An average Small and Medium-sized business (SMB) deals with 24 monthly calls from marketers interested in selling their inventories. It has stepped up the challenge for most SMBs while choosing the right providers.
With the incessant competition, it’s easy to miss marketing suppliers most favorable for the business.
In a survey conducted by Local Search Association (LSA), it was found that SMBs face a list of challenges while seeking digital marketing solution providers. Such as the niche areas where the SMBs are more vulnerable while acquiring new business opportunities.
Here is the main takeaway from the survey:
SMBs face a lot of challenges while finding the right marketing supplier. Here is a statistical look how into the scenario:
- 56% agreed to have found vendors offering competitive pricing
- 44% were unable to find vendors delivering good ROI
- 38% were finding it difficult to trust vendors
- 35% of SMBs were unable to find suppliers who understand their challenges
SMBs are not exclusively concerned about rock bottom prices. They are inquisitive about the value they will obtain for the price they pay. 86% SMB prefer to precisely understand if the pricing is viable and if the vendor can deliver inventories worth the price. Moreover, 82% SMB demand the vendor credentials to determine the prospects of purchase.
Hence, these are the typical challenges faced by the SMB because working with a false vendor could lead to immense economic losses.
The SMBs are wary of the risks involved in working with wrong providers. They pay particular attention to areas such as the length of the agreement, contract termination, payment, and terms of dispute management.
80% SMBs acknowledge that these aspects need strict scrutiny to protect the collaboration and commitment from unforeseen liabilities.
The SMB also asks suppliers to furnish the terms of after sales such as customer service and reliable help resources should any concern arise with the purchased inventories.
70% of SMB expect timely reporting on the efficiency of marketing solutions to determine if they fulfill the expectations to a reasonable extent.
What do SMBs Want?
Finding marketing providers compatible to work with is a significant challenge faced by SMB with the increase in the remote sales call.
The SMBs must convey their priorities to vendors to keep the communication less cluttered. It reinforces trust within the sales funnel.
Here is what you need to do:
- Knowledge of inventory is the key to long-term commitment. Discuss pricing and other core aspects to communicate expectations effectively.
- Present facts and credentials that can be furnished promptly to showcase your proficiency. Past achievements can shore up the trust.
- Express your efforts through a mix of good and bad examples. It helps the audience understand the right instance to apply your solution.
- The agreement should be written in a manner that is easily understandable without any hidden terms. It must cover all aspects from payment until the period of the contract.
Some sections of the disclosure may seem contrary to the outcome of the sale, but the credibility makes way for more significant benefits.
Surviving the unfair competition
Trusted brands are known to indulge in unfair digital marketing practices from time to time and negatively affecting SMBs, making it difficult to assess the percentage of false sales calls that are likely to impact the system.
Here are some classic samples of unfair sales practice that force SMBs to depend on digital marketing services
- Deceptive sales assurances
It is all about making prompt assurances through sales pitch while being nonspecific about the results. For instance, promising top rankings while the actual intent is to shore up the results of a specific keyword. Brands are likely to come ahead in the ranking when the businesses have recognition both geographically.
- Baiting economical products with an upselling intent
Deceptive marketers entice the SMB to purchase a marketing package that is affordable, as the negotiation progresses, the marketers collect the payment information and utilize the opportunity to sell pricier products.
- Offering services without liabilities
SMSs are provided services, sometimes without any means to gauge the results that leave them in the dark. The SMBs are forced to pay the charges for the services until they raise cancellation request.
- Deals tainted with profitability rather than mutual growth
Marketers prioritize the benefits that will propel their profits rather than helping the clients.
SMBs face hurdle due to lack of transparency and one way to ensure mutual satisfaction is to understand the mindset and needs of every growing organization. When marketers express concern and sensitivity towards the SMBs, it will make space for trust.
The significance of satisfaction and results
The lifecycle of sales is highly dependent on the realistic expectations specified at the time of drafting the agreement. The sales volume dramatically affects the retention rate marketers have traditionally grappled with the conversion rate.
An independent survey from 2016 indicates that agencies have the highest conversion rates ranging from 40 to 50% every year while the only other media source which multiplied conversion rate was the television.
Any business would require a good retention rate to manage cost and revenue seamlessly. The cost of retaining a customer is ten times cost effective than acquiring a new audience. Also, the probability of closing sales with an existing customer is 60 to 70% greater than selling to new clients.
From these statistics, it is evident that SMBs are likely to trust marketing providers who can keep up with the assurances during the sales process leading to a long-term business relationship where both the sides could equally gain the benefits.
How can SMBs trust marketing providers?
SMBs expect marketing providers to adhere and support according to the standards whether it is policies, agreements, or quality control checks. When suppliers stick to these functions, SMBs let down their guard by voluntarily trusting them.
80% of SMBs agree that they are likely to trust a marketing provider who conforms to the working standards of the industry.
While the standards cover many aspects, they are not confined to the following sections:
- Clearly specify pricing and service accord
- Fair sales practices
- Honest and actual rendition
- The sales assistant who qualify to meet the standards
- Actionable report and accounting information
- Mapping products and services with the qualified buyers
- Explicitly specifying the terms and conditions within the disclosure
- Accurately defining metrics from the past
- Setting the expectations that are reasonable
Digital marketing providers who followed these standards were found to be most favorable for SMBs
The marketing standards often embraced by one brand will lead to others following the suit to stay ahead in the race. A classic example is the standardization of airbags in passenger cars.