IT Services Marketing SurveyData, Analysis and Recommendations

©Pronto Marketing 2009

©Pronto Marketing 2009

Number of EmployeesAnalysisThese number are consistent with other data. For instance I cross-checked with media kit and other data. I assume that because of the source of the respondents, online discussion groups, the larger companies could be a little under-represented. But no surprise here.

Recommendations1. Focus– In small companies what you decide not to do can

be more important than what you decide to do. In marketing it's best to pick a few things and focus on them –you don't have a team to back you. Consistency is more important than breadth of activities

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©Pronto Marketing 2009

Sales and Marketing StaffAnalysisThe companies reporting sales and in particularly marketing staff mostly correlated with the larger company size as would be expected.

Recommendations1. Outsourcing– I don't think I need to remind many people

that now is the time to be careful about fixed expenses such as staff.

The upside of the downturn for you is that there are many unemployed or under-employed professionals. Meanwhile the Internet has provide a great way to find and connect with them – from all around the world.

Resources• Freelancers: try http://www.guru.com or

http://www.elance.com where you can find great people, with references, for marketing projects of all kinds.

• Read: How to Screen and Interview Providers

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Marketing SpendAnalysisA very solid 67% are in the 1% to 5% range and is about right for the company size and industry.

I found the 6.8% over 10% a little surprising – that's an aggressive marketing spend. There are times when this makes sense but at these levels you should really understand the ROI to justify the investment.

Recommendations1. Zero-based Budgeting– be sure to take a critical eye to any

spend when the opportunity arises. The Yellow Pages might be working for you but before you sign-up for another year really ask yourself "Did I get value for this investment?"

2. Focus – given the size of company and revenue the actual total dollars isn't large. It's almost always better to do less better rather than have a shotgun approach.

Resources1. From Inc.com: How to Benchmark Sales-and-Marketing

Budgets

2. On the Web: Marketing in Lean Times

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©Pronto Marketing 2009

Marketing ActivitiesAnalysisGood cross-section of activities that were balanced across disciplines. The areas that have the highest use; Direct Mail, Seminars, Newsletter and Web Marketing are the right ones.

Recommendations1. Direct Mail– measuring ROI is key. Make sure you've tracking

these results which is possible with DM

2. SEO– we've spent a lot of time on SEO and our conclusion is that with a little diligence in most markets a smaller company could be first page. I'd work on SEO and organic search before I start a paid SEM campaign.

3. Seminars– solid marketing activity. Make sure you've got a system in place stay in touch with the warm leads. Going after a few hot leads and ignoring the rest is a common; avoid it.

4. Verbatim Responses– the number one "Other" activity reported in the responses were professional networking events . If you do this regularly think about being structured in collecting business cards and having a ongoing contact system.Blogs– Several people mentioned blogs. It takes commitment but blogs and other social networking do produce results. Smart businesses of all sizes are leveraging this.

5. PR– in the final recommendations I have some thoughts on PR

Read the verbatim responses to "Other" on Page 13

Resources• SEO: Small Business SEO Trends for 2009 and Expand2web Small Business

and Local Search blog

• Social Networking : How to use social networking sites to boost business and from MSNBC Online social networks go to work

• Seminars: team up with Microsoft and other vendors for your seminars.

• PR: PR – Effective and Easy Quick Steps

• Web: 5 Simple Steps to a Better Website4

©Pronto Marketing 2009

Company NewsletterAnalysisAn email newsletter is a very effective and expensive way to touch your clients. While the numbers of companies doing this is low and doing it well – it's a missed opportunity. This is an easy way to set yourself apart.

Recommendations1. Keep it simple – There are excellent tools from online

vendors. You don't need to write a book – it's OK to link to good content such as articles. Nothing wrong with “FYI”.

2. CTA – Be sure to have a 1-2 call to actions or promotions

3. Lead Nurturing – One of the most common challenges is following up and nurturing leads. A newsletter is a simple way to make sure you keep touching those prospects.

