Here’s my list of thought bubbles I would like to send to the big corporate who claims to have had a Damascus moment and now wants to work with the small business community:-- I am not an “SME”. I am a small, or owner-managed, or independent, or growing, or self-employed, or new, or young, or boutique business. But I am not an SME (pronounced S.M.E.)
Only corporate people have the smug arrogance and ignorance to use such a phrase. When I go to a party I do not say "Hi, I am an S.M.E.” And as for the “Smeeee” word – what is that all about? I never ever call myself a “smeeee”. Excuse me!! - I am not part of a homogenous mass of some four million similar sales prospects.
- I am not an immature/undeveloped/under-developed big business.
- I am not a second-class citizen who you see as a market opportunity only after you have exhausted the blue chip big ticket spenders, to maximise your investment.
- I want you to sell to me with an entirely fresh approach, not merely a scaled-down version of the methods used with big corporates.
- I do not want to be patronised.
- All marketers are liars; salesmen are worse. Your research is meaningless sophistry. You don’t need focus groups if you are close to your customer. Think about it!
- I know you don’t really care (in words or in actions). If people talked to you the way that corporates spoke to small business people you would punch them on the nose.
- I am not another target towards your year-end sales goals.
- I have a less formal, faster buying cycle than a corporate so create faster systems to match how I buy and not the other way around. I am not interested in your processes; they are for your benefit only.
- I want my supplier to understand me.
- I want my supplier to understand business.
- I want my supplier to understand my business.
- I want my supplier to understand me. (Yes, I have repeated myself)
- I want swift action.
- I want to know what I am paying for and how and when I am paying.
- I do not want to be bamboozled with science: keep it simple stupid.
- I am the customer; remember who I am… I am the customer.
- I don’t want my time wasted; be short and sweet.
- I want you to make it easy for me to order and to buy from you; win my trust ‘cos I don’t have to buy from you today or ever.
- I beg you to make sure your service delights me; show me how you can help, show me the benefits.
- I ask that you customise your products and service for me.
- I would be happiest if you could be more of a trusted adviser and not a numbers jockey.
- I am not a number.
You just don’t get it.
You corporates can’t talk my language.
A quick summary:
- Small businesses are a real business opportunity. They buy lotsa stuff
- Small and big businesses are very different
- Big businesses are (still?) in control so they think, and are totally, hopelessly, clueless about small businesses
- Not enough ’stuff’ is designed for small businesses or communicated in a way that appeals to them
- Most marketing to small businesses is, to be frank, pretty patronising.
This is not a small business/big business thing but a straight-down-the-line business/commercial argument. The small business market is not a niche, a speciality group or a minority – they have wallets, and for many corporates, small businesses with their specific needs hold the key to future success.
The field is wide open.
33 comments:
Excellent. Send it to just about every corporate in the land. Despite what Mr Corporate says. They need to hear this message.
Jeremy
Oh the irony of it all.
Congratulations on a brilliant article.
The huge irony is that Barclays ought to attend one of your Bright Marketing events (sponsored by Barclays). They might learn a thing or two. (ha ha ha!)
Now that I have stopped laughing at my brilliantly ironic wit I can be more sensible.
They (Barclays, PCWorld, BT, BlackBerry, Sage, Staples etc) can not see the wood for the trees. Robert, line them up and tell them what they need to do. Before it is too late.
Bonnie
PS today we filled in a purchase requisition for one of the above-mentioned businesses. We were asked to tick in the box "Are you an SME?" Why? So that they can screw us over?
Bonnie
Yes, ironic! Some of the events were also sponsored by Business Link. I was at them and nodding away furiously.
Like the Top Gear 'Cool Wall' maybe we should create a similar wall for large organisations that are or are not cool for the independent business sector.
Bigger point - I am afraid that cool is only cool if it also means increased profitability (for a large business).
