Marketing Now ‘Critical’ to Growth for 81% of Small Firms
Nearly three quarters of all UK small enterprises reinvest up to 20% of their turnover into marketing initiatives
81% of UK small firms believe marketing is ‘critical’ to their business’ growth, data from Royal Mail MarketReach has found.
Its Smart Marketing for Small Businesses guide, which surveyed 250 small firms, revealed that 72% of small businesses invest up to 20% of their revenue back into marketing efforts and initiatives.
On average, small businesses said they used more than three media channels to promote themselves –a sign that many small companies are realising the benefits of multi-channel marketing.
Despite the positives however, the research argued that some small businesses are holding back from using new marketing channels due to concerns about measuring return on investment (ROI), rate of customer interaction, and a lack of expertise – 68% of those surveyed said it was difficult to get customers to ‘take action’ as a result of marketing activity.
The most popular channel for small business marketing is email (82%), followed by social media (62%), online advertising (50%) and direct mail (46%).
Only 16% of small enterprises currently use search engine optimisation (SEO) marketing, with just 7% using telemarketing.
Jonathan Harman, managing director of Royal Mail MarketReach, said:
“Our research shows how important marketing is for UK small businesses. It helps them grow by acquiring new customers and building better relationships with their existing ones. But it is clear that lack of knowledge, fears about cost and concerns about measuring their returns could be holding them back.”