How to Run a Growing and Profitable Digital Services Business

The best practices (and worst mistakes) that can make or break your Digital Services Venture

SMB Media Spending Decline

Directory Publishing Market Size

• U.S Directory Publishing Market: $9 bn*• 2011-2016 Annual Growth: -6.5%• YP and Dex largest players

*Excludes digital directories

Source: IBIS World, Database & Director Publishing in the U.S., 2016

Digital Services Market Size

• U.S “Digital Marketing Services:” $24 bn*• 2010-2015 Annual Growth: 4.9%• Market Fragmented

*Excludes Reputation Management & others

Source: IBIS World, Web Design Services in the U.S., 2015

Digital: Gold Mine or Dust Bowl?

Good, Bad & Ugly…

YP Directories: The largest digital services supply segment in the U.S. with millions of high-value web presence subscribers…

Good, Bad & Ugly…

The model is all “DIFM.” Senior execs in three cases admit it’s hugely inefficient and loses money.

Good, Bad & Ugly…

Sales tactics by some players eroding advertiser trust…

Fact 1: SMBs Have Trust Issues• Why is my cableco/radio station selling

me a website?• Cold-callers have no idea what I do.• I know more than they do.• I can’t take phone calls during the day!• Why can’t they email me?• I’ve been burned before…

Fact 2: Most SMBs Have a Website

SMB Needs (Ranked)1. To be understood and helped.2. To get found.3. To have a good-looking

website.4. To be connected to social

media.5. Site compatibility with all

platforms.

Fact 3: SMBs Want it Done for Them

The Reality of DIY1. It has a 1-2% adoption rate2. Even knowledgeable SMBs are too

busy3. The results are poor

Fact 4: SMBs Need Help

• 91% no Facebook widget• 60% not mobile responsive• 93% no email contact• 26% ZERO Google rank• 49% no Phone #

Tip 1: Build Trust & Acceptance

1. Align product modules to prospect’s knowledge

2. Deliver attribution* (*proof that it works)3. Have dedicated account managers4. Employ friendly pricing terms

Tip 2: Customers Don’t Want Tools

1. Most businesses just want it done

2. Risk: service labor doesn’t scale

3. Mitigation 1: Outsource the service

4. Mitigation 2: Automate the delivery

Tip 3: Automate Everything You Can

1. CRM/Sales2. Data & Analytics3. APIs (you to your SaaS

vendors)4. Automated

provisioning/delivery

Case 1: Texas Pages

1. 8% (and growing) Digital adoption rate 2. SEO-intensive sites = High Attribution3. Customer Consultative Selling = Trust4. Outsources fulfilment to Design Wizards

Case 2: Tarheel Media

1. Digital growth strategy2. Fully integrated plan3. Automated DIFM = Profitable Model

9 Rules for Digital Success1. Hire reps with digital experience 2. Use cadence to maintain program focus3. Drive Digital Goals from the top4. Commit to goals in budget and quota objectives5. Include digital into sales comp plans6. Include digital in monthly/quarterly sales motivation7. Respect sales feedback – but don’t waver in

commitment8. Avoid $ cannibalization: separate your reps OR the

offer 9. Know your core strengths (and outsource the rest)

Conclusions: Gold or Dirt?

Directory Publishers• Naturally trusted by SMBs• Blessed with customer knowledge• Have Sales and Fulfilment capabilities

Thank You!Paul D. EngelsCEOVeloxsitespengels@veloxsites.com

E-Book ResourceOnline Presence - What SMBs Want:How to successfully provide digital marketing services to your SMB customers.

Resources• InfoGraphic re Broken Websites:

http://www.inc.com/laura-montini/infographic/the-big-things-that-small-businesses-get-wrong-on-their-websites.html

• Borrell Survey of SMB Comments: www.borrellassociates.com/surveys