Written by Riva Lesonsky
Marketing challenges create a “cycle of procrastination” and small businesses … [+]
Despite an improving economy and record consumer spending (Q1 retail total sales were 2.65% higher than 2023's record total sales, according to CNBC/NRF Retail Monitor), small and medium-sized businesses say they are struggling to effectively market their products and services. Latest report from Constant Contact: Small Business Now: The state of SMB marketing.
The report reveals what Constant Contact calls “worrying trends.” Many small business owners feel overwhelmed with marketing, and 73% are unsure if their current strategy is contributing to their business goals.
This uncertainty is further fueled by not knowing the best way to communicate with customers and not having the time to execute campaigns. Both challenges lead to a “cycle of procrastination” that prevents small businesses from reaching their potential.
Factors behind small business marketing anxiety
Much of the anxiety is driven by economic uncertainty, with 81% of small businesses surveyed worried that the current economy could have a negative impact on their business.
Additionally, small business owners say they don't have enough time to plan their marketing because they have many other responsibilities. But even when they do finally have the time, business owners complain that marketing takes too much time and keep putting it off.
Even though 34% of business owners report that “marketing more effectively is an area of opportunity,” 56% spend less than an hour per day on marketing activities.
Most time consuming tasks:
- Content creation (creating copy, searching for images, etc.) – 51%
- Marketing strategy planning/creation – 40%
- Determine what’s working/measure performance – 35%
- Social media posts—34%
- Managing email campaigns – 19%
- Ad campaign management – 19%
Of these, the marketing responsibilities you're most likely to put off or ignore are:
- Social media posts—44%
- Marketing plans and strategies – 42%
- Determine what’s working – 31%
Research shows that business owners spend most of their time online and in-person interacting with customers, clients, and supporters, processing and fulfilling orders, and managing operations.
The report states that a major challenge for small business owners is the marketing knowledge gap. Although entrepreneurs are experts in their fields, they don't “have a great sense of what a 'good' marketing campaign looks like.”
Business owners also admitted they are struggling to understand the basics and what works. And they were having trouble managing resources and keeping existing customers engaged.
See more all business:
Marketing activities that need the most support
It's not just that we don't have enough time. Many small business owners surveyed admitted that they tend to avoid many of these marketing tasks because they lack the knowledge to do so.
Which marketing tasks do small business owners think they need the most help with?
- Social media marketing—54%
- Email marketing – 19%
- Contact management – 13%
- Event management – 8%
- SMS (text) marketing – 6%
Small business owners report that they need the most help with social media marketing. This is not surprising since, as the report points out, to be effective, you need to maintain a regular posting cadence on your social media networks to keep your followers engaged. Of course, automated tools are available to help business owners post more consistently.
Biggest marketing challenges for small business owners
According to the report, small businesses do not need to be motivated to promote themselves. they don't know what to do. They know they need to attract new customers and that effective marketing is the best way to do that, but which marketing channels to leverage and which strategies are most effective? , I don't know how to improve the campaign.
What is your biggest challenge when marketing your business?
- Developing new customers – 60%
- Determine what’s working/measure performance – 33%
- Lack of resources (time, budget, skills) – 32%
- Retention of existing customers – 31%
- Creating a strategy/plan – 25%
- Send the right message – 25%
- Using multiple platforms/tools – 24%
- Motivation—19%
Improving small business marketing strategies
The small and medium-sized businesses covered by the report recognize that they are missing out on important opportunities to market themselves. And they're going to do better this year. In fact, 39% said he will increase his marketing budget in 2024, and 46% expect him to spend at least 10% more than last year.
Most small businesses plan to focus on improving their channel mix, working more efficiently, and adhering to their strategy. Expanding the customer base is also his top priority for 2024.
What areas do small businesses need to improve the most to achieve their marketing goals?
- Growing customer base – 54%
- Use the right marketing channels – 37%
- Work more efficiently – 34%
- Creating a strategy/plan – 29%
- Know what to do next – 27%
- Spend more time on marketing – 23%
- Accurately measure campaign performance – 22%
- Creating integrated campaigns – 14%
This report contains a lot more interesting data that you can use as a benchmark to compare your marketing efforts to those of small and medium-sized businesses.
Marketing is the lifeblood of any small business. Cash flow keeps companies afloat, but they can't make money if consumers don't know what companies exist, what they do, and how to find them. Don't think of marketing as a series of unrelated tasks. Instead, think of it as an effective way to tell a story about who you are, what you offer, and why people should buy it.
About the author
Rieva Lesonsky is CEO of GrowBiz Media. SmallBusinessCurrents.com I've been covering small business and entrepreneurship for more than 30 years.Sign up with her to get more insight into her business trends free ocean current Newsletter.
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