intelligent

CUSTOMER EXPERIENCE

In the survey , 43 % agreed that acquiring new customers is their number one challenge . And almost one in four ( 24 %) said that building closer relationships with customers will be critical in the next 12 months . Interestingly , it seems that closer connections could even lead to better business performance , with SMEs predicting they would increase their profitability by 34.9 % if they could build more personal relationships with customers . The research , published by marketing automation platform , Klaviyo , surveyed 500 directors at UK-based SMEs . When participants were asked about their key challenges , struggling to connect with customers was considered more challenging than standing out from the competition ( 31 %), supply chain issues ( 30 %) or access to finance ( 23 %).

So , what is responsible for this disconnect with customers ? The results show that the challenges of doing business online are partly to blame .

Four in 10 ( 40 %) of those surveyed reported that their greatest opportunity in 2022 was online expansion . But crucially , SMEs reported that eCommerce is a double-edged sword . Why ? Doing business online means you must also market your business online and for SMEs , Big Tech is standing in their way .

Those surveyed said they were spending an average of 43 % of their marketing budget on social media marketing , but few feel in control of how it is spent . Over half ( 52 %) reported that they didn ’ t feel fully in control of their marketing spend on Facebook , 61 % said the same of LinkedIn and 43 % reported a lack of control when it comes to spending cash with Google .

Fortunately , the future looks bright , with a third ( 33.6 %) saying that their profits would rise if they were able to get back control over their customer relationships .

Even more promising is that 27 % of SMEs are already investing in better customer analytics to understand how they can build stronger relationships . What ’ s more , 26 % are looking to advanced marketing technology platforms that give them direct access to customers to boost their business .

Andrew Bialecki , Co-founder and CEO of Klaviyo , said : “ For most small businesses , success is all about the ability to reach the people who are aware of or interested in their creation , and this shouldn ’ t be limited by technology gatekeepers .

The bill of goods that ' s been sold is that you must market your small business through the likes of Facebook – and that ' s simply not true . The most successful small business leaders will be those who limit their dependency on ad networks and take back control of their customer data and relationships .” �