Customer Insights Analyst, SMBApplicant: Gloria Zhu

Facebook SMB Mission & Value Proposition

3-5

Gloria’s Take On SMBs

6-9

Suggested Goals

10-13

General Suggestions

14-17

Appendix

19-20

Contents

Facebook SMB Mission &

Value Proposition

The Small & Medium Business team contributes […] by connecting every small business in the

world with their customers on Facebook […] and then helping them grow through solutions like

Pages and advertising.

“Facebook’s mission is to make the world more open and connected.”

Advertising• Targeted (to goals, industry & customer)

• People-based marketing

• Strong desktop & mobile presence1

• Predictable reach

• Flexible

Facebook Pages & Advertising is the most robust way to gain, retain and interact with your own community of customers

11.32 billion MAU and 1.07 billion mobile MAU as of June 30, 2014

Pages • Full control of branding

• Directly interact w/ customers

• Dynamic content: images, video, links, status updates

Gloria’s Take On SMBs

Small and Medium-size Business Owners around the world are entrepreneurs that need as many qualityresources & tools as there are in Silicon Valley

United States

Top Countries On Facebook2

23M SMBs3 | 12M no website4 | 4M user acquisition marketing4 | 9.5M use CRM4

India

50M SMEs5 | Only <5% of SMEs have website6

Brazil

6.3M SMEs7

United Kingdom

4.9M SMEs8

Canada

2.4M SMEs9 *Definition of SMB varies by country

MyTime

- Marketplace

- SMBs Online Presence

- Marketing

- Retention Tools

- Reviews Facebook

- Better Tracking

- Predictable Marketing

- Interaction w/ Clients

- Community

- Marketplace

- Retention

- Reviews

Nudgit

- Marketplace

- Increase SMB Knowledge of Competition(prices)

- Interaction w/ Clients for feedback

Facebook can tackle the challenges Nudgit & MyTime have been trying to solve…and more

• The Road to Predictable Results (Atlas)

• Helping marketers reach real people across devices, platforms and publishers

• Quantifiable goals for each ad: merchants have a better way to measure expectations

• Ads are goal specific and highly targeted

• Strong mobile presence & location-based tools

• Newsfeed is a go-to for news & discovery

• "Buy" Button

• Social ecommerce

• A new call to action

• More inventory analytics for SMBs

Facebook Features That Gloria is Excited About

Suggested Goals

• Size of Segment: 30 Million Active SMBs on Facebook 10 + Non-Active SMBs on Facebook

• Why is this Important?

MyTime Made Me Aware of the High-turnover Rate for SMBs: 70% firms survive at least 2 years, 50% at least 5 years, 33% at least 10 years, and 25% stay in business 15 years or more11

An Accurate Database Strengthens Facebook’s Reputation as a Trusted Resource For Consumers

• Questions to Get Started• How many merchants have not updated their information in over 6 months?

• How many profiles are fake/duplicates?

• What percentage of profiles are completed?

• Breakdown of what information is missing from profiles to find drop-off

• How often do merchants post? Is there a drop off or churn rate?

• Identify if there is a pattern between incompleteness and industry or SMB size

• Sit down with merchants and watch them go through sign up and updating flow

Goal #1: Get Existing Facebook Businesses More Involved

A. Improve Page Profile Quality

• Size of Segment: - 1+ Million to Increase Advertising Spend- 29 Million Businesses to Begin Advertising (30 Mil Active – 1 Mil Advertising)

• Why is this Important? Increase Revenue for Facebook & SMB | Utilization of Advertising Feature Provides Value for SMBs

• Questions to Get Started

• Why do SMBs not purchase advertisements? • Speak with sales for common rejections

• Are there features Facebook does not yet provide?

• How can Facebook demonstrate value better?

• Do SMBs think they do not have enough marketing budget to spend?

• What other marketing are they using instead?

• What encouraged businesses that are advertising to pay? What caused them to pause?

• What is the breakdown of how much a merchant pays?

• Identify if there is a pattern between advertising spend, industry, SMB size

• Is there someway we can convince SMBs to increase the advertising budget when they are in the process of creating the advertisement?

Goal #1: Get Existing Facebook Businesses More Involved

B. Increase SMB Spend on Advertising

• Predicted Size of Segment: 86.6+ Mill (Total of Top 5 Country SMEs)

• Why is this Important?

SMBs can create their sole online presence | Interaction w/ Customers

• Questions to Get Started • Why do SMBs not have a Facebook Page?

