The Indian economy is estimated to breach the $5 Trillion mark by the year 2025. Do you know which economic faction is one of the major drivers behind India’s growth? The SMB market!
Enterprises recognize the huge potential offered by a market as dynamic as the SMB. However, cracking the SMB market is an uphill battle. Small businesses are not only difficult to access but are also quite price sensitive. Also, most SMB customers are uninitiated in sophisticated technology and have expectations of high-touch customer service. This makes customer acquisition a fairly costly and unprofitable affair.
However, once your SMB penetration strategy is sorted, there’s an enormous potential waiting to be cashed in. No wonder that large multinational enterprises are eyeing India’s SMB market, looking to make strategic inroads within the next couple of years.
Let us now take a deep dive into what it takes to penetrate the daunting SMB market in India.
Making inroads into the world of SMBs
In order to make significant inroads into the SMB landscape, there are a particular set of competencies that you can leverage. The trick is to conceptualize and execute a target-driven strategy that is supported by the right tools to strike at the heart of the SMB landscape and convert customers. Let’s explore some of the steps you can take to penetrate the SMB market in India:
Effective Database Strategy
Before you set out to conquer the SMB market, know who your target group is. Here, an effective database strategy plays a key role in enabling you to zero in on the right potential customers.
Firstly, start off by identifying the right set of SMBs by leveraging intelligent database management that gives you the right set of audience. Then, you can leverage AI and Business rules enabled smart data extraction engines which can help in providing a near-accurate database of SMBs which can be targeted.
Identifying Purchase Probability
Once you have zoomed in onto your target group, it is time to bring in the analytics guns. By applying analytics to the available set of data, you should be able to connect the dots and get clearer information about your target group.
One of the most essential insights that analytics has to offer is identifying the purchase probability of your target customers. This is done via careful trend mapping, purchase history mapping and pricing analytics, that involves evaluating historical data for pricing trends. By figuring out the purchase probability, the opportunity of positive selling can be drawn.
Strengthening Propensity Model
Now that the purchase probability has been determined, the next step is to create and strengthen a propensity model with targeted and effective digital marketing tactics.
Leverage digital marketing campaigns and marketing analytics to understand the purchase propensity of the high probability target database from the previous step. Thanks to digital marketing, purchase probability can be leveraged further to increase the propensity score.
Driving Sales Motion
Once the momentum is set through digital marketing strategies, it is vital that you keep it going by driving the purchase motion forward. Once the entire sales landscape is analyzed by identifying the target audience and moving in with a strong propensity, purchase probability model, it all boils down to how well you implement the sales motion in order to generate a genuine purchase/sales lead.
The sales motion is driven by targeted telesales-based sales campaigns that help connect with the researched target audience and generate a genuine lead through a consultative sales process. However, the sales motion doesn’t end there.
Closing the Loop
Post generating a valid sales lead, it important to tie the loose ends by successfully enabling the partner ecosystem through outreach, loyalty and training programs and by adopting a robust partner management approach. Your target should be an end to end sales closure which includes after-sales services and customer retention tactics, rather than achieving a one-off sales.
The Way Forward
According to a research carried out by KPMG and Google, there are more than 51 million SMBs in India, employing 120 million people country-wide. India’s burgeoning SMB sector accounts for 37% of the country’s GDP.
Therefore, we can say that the SMB sector is a reservoir filled with untapped potential. But, where to begin? How should one approach this hard-to-crack nut?
Probably you should start by stepping into your SMB customer’s shoes and see the situation from their perspective. They are a fast growing business, looking out for resources that can help them grow further, without putting a strain on their revenue.
At times, they are hard to approach and often don’t have a thorough knowledge of technology. However, once you get inside their perspective, understand their gap areas in terms of business requirements, you can certainly address those gaps with the right product and services at the right price point.
Essentially, base your market penetration strategy with an intelligent and targeted approach that allows you to forge successful relationships within the SMB ecosystem. Usually, this involves a balanced strategy, (as mentioned above) that leverages a combination of smart SMB penetration tactics.
This article was originally published here.