VerticalResponse: Taking the Guesswork Out of Email Marketing and Social Media for Small Businesses

vrlogo-gradient_1000pxLaurie: Hi, this is Laurie McCabe from the SMB Group, and today I’m talking to Janine Popick, CEO at VerticalResponse. VerticalResponse helps small businesses grow with email and social marketing tools, and recently Vertical Response introduced a new version of their solution which is what I’m here to talk with Janine about today.

So Janine, before we get into what the new VerticalResponse solution is all about, can you just let us know a little background about the company and what you’ve been doing up until now.


Janine: Oh sure, and thanks for having me here, Laurie, this is great. I launched VerticalResponse back in 2001 really with the premise that there was a lot of email marketing solutions out there for big businesses but there’s not a lot of solutions for small businesses. We’re based in San Francisco, we’re still headquartered here today, but really those big companies have that expensive software to manage all of their marketing, especially their email marketing. It was the right time for us to launch a company and get those small businesses from sending email out of their Outlook to more professional looking emails and a more professional solution. Currently here we have about 105 current employees at VerticalResponse.

Laurie: Ok, and about how many customers do you have?

Janine: Well we have over a million businesses that have come to use us over the course of the last 13 years. We’ve got probably on any given month about 40 to 50,000 active customers that are in there using the system.

Laurie: Ok, thanks. That’s a great introduction too. So why are you introducing a new version of VerticalResponse now?

Janine: Well, over the course of years newer technology surfaces so that companies like VerticalResponse can build some really neat stuff for small businesses to use, easier to use technologies, and we really decided it’s time for us to do that. Our self-service platform really lets those small businesses connect with their customers using both email marketing and social media marketing.

Laurie: Right, I did get a look at it last time we spoke and it does look really easy to use, which is always a good thing for any of us.

Janine: Yeah, you know small businesses really want to get in there and get out and do what they do best which is running their business.

Laurie: Exactly. Who would benefit from this? Is it your existing customers, is it new customers? How will it help them?

Janine: Well definitely new customers and existing customers. It really solves lots of problems but two that come to mind are time and money. Right? So with VerticalResponse these customers can keep in touch with their customers through the email marketing and social media marketing without spending, like you said you thought, without spending a lot of time to learn a complicated technology. This new platform has lots of amazing features. We really focused on drag and drop designer and with that drag and drop come templates that are mobile friendly. We’re really over 50% of all consumers today are checking their email on their mobile phone or on their tablet, so we really put an emphasis on mobile friendly templates, but you can also post messages to Twitter and Facebook right from the same dashboard, so you don’t have to log in to all those different platforms to do your social media as well, it’s kind of like that nifty one-stop shop for email and social.

Screen_Shot_2014-04-08

Laurie: Right, and that’s very convenient. Also, if I remember correctly, once you create your email marketing campaign it will render across any of the mobile devices or somebody’s laptop or desktop without you having to do anything different to it. It’ll render correctly, right?

Janine: Absolutely. We really wanted to take all that guesswork out of it for our customers who are the small businesses.

Laurie: Yep, make it idiot-proof. How about for the customers using the original version that you have, are there any gotchas? Should they switch to the new version or is it something they need to kind of look at some trade-offs or what?

Janine: Well I think at the get-go they should look at the new version, especially if they have under a thousand contacts on their list, it’s free, the whole product is free. That’s one benefit for our current VerticalResponse customers. Over the course of the next two to three quarters, we’re going to be incorporating all of the features that most of the Vertical Response current customers are using into the new platform in an even better and easy-to-use way. As those features come available we’re going to be communicating to those customers that use and love those features that hey, they’re available in the new Vertical Response, come on over and start using them. So that’s pretty exciting for current VerticalResponse customers, I think.

Laurie: Yeah, definitely, so kind of get your feet wet now even if it’s not got every bell and whistle that you want, it will have it and you can learn it and be ready when it’s all available.

Janine: Exactly.

Laurie: So right now the new version is completely free or is it a freemium kind of model where there’s an up charge or how does that work?

Janine: Well it is a freemium model, it is completely free if you have a thousand or fewer customers. Once you go over the thousand contacts on your list it’s as little as nine bucks per month, depending on your list size that’s where it starts. It is completely free but as soon as you start growing and you might want some more bells and whistles, then we’ll ask you for a charge.

Laurie: Yes, sure, typical freemium model. What’s your URL, what’s the website address where they can learn more both about the new product and maybe the existing one too?

Janine: The website is www.verticalresponse.com, they can go, they can sign up right then and there and begin trying it out. It’s pretty easy, they get in there and just try it out and see if they like it.

Laurie: When did you put it up there for people to start trying?

Janine: On the 14th of March.

Laurie: Ok. Have you had a lot of hits or how’s it going with that?

Janine: We have actually. We have the most sign ups that we’ve had over the course of many years, which is just great to see. We think it’s catching on, we think people like it and it’s just going to keep growing, so we’re pretty excited about what we’re able to offer to our business customers.

Laurie: Ok, well that’s great, Janine. I really appreciate your time today and thank you for joining us to share the information and the news.

Janine: Thank you.

SAP’s Big Bet on SMBs—With a Fast Growth, Millenial Twist

sapEarlier this week, I had the opportunity to meet with Kevin Gilroy, SAP’s Senior VP and GM for Global Small and Midsize Enterprise Segment & Indirect Channels to hear about SAP’s plans to go big in the small and medium business market, which SAP refers to as small and medium enterprises (SMEs). In a nutshell, the vendor is dramatically ramping up market, channel and solution initiatives to boost its profile and market share in SME.

These initiatives come with an interesting twist. Much of what SAP intends to do in the SME space will focus on recruiting partners—from both developer and VAR ranks—who can provide start-up millennial businesses with next generation solutions to help them grow at lightening speed.

The company claims that it is coming at this from a position of strength, with 80% of its 253,000 customers coming from the  SME ranks. But, SAP’s defines SMEs, as companies with revenues under $1 billion, which skews larger than how most vendors and analysts define it. So what shape will SAP’s new SME initiatives take?

Sharpening the SME Lens

telescopeTo put things in context, SAP’s courtship of SME isn’t new. As I discussed in Top SMB Takeaways: SAP Sapphire 2013, SAP has been sharpening its SME lens for a while. Last year, the vendor announced several new programs to bring the benefits of HANA’s data-crunching power to SMEs,  provide customers with the choice of running its solutions in public, private or hybrid cloud environments, and to make its solutions easier to buy and use.

As I noted in that post, SAP was focusing these initiatives not at the SME masses, but on high-growth SMEs, which SMB Group call Progressive SMBs. Progressive SMBs are growth driven, and more likely to invest in and use technology to gain market and competitive advantage than other SMBs. Our data shows that Progressive SMBs are also much more likely to anticipate revenue gains than peers whose tech investments are flat or declining.

Now, SAP is further sharpening the lens to zero in on millennials that are starting, running and making decisions in SME companies. According to Gilroy, millenials have a different view on technology than older counterparts. They are more comfortable with technology, and more likely to view it as a growth engine, instead of as a cost-cutter.

With a broad portfolio of cloud, mobile, analytics, ecommerce, talent management and ERP solutions, SAP offers many entry points for  these SMEs. The vendor has made some key acquisitions, including Ariba for ecommerce, and Success Factors for talent management, that broaden its footprint in the born on the cloud solution space. SAP has also introduced cloud-based options for many of its traditional on-premises solutions, such as SAP Business One. SMEs often prefer cloud solutions because they can usually be deployed faster, with less technical expertise and without big upfront capital expenditures, paving they way for SAP and its partners to expand their addressable market.

Furthermore, SAP is infusing HANA into its SME offerings, announcing general availability of the 9.0 version of the SAP® Business One application, version for SAP HANA. This is the first business management solution for SMEs running on SAP’s in-memory HANA computing platform. It enables SMEs to analyze structured and unstructured information within seconds instead of days, and use predictive analytics to gain new insights into data and optimize business decision-making.

Powering Up Partner Programs

1-hands-holding-jigsawSAP is powering up partner recruitment to fuel SME expansion. The vendor recruited 500 partners in 2013, growing the partner base to more than 11,500 worldwide, with about 1,000 in the U.S. Gilroy indicated that SAP is planning for double-digit channel growth, but will take a selective recruiting tack. In addition to looking for partners with a next-generation development vision, such as Liquid Analytics, SAP wants partners that are ready to scale their businesses to keep pace with SAP’s double-digit growth in SME.

The vendor has introduced and refreshed several programs to help partners go to market more effectively, including:

  • SAP Marketing University, a free, foundational marketing program to empower partners with the marketing skills they need to grow their businesses. SAP indicates the program has already led to over $1 billion in lead generation activities. Once partners have gone through the program, SAP provides them with the same marketing assets that are available to its internal marketing and sales teams.
  • Partner involvement in SAP’s Run Like Never Before ad campaign, launched in October of 2013. To data, more than 200 partners have taken executed campaigns as part of this program, which is 100% MDF reimbursable.
  • New “buy now, pay later” SME financing options that give SMEs zero-percent financing for up to 24 months for the purchase of any SAP product on the reseller price list.

Perspective

We’ve all seen how quickly innovative, fast-growth SMEs can become marquee brands, from tech sector stars such as LinkedIn to consumer brands such as Green Mountain coffee . SAP sees this too—and that technology is putting the creation-destruction cycle for businesses in hyper-drive.

So SAP’s big bet on becoming the leading IT solutions provider for these high-growth SMEs makes sense. As important, SAP is making an authentic effort to consumerize the SAP experience by reducing friction in choosing, buying and using SAP solutions.

But in this noisy SME space, crowded with competitors coveting the same high-growth SMEs, SAP still needs to do more to dispel the long-standing myth that SAP is only a big business brand. Although SAP solutions may be a good fit for high-growth SMEs, the vendor isn’t a household name with them or the millenials that its is seeking out.

SAP will also need to be cautious not to overplay the millennial hand. While millenials are likely to be more digitally savvy than older generations, the U.S. Small Business Administration says that self-employment among younger age groups has actually been dropping. From 2005 to 2010, self-employment among indi­viduals age 25 and under decreased 19 percent, compared to a 7 percent drop in the overall population. In reality, self-employment rates increase with age. For example, they were 2 percent for those 25 and under and 23 percent for those 65 and over in 2010. Simply stated, while millenials may prove to apply technology in business in more innovative ways, they are a relatively small part of the entrepreneurial population.

However, SAP is moving in the right direction. As it increases its investment to understand and engage with SMEs, SAP can continue to fine-tune its SMB story, and widen the circle of high-growth SMEs that will hear it and relate to it.

Discussing SMB Tech Trends: Part 1, Social Media Marketing and Technology As a Game Changer

Recently, I was a guest on Act Local Marketing for Small Business with host Kalynn Amadio. Each week, Kalynn shares information and actionable tips to help inspire and motivate small and medium businesses (SMBs) reach their business goals.  On this episode, Kalynn and I discussed SMB Group’s 2014 Top Ten SMB Technology Trends and what they mean to the marketing and running of your business. This, the first of a four-part series, summarizes our discussion of  “Social Media Marketing Stalls as SMBs Re-focus Marketing Practices” and “Progressive SMBs Use Technology as a Game Changer.”

Kalynn:Welcome back to Act Local Marketing for Small Business, Laurie. I just want to let you know that the show you were on last year, discussing the 2013 SMB trends was the most downloaded interview that I have ever had on the podcast.

Laurie:Thanks, Kalynn and Happy New Year!

Kalynn: This is a perfect time of year for you to be on the show again because SMB Group recently published its 2014 Top Ten SMB Technology Trends.  We won’t have time to go through all of them, and of course I’m more interested in the ones that are more relevant to marketing.

The first one I want to talk about is social media marketing. What you discovered might surprise a few people. Can you give some insight into that?

free social networkingLaurie: As you know, SMBs have been rapidly adopting social media as a marketing tool, whether building a presence on Facebook Twitter, LinkedIn, Pinterest, or some combination thereof. In fact, more than half of small businesses and two-thirds of medium businesses are using social media for marketing.

But, more SMBs are realizing that even though they don’t need to spend a lot of money to establish a social media presence, social has a voracious appetite for more and more content. There’s a lot of pressure to keep the content fresh because that’s what keeps people coming back. This is wearing on some businesses.

It’s also tough to keep up with changing social media preferences, for instance as millennials move from Facebook, for instance, to Snapchat or Instagram. So we predict that while social media marketing isn’t going away, it will stall a little as SMBs focus more on figuring out what really works and clicks with their target audiences.

Kalynn: Which makes a lot of sense. Google is a content monster; to get found you have to give it more and more content. But there has to be a happy balance between creating content and promoting your content. You need to promote your content more than once but you do have to find that balance.  All audiences will probably be different depending on what market you’re in, how often they’re willing to hear the message before they start to tune it out, and you do need fresh content.

Laurie: Absolutely, and at the end of the day it’s all about converting social connections that you’re making into customers and advocates. So the first step is to look at how you can repackage and reuse content in different ways to reach a wider audience.

I’ll give you an example. Today we’re talking about our 2014 top ten trends list. We initially published it in December and sent it to clients, prospects and press via email marketing, and got good traction with it.

As the new year started, we created individual tweets about each prediction, and that sparked more interest. Now I’m talking about it here on your show. It’s just not feasible for most of us to create fresh content every day, so it’s important to repackage it in different ways.