• no wifi or no hardware to create or update information

• don’t believe the customers they serve use FB/social media

• don’t need more clients

• don’t like using the internet

• don’t think they have the time to get started and manage their page

• Who should we target? Who often creates pages—marketing team, owner, employees, intern? Magical Fairies?!

• Are there certain industries that have proportionally fewer Facebook Business Pages than actual businesses?

• Are there certain locations that have proportionally fewer Facebook Business Pages than actual businesses?

Goal #2: Get Every SMB on Facebook

3 General Suggestions

• Create webpage on how to brand, connect and consistently update your Facebook

• Dan Levy stated individuals know how to create Pages from personal profiles, but inexperienced SMBs need to learn how to use Facebook as a branding, marketing & selling tool

• Encourage Better Content On Page’s Timeline

• Questions can be more specific to encourage merchants to post more interesting content

• Stock photos gallery for merchants’ status or increase merchants’ use of Instagram [inspiration: StyleSeat]

• Merchants Need a Greater Call to Action to Engage

• Online Appointments or Book Now Button

• Encourage customers to share photos, rate the business, or leave review after a check-in[inspiration: Yelp]

Suggestion #1: Facebook Profile Page

At MyTime, merchants genuinely wanted to improve their profiles, but just didn’t know how…

• Give merchants $15 free credit to try Facebook Advertising & Extra $10 to Refer Friend

• After trying it out, they’ll be hooked by how easy it is to use!

• Free money will encourage merchants to self-teach themselves how to use Facebook Ads

• Power of referral marketing is strong in the SMB community

• The Ability to Forecast Better

• Not every business thinks they can afford online ads, but they also don’t realize the potential in gains the could make

• ie. “Martinovic says she makes $23 for every $1 she spends on the site.”13

Suggestion #2: Advertising

Merchants consistently told me that they were skeptical of companies always trying to sell them things

• More Events, Workshops, Online Classes and Partnerships With Government Organizations & Companies

• Bootcamp for Small Businesses Facebook Fit

• Dan Levy said SMBs refer friends afterwards—let’s post the recording for non-attending SMBs!

• There should be a Facebook group/event page for SMBs to collaborate and meet after the fact!

• Increase the Size of the Small and Medium Business Council

• Make SMBs feel like they are a part of the decision making process

• Create Official Groups For Specific Industries, Locations or Goals

• Have each merchant automatically added to a group foster the idea of joining a community

• Encourage SMBs to share thoughts and tips

• Strong moderator presence(maybe even Facebook employee), and spam-free zone

• Provide Insight on Competitors Nearby

• At Nudgit & MyTime, SMBs are always asking if their pricing is reasonable[inspiration: http://www.sba.gov/tools/sizeup]

Suggestion #3: Community & Connectivity, Online & Offline

My first internship was at the Chamber of Commerce at age 14, and I still believe the best way to reach merchants is through community involvement , activities and word-of-mouth.

It is also important to not only have resources, but to have them easily accessible and readily available.

Appendix

1. http://newsroom.fb.com/company-info/

2. http://www.socialbakers.com/facebook-statistics/

3. http://www.sba.gov/offices/headquarters/ocpl/resources/13493

4. http://www.forbes.com/sites/erikaandersen/2013/10/07/how-small-business-owners-are-wrecking-their-own-chances-of-

success/

5. http://techcrunch.com/2014/03/01/as-india-user-base-nears-100m-facebook-hopes-to-earn-big-revenue-from-smbs/

6. http://www.informationweek.in/informationweek/news-analysis/277154/percent-smes-india-website-reveals-google-ficci-

report?utm_source=referrence_article

7. http://www.as-coa.org/blogs/s%C3%A3o-paulo-2014-blog-six-facts-about-smes-brazil

8. file:///C:/Users/gloria/Downloads/sn06078.pdf

9. http://www.sbinfocanada.about.com/od/canadianstats/a/cansmallbiz.htm

10. http://techcrunch.com/2014/06/03/facebook-30m-small-businesses/

11. www.sba.gov/sites/default/files/sbfaq.pdf

12. www.allfacebook.com/small-and-medium-business-council_b130080

13. http://fortune.com/2014/02/10/facebook-forms-small-business-council/

Sources Cited

Defining SMEs: A Less Imperfect Way of Defining Small and Medium Enterprises in Developing Countries http://www.brookings.edu/~/media/research/files/papers/2008/9/development%20gibson/09_development_gibson.pdf