Jim
from a BL
I'd add "and if big companies are so powerful and know-it-all, then they can find a way to pay invoices on time!"
They often have tortuous procedures for suppliers submitting invoices. Once an invoice is submitted, it requires months of chasing and waiting. Many times, I've spent as much time chasing an invoice as I've spent doing the work for which I was (not) being paid.
That's not the case with all large organisations, of course - one of my large clients just paid an invoice within two weeks of receipt! But delays and red tape tend to be the norm.
In contrast, small companies nearly always pay on time, with a minimum of rigamarole. Bless 'em.
I guess that working as a small player selling to and working with a big player is another blog, never mind post, in its own right.
Bonnie
I came here via IOD - If Robert Carven is right then there are millions to be made by larger companies. But why would they do what they are doing now if it is wrong? I can't see the sense in that.
Mark
Warwick Business School sent me here (ex-MBA) where Craven seems to blame the business schools for not getting it right.
He never listened when he attended his marketing modules because he'd remember that we teach people to avoid marketing blindness and focus on the customer. Just because our graduates choose to do something else is not our fault.
Peter
Resli
Our experience at the BL tells me that many smaller businesses seek the sales with bigger businesses thinking the big budgets are attractive. Unfortunately the whole buying cycle is totally different to selling to a smaller business so they usually fail or get their toes burnt.
This goes back to Andrew's comments about understanding exactly who your target customer is and making sure you know what they are looking for and that there is a good fit.
Jim
I'm married to a corporate, I am an SME and we've had many discussions (aka arguments!) over the differences... ;)
Great post and overall your blog is one I will recommend to clients.
Thanks
Darren
The trouble with most "sales" people is that they thing that they are gods gift and can sell anything to anybody. Remember the old saying " he's a great salesman, he could sell snow to the Eskimos'". Here lies the problem, unless you come from an NLP background, or have perhaps experienced Sandler or similar then you haven't yet got it! You can only sell snow to the Eskimo if he has issues with his Snow, or his Snow supplier. The real sales people (and I exclude most corporates here) is that they haven't taken the time, as Robert so eloquently points out, to understand him or his business and wouldnt be able to get to the "pain" if they tried. Furthermore, I don't believe that corporates have harnessed the power of their people - when I worked for corporates, "selling" the company was the furthest thing from my mid as I was in IT not sales!
Chris
Chris
You cite NLP and Sandler. Shame.
Not sure they are that great. Both are prescriptive, self-referencing apporaches. Have looked at both and object to their evangelical holier than thou approach to their subject.
However there doesn't seem to be anything better around so I will eat my words.
Bonnie
Bonnie,
Your absolutely right!
I come from a Project Management background and in particular have used Prince 2 extensively along with various other PM and design methodologies. Prince 2 for some people is too prescriptive and bureaucratic, however it is best used when tailored to the organisation and to the project in question.
Sandler for me was a breath of fresh air as it gave me a structure for sales and my first exposure to NLP and enabled me to win buseiness. NLP has been a revelation as it has helped transform both my wife and my own lives.
The key for me with all of these is that the success lies in the implementation rather than in the words on the page. None of them guarantee success, however they sure have helped me.
Personally for me, I like the formality and structure that it gives and totally respect your views. Clearly its not right for everyone.
Chris
Business schools tend to prescribe one 'medicine' for all sizes - business management platform is not the same for all. In a globalised environment businesseses are bound to deal with companies of all sizes from different culture, nation & style. Hence, the curriculum need to be structured to capture this global scenario in order to operate effectively - today, businesses can connect instantly via net.
As for large businesses, they tend to become very hierarchical in its structure/format of management style and as a result the managerial personnel dealing with small business lower down in the line of authority tends to stand by the 'rules' of the large company than be 'entrepreneurial' in their dealing with small companies. Also they fail to understand the 'thinking' of small companies as well.
