisions ©2010 Ivy Worldwide
  • 5. SMB Secrets: #4 Business = personal = business • SMBs act like value-conscious consumers when buying technology… • Akin to consumer technology buyers in that price (33%) and third-party referral (25%) strongly influence their decisions • Setting them apart is preference for meeting business/personal dual-use potential ©2010 Ivy Worldwide
  • 6. SMB Secrets: #5 Which companies are effective in Room for improvement? marketing to you as an SMB purchaser?* That’s putting it lightly… *Unaided response HP Microsoft • Most large companies miss the 19% 17% mark when marketing to SMBs Dell 14% Other 30% o Slightly more than 75% of SMBs Lenovo feel they’re not effectively No preference IBM 9% Apple marketed to by the companies 3% 3% 5% that target them Source: Ivy Worldwide 2010 SMB technology purchasing survey (n=602) • Only one software company was named in unaided responses ©2010 Ivy Worldwide
  • 7. SMB Secrets: #6 Brick and mortar is busted • 70% tend to purchase online • Preference for tailored service: Retailers (17%) and resellers (14%) are preferred for support and convenience • Exceptions to online preference are desire for hands-on experience or need for especially quick acquisition ©2010 Ivy Worldwide
  • 8. Respondent overview • 95% have annual operating revenues of US$2M or less • 80% deliver services; 20% products • 53% have been in operation for 3 years or fewer • 54% work at home or otherwise virtually, while 40% work on-site* • 1 in 5 operate in multiple languages, including English • Respondents operate globally*: N. America (57%), Europe/Asia (27% ea.), S. America (7%), Africa (4%) • Average 12 FTEs and 3 or fewer contractors *Responses do not total 100% due to ability to submit multiple selections ©2010 Ivy Worldwide
  • 9. Methodology • Ivy Worldwide surveyed SMB owners and purchasers worldwide • Over 1000 responses were collected and analyzed for relevance to SMB purchase decision-makers • Of those, 602 qualifying responses were then analyzed regarding SMB purchasing habits • More than 96% of respondents have direct input into or final purchasing decision-making responsibility ©2010 Ivy Worldwide