We also see more SMBs integrating social media marketing with their marketing and sales applications to get more insight into what’s going on, how what they’re doing is working and to make the information more actionable from a sales and marketing perspective.

free chess image 2Kalynn: Your very first prediction was another one I wanted to talk about: technology as a game changer for SMBs.

Laurie:That’s our overarching theme because of what we’ve been seeing since we started doing our surveys 5 years ago.

SMBs split into some clearly defined segments. One segment is what we call Progressive SMBs, who share a few characteristics. They’re much more likely to view technology as a business enabler; they invest more in technology; and they are also more likely to be growing revenue than other SMBs.

This gap has been widening and we predict it continue to do so. Trends such as generational shifts, the sharing economy and new technology fueled services that you may not even think about as technology solutions are accelerating this and reshaping what it means to be an SMB.

Kalynn: You talk about the generational shifts; I talk a lot about this with my primary audience, baby boomers, age 50 and over. There’s a drastic difference in communication styles between boomers and 20-somethings and millennials…people don’t retire early as often as they used to…that means there are many technologies and ways people are communicating. And also many ways that a business needs to be able to converse with customers and prospects, and it can be overwhelming.

Laurie: It can, and that relates to social media too. I think everyone should be spending at least some time with social media just to keep a pulse on what’s going on. It’s really important.

But we also see how Progressive SMBs are increasingly capitalizing on technology, cultural and demographic shifts to create new market niches and invent entirely new businesses. Just think about the businesses that have started up in the last few years and have been replaced in the last few years. I think the last Blockbuster finally closed. Now we’ve got Roku and we can stream everything whether it’s from Netflix or Hulu or whatever.  There’s also a shift in talent acquisition and management…with more use of outsourced services or Elance for contractors or freelancers instead of hiring salaried employees.

Or, in rethinking office space. Shared office space and shared IT infrastructure services are really growing in popularity. These are all ways to think about your business in a different light. And most often technology provides the fuel that businesses need to really get ahead.

Kalynn: Right, and in case people are not aware, Elance and oDesk, who recently merged, are websites where you can virtually hire temporary staffing, either for projects, or on a day-by-day or week-by-week basis.

They serve as middlemen, but protect you because they help with any disputes if things weren’t done well or not to your satisfaction. And they make it easier to track everything and for somebody not to get taken advantage of; either freelancer or the business owner.

Laurie: Yes, it’s basically a technology platform to help you manage the projects, execute the payments. The take care of all of the transaction stuff for you. People bid on the jobs, and you can see the ratings of each Elancer or oDesker, and you pick the bid you like.

At a higher level, we see that these more agile, Progressive SMBs taking advantage not just of technology per say but of solutions that are built on technology and also the sharing economy. Whether it’s shared workers, shared office space or shared IT infrastructure in the cloud or shared workers, you don’t have to own all your resources.  As a matter of fact, sometimes it’s better not to.

Kalynn: Absolutely; there’s less headache often if you don’t own them.  And, you can adjust more quickly and scale up and scale down more quickly through projects, so it’s actually a really good thing.

In the second of this four-part series, I’ll recap Kalynn’s and my conversation about “Mobile Management Becomes a Priority as SMB Mobile App Use Soars.” You can listen to the complete podcast here

Six Technology Resolutions for a Happier and Healthier SMB New Year

Happy New Year! While we often make personal New Year’s resolutions, I don’t think too many businesses make them. But you can start to change that in 2014 by resolving to make better use of technology to power your business, and create a more sustainable, competitive business.

With that in mind, here are a few resolutions that can help you work smarter, not harder, and enjoy a happier, healthier business in 2014.

iphone1. Manage your mobile investment. SMB Group research indicates 67% of SMBs view mobile solutions and services as “critical” to their businesses. SMBs are using mobile apps and solutions to help employees work more productively and efficiently, and to boost customer engagement and transactions. But while mobile apps are often easy to use, you also need to provision, support, and track and manage them on the back-end. Unfortunately, many SMBs are not yet using solutions to manage mobile devices and applications, and to protect valuable data from being lost or stolen. The good news is that vendors have taken notice and are offering cloud-based mobile management solutions specifically tailored to SMB requirements and constraints. Just a few to check out include: AirWatch Professional, Mobile Iron, Tangoe, and Dell Cloud Client Manager.

Social Business People Network  inside Speech Bubble2. Tune up your content marketing strategy. Many SMBs feel overwhelmed by the care and feeding that marketing requires these days. Back in the day, when marketing was a one-way street, businesses could get by with creating a marketing campaign and collateral that would see them through a quarter or even the year. But in the digital age, businesses are under pressure to create new content every week or even every day to keep customers coming back. If you don’t have one, put a plan in place for creating and scheduling content to keep everyone on track. When you create fresh content, think upfront about ways to recycle and reuse it. For instance, if you create a YouTube video, write a blog post about some aspect of it, and tweet out bite-size tidbits from the post. In addition, put a system in place to measure what networks and content click for your target customers. Depending on your business, free or low-cost tools such as HootSuite, SocialMention, Facebook Insights, Twitter Analytics, Google Analytics, Bit.ly and/or Buffer may fit the bill. Or, you may want to investigate marketing automation solutions, such as Infusionsoft and Hubspot, that integrate social more tightly with sales, marketing and content management applications to make your content investments more actionable.

men with puzzle pieces3. Integrate key workflows to get more bang for your software buck. The cloud has made it easy for businesses to add applications to address pain points on a piecemeal basis. But integration is often an afterthought. As a result, many SMBs end up with a hodge-podge of disconnected applications and workflows. People end up wasting time and making mistakes manually re-entering data into different systems, and getting accurate reports for decision-making can become a Herculean task. Things start falling through the cracks because the different applications and processes “don’t talk to each other.” This could be the year you do something about it! If you’re looking to upgrade core business apps, such as accounting, HR or CRM, consider pre-integrated suites from vendors with open application programming interfaces (APIs) and marketplaces. This makes it easier to snap in new, integrated functionality as needed. If moving to an integrated suite isn’t feasible, you can still get plenty of value just from the most repetitive workflows in your business. Many vendors (Informatica, Scribe, Actian (formerly Pervasive), Dell Boomi, Jitterbit and Mulesoft, just to name a few) offer integration solutions that enable you to connect, map fields, and integrate business processes between different applications.

