According to the Salesforce Research “2016 Connected Small Business Report,” with more than 300 small business owners in the nationwide survey commissioned online by Harris Poll, most
small business owners still rely on manual, outdated processes, such as email and spreadsheets, to store and track their customer information.
The research found that, while not having enough
time is one of the top business-related issues keeping small business owners up at night, the majority are not taking advantage of modern technologies such as CRM, analytics and artificial
intelligence (AI).
83% of small businesses do not have an IT staff, so it is no surprise that 72% of small business owners are responsible for making their company’s
technology buying decisions.
Who In Organization Typically Makes The
Technology Buying Decisions (Multiple OK) |
Decision Maker | % of Responders |
Me | 72% |
A co-owner / business partner | 28 |
CTO / CIO / head of IT | 4 |
Outside vendor /
partner | 3 |
CFO / head of finance | 2 |
Other | 1 |
None | 3 |
Source: Salesforce
Research, January 2017 | |
When considering which technologies to purchase, most
owners consider
- Price (74%)
- Convenience (43%)
- Compatibility with their current infrastructures (37%)
The majority of their
technology spend, which on average accounts for 15% of their annual budgets, goes toward
- Hardware (46%)
- Financial software (33%), such as accounting, bookkeeping and bill
payment technologies
There appears to be a gap when it comes to how small business owners manage their relationships with customers, including tracking their
information and providing effective service.
The Majority Of Your
Technology Spend (% of Responses; Select All That Apply) |
Technology Used |
Hardware (e.g., services, laptops, etc.) | 46% |
Financial software (e.g., accounting / bookkeeping, bill payment) | 33% |
Productivity software (e.g., Microsoft Office, etc.) | 26% |
Internet hosting / ISP | 22% |
Point of sale / point of purchase software | 20% |
Mobility / mobile solutions | 16% |
Telecommunications / VoIP | 15% |
Source: Salesforce Research, January 2017 |
Methods Used To Track/Store Customers
Information (Select All That Apply.) |
Method To Track | % of Responses |
Email tools (e.g., Outlook, Apple, Gmail contacts) | 44% |
Spreadsheets (e.g., Excel, Google Sheets) | 41% |
Written customer ledger | 34% |
Basic database (e.g., Access, Quickbase) | 29% |
Customer relationship management (CRM) app or system (on your computer) | 20% |
Other paper-based system | 15% |
Customer relationship management (CRM) app or system (cloud-based) | 12% |
Other | 5% |
Source: Salesforce
Research, January 2017 |
For managing sales opportunities, email (39%) and spreadsheets (24%) top the list for owners’ go-to
technologies. However, there is still a sizeable percentage (21%) of small businesses that don’t use any technology at all to sell to their customers.
System Or Method
Used To Sell To Your Customers (Select All That Apply).
- Email tools (e.g., Outlook, Apple, Gmail contacts) 39%
- Spreadsheets (e.g., Excel, Google Sheets)
24%
- Written customer ledger 22%
- Basic database (e.g., Access, Quickbase) 20%
- Customer relationship management (CRM)
app or system (on your computer) 15%
For customer service, more than half of small business owners (51%) said they make direct phone calls to
customers, followed by direct emails (47%) and social media (32%). Interestingly, a large percentage of small business owners (51%) have turned to social media, such as ads on Facebook and YouTube, to
market to customers. Many small businesses also market to their customers through email (37%) and print advertising (34%).
Not having enough time in the day (35%) and the
impact of the economy (34%) are among the top business-related issues that small business owners face, followed by having limited resources (31%) and having to pay taxes (31%).
Business-Related Issues Keeping Owners At Night |
Issue | % of Respondents |
Not having enough time in the day | 35% |
The impact
of the economy | 34% |
Having limited resources available | 31% |
Having to pay taxes | 31% |
Getting funding | 24% |
Finding the right talent | 19% |
Managing people | 13% |
Implementing the right
technology systems | 10% |
Source: Salesforce Research,
January 2017 |
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information from SalesForce Research, please visit here