Recent reports illustrate the trouble small businesses have with their digital marketing providers, with one report noting that one in three small businesses end up in a dispute with their provider, according to new research and almost 70 per cent of small businesses last fewer than 12 months with their providers.
To address these issues, the Australian Small Business and Family Enterprise Ombudsman, Bruce Billson, has released a best practice guide for small businesses to provide simple steps they can take to better match their needs and expectations with those of digital marketing service providers.
“The growth in disputes involving digital platforms and digital service providers has motivated us to provide a guide to preventative steps and better practice guidance that might help reduce the harm these disputes are causing,” Billson said.
The guide was borne out of a study by researchers at the University of the Sunshine Coast, notable for being among the first in the world to investigate the specific relationship challenges between small businesses and digital marketing service providers, a study commissioned by the Ombudsman. The study found most of the disputes came from a mismatch in understanding what each party required.
“A digital marketing service provider is a person or agency that you engage to help with your online presence,” Billson said. “But for too many small businesses this relationship can be unsatisfactory, and for one-in-three it ends in a dispute. Our guide gives small business actionable tips on receiving great service and building a real partnership with a digital marketing service provider.”
There is also a guide for digital marketing providers to understand the needs of small businesses better as the aforementioned study also found that digital marketing service providers often did not communicate risk; were not transparent with details about services, timeframes and results; and did not treat their clients as collaborative partners.
It concluded that a lack of digital literacy among small-business owners prevented them from proactively asking relevant questions about the services being provided by digital marketing service providers. Moreover, half of small businesses said that their providers pushed them to buy expensive and irrelevant services.
“Before you talk to a provider, identifying the assistance you need and what you want the provider to do and what you want to do yourself,” Billson said. “And when you talk to a provider make sure you understand exactly what they will do for you and at what times and that you are both clear on the cost, including any fees or other charges, and for how long the agreement will apply.”
The lead researcher at the University of the Sunshine Coast, Dr Karen Sutherland, said the common reason for relationships ending up in a dispute was a lack of open, informed and honest communication between small businesses and digital marketing providers.
“There needs to be clear and honest communication about budget, the exact service being provided and setting realistic expectations for results,” Sutherland said. “And most importantly, make sure everything that’s agreed upon is written into a contract.”
Sutherland added that most marketing providers were not out to “get” business owners, rather it’s a matter of finding a provider that’s best aligned to your business.
“Different companies have different capabilities. Some are used to working with bigger clients, bigger budgets and will want more control over a business’s marketing content – and maybe that’s not a good fit for you or your business,” Sutherland said. “So, make sure you form a clear idea of what it is you want and research prospective companies before you engage with them. Look at some of their previous work, reach out to former clients and see if it seems they seem like the right company for your needs.”