Slide14. Go green to save green. You don’t need to be a tree hugger to get value from green technology. Most businesses waste not only environmental resources, but also money and time as well. Often, these resources could be invested in developing new products or services, or to hire and train employees.But its easy to be green. For instance, when you buy new products, look for vendors with green certifications from ENERGY STAR or EPEAT; use eco-friendly packaging to reduce packaging waste; and use recycled plastics in their products. Use “set it and forget” tools, such as smart power strips, to automatically turn off peripheral devices when you turn off the main device, and recycle old equipment so component materials don’t end up leaching into landfills. Moving up green curve, consider making the switch from paper-based marketing, forms and faxes to digital solutions for email marketing, invoicing, etc. Replace some of your travel with web conferencing and consider creating a telecommuting program (cloud-based collaboration solutions such as Google Apps for Business, Microsoft Office 365 and IBM Smart Cloud make this easier than ever) if you haven’t already done so. Finally, if your business suffers from server and storage sprawl, virtualized server and storage resources, consider solutions such as Dell PowerEdge VRTX, which take up less space, require less power to run, and help simplify maintenance.

baroquon_Add_Money5. Upgrade and integrate payments with accounting and financials. SMB Group research shows that many SMBs still spend a lot of time manually re-entering and reconciling payments back to their accounting and financial systems. This not only saps productivity, but also results in errors that end up taking even more time to correct. If you’re still doing this manually, its time to look at solutions that automatically integrate payments with accounting, cutting time and errors out of payment processing, such as those offered by Intuit and Sage. While you’re at it, investigate whether your business would benefit from being able to accept new payment methods. Chances are, you already take checks and credit cards, but getting set up to accept ACH, mobile payments, gift cards or PayPal may be able to help you attract more customers, gain new business, and enter new markets–or just get paid faster.

cloud6. Take to the cloud–but proceed with due diligence.  Cloud computing promises organizations a faster, easier and cheaper route to get the IT solutions they need to create and run their businesses. So it’s no wonder that SMBs are moving to the cloud. However, not all cloud vendors are created equal–and some have backtracked on the original cloud pledge. They have replaced monthly subscription pricing with annual contracts, tacked on fees for all but the most basic support, and created pricing and contracts that are about as clear as mud. Others fall short when it comes to taking security and privacy precautions. Seek out vendors that stay true to the original cloud promise as evidenced with transparent pricing, clear and flexible contracts, free trials and clearly documented virtual and physical (data center) security measures.

SMB Group Top 10 SMB Technology Trends For 2014

Here are SMB Group’s Top 10 SMB Technology Trends for 2014! A more detailed description of each follows below.

1.     Progressive SMBs Use Technology as a Game Changer
2.     Cloud Adoption Accelerates, But SMBs Steer Clear of Dark Clouds
3.     Mobile Management Becomes a Priority as SMB Mobile App Use Soars
4.     Social Media Marketing Stalls as SMBs Re-focus Marketing Practices
5.     SMBs View Payment Systems in a New Light
6.     SMBs Prepare for the Insight Economy
7.     SMBs Integrate to Gain Higher Solution Value
8.     The Affordable Care Act Puts Workforce Management in the SMB Spotlight
9.     It’s Easy for SMBs to Go Green and Save Green
10.  Make Way for an SMB Influencer Shake-Up

