The Key to the SME

The key to the SME?  Turn-key, easily implemented solutions.

Small to medium sized enterprises generally do not have the time or the man power to focus attention (or scarce resources) on functions that fall outside of their “core business”.  In these types of organizations the marketing manager may have responsibility for the company’s human resource function, or the CFO may also serve as general counsel.  With more responsibility, each employee is forced to prioritize the tasks they believe contribute most significantly to the bottom line. 

Companies that cater to the SME market need to provide affordable solutions that save their clients’ time.  Groupon has found a way to turn group buying power into an opportunity for consumers to test products and services that they would not typically have the opportunity to experience.  Group buying networks exist for some B2B products and services as well, but could a similar concept be applied to a wider range of offerings?  While this could account for the “affordable” part of the equation, easy implementation and fufilment might be more difficult propositions.

The SME continues to be a relatively underserved market.  Though they do not have the same resources as a large multinational, they will spend their money on solutions that they believe will improve their businesses.  With over 2 million small businesses in Canada – they may still be worth your time.

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OpenTable Does Valentine’s Day the Right Way

In my most recent post I asked readers what Groupon could have done differently to avoid the grief they received from customers as a result of a misleading Valentine’s Day coupon.

But whose responsibility is it to indicate that prices may be higher than normal on Valentine’s Day?  Should customers be expected to know that prices are subject to change on certain holidays?

After booking my Valentine’s Day dinner through OpenTable I recognized a disclaimer at the bottom of my confirmation e-mail:

“Holiday Reminder:  This is a confirmed reservation for Valentine’s Day.  Given that some restaurants create special menus, you may wish to contact the restaurant for details about any prix-fixe menus and pricing.  Thank you.”

This simple disclaimer about a seemingly obvious condition protected OpenTable from potential Valentine’s Day scrutiny. OpenTable took the opposite approach to Groupon recognizing that it would be ill advised to assume a customer’s understanding of special circumstances. With new channels of online distribution at our disposal, we mustn’t forget the increased complexity of sales transactions and the importance of clear communication with potential buyers.

Groupon: 50% Off What?

Recently valued at over 5 billion dollars, Groupon has taken the impact of collective buying power to new heights. Customers receive 50-90% off coupons to some of their favourite products and services under the condition that a deal sells beyond a set “tipping point” set by Groupon and its partnering suppliers.

Today; however, Groupon was under scrutiny for a deal with FTD that offered 50% off flowers over Valentine’s Day.  The coupon redirected customers to a site that sold flowers at a higher price than on their regular website.  Groupon has since cancelled the offer and have been working with FTD on a solution to remedy the negative publicity.

While it’s good to know that Groupon is listening to its customers and taking corrective action, what do you think Groupon should do to prevent this in the future?  Though many subscribe to the belief that customers are always right – should they have been surprised that there would be a mark-up on flowers on the week of Valentine’s Day?

I’d love to hear your thoughts.