As the business landscape continues to evolve, small business owners, and salespeople find themselves facing critical decisions that can shape the future of their financial and business future
Is raising your prices the right move? What types of investments should you be making in your business that will attract more customers and increase ROI? Can new technologies help improve your bottom line?
Whether you’re launching a startup or growing your e-commerce business, staying on top of the latest data and market trends can help make better, more informed decisions that will ultimately benefit your company and customers.
Pipedrive’s latest State of Sales and Marketing report revealed how small businesses recovered over the past few years. Those that adapted quickly to online sales, e-commerce, and remote work were better positioned to weather the storm and capitalize on changing consumer behaviors. Consumers are continuing to embrace pandemic changes including contactless transactions, home deliveries and online services.
Businesses that have aligned their offerings to meet these shifts in consumer needs and have the tools to build out a healthy customer base, have a better chance of growing in the future.
In this article, we’ve highlighted five facts about the SMB industry and tied them to examples of how this information can be used to help grow your business and attract more customers.
Leverage these five facts to learn more about your business, peers, and potential customer base
1. In March 2023, there were over 33 million small businesses (defined by the Small Business Administration as businesses with 500 employees or fewer) registered in the US.
Small businesses and salespeople are encouraged to view this information twofold:
As a SMB, it’s helpful to know you’re not alone and on the other side of the coin, to know your competition. The majority of businesses in the US (99.9%) are considered small businesses. By identifying other players like you and learning more about their operational and marketing practices, a business owner can benchmark their own company practices and assess if changes are necessary. For example, a competitor may be using technologies that another business can also implement to help them grow their business.
Do this: Identify your top 2-3 competitors; analyze what they’re doing for their sales and marketing and copy the best tactics for your own business! For example, if you discover that your competitor recognizes their customers’ birthday and sends them a special discount code to use during their birthday month – but you don’t, consider doing the same and see if it helps boost sales
Knowing there are 33M small businesses out there can also help salespeople identify potential customers. For businesses targeting other businesses (B2B), this data highlights the potential customer pool available to them. It demonstrates the sheer number of people they can tap into which can be a motivating factor for building a sales pipeline.
2. Small businesses are big employers. From 1995 to 2021, small businesses created almost 63% of new jobs. (US SBA)
As a business owner, it may be helpful to know which industry sectors are thriving to use for their own business needs, or to keep abreast of workplace trends. As small businesses thrive and create more jobs, it positively impacts local communities, consumer spending, and the economy as a whole.
Do this: Conduct an online search of which industries are hiring the most – and consider businesses that fall in those sectors as probable sales prospects. Even if they are not your core buyer, identify ways you can service them.
3. Women-owned businesses are also employing more people. In March 2023, there were approximately 1.2 million women-owned employer firms. These businesses represented 21.4% of all employers, slightly up from 19.7% in 2017. (US SBA; Census Bureau, Census Bureau)
Female-led business owners can leverage this fact by promoting their female ownership status, thereby attracting a loyal customer base that aligns with their values. Other business owners targeting this demographic can tailor their offerings, marketing efforts, and company culture to resonate with female consumers, ultimately driving growth, loyalty, and positive brand perception.
Likewise, salespeople can tailor their sales and marketing strategies in ways that may be more appealing to female run and operated businesses.
Do this: Sponsor or organize a networking event for female entrepreneurs. These events can provide a platform to promote your company and engage with the target audience directly. Businesses can also organize a ‘flash sale’ to women-led businesses during Women’s History Month in March.
4. Just over one-third (35%) of businesses survive for five years. (US Bureau of Labor Statistics)
In competitive markets longevity can be a distinguishing factor. A business with a solid track record of survival has time to accumulate lots of positive word-of-mouth referrals over the years. If longevity applies to your business, it can be a distinguishing factor.
Do this: Build trust by advertising and marketing your stability. This will help reassure customers that you’re a proven and reliable business which will encourage repeat customers.
5. The number of employees for the average small business was around 12 in the US. In contrast, large firms averaged 3,297 employees. (US SBA)
Smaller firms are typically more agile and can adapt quickly to changes in the market or customer requirements. They can implement new ideas and innovations faster, which can result in more tailored solutions for their customers. Smaller firms tend to prioritize customer satisfaction and go the extra mile to meet their needs. They may be more willing to accommodate special requests and tailor their offerings to individual preferences.
As a salesperson, this information is especially helpful in closing deals. A smaller company will likely make buying decisions faster because of less red tape and bureaucracy.
Do this: Identify and target companies with less than say 100 employees. They may be quick to engage new products and technology unlike larger organizations that have a more cumbersome buyer’s cycle.
By leveraging these insights, business owners and salespeople can better understand their market, adapt to changing consumer behaviors, and attract and retain customers through targeted strategies and customer-centric approaches.
The ever-changing business landscape presents small business owners and salespeople with both opportunities and crucial decisions that can shape the future of their businesses. To navigate these challenges successfully, it’s helpful to stay informed and make data-driven decisions. The latest statistics highlighted in this article offer valuable insights that emphasize the importance of adapting to changing consumer behaviors and market trends. From understanding the vast potential customer pool available to businesses, to leveraging the employment contributions of women-owned firms, and recognizing the value of longevity in competitive markets, these insights can provide a roadmap for small businesses to grow and thrive and salespeople to close the deal.