Posted by Sutheash Balasubramaniam
Do business schools get it - no !! The basis of a business school is to provide a classical education, what is needed is more a streetwise approach - in order to get a grip on how business operates in reality
Posted by Uriah Smith
I think they are lousy at selling to large businesses too. The slack is taken up by Procurement guys who capitilise on dysfunctional selling and pursue dysfunctional buying processes.A kind of 'Mexican stand-off' where sources of genuine value are snuffed out. In the end, customers lose....
JD, B2B Sales Coach
Arrogance borne out of an attitude of “we are bigger than you therefore you are mad not to buy from us”, and a lack of awareness of how small companies operate.
Not the salesman’s/woman’s fault as their managers themselves are equally blind and complacent.
GP
If so then perhaps because they work in completely different ways. I don't know what Robert Craven is getting so upset about, probably just trying to be a controvertialist or whatever they call them. If he's happy to do that, how can he genuinely criticise larger organisations for having their own sales strategies?
I've seen the way they operate in the IT industry. The big guys organise into departments with lots of meetings and their headcount and spending power advantage (on sales and marketing) is often the best thing they've got going for them. They may as well use these factors because apart from that they've got huge overheads which usually come through in their fees.
I've yet to be convinced they can't sell to the SMEs in my field. Companies like IBM and Oracle are bringing smaller-scale products onto the market and can apply the same muscle with lower prices - to some extent. It's true they are so big they find it hard to change and innovate. But if they decide operate as small operational units say through the Internet it's sometimes hard to tell what size the organisation is.
CM
#
Paul C. Wynn
Paul C. Wynn
Director at IMF
Having worked for both larger and smaller organisations, I can see the disconnect that can happen when different cultures clash. I have found that smaller enterprizes react quickly to customer needs, whereas corporates have the resources to deliver a more thorough service. Personally I can see aspects of both worlds that I both like and dislike, I guess it really comes down to personal ownership and commitment. If people display both, then everyone benefits no matter how large or small the organisation.
PCW
And dont forget the work by Glover,NERA and others on SME procurement from the public sector . This is one to push through with RDA's and your Chambers of Commerce
NS
I found the blog very interesting although I do not wholly concur with Robert's views, and thought point 7 was a little distasteful. I really took real interest from point 10, which started to look at what smaller businesses (note I did not use SME) required in terms of quick and efficient procurement.
Clive and Paul have both made very valid comments and seem to sum the situation up nicely.
Regardless of size, it is the lean and agile organisations that are able to react quickly to their customers, and are completely customer-focused that are the most successful - in my opinion.
JB
It maybe that many large companies do not want to sell to small organisations perhaps because of the cost of sale or they may have resellers or other distribution to serve the smaller end. From a small business perspective if they are not able to sell to me then I would suggest that there are many smaller companies who do want to provide products and services for the smaller enterprise.
CE
Often larger companies have a set of products with little deviation on them. As we all know smaller businesses need that little bit of "wiggle" room as we cannot throw limitless money at a problem until it’s fixed. In essence our solutions have to solve the problem out of the box. This is not always how the bigger boys operate.
I do think they can sell to smaller companies but it depends if their solution (rigid that it is) fixes the problem smaller companies have.
Also they can due to their size pay less to staff hence attracting the less skilled and motivated sales people as many times bonus and commissions are capped at enterprise level firms meaning the smaller and mid market ones are where the big earnings can at times be.
CS
If a large value sale requires the same effort as a low value sale, the obvious choice would be the large value. Smaller companies tend to offer lower value sales, so large companies favour selling to other large companies. I don't think that large companies are lousy at selling to small companies, but maybe the effort involved reflects the value of the sale!
TT
If we're talking direct marketing, I agree, there is a marked difference in perspective - whether this is cash management vs. p&l management, or hierarchy vs. flat, or one of the many other ways of segmenting firms.