2014 Top 10 SMB Technology Trends in Detail

  1. Progressive SMBs Use Technology as a Game Changer. Technology continues to fuel changes in what, where, and how SMB (small and medium businesses, with 1 to 999 employees) work gets done. Back in 2011, SMB Group identified the “Progressive” SMB segment. Progressive SMBs invest more in technology-based solutions, view technology as a business enabler, and are much more likely to expect revenue growth than other SMBs. This gap continues to widen as we enter 2014, and is further fueled by generational shifts–including the rise of millennials in the workforce and older exiles from the corporate world. Progressive SMBs are blending technology and business savvy to reshape business models, carve out new market niches and invent entirely new businesses. Their adoption of cloud, mobile, social and analytics will soar as they strive for both growth and agility. They will also increasingly turn to technology-fueled services—from Elance and oDesk for staffing, to shared office space and IT infrastructure services—in pursuit of these goals. As they forge ahead, they will not only continue to outpace peers, but reshape what it means to be an SMB.
  2. Cloud Adoption Accelerates, But SMBs Steer Clear of Dark Clouds. SMBs have bought into the cloud promise: a faster, easier, cheaper and less risky route to get the IT solutions they need to create and run their businesses. SMB Group research shows SMB use of cloud business and infrastructure applications poised to grow to from 33% to 44% over the coming year. However, some cloud vendors—threatened by Wall Street and high churn rates—have backtracked on their original faster, easier, cheaper cloud pledge. They have replaced monthly subscription pricing with annual contracts, tacked on added fees for all but the most basic support, and created pricing models that are almost as confusing as those of the traditional software behemoths they once berated. As SMBs push further into the cloud, they will favor vendors that stay true to the original cloud promise, and steer clear of dark clouds.
  3. Mobile Management Becomes a Priority as SMB Mobile App Use Soars. SMBs have been adopting mobile solutions at a fast and furious pace. SMB Group research indicates 67% of SMBs now view mobile solutions and services as “critical” to their businesses. 83% have already deployed mobile apps to help improve employee productivity; 55% are using mobile apps for specific business functions, such as CRM or order entry. 49% of SMBs are building mobile-friendly websites, and/or deploying mobile apps to engage and transact with customers. However, mobile management has failed to keep pace with this explosion, and with SMBs’ increasing business reliance on mobile solutions. Concerns about security, manageability, provisioning and cost will make mobile management a top priority for more SMBs. They will be looking for easy-to-deploy, cost-effective mobile device and application management platforms and solutions to reduce management headaches and get more value from their mobile investments.
  4.  Social Media Marketing Stalls as SMBs Re-focus Marketing Practices.  Many SMBs now “get” that they need a social media presence. SMB Group research reveals that more than half of small businesses and more than two-thirds of medium businesses use social media for marketing purposes. Some have invested tremendous amounts of energy to create content to feed the voracious social media beast. But the ever-increasing pressure to create fresh content, keep up with changes in users’ social network preferences, and uncertainty about the return on social investments is taking its toll. In 2014, SMBs will focus more on what networks and content really click for their target audiences, and put more time into figuring out how to convert social connections into customers. Some will integrate social more tightly with sales, marketing and content management applications, and use analytics to develop more actionable social metrics. Marketing innovators will explore new opportunities, such as online mobile advertising powered by geolocation. Others will redirect some of their efforts back to marketing basics–including surveys, competitive analysis, email marketing and attending more conferences and events.
  5. SMBs View Payment Systems in a New Light. SMB Group research shows that although checks and credit cards are still the top forms of payment SMBs accept, there’s no question that new payment methods are growing in use and importance. 27% of small businesses and 43% of medium businesses already equip employees with mobile payment processing solutions, and about one-quarter of SMBs intend to add this capability over the coming year. Meanwhile, mobile wallets and gift cards, PayPal and even Dwolla—a payment network that allows any business or person to send, request and accept money for very low fees—will continue to provide additional payment options for consumers. More SMBs will recognize that having the capability to accept and process a broader range of payment methods can help them attract more customers, gain new business, and even enter new markets. SMBs will also seek ways to cut time and errors out of payment processing with payment solutions that integrate with accounting and ERP, such as those offered by Intuit and Sage.
  6. SMBs Prepare for the Insight Economy.  It’s been hard for many SMBs to relate to the “big data” story that most vendors have been pitching. SMB Group research reveals that only about 18% of small, and about 57% of medium businesses utilize business intelligence and analytics solutions. However, SMBs understand the value of getting the information they need, when they need it—especially as they try to compete with new, nimble born-on-the-Web startups that view data as the new business capital. In 2014, SMB-focused vendors will retool the big data story for the little guy, focusing less on zettabytes, speeds and feeds, and more on how their solutions enable and empower better insights and decision-making. Business solutions vendors will embed better and more accessible analytics and reporting tools within their solutions. Cloud-based, visualization and scenario-driven business intelligence and analytics solutions will also help SMBs take a more data-driven approach to running their businesses.
  7. SMBs Integrate to Gain Higher Solution Value. While the cloud has made it easy for businesses to add a lot of new applications, integration has often been an afterthought. As a result, many SMBs are struggling to make sense of disconnected information silos, and IT is under pressure to integrate cloud-to-on-premises solutions, as well as cloud-to-cloud solutions. In 2013, integration moved up from the #4 to the #1 technology challenge for medium businesses. In 2014, we expect that integration will be a higher priority even among small businesses. After all, it doesn’t take too many disconnected applications to feel the pain of productivity drains, errors, and a lack of solid data to support decision-making. Fortunately, technology vendors of all stripes are emphasizing the importance of a unified, reliable data store as the foundation for solid analytics and reporting. Business solution vendors are increasingly offering SMBs pre-integrated suites, opening up their application programming interfaces (APIs), and creating marketplaces to make it easy to find integrated partner apps. This makes it easier for SMBs to start small, with just one or two applications, and then snap in added functionality as needed. Finally, vendors that specialize in integration solutions, such as Informatica, Scribe and Dell Boomi (just to name a few), are making their solutions more accessible to SMBs. Integration still isn’t sexy, but the improved productivity, time savings, error reduction and decision-making benefits that it enables are.
  8. The Affordable Care Act Puts Workforce Management in the SMB Spotlight. Revenue growth, attracting new customers and increasing profitability are perennial goals for SMBs.  To help achieve these goals, they have been steadily moving ahead to automate and integrate sales, marketing and other customer-facing solutions. Although improving employee productivity has also been a top goal, SMB adoption of automated, integrated workforce management solutions has lagged behind other areas. Many SMBs continue to limp along with a patchwork of disconnected solutions and manual tracking to manage components such as time and attendance, payroll, scheduling, HR and benefits.  But with the Affordable Care Act set to take effect on January 1, 2015 for organizations with more than 50 full-time equivalent (FTE) employees, that situation is about to change. Worried about uncertainty, costs and regulatory risks, SMBs will look for better solutions to calculate employee eligibility and benefits, and to develop proactive strategies to manage ACA compliance and costs. This will drive a significant uptick of interest in, and adoption of automated, integrated workforce management solutions.
  9. It’s Easy for SMBs to Go Green and Save Green. The push for greener IT solutions isn’t new, but in 2014, we’re moving into a perfect green storm. Due to a rash of hurricanes, tornadoes and extreme weather, the sustainability of Mother Earth is taking center stage. According to a recent Harris Poll, over 74% of American adults believe in the global warming theory, and over 73% of U.S. citizens approve of the Kyoto agreement requiring countries to limit carbon monoxide and greenhouse gas emissions. IT vendors are prepared to capitalize on this opportunity with new, energy-saving products. From Dell’s Dell PowerEdge VRTX applications and storage server, which runs on standard 100V-240V AC power and doesn’t require any specialized cooling, to IBM’s patent for a “green” button that helps cloud providers “greenify” their businesses and lets customers choose whether or not to tap clean energy to run offsite servers, it’s easier than ever for SMBs to be green and save green.
  10. Make Way for an SMB Influencer Shake-Up. SMB Group research shows that in-house IT still plays a key role in all phases of the technology solution decision-making process. But now, enabled by the cloud and the swipe of a credit card, business decision-makers are much more involved: in small businesses, 69% of owners/presidents help evaluate potential solutions, and 81% help make the final decision. In medium businesses, departmental and line-of-business executives are the most likely personnel to identify the need for new solutions. This is changing the influencer landscape. Business decision-makers aren’t as likely to turn to traditional technology guidance sources as IT decision-makers. And many of us—especially millennials—are growing skeptical of traditional media sources that increasingly push paid “native content” in the guise of news. So who will the new influencers be? Accountants and other professional advisors (for line-of-business or industry) that the SMBs have an established relationship with will become more powerful influencers. Digital word-of-mouth, references, trade associations and non-technical groups and organizations will play an increasingly important role in shaping technology purchase decisions among both business and IT professionals. Finally, technology vendors that provide unbiased education—and can clearly demonstrate how business benefits from their solutions—will have a decided advantage over those that don’t.

About SMB GROUP

SMB Group focuses exclusively on researching and analyzing the highly fragmented “SMB market”—which is comprised of many smaller, more discrete markets. Within the SMB market, SMB Group areas of focus include: Emerging Technologies, Cloud Computing, Managed Services, Business and Marketing Applications, Collaboration and Social Media Solutions, IT Infrastructure Management and Services and Green IT.

BrightInfo: Helping SMBs Make the Most of Their Digital Content

brightinfo logoLaurie: In this SMB Spotlight I’m talking to Boaz Grinvald, CEO of BrightInfo. BrightInfo just launched a B2B web content recommendation engine that turns anonymous visitors into known marketing leads, with virtually no manual effort. Boaz, before we get into … Continue reading

(Originally published on SMB Group’s SMB Spotlight)

Auctiva: Automation for eBay Sellers

auctiva screen shotAuctiva: Automation for eBay Sellers

September 2nd, 2013

Laurie: Hi, today I’m talking to Jeff Schlicht, who  is the founder and CEO of Auctiva Corp., the largest third-party provider for eBay sellers. Jeff, Before you tell us about what Auctiva does, can you tell us a little about … Continue reading and listen to the podcast here

(Originally published on SMB Group’s SMB Spotlight)

How Zoos and Museums Use Big Data to Refresh and Reset Visitor Experience

3-kids_mFor most of us, a trip to the zoo, museum or an aquarium is a fun and interesting way to learn about animals, history, art and other cultural experiences first hand. Behind the scenes, however, these organizations must work hard to create the engaging, interactive experiences that today’s visitors want, and successfully market that experience to the public.

