Big Business in Smaller Packages

This week I was reading an article in Tarket Marketing Magazine called 'When Small Is Big' written by Ralph Drybrough & Dan Harding. They give references to "four imperatives for smart marketing to small and medium business". From the title, I was expecing an article promoting small business. Much to my dismay, I soon discovered a point that I took issue with. They stated that while 75% of the Small to Medium Business segment is in the micro business category of the SMB universe, they "sometimes advise (their) clients to avoid marketing to micro businesses altogether". What? Is that really what they meant? Yes, it is. The reasons given by Drybrough and Harding is that '(micro businesses) are low lifetime value prospects because their appetites for products and services are small and their life expectancies are short." Okay, now 'them are fightin' words boys'...

As a micro business owner (1-4 employees by article definition), it is true that I am always looking for ways to grow my business without breaking my budget. I am very particular with my purchases. But, not marketing to me (and others like me) is a huge mistake. while we may be small, I will tell you I have been in business over 5 years...and am completely business debt free. While others have closed their doors during the economic hardships. I was able to make my business model work. I am in complete control of my business, and my spending. I buy products, I have dreams, and with customers willing, I expect to be around another 5 or more.

And 'the boys' aren't going to market to me. How nuts is that! But I see it all of the time, in our local Chamber of Commerce...it costs me exactly the same to join the Chamber, as it does for Wal-Mart to join. How is that right? How many more businesses could they serve in the community if their fees and marketing schedules were pro-rated for size of companies? Doesn't it somehow make sense that rather than have no marketing to micro business, that they should tailor their marketing to the largest percentage of the SMB market. Wouldn't everyone win!

In the national market place, I have an account at a national bank...a large national bank. But when I asked them about an E-commerce option for my business. You would have thought I was talking to chimps. They had no idea what their online market was, let alone how to make their product work for their cusotmers. I'm sure some high executives are sitting around the Big Bank kingdom saying...'that Paypal thing just isn't going to catch on'.

Within the article they straight up say that most successful SMB marketers use 3 proactive channels to market to their prospects. By using a 60/20/20 split, they see a successful sampling of their marketing ROI. One thing that they did fail to mention in the article was that by marketing to the micro business owner, they have a huge chance of actually reaching the decision maker the first time around either by direct mail, telemarketing, or email. I think that is a potentially very successful strategic marketing plan. So, perhaps the little guy can make a difference afterall.

The traditional business model is changing and I think that if you are going to succeed where others fail, you are going to have to change with it. Marketing is marketing regardless of the size of the company. And it might just be time to figure out a new strategy for marketing to the largest segment of the SMB universe. We may not be large...but we are certainly IN CHARGE!