Small-to-medium-sized businesses (SMBs) typically have smaller marketing budgets. Consequently, it can be difficult for them to justify spending their existing budget on experimentation with new campaigns and channels.
But in a fast-paced digital climate, is sticking with tried and true marketing methods really the best way for SMBs to remain competitive?
The answer is pretty straightforward - it might even surprise you.
In CallRail’s most recent research study, Marketing Risk vs. Reward, we surveyed over 600 marketers at small-to-medium sized businesses. Our goal was to understand how much marketing risk they take, what types of channels and campaigns they experiment with, and what holds them back from greater experimentation.
5 Top Takeaways
If you’re curious what SMB marketers had to say - and to see how your own SMB testing stacks up - here are five top takeaways from the report.
If you can’t wait to see the complete results, get the full report now.
#1: Small-to-medium-sized businesses are willing to take risks on creative campaigns and new channels
Going viral helps Small-to-medium-sized businesses (SMBs) to punch above their weight, but that often relies on a willingness to experiment with new channels and campaigns. Just take a look at Amazing Lash Beauty Salon, which launched a Facebook campaign before its grand opening and saw 852 service transactions as a result in the first month. Or the Carpet Repair Guys, who have become a TikTok phenomenon with over 800,000 followers and 2 million likes.
Unsurprisingly, of those who agree that testing new media channels is a worthwhile financial investment, the majority are funneling additional budget into this - because it’s so important.
- 98% of marketers agree testing new channels is worth it
- 86% of marketers agree executing experimental campaigns is worth it
Only a small minority of respondents (15%), don’t believe risk-taking is worth it financially and 88% of those marketers said they’d rather put money into more proven campaigns.
#2: The risks are proving to be worth the reward
When marketers experiment, they find new success. The figures are impressive: almost all marketers see their efforts pay off with new customers and are also rewarded with strong increases in followers and revenue. That’s why we expect them to continue testing new channels and creative campaigns.
- 96% say experimenting has increased customers
- 86% say testing has increased followers
- $100K – $1M+ is what marketers estimate as revenue from new channels
There’s no doubt that if SMBs want to drive improved growth, they need to keep meeting customers where they’re at. And those marketers who expand into social media are able to take advantage of the most popular channels.
Want to find out what’s holding would-be risk takers back, which channels provide the best ROI, and which capabilities support greater experimentation? Download the full report now.
#3: Not taking risks is actually risky business
Taking risks is the best way to increase revenue, and most marketers know it. Our research shows that only a small minority of marketers believe that testing new campaigns is too risky for their company’s reputation.
So, what do marketers who don’t try new channels (but wish they could) worry about?
The answer is competition - arguably one of the most important factors for SMBs looking to grow.
- 65% of marketers who aren't experimenting with new channels worry that their company will lose business to competitors
However, they still need to convince leadership that investing in new channels and campaigns is worth the risk. Currently, 67% of marketers say that they find it hard to get buy-in for potential new channels.
#4: Playing it safe financially isn't as important as staying competitive and feeling confident of success
Do cost and effort play a significant role in the decision to experiment? Surprisingly, no.
The typical SMB marketer considering testing thinks that their past success on a channel, their competitor’s results, and reaching a specific audience, are more important than cost or effort.
This means that SMBs are allocating a higher proportion of their budget to try out new social media channels like Facebook (51%), Instagram (46%), Twitter (40%), and TikTok (36%).
#5: Marketers would take even more risks if they could easily measure the results
One of the biggest barriers to risk-taking is having insight into what works and what doesn’t. Most SMB marketer’s don’t have a good way to prove the value of their investments and this is a huge factor in their ability to justify experimentation.
- 97% of marketers say that if they could know immediately if their campaign was working, they'd take more risks
As testing becomes a central part of SMBs marketing strategy, marketers need to evolve their tracking capabilities and prove the value of their investments.
Our research shows that $156,098 per year is the average amount that marketers are investing into ROI tracking tools. The data consistently repeats the same message: better tracking would lead to more risk-taking.
Marketers who take risks get stronger outcomes
It doesn’t matter if you’re working with limited budgets or fewer resources, testing combines the core strengths of SMBs - agility and creativity - to create a successful strategy for winning against bigger competitors.
Whether you’re a marketer looking to gain a competitive advantage, increase brand awareness, or win more customers, experimenting with new campaigns and channels is one of the best ways to succeed.
And for those SMBs still holding out on risk-taking, they’ve got a lot to lose.
“SMBs who don’t test new channels will find that financial impact is the least of their worries,” said Mary Pat Donnellon, chief revenue officer at CallRail. “Our research shows that businesses cannot afford to get left behind by their competitors or they’ll lose customers, talent, and revenue.”
Download the full report to learn what’s holding would-be risk takers back, which channels provide the best ROI, and which capabilities support greater experimentation.