This is especially true today, when these typically not-for-profit venues must compete with an expanding array of theme and amusement parks, live and digital entertainment events and sports attractions. To remain viable and vibrant, zoos and museums must continually fine-tune their vision and exhibits to grow visitor traffic and membership. They need to be creative with concessions, and optimize use of their meeting rooms and cafes.

In this post, I discuss how Point Defiance Zoo & Aquarium and History Colorado Museum are using analytics and big data to better understand what visitors want and to deliver it.

Point Defiance Zoo & Aquarium Refreshes Visitor Engagement and Conservation Initiatives

polar-bear-003_sAt the 100-year old Point Defiance Zoo & Aquarium (PDZA) in the Pacific Northwest, Manager Donna Powell oversees all business, budget and visitor services. The 29-acre combined zoo and aquarium promotes and practices wildlife and ecosystem conservation initiatives, and attracts more than 600,000 visitors a year.

PDZA generates millions of data records daily on attendance, exhibit and event preferences and participation in conservation initiatives—but didn’t have a good way to pull information out of it. As Powell explained, “Staff generated a SQL sales report from our point-of-sale (POS) system each morning but it only gave us turnstile sales and didn’t include online and reseller sales. So staff had to pull this all together manually, which took days.”

“It also couldn’t tell us what customers do while they visit, or what they’re saying about us on social media” adds Powell. “We need to know things like, which exhibits visitors prefer, and what conservation initiatives they’re participating in, what they liked and what they didn’t like.”

Powell knew that PDZA needed to better understand visitor trends and feedback, but had concerns that an analytics solution might be too difficult and/or expensive for an 80-person organization with 2 IT staff to deploy and use. Then she attended a presentation from the Cincinnati Zoo, and learned about the analytics system that they had deployed. “They were using the same POS as we use. They introduced us to BrightStar Partners an analytics solution provider that did their implementation that really understands zoos. The light bulb went on—if they could do it, so could we.”

PDZA went live withIBM Big Data Analytics in 2012. “Everyone immediately made the connection of how they could use this to help. We can strip things out, and see how things relate. Now we can pinpoint how different weather patterns will affect attendance and exhibits, and change scheduling as required. We can also use it for marketing. For example, after analyzing sales data and open rates, we sent a promotion to members whose membership was about expire and offered them a discount if they renewed before the end of the day. We had a 6% buy in on that campaign compared to the typical mail renewal rate of 3%.”

Other benefits Powell points to include:

  • A 700% rise in online ticket sales over the past year, with an expectation that online sales will go up another 25% by the end of this year.
  • The membership team can pull the data they need in minutes instead of waiting days for IT to extract data from the POS system to create a mailing list for campaigns.
  • PDZA also uses social media and analytics to more effectively engage millennial visitors in its conservation initiatives.

Zoo employees now use iPads to access financial, attendance, membership and retail information so they can make decisions anywhere anytime. Looking ahead, PDZA plans to introduce a mobile ticketing solution. In the future, visitors will be able to “check in” at different areas within the zoo, providing zoo managers with more data to better understand which exhibits are most popular and how much time visitors spend at them.

History Colorado Center Resets To Attract a New Target Audience

HistColorado_FrankOomsHistory Colorado Center likes to think of itself as a brand new 134 year-old museum. Founded in 1879, the museum had shared the same block with Colorado’s State Justice Center for more than 40 years. “The location wasn’t ideal, and the museum wasn’t as interactive or engaging as we would have liked,” as COO Kathryn Hill explained. “Most of our visitors were senior citizens and children on obligatory school field trips.”

In 2008, History Colorado had the opportunity to build new, state-of-the art museum–and to bring Colorado’s history alive through storytelling and interpretative exhibits. According to Hill, “We wanted to understand how we could bring history alive, attract more families, and best sustain our mission over time.”

In conjunction with planning and construction of the new building, History Colorado conducted extensive audience research to test design ideas and stories. During this process, Hill “stumbled on the story of how the Cincinnati Zoo was using analytics to drill down into all aspects of visitor behavior so they could continually improve the visitor experience.”

“As a non-profit, we don’t have a lot of money for marketing, so we needed to find a strategic way to keep a close pulse on how we can best engage families. We hadn’t budgeted for analytics, but once we learned about IBM’s BIg Data Analytics, it was a no-brainer for us,” according to Hill.

In collaboration with IBM Business partner BrightStar, History Colorado deployed IBM Big Data analytics simultaneously with their new POS system. “I’m not a tech person, but I can go in and look at admissions, programs, merchandise, food, and membership data in real-time,” notes Hill. “We have a single view of the data, and can see patterns now, such as when retail sales peak and what exhibits attract the most traffic.” This helps the Center’s 125 employees fine-tune exhibit and marketing strategies.

The museum is also developing more personalized experiences for its visitors by analyzing social media commentary, and expects that this will boost engagement and repeat visits.

“We have a unique mission to help visitors understand the present in the context of the past so Coloradans are better informed in making decisions for the future,” explains Hill. “To make this happen, we need to bring people in and provide a compelling experience. Analytics helps us do this.”

Perspective

Chances are that your organization isn’t a zoo or museum. But these stories underscore the fact that big data analytics solutions are within reach for organizations of all shapes and sizes.

However, these experiences also reveal some important pointers for getting successful outcomes from an analytics investment that other SMBs should keep in mind. First and foremost, PDZA and History Colorado had clearly articulated what information they needed, and how they would use it. In addition, both organizations:

  • Selected a solutions designed for SMB requirements and for limited IT and budgets.
  • Worked with a partner that had experience in your industry, and could tailor the solution to best meet their specific needs.
  • Had input and guidance from organizations with similar requirements.

Whether you need to know more about visitors or customers, exhibits or products, with a clear vision, solid planning, big data analytics can provide the insights your organization needs to thrive in an increasingly complex and competitive world.

This is a fourth, additional post in the blog series by SMB Group and sponsored by IBM that examines big data and its implications for SMBs. You can find the first three posts at these links:

Getting Results: How SMBs are Using Data and Insights to Get Ahead

In the first two posts in this series, Seeing the Light: How SMBs are Using Data and Insights to Get Ahead, I shared the motivations that prompted three SMBs to replace spreadsheets and intuition with a more sophisticated, analytics-driven approach to run their businesses.

In the second, I discussed the factors that decision-makers in these three companies viewed as make or break considerations in the analytics selection process.

In this third and final post, I look at how these SMBs are putting the SAS analytics solutions that they selected to work for their businesses, and the results that they’re getting.

An Early Warning System to Prevent Issues from Becoming Problems

EWS Control Chart Mock-upBGF Industries had millions of lab testing records, but lacked an effective way to extract insights from them to improve quality control. BGF wanted a system that could sort through this data, generate control charts, and proactively flag potential quality issues. The company also wanted a knowledge repository to make key findings readily available in case an issue came up again.

