As part of the ritual of examining local commerce and SMB Saas strategies, Localogy goes right to the source: SMBs themselves. How do they feel about marketing and operational software? What features do they want? And how has their hunger changed in a pandemic? This is all a moving target.
Localogy’s Modern Commerce Monitor (MCM) Wave 6.1 answers these and other questions across the SMB SaaS product set, which we preview in this Benchmark Bytes series. SMB adoption of maps & directory listings last time, we switch gears and pan back to their broader SaaS adoption.
Specifically, Do SMBs use software to automate various operations? That can include everything from marketing to finance to other operational needs like payroll. We now live in the age of SMB SaaS when tools are readily available for all these functions. The question is how much are SMBs biting?
We’ll dive into the results below. But first, it’s worth noting that the newest wave of Modern Commerce Monitor has been fielded and produced. We’ll unveil the findings in just a few weeks at L23.
Localogy members can access full charts and SMB survey reports. Non-members can purchase reports.
Data Dive
Going deeper, a few other insights jump out at us from these figures.
– SaaS adoption is now at 85 percent of SMBs.
– This is up from 72 percent in 2020 and 35 percent in 2017, a 143 percent jump.
– The average number of apps business owners use to manage their business is 6.35
– This figure has nearly doubled since 2019.
– As SaaS players continue their quest for user retention and expansion of services, we may see this number continue to grow but hit a natural ceiling at some point.
– 62 percent of businesses stated they have saved money from using online software.
– Operational efficiencies are high on the list of SMB SaaS selling points and have tangible ROI for SMBs.
– The most telling sign for SMB SaaS effectiveness is SMBs’ aspirations and their vote of confidence in the technology.
– Specifically, 65 percent plan to purchase more online solutions over the next 12 months.
– We’ll circle back in the next installment to dive into the specific software areas and functions that are seeing the most SMB adoption.
Time to Shine
Stepping back, SMB online marketing – website-based or otherwise – continues to grow rapidly. SMB SaaS startups and online services providers are correspondingly thriving as it continues to grow as a leading subsector of the broader SaaS universe. There’s a long-tail opportunity at play.
Meanwhile, new SMB SaaS users could represent permanent adopters – a concept that’s accelerated in the Covid era as SMBs are forced to boost their digital transformation. This sends them into the arms of SaaS providers to accomplish a range of marketing and operational functions.
We’ll return in the next installment to go deeper into Localogy original survey research. That will include SMB goals and success factors. Let us know what additional insights jump out at you from the above data, and stay tuned for more breakdowns in our Benchmark Bytes series.