4. Referrals Reminder – A newsletter is an easy way to keep your referral program in front of clients.

5. Business Content – there as a comment in the verbatim about ‘technical issues”. Remember that most of your clients are more interesting in business value from technology than technical info.

Resources• Read: 3 Tips for a Better Newsletter

• Read: Real-life Small Business Newsletter Tips

Read the verbatim responses to "Other" on Page 14

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©Pronto Marketing 2009

Marketing ProductionAnalysisIn this case I read “in house” as do-it-yourself and clearly that there’s not a marketing department toiling away back in the back!!

Recommendations1. Know when to get help –It’s great the PCs and the Internet

have given us such rich tools but there is a time and place to get professional help. It is your image and just like you recommend to your clients to leave the technology to you know when you need professional help.

2. Templates – When you work with an agency or firm get the work in a form that you can adapt later. It's good to pay for professional design skills – but be creative how you can repurposed it in other ways. Ask for all the source files, hi-rez images and such so you can leverage the investment.

Resources• Freelancers: there are lots of designers of every kind on

http://www.guru.com or http://www.elance.com at competitive prices.

• Stock Photos: services such as Stockxpert have inexpensive stock photos that can bring a professional look to your marketing and presentations.

Read the verbatim responses to "Other" on Page 15

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©Pronto Marketing 2009

CRM SystemAnalysisThe point of marketing is to generate leads that generate revenue. Some of this is indirect and harder to measure – and some if very direct. But at the end of the day your marketing should be getting you business cards, email addresses, phone calls and other connections to potential clients. You shouldn't spend a dime on marketing until you have system in place to capture and manage the fruits of your labor.

Recommendations1. Hot, Warm and Cold – even the most basic CRM system

such as Outlook BCM will help you segment and follow-up on leads. A very few people are going to be bothered when they receive an email from you on a respectable interval. Be systematic about this.

Resources• Read: Referrals – The Shortest Path to Profits

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©Pronto Marketing 2009

Results and PlansAnalysisOverwhelmingly the respondents are not happy with their marketing. In overall satisfaction the Very Dissatisfied outweigh the Very Satisfied by 31.4% to 5.9%.

And yet the majority plan to increase or keep spending the same. It’s good you believe in marketing – but make sure you’re doing something you have confidence in.

Recommendations1. Before you start spending make sure you

understand the expected impact of the activity and how you will measure success.

2. For 2009 prioritize your spending. Get the basics done right first and be careful of the ad hoc activity.

Resources• From Inc.com: How to Benchmark Sales-and-

Marketing Budgets

• Two different views on spending: Why You Should UP Marketing In A DOWN Market and Should You Cut Marketing Expenses During the Recession? Probably

• On the Web: Marketing in Lean Times

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©Pronto Marketing 2009

Your Biggest Frustrations and One Wish… AnalysisReading the verbatim responses to the questions "What is your biggest frustration with your marketing today?" (page 16) and "If you could have one “marketing wish” what would it be?" (page 17 & 18) was perhaps the most interesting part of the survey. In your words the challenges you face came alive. I encourage you to read these. Here are my takeaways;

Key Themes

"Frustration" – Time & Resources – the number one comment was the lack or time and resources for marketing. You can't add hours to your day. My

first recommendation is to get help. I've highlighted some new channels to do this. Be very tactical and do a few things well.

– ROI – the second on the list was ROI or measuring effectiveness. This is universal across marketing regardless of the industry. Thegood news is online and digital marketing are giving us cheap, easy and effective tools to measure the impact of our investment.

– How to get Started – lastly there were a number of comments on how to plan, know what to do or where to start. Again I'll turn you to the web – there are dozens of small business focused websites and blogs on this topic. Follow a few and learn. Even if you outsource your marketing you'll have smarter questions to ask.

"Wish" – Someone do to it – many of you want someone to help you and be the Trusted Advisor you are for your clients. As noted in this

presentation there are freelance and professional resources out there, and they don't have to cost an arm and a leg. Take the same advice you give to your clients every day and get someone to help you where you need it.

– Effective – more bang or your buck. Be critical of every spend and get the most for your money. The first and best way to have a good "R" is to keep the "I" small. And remember; effective is about discipline and consistency. There aren't magic bullets, you need tenacity to get results

– A Plan – there is a strong desire to feel that there is a workable plan in place that will produce ROI. First think end-to-end. If you don't have a CRM system in place to capture and manage leads – why are you doing lead generation? If you're generating leads but your website isn't professional what's the first impression? Marketing plans aren't complicated – they can be one slide. But they are end-to-end.

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©Pronto Marketing 2009

Conclusions… SummaryWe’re all familiar with Albert Einstein’s quote “Insanity: doing the same thing over and over again and expecting different results. “, I’ll have to admit that thought occurred to me reviewing this survey and responses.

Overall the respondents are sceptical of marketing, unsure of the return and always in a time crunch to do anything. They are unhappy with the results – but intend to do more next year.

It’s great they believe in marketing but it’s also good to hold marketing, the the professionals you work with, accountable. The end goal is customers. While it’s not possible to measure every marketing activity’s outcome precisely it is important to track as much as possible and benchmark yourself.

Overall there is also a general lack of knowledge and confidence in marketing. Not surprising for a IT professionals. Michael Gerber in his book “The E Myth” discussed the challenge we all have –starting a business doing what we know and the challenged being the well rounded business leader across disciplines.

The marketing is changing fast and the economy with it. While the adage “We want everything to change but stay the same” is true now more than ever we’re just going to get more change – to managed services, SaaS and shifts in the economy.

This survey highlighted to me the fundamental change that is going to be needed for many of the respondents to keep their heads above water.

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Recommendations

Making Time

The number one blocking issue that came up is time. You can’t make more hours in the day. It’s key to focus on the critical few and to them well. Consistency is key in marketing and now is not the time for shotgun activities. If you can’t stick with it save yourself the time right up front.

Getting Help

If you can’t make time you can get help. As I’ve pointed out earlier in the deck one sliver lining of these times more freelance professionals as well as web-based resources. Don’t try to do everything yourself.

Peer to Peer Support

One of the impressive things about this industry is the wide range of community and peer resources there are. Understandably most of these are technical focused. Read the verbatim quotes and the end and you’ll see you aren’t alone. Start using your community resources to ask marketing questions – even the dumb ones.

Don’t forget Public RelationsWe neglected to have PR as an option on the marketing activities however no one mentioned it as an “other” activity. In all the comments it came up just one time. That’s an oversight on all our parts. PR isn’t that hard and it can produce great ROI. We’re working on a DIY PR Guide for IT Services Providers to help out.

THANK YOU& A LITTLE ABOUT US…

©Pronto Marketing 2009

About Pronto MarketingPronto Marketing provides affordable outsourced marketing services to the manage service or IT service providers who focus on SMB, with a comprehensive package of digital marketing services - website & newsletter, content & updates, lead generation campaigns. Because we focus on a single market we know it well and give our affiliates the cost savings the scale of the network provides.

Learn More at http://sbit.prontomarketing.com

About Derek BrownDerek brings over twenty years of technology sales and marketing experience from start-ups to Fortune 500 companies in software, distribution, and services. Prior to founding Pronto Marketing, Derek was with Microsoft for over twelve years, serving as Marketing Director at Microsoft Thailand Ltd., Director of Product Marketing for Windows Small Business Server, and Director of Marketing & Communications for Windows Mobile. Before joining Microsoft, he worked as Director of Retail Sales at TechData and VP of Marketing at MicroLogic Software.

ContactDerek BrownPresident Pronto Marketingderek@prontomarketing.comhttp://sbit.prontomarketing.com1- 800-476-1828

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APPENDIXVERBATIM RESPONSES

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Which of the following marketing activities does your company currently do?

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If you do not have a newsletter, why? (select all that apply)

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Who does your marketing production? (design, copy, etc.)

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What is your biggest frustration with your marketing today?

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If you could have one “marketing wish” what would it be? (Page 1)

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If you could have one “marketing wish” what would it be? (Page 2)

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