Working with SAS partner Lucid Analytics, BGF implemented SAS Enterprise BI for Midsize Businesses, giving BGF the “early warning system” it needs to constantly monitor production processes. “Every night this system pours through millions of lab testing records, generates control charts for each and every thing we test for, and creates a report that flags any charts where something may be out of control,” explains Bobby Hull, Corporate Quality Assurance Manager at BGF.

According to Hull,”The flexibility of the SAS solution is like Legos. You can take a little piece of this and stick it to that and get what you need.” This enabled Lucid Analytics to create a commentary field in the control charts for BGF to capture information about how to resolve quality issues. “Now we also have this guru repository so information can easily be passed on to different people,” adds Hull.

When it comes to return on investment (ROI), Hull puts it this way: “People were asking me about ROI when we started the project. I told them that I couldn’t quote them a dollar figure because how can you predict when you will avert a costly disaster? I couldn’t predict that negative, but I could tell them that the investment would pay them back because it would help us spot trends, improve quality in our products and better serve our customers–all of which it has done.” In addition, notes Hull, “It makes our auditor smile because the solution reflects our attitude toward quality and that helps enormously with ISO compliance.”

Delivering What Customers Want

Style: "Color tone - warm"Oberweis Dairy needed to better understand customer buying behavior across its three distribution channels--home delivery, ice cream and dairy stores, and distribution partners. It wanted to get its flagship home delivery service growing again, increase revenue per transaction, improve customer retention, and increase market penetration across all of its channels.

“Very complicated spreadsheets, macros and pivot tables weren’t providing the answers we needed,” according to Bruce Bedford, VP of Marketing. “Now, we understand customers’ buying behaviors like never before, and we can develop highly effective marketing campaigns across channels.”

In dairy stores, Oberweis has improved transaction-level profitability by 1.2% due to the analytical approach it can take with its menu boards. As Bedford explains, “Now we can now figure out the best configurations. What foods to put on the menu, what goes best with what. We can test ideas like, what if we feature sundaes in a waffle bowl? We can present and test different options, see what customers want. This also cuts down on the time it takes for customers to make their selections, and the time it takes for us to serve them.

In addition, customer retention for Oberweis’ home delivery service has soared by 36%–yielding over $640,000 of incremental revenue in just 6 months. “Our home delivery products are same price as in the store, but there’s a delivery fee,” Bedford notes. “We had been promoting free delivery by waiving our $2.99 weekly delivery fee for six months when customers signed up. But at the 6 month mark, we had a sharp drop in renewals. We figured it had to be tied to how we were structuring the promotion. We needed to decrease attrition, without lowering offer acceptance.”

Oberweis used SAS Business Analytics for Midsize Business to test and analyze different promotions, and learned that “when we offer new customers 99 cent delivery for one year, retention spikes up. Both promotions deliver $100 value to the customer, but the details significantly increased the retention rate, without reducing acceptance.’

The results have been so dramatic that Oberweis documented them in a paper that Bedford presented at the 2012 Midwest SAS User Group 2012 conference.

Improving Guest and Homeowner Experiences

Twiddy & Company Home ER004Twiddy & Co. balances the need to maximize revenue for its individual homeowners with the concurrent need to provide truly exceptional vacation experiences to its guests. But, a myriad of complex spreadsheets were no longer up to the job. For instance, Twiddy needed to create daily reports quickly and provide them to staff to scan so that they could efficiently address any cleaning or safety issues prior to or immediately after guests’ arrival. The company also wanted to provide vacation homeowners with the best possible value for needed property repairs and services. In addition, Twiddy wanted to optimize property bookings and pricing based on data instead of gut instinct.

Clark Twiddy, Director of Operations, recalls that when the company started to look for a solution, “It was a black hole. We didn’t know if we would need to spend $250 or $100,000 but we knew we needed better analysis and decision support. Candidly, we wouldn’t have spent $100,000, but we had to find a way innovate and improve. Our market here in North Carolina is very competitive with 14 smart companies in the same area. We joke that complacency is a great way for us to lose market share.”

According to Twiddy, SAS Business Analytics for Midsize Business and Pinnacle, a SAS partner, helped them do just that. “It used to take 3 or 4 people hours a day to get information together into reports that became obsolete the following morning. Now we can get a report in seconds and see, for example, the median day-to-day cost for a certain type of repair, and compare costs for the 1100 different service providers we contract with–saving homeowners real money. We even have vendors asking us how they’re doing on the SAS list and where they rank, so they can improve and get more business from us.”

Twiddy estimates the solution has also cut error rates by about 20% per year. “More timely, accurate reports make it less likely that we’ll send the wrong vendor to a home, or send a vendor to the wrong home, or that we’ll flat-out miss something that needs to be fixed. Our housekeeping scores have increased, and repeat guests have gone from 47% to almost 60%,” notes Twiddy.

Twiddy has also built a dynamic pricing model that he says “is an enormous help with building credibility and delivering results to homeowners. We’ve been able to deliver better bottom line results to homeowners, better vacation experiences to guests, smarter technology to staff, and sustain a high-end brand image in the mind of our customers.”

Perspective

If you’ve read all three of the posts in this series, you know that none of these companies just waved a magic wand and magically achieved successful outcomes from their analytics investments.

But, the good news is that none of these companies needed a magician–or an IT army–to help make this happen. Instead, they got there by:

  • Facing the fact that their businesses would need to employ a more sophisticated approach to gather, create and use information to make the decisions in order to move ahead.
  • Taking enough time upfront to assess what information they needed to make better decisions, what needs to happen to make this information actionable for the people who need to use it, and how you’ll measure outcomes.
  • Thoroughly evaluating internal capabilities, what they would need from an analytics solution and a solution provider, and getting the information they needed to select best-fit options for their companies.

So, mere mortal SMBs–take heart–and follow the guidance of these and other SMBs that are paving the way.

This is the final post in a three-part blog series by SMB Group sponsored by SAS that examines why and how SMBs are moving from spreadsheets and intuition to a data-driven approach to grow their businesses.

Infusionsoft: Big Dreams for Small Business

Infusionsoft: Big Dreams for Small Business

Last week I attended InfusionCon 2013, Infusionsoft’s annual user event. In case you’re not familiar with Infusionsoft, they provide web-based all-in-one sales, marketing and ecommerce software aimed at “true” small businesses with 25 or fewer employees.

eventOver 2,000 small business owners attended the event, which featured the launch of Infusionsoft’s 2013 Spring Release, and three days of education, training, networking and presentations. Speakers ranging from Daymond John, founder of FUBU and investor on ABC’s Shark Tank, to David Allen, author of the bestseller Getting Things Done, shared center stage with Infusionsoft “Ultimate Marketer” nominees, who provided insight into Infusionsoft’s unique customer community. And, in an industry where most vendors are easily lured upstream into midmarket and large enterprises, the Infusionsoft team doubled-down on the company’s commitment to serving small business.

