Is There Too Much Focus on the Top of the Funnel in SMB Solutions?
October 12, 2016 | Contributed by: Greg Sterling
With the exception of marketing services providers that are focused on loyalty or CRM, there’s a heavey focus on acquiring traffic and new customers in SMB marketing programs. One sees this repeatedly in surveys and in the structure of SMB marketing programs being sold by local media publishers and others.
In contrast, there’s a widely circulated statistic (generally without attribution) that 80% of future revenue comes from existing customers. Whether it’s 80% or a somewhat smaller number, it’s the dominant share.
In a recent survey on behalf of Camilyo, discussed in the Customer Funnel report, we asked local businesses about which part of the “customer funnel” they were emphasizing in their marketing. While half of local businesses did indicate that retention was important, most emphasized new customer acquisition.
LSA survey Q2 2016, n=303 North American local businesses
At the recent SIINDA conference in Europe, I presented the results of this survey and moderated a discussion with Camilyo’s Ziv Koren. He argued that publishers and local media sellers (without their own consumer destinations) will forever be buying and selling Google and Facebook traffic if they don’t address the broader customer funnel. This approach offers lower margins for publishers according to many.
He also argued that a solution focused largely or exclusively on acquiring and sending traffic to SMB websites sees a great deal of “leakage,” because that traffic often fails to convert for one reason or another (e.g., SMBs don’t answer the phone or respond in a timely way).
What do you think about all this? Do you believe:
- SMB marketing solutions and programs are too focused on driving new traffic and customer acquisition
- Programs that don’t address or assist with conversion and retention deliver lower margins and ultimately under-perform for SMBs (causing churn)
- That the industry needs to move toward a more holistic solution or approach for SMBs that address the customer journey/funnel more comprehensively
Or do you disagree with these ideas? Let us know your thoughts.