Marketing to the SMB channel

Marketing
to SMB (small to medium business) companies is the Holy Grail for many large
companies. In typical corporate strategy planning session, revenue streams will
be outlined. Marketing to SMB, large enterprises, government entities, retail
channel, wholesale channel, etc are detailed as key goals to have a diverse
revenue stream. As corporate management learns more about the smb market, they
realize its true capability and inevitably put the burden on the strategy,
sales, and marketing departments to craft SMB programs.

In this economic downturn, large companies have
dramatically reduced their budgets. The same has occurred with municipal and
state government entities. Retail sales have diminished, as the consumer is more
aware of his economic status. Inevitably, this leaves one target for the
marketing department to aim at in the efforts of seeking growth. Thus begins the
journey of marketing
to SMB companies. In typical fashion, larger companies will take the
identical products, services, and value proposition that work for their other
sales channels and simply begin marketing them to the SMB channel.

In our experience, a product tailored to the specific
vertical industry of an SMB customer will increase the probabilities of an SMB
company purchasing a product. However, most companies do not have the
flexibility or the patience to craft a different product just for the smb
customer. This leads to the perception that smb customers are finicky and
difficult to market to.  Marketing
to SMB channel companies is no different than marketing to any other entity, but
if the product, pricing, positioning, and value proposition do not resonate, the
outcome results will be sub par.

Additionally, marketing
to SMB companies should be viewed in a holistic manner. Companies should
never lose sight of the value proposition they present to the customer.
Additionally, they should be aware of the value proposition that their
competitors present to the same SMB channel. More importantly, they should
understand that their cost structure, product margins, and product
differentiation really matter. In this economic environment, pricing matters
above all else. Unless a company has a truly differentiated product, it is
unwise to attempt margin expansion or to command a price premium.

Small medium businesses are no different than consumers in
that they are cleaning their balance sheets and are extremely price sensitive.
When marketing to SMB channel companies, this awareness of price sensitivity
must not be forgotten.  Value
engineering of products and services should always be considered when crafting
marketing to smb customers. This value proposition and entry price strategy will
resonate with the small to medium company much more than a premium positioned
product.

These are not the only factors to consider when marketing
to growing SMB channel companies, but they are of vital importance. Sales,
marketing, and strategy departments of Fortune 1000 companies should synchronize
their efforts and will gain a better understanding of what this elusive customer
really wants. This insight will lead to better results, more market share, and
access to smb customers that their competitors are struggling to figure out.