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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
Copyright © 2012 Constant Contact Inc. 2
1. What’s Keeping Small Businesses Up At Night?
Copyright © 2012 Constant Contact Inc. 3
Attracting new customers, engaging existing customers, and getting referrals are the top concerns for small businesses surveyed
Copyright © 2012 Constant Contact Inc. 4
76%
49%
41%
34% 31%
26% 25% 20%
17%
5%
79%
48% 43%
38% 33%
28% 26% 20% 18%
4%
71%
50%
38%
26% 27% 23% 24%
20% 16%
8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
When you think about how to run your organization most effectively, which of the following “keeps you up at night”?
Total B2C B2B
Attracting new customers is the #1 challenge facing SMBs; getting funding is also a large challenge
Copyright © 2012 Constant Contact Inc. 5
69%
45%
26% 18%
14% 14% 10% 11% 12%
68%
41%
24% 20%
11% 15% 11% 11% 12%
69%
52%
29%
16% 18% 13%
9% 11% 12%
0%
10%
20%
30%
40%
50%
60%
70%
80%
How to attract new customers
Getting funding How to connect and
better engage with existing customers
Having a more integrated
communication strategy
How to get referrals from
current customers
How to stay on top of the
latest in online marketing
trends
How to identify and select the best marketing
tools
How to measure the impact of my
marketing campaigns
How to make my marketing
dollars go further
Of the items that keep you up at night, which do you rank #1?
Total B2C B2B
Attracting new customers, engaging existing customers, and getting referrals are the top issues for small businesses
Copyright © 2012 Constant Contact Inc. 6
76%
49% 41%
34% 31% 26% 25%
20% 17%
5%
79%
48% 43%
38% 33%
28% 26% 20% 18%
4%
71%
50%
38%
26% 27% 23% 24%
20% 16%
8%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
When you think about how to run your organization most effectively, which of the following “keeps you up at night”?
Total B2C B2B
2. The Health of Small Businesses
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The majority of small businesses surveyed are stable or growing compared to 2011
Copyright © 2012 Constant Contact Inc. 8
59%
30%
11%
59%
31%
10%
60%
28%
12%
0%
10%
20%
30%
40%
50%
60%
70%
Revenues increased Revenues remained flat Revenues decreased
How has your organization done so far this year?
Total
B2C
B2B
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%.
Copyright © 2012 Constant Contact Inc. 9
52%
27%
13%
4% 3%
50%
30%
13%
4% 4%
54%
23%
14%
5% 3% 0%
10%
20%
30%
40%
50%
60%
Increase more than 10% Increase less than 10% Remain flat Decrease less than 10% Decrease more than 10%
What are your revenue expectations this year compared to last year? I expect my revenues to…
Total
B2C
B2B
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.
Copyright © 2012 Constant Contact Inc. 10
57%
30%
11%
53%
32%
13%
63%
27%
8%
0%
10%
20%
30%
40%
50%
60%
70%
Yes, I have adequate cash flow No, my cash flow is inadequate and is preventing me from growing
No, my cash flow is inadequate and is barely enough to maintain current
operations
Is your cash flow sufficient to run your organization effectively?
Total
B2C
B2B
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.
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47%
18% 19% 16%
52%
13%
21%
13%
40%
25%
15% 20%
0%
10%
20%
30%
40%
50%
60%
No, I’m doing fine as is Yes No, I need to but can’t Unsure
Will you be hiring additional full-time equivalent (FTE) employees in the next 6 months?
Total
B2C
B2B
3. Small Business Marketing
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Marketing spend has stayed steady for most small businesses surveyed
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29%
12%
60%
29%
12%
59%
28%
11%
61%
0%
10%
20%
30%
40%
50%
60%
70%
Increased Decreased Stayed the same
So far this year, the marketing budget has...
Total B2C B2B
Email marketing, websites, and in person interactions are most often effective for small businesses
Copyright © 2012 Constant Contact Inc. 14
83%
71% 68%
49%
41%
33%
22% 21% 17% 17%
5% 8%
84%
72%
64%
56%
43%
23% 22% 22% 22% 18%
5% 8%
81%
70%
75%
38% 38%
49%
22% 19%
10% 15%
4% 9%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Email marketing
Website In-person interactions
Social media marketing
Events Phone calls (for lead
generation, etc.)
Public relations
Direct mail Traditional advertising (print, radio,
TV, etc.)
Online advertising
(paid search, etc.)
Online surveys and
polls
Other, please specify
Which marketing activities do you find to be effective for your organization today?
Total B2C B2B
Small businesses are still most driven by in person interactions
Copyright © 2012 Constant Contact Inc. 15
48%
28% 20% 23% 17% 17% 15% 11% 11% 6%
40% 33%
21% 27% 18% 18% 13% 13% 12%
3%
59%
20% 17% 15% 14% 17% 17% 8% 8% 10%
0% 10% 20% 30% 40% 50% 60% 70%
In-person interactions
Website Email marketing
Direct mail Traditional advertising (print, radio,
TV, etc.)
Online advertising
(paid search, etc.)
Phone calls Events Social media marketing
Public relations
Of the items you find to be effective, which do you rank as the #1 most effective?
Total B2C B2B
59%
20% 17% 15% 14% 17% 17% 8% 8% 10% 0%
20% 40% 60% 80%
In-person interactions
Website Email marketing
Direct mail Traditional advertising (print, radio,
TV, etc.)
Online advertising
(paid search, etc.)
Phone calls Events Social media
marketing
Public relations
B2Bs are even more in person focused
Of those using social media, Facebook is far and away the most effective, even for B2Bs
Copyright © 2012 Constant Contact Inc. 16
75%
7% 10% 1% 1% 3% 2% 2%
83%
6% 3% 1% 2% 2% 2% 2%
55%
11%
25%
0% 1% 6%
0% 2% 0%
10% 20% 30% 40% 50% 60% 70% 80% 90%
Facebook Twitter LinkedIn Pinterest Google+ YouTube Yelp Other, please specify
If social media is ranked in the top 3, which tool do you find the most effective?
Total B2C B2B
Still, SMBs need more help with social media marketing
Copyright © 2012 Constant Contact Inc. 17
59%
40%
30% 25%
19% 18% 16% 13% 11% 9% 9% 5%
66%
38% 33%
29%
19% 19% 12%
16% 11% 8% 9%
4%
47% 42%
25% 19% 19% 17%
23%
9% 12% 11% 9% 8%
0%
10%
20%
30%
40%
50%
60%
70%
Social media
marketing
Email marketing
Website Online advertising
(paid search,
etc.)
Online surveys
and polls
Public relations
Phone calls (for lead
generation, etc.)
Events Direct mail In-person interactions
Traditional advertising (print, radio,
tv)
Other, please specify
Which marketing activities do you need help with?
Total B2C B2B
53% 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 Erika Dornaus Constant Contact (781) 482-7039 [email protected]
Copyright © 2012 Constant Contact Inc. 18
74%
14%
6% 6%
0-10
11-25
26-50
51+
Number of employees for businesses included in this study
