How Small Businesses Are Using Big DataQuantitative Research Study

May, 2014

Learn more about Provoke InsightsA brand consultancy and market research firm

www.provokeinsights.com

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Background and Objective

Prior to 2011, no one was talking about big data. Today, it is one of the most popular searches on Google (google.com/trends, May 2014). Data is an easy way to better understand a company’s customers, prospects, and competitors. Not only does data help craft a marketing plan, but also provides a clear way to improve current initiatives.

As a brand consultancy and market research firm that services small business clients, Provoke Insights wants to better gauge how this trend has impacted small businesses.

More specifically, Provoke Insights wants to determine the following information regarding small businesses: Understand their opinions about big data Type of data collected and used How company size impacts data usage

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Methodology

Provoke Insights conducted an online survey among 202 small business employees who are involved in their company’s marketing initiatives.

The survey was distributed online in March 2014 using Survey Sampling International B2B Panel.

In this study, “small business” is defined as a company earning between $100k and $20MM in revenues.

An asterisk throughout the report indicates that there is a significant difference among companies with revenue ranging from $100K to <$500 and $500K to <$5M.

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Key Findings

While the majority of businesses (83%) use data, they are primarily analyzing only customer contact information (74%). Employment of prospect data is minimal with about a

third using prospect contact information. Only 31% are utilizing competitive intelligence data.

Nor are many companies analyzing their marketing initiatives success. Less than a third are utilizing website analytics and

fewer are analyzing online advertising results (25%), search queries (24%), social media analytics (22%) and offline ad results(17%.)

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Key Findings (continued)

Small businesses do not understand “big data.” This particularly holds true for firms under $500K in revenue (75% vs. 55%). Therefore, it is not surprising that almost two-thirds of businesses state that they are not effectively using data.

However, three-quarters of businesses want to integrate data into their marketing plans. This is not surprising since two-thirds of firms believe that utilizing big data will improve their company’s profitability. Companies with revenue above $500K are much more

likely to want to incorporate data initiatives.

Detailed Findings

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Col-lect

s Data83%

Does Not Col-lect Data17%

The majority of small businesses utilize data.

Q:Which of the following data does your company collect? Base: All qualified respondents who answer the question (200)

Data Collection by Company Size

Revenue $100K-$499,999

Revenue $500K-$19,999,999

Base: Qualified Respondents 96 104

Collects consumer data* 75% 91%

Companies with higher revenues are more likely to analyze data.

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Companies are mostly using customer contact information followed by customer profiles.

Prospect profiles

Competitive data

Prospect contact data

Purchase information

Customer profiles

Customer contact info

29%

31%

38%

44%

49%

74%

Type of Consumer Data Analyzed

Q:Which of the following data does your company collect?

Base: Company collects data (167)

Employment of prospect data is minimal with slightly over a third using their contact information and even less using prospect profiles.

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Not many companies are analyzing their marketing initiatives success.

Offline ad results

Social media analytics

Search queries

Online ad results

Website analytics

18%

22%

24%

25%

29%

Type of Marketing Data Companies Use

Q:Which of the following data does your company collect?

Base: Company collects data (167)

Less than a third are utilizing website analytics and even less analyzing online advertising results (25%), search queries (24%), social media analytics (22%) and offline ad results(17%.)

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Less than a third are analyzing competitor intelligence data.

Q:Which of the following data does your company collect?

Base: Company collects data (167)

Use competitive intelligence

31%

Doesn't use competitive data

69%

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Higher revenue firms are more likely to collect data, but they are still gathering basic contact information.

Data Company Collects

Revenue $100K-$499,999 Revenue $500K-$19,999,999

Base: Company collects data 72 95

Customer contact information 76% 73%

Customer profiles 46% 51%

Purchase information 40% 45%

Prospect contact data 38% 39%

Competitive data 26% 36%

Website analytics 25% 33%

Prospect profiles 24% 33%

Online ad results 22% 26%

Search queries 24% 24%

Social Media analytics 19% 24%

Offline ad results 15% 20%

Q: Which of the following social media channels does your company use?

The type of data they collect are no different than the type of data lower revenue firms gather.

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Strongly agree Agree Disagree Strongly disagree

16%

48%

26%

10%

Don’t Fully Understand Big Data

64%

Two-thirds of small businesses do not understand “big data”.

