Communicating to CIOs in SMB Markets

I just looked at the list of prospects an eager young sales rep is targeting to make her quota for her newly acquired Midwestern territory. It consists of every Fortune 500 company she could find. 

It seems we're all trained to sell to the guys that have the most money to spend (Remember Steve Kaplan's hit book, Bag the Elephant?) Sure, it makes sense, but those companies show up on every sales rep's list of targets. So you need to be prepared for the intense competition.

Consider the smaller, more mid-size firms (< $1 Billion). They have more resource constraints that spell opportunity for technology providers. My best accounts fall into this category simply because they are more likely to hire generalists, seek creativity from the outside, are meticulous about budgeting and believe in outsourcing to get more flexibility and bang for their buck.

My clients from these smaller firms have to provide the same services as their counterparts at larger companies, but with fewer staff and less resources. While that may scare you away, it may translate to higher dollar orders than companies without such constraints.

Smaller staffs typically lack:

Overall experience
Knowledge of verticals
Formal management processes
The bargaining power of the larger firm

Using external providers to fill the gaps and provide flexibility is a valuable tool for the SMB manager. So the next time you launch a campaign or marketing effort, think about tailoring your communications around the constraints faced by the SMB manager.

SMB managers tend to outsource heavily in areas like sales and technical training, design (especially architectural services) and customer care. If you can add value to these areas, let them know. Don't be shy.

Tell them you understand the challenges of the SMB market and position your solutions accordingly.

SMBs also outsource administrative services, human resource functions as well as accounting and payment services. 

Using outside contractors enhances the smaller firm's ability to quickly scale projects up (or down) to accommodate changing business conditions.

CIOs in SMB firms are often thinly staffed. I've noticed few "power users" in these firms for certain applications. HR staffing firms and IT services firms should definitely target the CIO from SMB firms for this reason. CIOs from these firms also have huge funding challenges. If you have business case expertise with the smaller firm, this is another opportunity.

Another characteristic to keep in mind:  smaller shops tend to be more loyal simply because they don't have the resources to continually shop.

So remember, SMBs:

• Need generalists. Don't limit your proposals to things you know. Some people call it "leaving money on the table." Recruit contractors and partners to fill in any delivery gaps you might have, but are comfortable managing. These clients are time-poor. Always remember that.

• Outsource training. Large firms employ internal trainers, small to mid-size firms do not.

• Draw on the outside for creative services, including IT talent. Smaller firms rarely have full time technical architects, solution architects and program managers.

To subscribe to Comunicado, enter your email under the SUBSCRIBE box on the right nav bar.