{b42908da-3b6b-4f71-90d2-deab08d2a247}_CSX-Boosting_Sales_to_SMB

1 .Boosting Sales to SMBs Stu Richards| CEO, Bredin 

2 .Agenda Objective: Help you sell the Cloud to SMBs • Business outlook and challenges • Application and Cloud usage • Cloud adoption drivers • Using content marketing across the sales cycle 

3 .About Bredin Research • Focus groups • Custom online • IDIs • SMB Pulse • Snap Poll Content • Survey data • Content • Creative brief development • Editorial • Content audit calendar • Analytics 

4 .Methodology HOW Online survey via the Bredin.com/SMBPulse WHO 500 principals of U.S. companies with ≤500 employees (4% +/- CI) 250 VSB 150 SB 100 MB Company Size <20 employees 20-99 employees 100-500 employees (97.7% weighting) (2% weighting) (.3% weighting) All data is weighted unless noted WHEN December 17-24, 2018 

5 . Business Outlook Optimism increases with company size, and decreases with respondent and company age How do you expect your 2019 revenue to compare to 2018? No / Slow Growth Fast / Hypergrowth Revenue Outlook Company Size Up by more than 100% 4% 70% 61% 67% Up 10% to 100% 26% 39% 30% 33% Up by less than 10% 26% Same as 2017 34% Down by less than 10% 3% Down more than 10% 6% VSBs (<20) SBs (20-99) MBs (100-500) Company Age 87% Respondent Age 79% 76% 79% 60% 65% 68% 40% 35% 32% 21% 24% 21% 13% 18-34 35-49 50+ Less than 4 years 4 to 9 years 10 to 19 years 20 years or more 

6 . Business Challenges Key challenges vary by company size How challenging is each of these business issues? Headcount VSBs (A) SBs (B) MBs (C) Finding new customers 32% 32% 35% 41% Dealing with competition 25% 25% 34% (A) 42% (A) Finding good employees 22% 22% 42% (A) 38% (A) Keeping current on technology 20% 20% 34% (A) 40% (A) Managing costs 20% 20% 34% (A) 41% (A) Keeping our data secure 19% 18% 31% (A) 49% (AB) Having enough money to pay our bills 18% 17% 31% (A) 34% (A) Access to capital 16% 16% 35% (A) 30% (A) Staying in business 16% 16% 30% (A) 39% (A) Retaining good employees 16% 15% 37% (A) 43% (A) Complying with government regulations 15% 15% 36% (A) 42% (A) Retaining current customers 14% 14% 27% (A) 34% (A) Developing new products and services 13% 13% 31% (A) 33% (A) Keeping myself / our employees… 13% 12% 33% (A) 38% (A) 

7 .SMBs and the Cloud 

8 . Cloud Terminology SMBs are most familiar with the term ‘the cloud’ How familiar are you with each of these phrases? Have a very good understanding of this term Have an idea what this means Have heard this term, but don’t know what it means = % that have heard this term The cloud 53% 34% 10% 96% Hosted 25% 32% 21% 77% application SaaS 15% 23% 22% 59% 

9 . Application Usage SMBs are most likely to have a storage / file backup application… Please indicate whether your company uses, or plans to use, a software application (for example, QuickBooks) for each of these business functions: Already have Will get by the end of 2019 Will get after 2019 = % have or plan to acquire Storage / file backup 55% 6% 4% 65% Accounting / billing /… 50% 7% 5% 62% Email / email marketing 49% 8% 6% 63% Security software 49% 7% 7% 63% Office productivity suite 41% 8% 5% 54% Expense management 31% 10% 5% 46% File sharing 29% 8% 4% 42% Mobile payments 29% 10% 6% 44% Payroll / benefits… 28% 7% 7% 43% Personnel scheduling /… 28% 5% 5% 38% Customer service /… 27% 10% 4% 42% 

10 . Application Usage (continued) …and least likely to have fleet management Please indicate whether your company uses, or plans to use, a software application (for example, QuickBooks) for each of these business functions: Already have Will get by the end of 2019 Will get after 2019 = % have or plan to acquire Online meetings / web /… 25% 6% 5% 36% Inventory management 24% 9% 5% 38% Design / illustration 24% 9% 4% 36% Social media management 23% 8% 5% 36% Production management 21% 7% 5% 34% Website analytics 17% 12% 7% 36% Marketing automation 14% 11% 7% 32% CRM / salesforce… 13% 10% 7% 30% Analytics (other than… 11% 12% 8% 31% Survey administration 10% 7% 4% 22% Fleet management 9% 8% 5% 21% 

11 . Application Type Analytics apps are most likely to be in the cloud… For each of the applications you have, please indicate what kind of software you use: We use a cloud application We use traditional locally installed software Analytics (other than website analytics) 63% 37% Marketing automation 62% 38% Website analytics 58% 42% File sharing 58% 42% CRM / salesforce automation 54% 46% Online meetings / web / videoconferencing 51% 49% Storage / file backup 51% 49% Survey administration 43% 57% Payroll / benefits administration 42% 58% Social media management 41% 59% Fleet management 41% 59% 

