Online Sales Tools for the Small Business Environment

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1 ThisIsCable for Business Report Series Online Sales Tools for the Small Business Environment White Paper Produced by BizTechReports.com Editorial Director: Lane F. Cooper Research Assistant: Will Frey

2 ThisIsCable for Business Reports are designed to demonstrate how new technologies enabled by cable providers help small business owners and managers address key challenges, solve problems and achieve mission critical objectives. More resources can be found at thisiscable.com/business.

3 page 3 Online Sales Tools for the Small Business Environment introduction For most small business owners and managers, online sales tools are critical for efficiently marketing goods and services to customers. Entrepreneurs heading many of the smallest businesses are experts in fields like carpentry, automotive repair, electrical services and crafts, but often have little experience in actual sales. For theso what are the important elements of a storage strategy and how should those play into the storage methods that a business uses, both on premise and in the cloud? But businesses without sales die quickly. Thus, online sales tools enable smallbusiness operators to build revenues with a very small or, in some instances, nonexistent marketing team. Yet, even businesses with experienced sales staff also rely on online sales tools to compete in today s fast-paced global economy. Online sales tools run the gamut from relatively simple contact lists to full-blown customer relationship management (CRM) systems. Even comprehensive CRM solutions are priced at levels designed for small business use. Some solutions offer on-demand pricing, allowing small businesses to scale their usage as their enterprises grow, and enabling them to benefit from sales applications almost immediately without a large upfront capital investment as was common with older, on-premises applications only a few years ago. Online sales tools have evolved from applications used primarily by early technology adopters who may have had only marginal returns on their investments because their applications required technical expertise or training, to must-have applications for businesses ranging from sole proprietorships to much larger businesses. Even those small business operators without much technical

4 page 4 and sales know-how are using online sales tools to manage sales campaigns, streamline routine sales processes, improve accountability, and boost their revenues with little or no impact on the expense side of the ledger. The economic downturn, changing customer purchase patterns and increased use of social media all drive the growth of online sales tools within businesses of all sizes. Among the business issues driving the growth of online sales tools within businesses of all sizes, as well as the competition among providers, are: Economic downturn -- The economic downturn of the last few years has forced large and small businesses alike to do more with less. In order to boost sales, or more recently, to keep sales from falling, firms have been forced to expand sales efforts while at the same time reduce staff. Changing customer purchase patterns -- Another result of the economic downturn is that customers are being more careful with their purchases than they have been for several years. Many potential customers have sharply reduced purchases, and even if they have returned to buying more, they are taking much greater care in making their buying decisions. With prospects and customers no longer making quick purchases, sales cycles are longer and more demanding. Increased use of social media -- Social networks have gone from consumer-driven platforms only a couple of years ago to essential elements of the prospecting and sales process for small and large firms alike. LinkedIn, Facebook, Twitter, and other social media are used in conjunction with CRM, contact management, and reporting programs to help track prospects and the progress of sales. In this report we explore the role that online sales tools can play in making small businesses more competitive in today s global and digital marketplace. While some businesses have need for full CRM systems, those systems contain plenty of features that might lie well beyond the needs of micro-businesses and start-up companies. Those firms are often better served with simpler systems. Online contact management systems, which have replaced the Rolodexes of previous generations, can provide critical contact details and track historical information. Sales pipeline systems help with sales that have a long process between contact and closing. The CRM systems are the next step up in the sales system evolution, though some small businesses may be able to meet all of their needs with simpler applications.

5 page 5 Online Sales Strategies in a Small Business Context Some online sales tools will offer advice on how to get the most value from their features. Yet even the most effective tools will do little if the business executive does not first take some time to define the target market (e.g., college students, consumers, business users, etc.) and the unique value of the goods or services for sale. Defining these factors at the outset will help business operators determine the online sales tool that offers the best fit for their needs. Several online sales tools are available, with a variety of capabilities and pricing plans. So what are the important factors in determining the best online sales tool for a particular enterprise? The best online sales tool depends on how it will be used, whether it will be integrated with other systems or stand alone, or whether technical support will be required. Deployment The first factor is to determine how the online sales tool will be used and the company s own configuration. A business with an owner-operator and little or no additional staff needs simple systems that need little or no customization. As a firm grows, it can dedicate employee time to work with a more robust system and analyze the results that it produces in order to make any necessary adjustments. Functionality A closely related consideration is the functionality of the tool. Some integrate with internal systems, while others are designed as stand-alone applications. Still others integrate with social media platforms or with other popular Web-based applications such as Google Apps. If such additional functionality is appropriate for a firm s target markets, these applications could provide the most valuable benefits. Support While online sales tools are designed to be intuitive, some are much easier to use than others. Support must be available to help if there are issues while deploying the tool because the user does not understand how to set it up or how to operate it or if there is a technical glitch. Some tools have readily available examples of how existing customers have used the tool to boost sales for their enterprises.

6 page 6 conclusion As the functionality and integration of online sales tools continue to evolve, small businesses can take advantage of the wide range of offerings at cost levels that scale to their needs. While the value proposition for different choices of online sales tools differs from company to company and from industry to industry, small businesses today need to consider these solutions as essential elements of keeping sales the lifeblood of every enterprise pumping.

7 About BizTechReports.com BizTechReports.Com is an independent reporting agency with offices in Washington, DC and the San Francisco Bay Area that analyzes user trends in business technology. BizTechReports.Com explores the role that technology products and services play in the overall economy and/or in specific vertical industries. For more BizTechReports.Com white papers, case studies and research reports, visit About This Is Cable ThisIsCable.com Business Report Series is an initiative of CTAM, the Cable & Telecommunications Association for Marketing, which is dedicated to helping the cable business grow. Cable companies supporting the initiative include: Armstrong; Atlantic Broadband Business; Bend Broadband Business; Bright House Networks Business Solutions; Cable One Business; Charter Business; Comcast Business Class; Cox Business; Insight Business; Mediacom Business; Optimum Business; Rogers Cable; Suddenlink Business and Time Warner Cable Business Class. Small business owners can learn about the initiative at