New BIA/Kelsey Research Finds 38% of Small Businesses Offer Customer
SMBs estimate customer acquisition promotions like coupons and daily
deals will generate 17.7% of total business this year; Findings will
be presented in a free webinar tomorrow and at next month’s LEADING
IN LOCAL: SMB Digital Marketing conference
CHANTILLY, Va. (Aug. 20, 2013) – Use of customer loyalty programs
by small businesses (for delivering special
offers and rewards for frequent customers) remains steady, according
to the latest findings from the “Local
Commerce Monitor” (LCM – Wave 17), BIA/Kelsey’s
ongoing study of the advertising behaviors
of small and medium-sized businesses (SMBs).
Among those surveyed, 38 percent said they currently offer a customer
loyalty program, with an additional 21 percent stating they will likely
add such a program in the next 12 months. There was effectively no
statistical change in this finding compared with the 2012 survey.
Small businesses estimate 17.7 percent of their total business in
the next 12 months will be generated by customer acquisition promotions
such as discount deals, daily deals, coupons or similar offers. These
promotions may or may not be aligned with a loyalty program.
“The data indicates solid interest and intentions in loyalty
programs, which are becoming an increasingly important tool for customer
retention,” said Steve Marshall, director of research, BIA/Kelsey. “Going
forward, we believe the proportion of business generated from both
loyalty programs and promotions will rise significantly, as SMBs increasingly
tailor their offerings to frequent customers and specific customer
Among those small businesses offering customer loyalty programs, more
than half (54 percent) stated they operate their own in-house programs,
primarily using a paper-based tracking method, like a punch card.
Marshall suggested, “There’s a large opportunity for third-party
service providers and credit card companies to replace the homegrown
loyalty platforms with sophisticated electronic platforms that link
into a CRM system and/or a payments platform.”
The latest developments in SMB loyalty programs and customer acquisition
promotions will be discussed at BIA/Kelsey’s upcoming LEADING
IN LOCAL: SMB Digital Marketing conference, which takes place Sept.
11-13, in Austin. The program includes a keynote by LevelUp CEO Seth
Priebatsch, who will talk about his vision for SMBs using transaction
marketing to win more customers and generate more revenue from each
In addition, a session titled, “Transaction Marketing vs. Advertising” will
examine the next generation of SMB “transaction marketing” services,
including deals, coupons, loyalty services and CRM/analytics.
The conference also includes a featured presentation by Brad Robertson,
SVP of product innovation and new ventures for Gannett’s G/O
Digital unit, who will share insights about how his business unit is
making an impact on local commerce services with social media, shopping,
deals, coupons and loyalty.
BIA/Kelsey will present findings from LCM – Wave 17 during a
free webinar on Wednesday, Aug. 21. To view
an on-demand version of the webinar and/or the slide deck, click
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About Local Commerce Monitor
Local Commerce Monitor (LCM) is BIA/Kelsey’s ongoing tracking survey
of small and medium-sized businesses conducted online with research partner
Ipsos. The survey measures where SMBs are spending their advertising and promotional
budgets and how their media usage and spending habits are evolving. For this
study, SMB is defined as a business having from 1 to 99 employees. Local Commerce
Monitor draws its sample of business respondents from a mix of nationally scoped
MSAs, which include first- and second-tier markets. Local Commerce Monitor
Wave 17 was conducted in July 2013 via an online survey of 568 SMBs.
About LEADING IN LOCAL: SMB Digital Marketing
BIA/Kelsey's LEADING IN LOCAL conferences are the definitive events on local
digital advertising and marketing. LEADING IN LOCAL: SMB Digital Marketing
is focused on how the sales forces of Yellow Pages, search firms, newspapers,
TV and radio stations, promotions companies and other digital marketing solutions
providers are converging on independent SMBs, franchisees and regional groups.
The conference will offer a first-hand look at the latest innovations and influential
players in SMB-driven search, video, social media, mobile, promotions, CRM
and reputation management.
Event sponsors include Agendize, Amdocs, Apptus, CallFire, eLocal Listing,
First Data, Infogroup, Local Market Launch, Media Distribution Solutions, Neustar,
Sales Transformation Now, Reply!, Telmetrics, UBL, vSplash, Yext and YP.
Association and media partners include the Association of Directory Publishers
(ADP), Big Marketing for Small Business, International Classified Media Association
(ICMA), Local Commerce Canada, Location Based Marketing Association (LBMA),
Smallbiztechnology, Small Business Trends, The Next Web, Topseos, and Visibility
For more information, visit http://www.biakelsey.com/LeadingInLocalAustin.
BIA/Kelsey advises companies in the local media space through consulting and
valuation services, research and forecasts, Custom Advisory Services and conferences.
Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising,
telecommunications, Yellow Pages and electronic directory markets, as well
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Media Watch blog, Twitter (http://twitter.com/BIAKelsey)
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