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) answers these and other questions across the SMB SaaS product set, which we preview in this Benchmark Bytes series. And we recently entered a new chapter of this series, with highlights from the latest wave (8.0) of Modern Commerce Monitor.
After examining how many SMBs use SaaS tools last week, we switch gears this week drill down into their use of mobile apps specifically. How many are active in running their businesses on the go from their smartphones? We’re talking everything from comms to CRM, fintech and HR functions.
Data Dive
– Diving right in, SMB mobile app penetration now stands at 84 percent, with ample momentum.
– This figure is up from 76 percent in Wave 7 of the study and 68 percent in Wave 6.
– This high penetration is logical, as SMBs now have access to powerful computing devices in their pockets
– Furthermore, several SMBs (depending on the vertical and day-to-day dynamics) are on their feet as opposed to in front of their desktop or laptop computers.
– This is particularly true in home services, where proprietors are out in the field most of the day. Similar dynamics exist for restaurants and retail.
– The prevalence of the above verticals further drives penetration of mobile apps.
– All of the above points to the availability and optimization of mobile apps as a competitive differentiator for SMB SaaS vendors.
– Given how much time SMBs spend on their smartphones, having a well-functioning mobile app is now imperative.
– This will continue to transition from “imperative” to “table stakes” as the portion of SMBs that use mobile apps approaches 100 percent… and it’s almost there.
– This competitive pressure elevates even further considering some of the takeaways from last week’s Benchmark Bytes.
– To recap, a maturing SMB SaaS sector means competition will heat up as slowing aggregate growth means new business will mostly come from market share gains.
– Mobile app features and UX will be a key part of the product differentiation that escalates in that competitive environment.
Localogy members can access full charts and SMB survey reports. Non-members can purchase reports.
Long-Tail Opportunity
Stepping back, SMB online marketing – as well as operational and fintech tools – 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 accelerated in the Covid era as SMBs were 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.
