SMEs goals for digital marketing in 2016
Over half of SMEs rated in this latest research from Infusionsoft driving sales is a key goal for their digital marketing in 2016. Surprisingly over 1 in 5 aren't going to be using digital marketing at all, which surely will leave them missing out on a huge number of potential customers in all but a select few industries. After all, even Luddites United have a Facebook page.
Key areas of Digital Marketing for SMEs
When asked what marketing channels to you expect to allocate more budget for in 2016, most SMEs reported increased investments in their websites and social media. We can't fault this, as they are key areas which can help drive growth. However we repeatedly find email marketing driving the highest ROI of digital channels, so we think it might be wise for more of the three-quarters of SMEs that aren't planning on increasing their email marketing budgets to reconsider.
Major challenges for SMEs in 2016
When asked what their biggest digital marketing challenge is in 2016, SMEs gave a diverse set of answers, suggesting there are many areas presenting problems. Turning leads into customers was the most pressing issue, with generating web traffic in 2nd and turning web traffic into leads in 4th. This makes it clear that SMEs need a plan that takes in the whole marketing funnel, which helps fill the funnel with traffic, interact with that traffic and then convert it to sale. One in ten also mention they had a problem retaining customers. This is exactly what the Smart Insights RACE planning system does, helping your plan strategies to increase your ability to Reach (attract web traffic), interAct (turn traffic into leads), Convert and Engage (retain customers).
SMEs need to better utilise analytics
When asked if their marketing efforts are effective, a whopping 48% said they didn't know. That means small businesses need to get an awful lot better at utilising their analytics data to understand the value of different channels and model where they are receiving their revenue from. If you don't know what channels are performing the most effectively you will make sub-par decisions about where to invest your resources and won't be able to grow as fast as you otherwise would.
Preferred marketing channels for small businesses
Knowing what kind of marketing channels are effective for small businesses can help you target your resources and benchmark your efforts against the rest of the sector. Over 70% of SMEs had websites set up, whilst social media and digital advertising were the second most common form of digital marketing employed. Email marketing came in third, which is an area we suggest SMEs should look at if they aren't already using it, because of its track record of delivering ROI.
Conclusion
We've seen that small businesses all too frequently are missing out on some big opportunities. Most don't use email marketing, which could be a great way for them to overcome their biggest challenge: turning leads into customers. Too many aren't measuring the effectiveness of their marketing effectively and some aren't event using digital. This will leave them missing out on some huge opportunities. Digital marketing levels the playing field and means for the first time SMEs can compete with the bigger players. SMEs need to seize the moment and plan to make the most of it.
If you want more insights about SME/SMB marketing, you can download the full Small Business Marketing Trends report from Infusionsoft. For in-depth, practical guidance, see our Complete guide to Digital Marketing for startups and small businesses.