How does Infusionsoft intend stick with its small business pledge? Let’s take a look based on what I saw and heard at the event.

Climbing Everest

It comes as no surprise to anyone that has ever owned a small business that in every SMB Group study we do, small businesses cite “growing revenues” and “attracting new customers” as their top business challenges. While the goal is straightforward, getting an effective system in place to connect with and nurture prospects and customers is hard and time-consuming. Many end up with using a disconnected assortment of point solutions to address different requirements for things such as ecommerce, email marketing and content management. Not surprisingly this often gets ugly and hard to manage as a business grows. It becomes increasingly difficult to give customers and prospects the responsive and personalized attention, offers and service they expect without working round the clock.

CEO Clate Mask founded Infusionsoft in 2001 with the intent to help small businesses grow without becoming slaves to their businesses by helping them automate their sales and marketing with an integrated, all-in-one solution. Over the past dozen years, Infusionsoft has grown its customer base to 13,500 accounts and 50,000, with a roughly even split between B2C and B2B companies. Growth is also accelerating: Infusionsoft increased revenues and customers by more than 50% in the past year.

I think its fair to say that in the early going, Infusionsoft’s appeal was limited to those small businesses who saw the value of automating their sales and marketing but were also ready, willing and able to invest a lot of time learning how to use Infusionsoft and getting it to work for their businesses. Many of these pioneers have had great success using Infusionsoft to help grow their businesses.

As Infusionsoft has grown however, it has begun to attract more pragmatic customers who don’t have the time or interest required to tinker with configuring software. Small business owners are already wearing enough hats—they aren’t marketing experts and don’t want to be. They see the value that an integrated sales and marketing solution can deliver, but want a shortcut to it.

photoeverestMask and his team have heard this message loud and clear. They know that they need to simplify the solution to appeal to wider swath of small businesses and spike growth to the next level. Consequently, Infusionsoft is focusing on simplifying the solution and delivering positive outcomes to users more quickly to reach its next milestone—100,000 customer accounts in the next four years.

Towards a Sherpa Style Solution

Infusionsoft’s 2013 Spring Release is all about doing more of the heavy lifting so its users don’t have to. The release features a more visual interface, easier to use drag and drop tools, and templates to help small businesses get going. For instance:

  • The My Day dashboard makes it easier to for users get organized, create quotes and move quickly through sales activities to close more business.
  • Infusionsoft’s Marketplace provides a library of free, pre-built marketing campaigns that have a proven track record of converting leads into buyers. Instead of reinventing the wheel, users can download a campaign to their Infusionsoft app, tweak it and go.
  • A new quoting tool that streamlines the quoting process and helps users create, track and manage quotes.
  • New interactive training tutorials help users learn about how to use additional capabilities from within the solutions with boxes that pop up to explain how to do things relevant to where users are in the application.

Infusionsoft has also integrated GroSocial (which it announced the acquisition of in January) with Infusionsoft Campaign Builder. GroSocial enables users to create and manage social campaigns on Facebook and Twitter, and the integration with Campaign Builder whittles down the time it takes to create, manage and track social media marketing campaigns.

Staying the Course

Earlier this year, it captured a $52 million dollar financing round from Goldman Sachs. Skeptics, myself included, have wondered if Goldman Sachs will force Infusionsoft to go upmarket or position for acquisition. After all, striking the right balance to deliver value and build volume in this very fragmented, diverse market is not for the faint of heart. Once you move past turnkey point solutions, very few vendors have been able to establish enduring scale and success.

photo listencareserveBut Mask says that the investment firm wants Infusionsoft to keep its small business pledge and build a great, long-lived company. It turns out that Goldman Sachs supports small businesses through its non-profit foundation, 10,000 Small Businesses, and Infusionsoft sees potential synergy with this initiative. Meanwhile, Infusionsoft is staying true to its own small business roots. Over 60% of its employees have experience running their own small businesses, and Infusionsoft encourages new employees to continue running their small businesses while they work for Infusionsoft to keep the small business focus sharp and stay true to its mantra to listen, care and serve small businesses.

Infusionsoft is also expanding its ecosystem of developer and service delivery partners, which now includes over 300 partners. This year’s Battle of the Apps, showcased at InfusionCon, showcased 4 contestants who develop plug-ins and add-ons to the Infusionsoft platform.

we empowerIn January 2013, Infusionsoft opened up its new 90,000 square foot building to accommodate the 700 employees it will add to its staff to support its small business growth goals and culture. When you walk in, you’re greeted by a big wall with hundreds of photos of Infusionsoft’s small business customers. The building features:

  • Meeting rooms that small businesses in the Phoenix community can use free of charge.
  • A large space to accommodate training for customers and partners.
  • Prominent displays of the company’s nine core values and performance benchmarks for its Everest climb.
  • A games room, mother’s room and a cereal bar—which harkens back to remind everyone of the early dark days when Mask and his then small team lived on cereal and pizza.
  • Infusionsoft is also expanding its ecosystem of developer and service delivery partners, which now includes over 300 partners. This year’s Battle of the Apps, showcased at InfusionCon, 4 contestants who develop plug-ins and add-ons to the Infusionsoft platform.

Interestingly, the building also includes a Dreaming Room—complete with a library and full-time Dream Manager—to help Infusionsoft employees set and attain their personal goals. Infusionsoft believes that happy employees equate to happy customers—and it is filling the walls with photos of how its employees are achieving their dreams.

Perspective

Will Infusionsoft’s dedication to small business pay off? Will it be able to stay the small business course, and find the formula that eludes so many tech companies. Is it on track to become a scalable, enduring small business solution company ala Intuit? Of course, only time will tell if Infusionsoft’s execution will live up to its intentions.

The company will need to strike that fine balance of creating powerful solutions without complexity—a rare thing indeed. But, so far, I like what I see. Keeping fresh small business blood running through its employees’ veins should also help keep it focused on and in tune with small businesses—especially when so many of the vendors targeting small business are so far removed from the realities that small business owners face. Infusionsoft has the capital it needs to provide a better user experience for its customers, and broaden its partner ecosystem to add the nuanced capabilities that diverse small business customers demand.

Infusionsoft’s goal for next year’s InfusionCon is 4,000 small business owner attendees. I’ll be watching to see if the company meets this objective, because convincing that many “true” small business owners to put day-to-day business needs aside for three days to travel and invest to learn how to use any software solution may be a first. If Infusionsoft pulls this off, it will be a very good omen indeed that it can fulfill on its dreams for itself and for its small business customers.

Follow

Get every new post delivered to your Inbox.

Join 8,855 other followers