Strongly Agree/Agree

Revenue $100K-$499,999

Revenue $500K-$19,999,999

Base: Qualified Respondents 96 105

I don’t full understand big data*

74% 55%

Companies with revenue under $500K are even more confused about big data.

Q: How much do you agree or disagree with the following statements? (I don’t understand big data)Base: All qualified respondents who answered the question (N=201)

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Therefore, it is not surprising that almost two-thirds of businesses state they are not effectively using data.

Q: How effectively do you feel your company utilizes data? Base: All qualified respondents who answered the question (N=201)

35%

47%

14%

3%

Date Usage Effectiveness

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Half state that their company is too small to effectively use data followed by lack of monetary resources, and that it is too complicated to use.

48%

28%22% 19% 18%

13%4% 5%

Reasons for Not Using Data Effectively

Q: Why is your company not using data as effectively as it should?Base: Not using data very effectively (N=130)

Companies with revenue above $500K are more likely to state in efficient management system in place as reason data is not used effectively.

Reason for Not Using Data Effectively

Revenue $100K-$499,999

Revenue $500K-$19,999,999

Base: Qualified Respondents 66 64

Data Management System* 9% 27%

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However, three-quarters of small businesses want to integrate data into their marketing plans.

Strongly agree Agree Disagree Strongly disagree

21%

54%

21%

6%

Want to Integrate Data into the Overall Market-ing Plan

Q: How much do you agree or disagree with the following statements? (I want to integrate data into my overall marketing plan)Base: All qualified respondents who answered the question (N=201)

Strongly Agee/AgreeRevenue $100K-$499,999 Revenue $500K-$19,999,999

Base: Qualified Respondents 96 104

Want to Integrate Data into Overall Marketing Plan

61%* 89%*

Larger companies are much more likely to want to incorporate these data initiatives into their strategies.

75%

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Strongly agree

Agree Disagree Strongly disagree

18%

45%

33%

5%

Utilizing Big Data Makes My Company More Profitable

The majority of small businesses (63%) believe that utilizing big data will improve their company’s profitability.

63%

Q: How much do you agree or disagree with the following statements? (Utilizing big data makes my company more profitable)Base: All qualified respondents who answered the question (N=201)

RESPONDENT PROFILE Marketing decision makers Firms with revenue between $100K and $20M

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Employment status

Full-time employed90%

Part-time employed10%

Base: All qualified respondents (202)

Q: What is your current employment status?

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Lower revenue businesses are significantly more likely to have more part-time workers on staff.

Employment Status

Revenue $100K-$499,999 Revenue $500K-$19,999,999

Base: Qualified Respondents 102 109

Work full time* 83% 95%

Work part time* 17% 5%

Q: What is your current employment status?

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Industry

Construction, Machinery, and Homes 11%Healthcare & Pharmaceuticals 6%Retail & Consumer Durables 6%Real Estate 6%Food & Beverages 5%Nonprofit 5%Business Support & Logistics 4%Entertainment & Leisure 4%Finance & Financial Services 4%Manufacturing 4%Consulting 4%Telecom, Technology, Internet & Electronics 4%Advertising & Marketing 2%Automotive 2%Education 2%Government 2%Insurance 2%Legal 1%Agriculture 1%Airlines & Aerospace 1%Wholesalers 1%Other 19%

Base: All qualified respondents (202)Q: Which best describes the industry you work in?

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Job Role (Involved in Firm’s Marketing Decisions)

Owner/President

68%

Operations15%

Marketing5%

Sales7%

Other 5%

Base: All qualified respondents (202)

Q: Are you involved in the majority of your firm's marketing decisions?

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Business heads are significantly more likely to be involved in marketing decisions at firms with lower revenue.

Job Role

Revenue $100K-$499,999 Revenue $500K-$19,999,999

Base: Qualified Respondents 102 107

Owner/President* 79% 58%

Operations* 6% 22%

Marketing/Communications 6% 5%

Sales 6% 8%

Other 3% 5%

Q: Are you involved in the majority of your firm's marketing decisions?

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Companies’ Annual Revenue

1%4% 3% 4% 5%

15%18%

48%

Base: All qualified respondents (202)

Q: What best describes your company’s annual revenue?

52%