In this edition of Localogy’s Local Radar series, we examine SMB-focused AI player Enso.
A common refrain in our AI coverage is that it’s like other emerging tech adoption cycles, historically. In other words, its application to marketing and business operations will start with larger brands before being democratized and moving down-market. That’s a fancy way of saying SMB adoption.
This cycle could be faster for AI given that it directly addresses real SMB pain points. We’re talking about automating the things they dread, such as email marketing campaigns and writing website copy. These are tangible things to SMBs, compared to many past hype cycles (we’re looking at you, metaverse).
But that down-market migration will still take time. This is mostly due to longstanding SMB dynamics like tech adoption latency, and a fragmented demand base that challenges efforts to educate buyers and sell products to them. Though these challenges are smaller than they used to be, they’re still rampant.
Tactical Nuance
Despite those challenges, some players are jumping right into SMB AI possibilities. The latest to cross our desks is Enso. With $6 million in seed funding this week, the company aims to assist a range of SMB daily operations and marketing tasks through pre-programmed and purpose-built AI agents.
It’s also taking a nuanced approach with 1,000 AI agents to cover a variety of use cases that resemble an app store. For example, many of its functions are related to helping SMBs with their marketing, such as running an Instagram campaign, or their SEO efforts. It can even help with the dark arts of podcasting.
Besides task-driven functions, Enso also spans about 70 verticals from car dealers to dentists. As folks in the Localogyverse know well, one of the SMB market’s many challenges is that it’s made up of hundreds of verticals, each with its own dynamics, tactical nuance and, in some cases, regulatory requirements.
Altogether, the idea is to streamline work for time-starved and tech-illiterate SMBs, or automate the tasks they pay agencies to do. That last part is one of Enso’s pitches in terms of cheaper alternatives. Its library of purpose-built bots can be selected a la carte, each ranging from $29-$79 per month.
Established Inroads
Panning back, we continue to see wide-eyed optimism among tech vendors that are new to the SMB sector. Like past tech cycles, that’s now happening in AI as startups see the sector’s size and need for tech infusions as demand signals. Without trying to diminish those efforts, they will face challenges.
As noted, Enso has addressed one of those challenges by applying some vertical-category nuance. But there are several other realities it could soon discover. Chief among them is something noted earlier: a fragmented market and its associated sales challenges. Getting SMBs to know you exist is the hard part.
Often the answer is to penetrate the SMB market via sales channels that have established inroads. That includes marketing agencies. But one negating factor for Enso is that its technology is meant to disrupt and undercut agencies, as noted. So it likely won’t find friendly affiliates down that road.
That leaves direct sales. And the graveyard of companies who have tried that approach is crowded. Again, we don’t wish to diminish nor discourage anyone who’s bringing technology to SMBs. But it’s always a path laden with pitfalls and landmines. We’ll watch closely and hopefully be proven wrong.