12 . Application Type (continued) …and customer service, least likely For each of the applications you have, please indicate what kind of software you use: We use a cloud application We use traditional locally installed software Mobile payments 40% 60% Office productivity suite 34% 66% Email / email marketing 33% 67% Personnel scheduling / time management 32% 68% Production management 31% 69% Inventory management 30% 70% Accounting / billing / invoicing / financial management 30% 70% Design / illustration 29% 71% Security software 29% 71% Expense management 26% 74% Customer service / helpdesk 25% 75% 

13 . Cloud Usage Outlook Cloud adoption will be heaviest in analytics and survey administration… (If planning to acquire) For each of the applications you plan to acquire, please indicate what kind of software you will use: We will use a cloud application We will use traditional locally installed software Analytics (other than website analytics) 66% 34% Survey administration 63% 37% CRM / salesforce automation 59% 41% Online meetings / web / videoconferencing 56% 44% Website analytics 53% 47% Storage / file backup 52% 48% Social media management 52% 48% Expense management 52% 48% Marketing automation 48% 52% Customer service / helpdesk 47% 53% Fleet management 46% 54% 

14 . Cloud Usage Outlook (continued) …and lightest in office productivity (If planning to acquire) For each of the applications you plan to acquire, please indicate what kind of software you will use: We will use a cloud application We will use traditional locally installed software File sharing 46% 54% Security software 46% 54% Personnel scheduling / time management 45% 55% Accounting / billing / invoicing / financial management 45% 55% Design / illustration 44% 56% Payroll / benefits administration 43% 57% Mobile payments 43% 57% Email / email marketing 42% 58% Inventory management 40% 60% Production management 39% 61% Office productivity suite 33% 67% 

15 . Freemium Usage Freemium trials can drive paid subscriptions (If using a cloud application) Did you start using any of your cloud applications on a free or no-cost basis? Yes 68% No 32% (If started using an app on a free basis) For the cloud applications that you stared using for free, have you since upgraded any of them to paid subscriptions? Yes 39% No 61% 

16 . Cloud Adoption Drivers ‘Anywhere / anytime access to data’ is the biggest motivator for cloud adoption (If using or plan to use cloud applications) Please select all of the reasons you use, or will adopt, cloud applications: Anywhere / anytime access to applications and data 45% Improved functionality 43% Improved security 41% Improved reliability 41% Ease of access to documents and applications from multiple locations 40% Cost savings 39% Easier management / administration 36% Improved collaboration 25% Current software is “ending life” 13% My suppliers / partners require we adopt it 8% Competitors are doing it 7% 

17 . Cloud Benefit Ratings Integration is a key purchase criterion (If using or plan to use cloud applications) How important are these aspects of cloud applications? Very important Somewhat important = % important Integrates with your other applications 60% 29% 90% Comes from a well-known company 48% 40% 88% Has a free ‘starter’ version 46% 35% 81% Is a best-in-class solution for one specific 44% 36% 81% function, like billing or CRM Is an integrated suite 41% 37% 78% Comes from a vendor that specializes in your 40% 37% 77% industry Comes with a dedicated representative for 38% 36% 75% training and/or support Comes from a vendor you already work with 33% 42% 75% 

18 . Cloud Provider Preferences SMBs want cloud vendors to help them get the most from their solution (If using or plan to use cloud applications) How important is it that a cloud application vendor provides: Very important Somewhat important = % important Tips and advice on getting the most from their cloud 47% 42% 89% application An interactive tool that helps you assess how much your 38% 49% 87% company will benefit from their cloud solution Tips and advice on managing your business more effectively 36% 44% 81% Case studies that show how companies like yours have 32% 48% 79% used their solution Research reports or surveys of business owners like you on 31% 47% 78% how they have benefitted from the vendor’s cloud solution An email newsletter 31% 47% 78% A strong network of local resellers / distributors 27% 45% 73% Events in your area focusing on how your business can 25% 45% 70% benefit or get more from the vendor’s cloud solution 

19 .Engaging SMBs 

20 . Product Awareness Sources Different-size SMBs learn about products differently… How likely are you to first learn about products or services for your business via each of these Headcount specific content formats / information sources from vendors? VSBs (A) SBs (B) MBs (C) Product section of vendor’s website 22% 22% 45% (A) 51% (A) Video on vendor’s website 21% 21% 51% (A) 54% (A) Email newsletter 21% 20% 46% (A) 47% (A) Resources section of a vendor’s website 20% 19% 43% (A) 59% (AB) Research report 16% 15% 43% (A) 48% (A) Webinar / webcast 16% 15% 40% (A) 56% (AB) YouTube 16% 15% 41% (A) 50% (A) Forum or discussion board 15% 14% 39% (A) 50% (A) Facebook post 12% 12% 35% (A) 53% (AB) White paper 12% 11% 38% (A) 50% (A) Analyst report 12% 11% 45% (A) 54% (A) Checklist / worksheet 11% 10% 36% (A) 52% (AB) LinkedIn post 11% 10% 41% (A) 43% (A) Interactive tool 10% 10% 41% (A) 51% (A) Blog post 10% 10% 35% (A) 48% (AB) Twitter 10% 10% 33% (A) 41% (A) eBook / guide / handbook 10% 9% 36% (A) 43% (A) Case study 10% 9% 41% (A) 47% (A) Podcast 9% 9% 33% (A) 45% (A) Infographic 9% 8% 31% (A) 43% (AB) Instagram 8% 8% 33% (A) 51% (AB) Pinterest 7% 6% 38% (A) 43% (A) 

