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SMB Insights 2015
INFLUENTIAL SMBs: THE MOUTHPIECE OF THE SMB MARKET
2015 Research Method
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National Market Study
5-499 Sized Companies
Telephone/Internet Interviews
1,354 Interviews (176 Influentials)
Owner/Partner C-Suite Titles
Fielded January 2015
In each city across the U.S., there are those who see it as their mission to speak out for the good of their communities. These are people who want to make a difference; who want to make things better. These ‘Influential’ people are highly concentrated among small and mid-sized business owners (26% vs. 2% among all U.S. adults). Influential SMBs are opinion leaders and decision makers – the sweet spot for stimulating change in the SMB marketplace. Why Do Influentials Speak Out? • Not only do Influentials see themselves as leaders and visionaries, they are also change agents.
Influentials are strongly motivated by new ideas and creating efficient ways of conducting business.
• Influentials are highly optimistic about the success of their businesses, as well as the success of U.S. itself. Thus, they like to share the positivity of their views, and speak out to make sure everything moves in a good direction.
• Their businesses are front and center in their lives, and ‘respect’ is a cornerstone of how they like to work and who they prefer to do business with.
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Executive Summary
What Areas & Issues are Especially Topical for Influentials? • Influentials keep a keen eye on growing their businesses, and clearly have been successful given their
high sales growth. They are focused on both customer retention and lead generation.
• Their marketing strategies and tactics are complimented by their concern about managing fixed costs, such as employee benefits. They are also concerned about areas outside their control, e.g., the U.S. economy, government tax changes, and healthcare legislation.
• Other topical areas for Influentials are time management & saving up for retirement. Sustainability is also high on their list of action items. Nearly half (47%) are currently working to intregrate sustainability into their products and services.
• Finally, Influentials are strong community advocates. They depend on the local community to help drive company success, and thus, are highly involved, engaged and concerned about their communities.
How Do Influentials Speak Out? • Influentials let their opinions be known across a host of local, business and political arenas. They serve
on local Boards, write or call politicians, and write letters to the editor. The majority (59%) have served on committees or been officers for local organizations, and have made speeches.
• Social media is another vehicle that allows Influentials to speak out. The majority use social media not only for business purposes (78%), but also for personal reasons (60%).
• Influentials use both traditional and online media for their business messaging and advertising. Email marketing tops their list of advertising vehicles used, followed by print, trade shows and social media marketing.
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Executive Summary (Cont’d)
An especially high share of ‘Influentials’ are found among small and mid-sized business owners
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Ø Written or called a politician Ø Served on a Board of Directors Ø Have had something published Ø Written a letter to the editor Ø Have held or run for political office
Sources: The Business Journals SMB Insights, 2015; MRI 2015 Doublebase; 2015 Q4 NCBJ Forecast
Influentials are defined as those who have participated in at least two or more of the following civic activities in the past year:
26%
2%
Among SMB Owners Among Total U.S. Adults
INCIDENCE OF ‘INFLUENTIALS’
Represent slightly less than 1M businesses (893K)
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SMB Insights 2015
WHY DO INFLUENTIALS SPEAK OUT?
7 “As a business person, I think of myself most as ……..”
PROFITABILITY, SUCCESS-DRIVEN
INNOVATIVE, IDEA-DRIVEN
STATUS QUO-DRIVEN
Influentials are change agents -- motivated by new ideas and by creating efficient ways to conduct business
22% 33%
35%
30%
43% 37%
Influential SMBs All Other SMBs
SELF-CLASSIFICATION AS TYPE OF BUSINESS PERSON THEY ARE
… most energized by figuring out the process by which to increase profitability & get things accomplished
… most energized by coming up with new ideas & ways of doing business
… most energized by ensuring there are no abrupt shifts/changes that might disrupt sales & profitabilty
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SMB Insights 2015
WHAT AREAS & ISSUES ARE ESPECIALLY TOPICAL FOR INFLUENTIALS?
