By Dan Gliatta | managing director, Cargo
More and more, local startups are catching the attention of tech giants around the world. Need proof? Look no further than Hitachi Solutions’ recent acquisition of Greenville-based tech shop, Customer Effective. The best part is that Customer Effective became 225 team members strong primarily by serving small businesses themselves. Ask just about any global tech brand and you’ll hear the same story – there’s big opportunity in the small-business market.
If you’re a technology brand marketer, grab a highlighter. If you know a technology brand marketer, lend them your highlighter – understanding the hearts and minds of today’s small-business owners (SBOs) is one of the most valuable pieces of marketing intel your brand can possess. What do they look for in tech products and services? How do they shop? 
What motivates them to buy? These are the questions marketers need answers to in order to effectively connect with this passionate, driven, and wildly valuable target. And that’s exactly what we went looking for with the latest installment of our SBO research study. If you target small businesses with your technology products or services, the information gleaned from this study – some of which is provided here – can help open doors.
While all SBOs surveyed say they recognize the need to stay current with technology, about 45 percent rate themselves only “moderately familiar” with new and emerging tech products and services.
Clearly, awareness and knowledge is lacking, so it seems logical for tech brands to put a sales force on the ground to bridge the gap, right? Not according to the study. Most SBOs get information about new technology from their peers and employees, with far fewer getting information from industry experts, leaders and sales reps. This is likely due to the fact that SBOs do not like being “sold to.” More than 23 percent of survey respondents say they take issue with “pushy sales tactics.”
We’ll look into it
Once an SBO has heard about a new tech product or service of interest, he or she turns to a variety of resources to learn more – predominantly the Internet, with 43 percent turning to search engines like Google and Yahoo. This means brands should make sure resources are available where SBOs are looking, as well as make sure resources are available when SBOs need them, which is typically not during regular business hours.
There are several factors for the SBOs’ preference for online resources, such as its “ready-when-I-am” availability, but our study may have uncovered a more telling reason. Only 8 percent of SBOs believe sales representatives are more influential in their purchasing decisions than online content. This is a critical insight, and suggests SBOs are still feeling sales pressure from technology brands.
We were also curious to know what steps SBOs take to evaluate tech products and services once they determine it may have value to them. Again, most head straight for the Internet. Nearly 85 percent say they conduct online research and over half (55.4 percent) ask a colleague or friend. But busy SBOs are extremely careful about making the right decision the first time, which is why having an opportunity to test or demo a product or service ranks high on their decision-making list (43 percent). Interestingly enough, only 18 percent say they will contact a sales rep, reseller or distributor to evaluate a product or service, another indication of their disdain for being “sold to.”
As SBOs search for information on technology products and services, as well as the brands that provide them, there are specific elements they are looking for. Bottom line, they are looking for technology and brands they can rely on, as “Quality of Product / Service” and “Proven Results” top both charts, and because SBOs are cautious with their spending, “Value” is also a top consideration.
After careful consideration, we’ve decided to go with…
Once the SBO finishes evaluating the technology options, he begins to narrow his choices based on the research he’s conducted. While the pressure of working at breakneck speeds weighs heavily on SBOs, they still make time to look at multiple options. In fact, 67 percent of SBOs consider 3 brands or more. Once these brands are identified, a decision is typically made within three weeks. This short window to convert the customer means brands must be available when and where SBOs need them. They don’t have time to wait, and they won’t.
SBOs want more access, less pressure
SBOs realize technology can help their businesses, but awareness and knowledge are critical steps in determining exactly what and who to trust. The time-strapped nature of SBOs has them turning to digital channels first and foremost, so a brand’s ability to find them and connect with them online is crucial to their success. But this engagement cannot be so aggressive that SBOs sense sales pressure. This will almost certainly cause the customer to run in the opposite direction.
The best approach for technology brands is to keep the door open through extensive online efforts. Make product and service information clear and concise, and try to invite a conversation instead of forcing a pitch. Tech brands that follow this formula are most assured the trust and loyalty of small businesses.