21 . Product Research Sources …and use different resources to conduct research… How likely are you to use each of these sources / content formats when you are researching Headcount products or services for your business? VSBs (A) SBs (B) MBs (C) Product section of vendor’s website 28% 28% 48% (A) 53% (A) Email newsletter 25% 24% 47% (A) 52% (A) Video on vendor’s website 23% 23% 47% (A) 55% (A) Resources section of a vendor’s website 20% 20% 42% (A) 55% (AB) YouTube 19% 18% 49% (A) 47% (A) Research report 17% 16% 40% (A) 52% (A) Forum or discussion board 15% 15% 39% (A) 48% (A) eBook / guide / handbook 14% 13% 35% (A) 50% (AB) Case study 14% 13% 43% (A) 51% (A) Webinar / webcast 13% 13% 39% (A) 47% (A) Checklist / worksheet 13% 13% 31% (A) 50% (AB) Analyst report 13% 12% 40% (A) 56% (AB) White paper 13% 12% 37% (A) 41% (A) Facebook post 12% 12% 38% (A) 51% (AB) Interactive tool 11% 10% 41% (A) 46% (A) LinkedIn post 11% 10% 39% (A) 49% (A) Twitter 11% 10% 38% (A) 44% (A) Instagram 11% 10% 33% (A) 45% (A) Blog post 10% 9% 31% (A) 54% (AB) Infographic 9% 8% 36% (A) 46% (A) Podcast 9% 8% 33% (A) 48% (AB) Pinterest 7% 7% 36% (A) 39% (A) 

22 . Purchase Decision Sources …but all rely heavily on the product section of your site to make a purchase decision How likely are you to use each of these sources / content formats to make a final purchase Headcount decision on products or services for your business? VSBs (A) SBs (B) MBs (C) Product section of vendor’s website 26% 25% 47% (A) 56% (A) Video on vendor’s website 22% 22% 41% (A) 58% (AB) Resources section of a vendor’s website 19% 19% 41% (A) 50% (A) Email newsletter 18% 18% 43% (A) 49% (A) Research report 16% 16% 47% (A) 55% (A) eBook / guide / handbook 16% 16% 41% (A) 51% (A) Case study 15% 14% 45% (A) 55% (A) YouTube 14% 13% 44% (A) 48% (A) Analyst report 14% 13% 40% (A) 51% (A) Webinar / webcast 12% 12% 41% (A) 51% (A) White paper 12% 11% 41% (A) 55% (AB) Forum or discussion board 11% 10% 33% (A) 45% (A) Interactive tool 11% 10% 45% (A) 56% (A) Checklist / worksheet 10% 9% 42% (A) 55% (AB) LinkedIn post 9% 9% 36% (A) 53% (AB) Blog post 9% 8% 36% (A) 47% (A) Infographic 9% 8% 39% (A) 50% (A) Facebook post 9% 8% 38% (A) 46% (A) Podcast 9% 8% 36% (A) 47% (A) Instagram 9% 8% 36% (A) 45% (A) Twitter 9% 8% 35% (A) 48% (AB) Pinterest 7% 6% 39% (A) 50% (A) 

23 . Marketing Content: What’s Important Comprehensibility is the key to effective content How important are each of these aspects of vendor content? Headcount VSBs (A) SBs (B) MBs (C) Clearly explains product / service benefits 68% 68% 64% 60% Easy to understand 66% 66% 65% 68% Well written 58% 58% 66% 64% Well-designed / produced 53% 52% 61% 68% (A) Doesn’t do a hard sell 47% 47% 50% 49% Includes a compelling special offer, promotion or… 43% 42% 54% (A) 66% (A) Describes how companies my size have benefitted… 42% 42% 48% 55% (A) Short / concise 41% 41% 48% 53% (A) Provides valuable business management tips and advice 38% 37% 53% (A) 57% (A) In a format I prefer 37% 37% 59% (A) 60% (A) Describes how companies in my industry have… 36% 36% 49% (A) 54% (A) Written by a well-known influencer or expert 26% 26% 41% (A) 55% (AB) Written by a vendor employee 17% 16% 35% (A) 57% (AB) 

24 . Effect of Content Marketing Content has a positive impact across the sales cycle In general, does vendor business management tips and advice make you more likely to: Brand Perception Acquisition Retention MBs MBs MBs 89% of MBs think 80% of MBs are 80% of are more favorably of more likely to more likely to the sponsoring become a remain a brand customer customer 

25 .Q&A 

26 .Thank You Stu Richards, CEO stu@bredin.com