Understanding the SMB sales landscape
May 20, 2021
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What are SMBs?
At Accenture, we define Small and Medium Businesses (SMBs) as companies with up to 500 employees and annual revenues of up to $1 billion.
Why should enterprises care about SMBs?
SMB’s play a central role throughout the global economy and represent a massive untapped opportunity for global enterprise (software and platform) growth. According to the World Economic Forum, “Small and medium-sized enterprises (SMEs), which represent around 90% of all firms globally, provide roughly 70% of all employment and, by some estimates, contribute to up to 70% of global GDP.”
What are some common misconceptions about SMBs?
“SMBs just behave like consumers / enterprises”: SMBs lie at a nuanced intersection between consumers and businesses (‘pro-sumers’) so enterprises cannot fall back on either of these standard approaches when addressing SMBs.
“All SMBs are the same”: SMB buying behaviors, needs, and preferences vary wildly (especially along key vectors like digital maturity and company size), so enterprises need to invest in segmentation to build out the right treatments and strategies.
“Enterprises understand SMB needs”: SMBs consistently voice concerns that enterprises don’t understand them and instead care more about sales than SMB success, and the majority of enterprises do not have dedicated SMB functions.
“SMBs trust Enterprise solution partners”: There is a significant trust gap between SMBs and the enterprises they buy products from. In fact, most enterprises vastly overestimate the degree to which SMBs trust them.
What SMB themes should enterprises be aware of?
How can enterprises truly support SMBs?
These are the most important actions enterprises can take to win more SMB business: