Small Business Tracking StudyWave 1: May 2015

It’s our business to know your business

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We strive to understand

everything we can about the Small

Business segment

to understand their perceptions,

challenges & needs over time

across areas that small businesses need to make the day-to-day of their

business run: Technology, Healthcare, Finance and Insurance

OUR GOAL: Make our marketing work harder for you by digging deeper

and getting smarter about our audience

3 Source: Constant Contact survey 2014

Small businesses will continue to face challenges every day….

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How do I get work/life balance?

How do I stay ahead of the competition?

How can I be on the go all the time and

run a business?

How do I stay on top of new

innovations?

How will the economy affect my business?

I need to reach more customersHow will I grow

my business?

I need to find & keep talent

Are their any new government

regulations?

How do I up my game socially?

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We are tracking trends to better speak with small businesses. We want to know what makes them tick, what keeps them going, what is top of mind every day and every minute.

Most importantly, what are their hurdles

to being successful.

Coffee Shop

We have begun our first conversations and created a baseline

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505 small business decision-makers reached through an online survey

40%

21%

13%

13%

11%Number of Employees2 - 4

5 - 910 - 1920 - 4950 - 99

18% Home-based

All across the U.S. and different make-ups:

14% 19% 17% 19% 21% 9%

Revenue Split

$25-100K $100-250K $250-500K $500K-1M $1M-2M $5M+

Years in Business

23% 1 - 5 years

22% 6 - 10 years20% 11 - 19 years35% 20+ years

Overall, they believe their businesses are growing and are optimistic for the future

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Last year, did your business experience…

Rapid growth (more than 10%) 14%Slow but steady growth 45%No Change 28%Slow but steady contraction 10%Rapid contraction (more than 10%) 3%Not sure 1%

Next year, do you think your business will have…

Rapid growth (more than 10%) 19%Slow but steady growth 50%No Change 22%Slow but steady contraction 6%Rapid contraction (more than 10%) 1%Not sure 2%

Insights and confirmations that apply across all categories

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Healthcare Finance Insurance

Small businesses with 2-19

employees are more likely to purchase through a broker

vs. direct

Rapidly growing companies are MUCH more

concerned about their companies’ future

needs

Key takeaways:Smaller businesses are looking for an expert “guide” to help them

understand options and make their decision.

Key takeaways:Companies that are growing quickly are

looking for solutions that will keep them on the

path of success.

Key takeaways:In addition to

consultants, online research is a top location

for business owners to research options for their

business.

Where do you get your information:42% Online

Research

What aresmall businesses thinking about

Technology?

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They are satisfied at managing technology needs

Very Somewhat Not satisfied

45%36%

18%

Satisfaction with Company’s Ability to Manage Technology Needs

Most small businesses are satisfied with their ability to manage the organization’s technology needs.

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They are looking to upgrade their infrastructureKeeping up with hardware and software upgrades is the #1 technology initiative businesses deal with, followed by mobile access, social media presence, and cybersecurity.

Marketing Automation or Lead Nurturing system

CRM software

GPS

Wireless point-of-sale systems

Changing your telecom or Internet carrier

Remote desktop access

Fraud protection

Cloud computing

Cyber security

Social media presence

Mobile access to employees

Upgrading your hardware and software

13%

19%

24%

19%

17%

33%

34%

34%

37%

38%

44%

27%

16%

16%

12%

18%

21%

16%

16%

17%

20%

22%

16%

39%

30%

35%

36%

37%

38%

49%

50%

51%

57%

59%

60%

66%

Plan to in next 12 months Series 3

2-4 5-19 20-49 50-99

18% 30% 31% 39%

36% 46% 42% 66%

31% 39% 47% 45%

26% 40% 52% 48%

24% 35% 40% 59%

25% 36% 40% 46%

19% 36% 48% 52%

10% 17% 27% 27%

9% 18% 32% 43%

12% 26% 35% 46%

8% 20% 26% 46%

5% 11% 23% 36%

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# of employees

The larger the company, the more they’re thinking abouttheir needsSmall business’ top concerns are about capital expenditure and cybersecurity.- Very small companies have fewer technology concerns, likely due to being lower users of technology- Businesses with 20+ employees are concerned about a range of issues associated with meeting the

company’s technology needs

2-4 5-19 20-49 50-99

Concerns about Technology

Employees

Costs and capital expenditure for technology

Protecting the business from cybersecurity breaches

Rapidly changing technology landscape

Insufficient support and resources

Training staff on new technology or systems

Uncertainty about choosing the right technology for your company

Top 2 Box Concerned (Extremely + Very) 12

The faster the growth, the more they think about technology needs with special emphasis on securityCompanies that have undergone rapid growth in the last year are far more concerned about their technology needs than other companies.

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Insuff

icien

t sup

port a

nd re

sourc

es

Costs

and c

apita

l exp

endit

ure fo

r tech

nolog

y

Rapidl

y cha

nging

tech

nolog

y lan

dsca

pe

Uncert

ainty

abou

t cho

osing

the r

ight te

chno

logy f

or yo

ur co

mpany

Protec

ting t

he bu

sines

s from

cybe

r sec

urity

breac

hes

Trainin

g staf

f on n

ew te

chno

logy o

r sys

tems

0%

5%

10%

15%

20%

25%

30%

35%

40%

45% Cybersecurity

How can we start applying this today?

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We can begin right away, testing messaging and looking into opportunities to package bundles or create offers that speak directly to small business owner’s concerns as they grow.

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Test messaging in email and direct mail with learnings from the study:

- Upgrading their technology to grow- Cyber technology messaging to ease their

greatest concern

We can create bundles and offers for testing that hit on small business’ key concerns:

- Bundles that features mobile solutions for small business employees (Wi-Fi, mobile partnerships)

- Feature a managed security bundle- Create a white paper around tips for small

business to update their social presence

We want to get you involved

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What would you like to know about your audience?

- Let’s work together to craft a questionnaire specific to your objectives and target market

- We’ll then use those findings to craft data-driven insights to aid all aspects of your strategic marketing efforts

We are offering our partners the opportunity to take part in the next phaseof our tracking study.

Thank you!

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