The sector I work in typically generates a 'Channel' to bring their goods to the smaller business end of the market while dealing with the very large directly. This is very successful and arguable a good marketing strategy for the very large to get to the small.
ps: I don't know which business schools you have experience of, although I find it very difficult to believe one can get away with attaining a business degree without having picked up Mintzberg (1979) in the first week!
Posted by James C
I liked this very much.
We're small and target small companies by offering expert advice, freely sharing knowledge and great service and we're astonished at how many companies think we're the best thing since sliced bread!
We pick up loads of customer who have been direct to the manufacturer and had their fingers burnt.
As far as i'm concerened let the corporates keep doing what they do because we're picking up all the crumbs and doing very nicely!
dave
www.ruggedandmobile.com
Great article but i'm happy to leave the corporates doing what they do best!
It allows us little folk to concentrate on the samller businesses, listen to them and then adjust our service and offerings directly to them. All things that a large corporate is incapable of doing because it probably breaks some kind of process somewhere....god forbid!
I guess the question is about ROI. Do you believe that your prescription will improve sales revenues and profits?
These big businesses do pretty well without getting it right the way you want to. Be great to do a comparison. Has anyone done one?
Great article but i'm happy to leave the corporates doing what they do best!
It allows us little folk to concentrate on the samller businesses, listen to them and then adjust our service and offerings directly to them. All things that a large corporate is incapable of doing because it probably breaks some kind of process somewhere....god forbid!
If so then perhaps because they work in completely different ways. I don't know what Robert Craven is getting so upset about, probably just trying to be a controvertialist or whatever they call them. If he's happy to do that, how can he genuinely criticise larger organisations for having their own sales strategies?
I've seen the way they operate in the IT industry. The big guys organise into departments with lots of meetings and their headcount and spending power advantage (on sales and marketing) is often the best thing they've got going for them. They may as well use these factors because apart from that they've got huge overheads which usually come through in their fees.
I've yet to be convinced they can't sell to the SMEs in my field. Companies like IBM and Oracle are bringing smaller-scale products onto the market and can apply the same muscle with lower prices - to some extent. It's true they are so big they find it hard to change and innovate. But if they decide operate as small operational units say through the Internet it's sometimes hard to tell what size the organisation is.
CM
#
Paul C. Wynn
Paul C. Wynn
Director at IMF
Having worked for both larger and smaller organisations, I can see the disconnect that can happen when different cultures clash. I have found that smaller enterprizes react quickly to customer needs, whereas corporates have the resources to deliver a more thorough service. Personally I can see aspects of both worlds that I both like and dislike, I guess it really comes down to personal ownership and commitment. If people display both, then everyone benefits no matter how large or small the organisation.
PCW
Bonnie,
Your absolutely right!
I come from a Project Management background and in particular have used Prince 2 extensively along with various other PM and design methodologies. Prince 2 for some people is too prescriptive and bureaucratic, however it is best used when tailored to the organisation and to the project in question.
Sandler for me was a breath of fresh air as it gave me a structure for sales and my first exposure to NLP and enabled me to win buseiness. NLP has been a revelation as it has helped transform both my wife and my own lives.
The key for me with all of these is that the success lies in the implementation rather than in the words on the page. None of them guarantee success, however they sure have helped me.
Personally for me, I like the formality and structure that it gives and totally respect your views. Clearly its not right for everyone.
Chris
Warwick Business School sent me here (ex-MBA) where Craven seems to blame the business schools for not getting it right.
He never listened when he attended his marketing modules because he'd remember that we teach people to avoid marketing blindness and focus on the customer. Just because our graduates choose to do something else is not our fault.
Peter
Bonnie
Yes, ironic! Some of the events were also sponsored by Business Link. I was at them and nodding away furiously.
Like the Top Gear 'Cool Wall' maybe we should create a similar wall for large organisations that are or are not cool for the independent business sector.
Bigger point - I am afraid that cool is only cool if it also means increased profitability (for a large business).
Jim
from a BL
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