Influentials are especially concerned with growing their businesses, and the impact of legislation & the economy
“You’re one of the people in your business who has to be concerned with ALL of the issues related to running the business. What are the issues you are most concerned with?” 9
GROWING THE BUSINESS ECONOMY & LEGISLATION
50%
48%
57%
58%
Being able to attract new customers
Maintaining our existing customer base
Infuential SMBs All Other SMBs 41%
39%
44%
51%
50%
53%
56%
61%
The US Economy
Possible tax changes that could impact my business
Cost impact of healthcare legislation on my business
Cost of health insurance & other employee benefits
Infuential SMBs All Other SMBs
% Very Concerned
% Very Concerned
Social/Environmental issues are important to Influentials; many incorporate solutions into their business strategies
“The following are a series of statements which may/may not reflect how you think about business or life in general. By entering a number, please indicate whether you agree or disagree with each one, using a 0-to-10 scale.”
ATTITUDES ABOUT SUSTAINABILITY % STRONGLY AGREE
10
53% 52% 47%
38%
45% 44% 38%
29%
Businesses today have a responsibility to address key
social & environmental issues
Our company respects "Green" values and is conscious of the
environment
We are working to make "sustainability" an integral part of
our products & services
Sustainability is a differentiating component of our marketing
program
Influential SMBs All Other SMBs
legislation
Influentials are strong community advocates; they are actively engaged and involved in their local communities
“The following are a series of statements which may/may not reflect how you think about business or life in general. By entering a number, please indicate whether you agree or disagree with each one, using a 0-to-10 scale.”
ATTITUDES ABOUT LOCAL INVOLVEMENT % STRONGLY AGREE
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62%
53% 50%
41%
47% 47%
Our company is actively involved with the local community
Our company tries to do business with other local companies
Marketing/Selling directly to the local community is a key component of our
company's success
Influential SMBs All Other SMBs
12
SMB Insights 2015
HOW DO INFLUENTIALS SPEAK OUT?
Influential SMBs let their opinions be known across a host of local, business and political arenas
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80% 77%
47% 41%
7% 15% 17% 3% 3% 0%
Written/Called a Politician
Served on Board of Directors
Had Something Published
Written Letter to Editor
Held/Run for Political Office
Influential SMBs All Other SMBs
“Which of the following public activities have you participated in over the past 12 months?”
INFLUENTIAL ACTIVITIES PAST YEAR
OTHER CIVIC ACTIVITIES PAST YEAR
61% 59% 59%
49%
35%
17% 17%
34%
22% 17%
25%
9% 5% 3%
Signed a Petition Served on Committee/Officer
for Local Org
Made a Speech Attended Public Meeting School/
Town Affairs
Active member Group Influences Public Policy/Govt
Worked for a Political Party
Called Live Radio/TV Show Express
an Opinion
Influential SMBs All Other SMBs
Social Media is another way Influentials speak out; they use it for both business and personal reasons
14 “For each Social Network you indicated using , please click whether it is used for business reasons, personal reasons, or both.” “Has your company generated revenue directly from Social Media?”
SOCIAL NETWORKS USED FOR BUSINESS
13%
17%
44%
41%
67%
18%
29%
52%
58%
78%
Google+
Use Social Media for Business Purposes
Influential SMBs All Other SMBs
SOCIAL NETWORKS USED PERSONALLY
10%
9%
46%
16%
54%
17%
20%
46%
25%
60%
Google+
Use Social Media for Personal Reasons
Influential SMBs All Other SMBs
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Persona • Men (77%) • 50 years or older (76%); Average age 57 • 60% White Collar; 34% Blue Collar • Well established companies (30 years in business) and average annual sales of $8.2 million • Concentrated in A/B Counties (75%) • Highly educated and wealthy • Located nationwide with strong Western skew
Influentials in Summary
Key Messaging Themes/Considerations Influentials don’t necessarily run bigger companies or generate significantly higher sales than other SMB owners. What sets them apart are their attitudes, values and beliefs. They are self-appointed leaders who take it upon themselves to speak out.
• Recognize their role as forward thinking leaders and visionaries
• Acknowledge and leverage that they are the self-appointed leaders of their communities
• Make them an advocate for your brand
Research:
Jessie Shaw 212-500-0611 [email protected]
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CONTACTS
Local Advertising:
Alex Orfinger, EVP 703-258-0888 [email protected]
Mike Olivieri, EVP 704-973-1005 [email protected]
National Advertising:
Ryan Whittington, SVP 704-973-1839 [email protected]
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