New study details what success and struggles entrepreneurs will face in 2017
Study finds entrepreneurs are focused on building wealth, delivering excellent products and services, and the future
Drip, and email marketing automation platform, today released the results of a new study finding that entrepreneurs that use digital marketing and automation strategies on a consistent basis will likely see better returns than those not relying on those tactics.
According to the study, 50 percent of those surveyed get their majority of new customers via referrals or word of mouth. However a substantial amount of entrepreneurs (34 percent) stated that digital marketing is either highly important or indispensable to the success of their business. This data suggests that as long as you are tracking whether campaigns are effective, you are likely to see a return on your investment.
Drip serves thousands of small and medium-sized businesses with software and automation tools that makes their marketing easier and more effective. The survey, by Google consumer surveys, was conducted in July of 2016 by the Drip research team and consisted of multiple entrepreneurship questions of various nature. The survey was posed to entrepreneurs across the country among a cross-section of 1,884 subjects, both male and female and 18 years of age or older.
Respondents of the survey were not necessarily customers of Drip, and the questionnaire did not identify the company as the sponsor. The survey resulted in a good glimpse of what the state of entrepreneurship is shaping up to look like in 2017.
Where do today's marketers struggle?
According to the survey, cost (19 percent), time (18 percent) and finding customers (18 percent) are the biggest barriers for small businesses when it comes to growing their business. Interestingly, today's entrepreneurs don't necessarily think of customer acquisition as a marketing problem with ten percent stating their primary challenge is figuring out how to market successfully. Similarly, there looks to be untapped growth potential in improving customer retention as only seven percent of respondents said that was a top concern.
Respondents were also asked how long it took to feel like their respective business was a success. According to the data, the first year is a tough time for entrepreneurs. While around 21 percent felt confident and successful after one year, almost no one else (9.5 percent) reported reaching their benchmark for success in under a year.
Within a few years, business begins to stabilize, but many entrepreneurs feel they are in a difficult position. Twenty-one percent stated they do not feel confident that their business will succeed, including 15 percent who have already been in business for more than five years.
What motivates entrepreneurs to keep going?
Not all entrepreneurs start their business ventures with a goal of changing the world. Many are motivated by simply achieving a good life and economic stability for themselves and their families. According to the study, nearly 50 percent stated building a better life for their family (24 percent) or making money (23 percent) are their biggest motivating factors for their business. Conversely, being 'well-known' in their industry (ten percent) and making a difference in the world (14 percent) came in on the low end of respondents motivations.
Unsurprisingly, those surveyed that are in the 35-44 age bracket were the most likely to answer 'building a better life for my family' than any other segment, with 34 percent stating as such.
What contributes to customer happiness?
Entrepreneur's today clearly believe that there is no substitute for quality, as 34 percent of those surveyed stated that simple quality of goods and services are the top factors when defining what keeps their customers happy. Furthermore, another 26 percent state that the customer service that is provided is the biggest key.
Interestingly, very few entrepreneurs look to win over customers by more relative factors such as price (8 percent) and convenience (6 percent). This shows that they are sticking to business fundamentals and trying to deliver better value and service than anyone else in their industry.
What would entrepreneurs change if starting from scratch?
In hopes of gathering lessons learned from entrepreneurs, the study asked participants 'What would you do differently if you were starting your business all over again?' and the data showed a surprising outcome. One third (33 percent) of respondents answered they would do nothing or not much in terms of changing things up if they had to start their business over again.
If you plan on starting a business in 2017, our sample group might advise entrepreneurs to start sooner (three percent), watch their savings (1.3 percent), or find a good partner (1.1 percent). Not every response was in that realm, however. Of all the nearly 2,000 entrepreneurs surveyed, only two percent stated they would choose not to start a business if they were given another chance.
"The survey results and insights are quite interesting and compelling, giving valuable data on what current entrepreneurs are thinking on a daily basis," - said Rob Walling, co-founder of Drip. "The survey data helps surface common approaches, wisdom, and insights across a wide variety of entrepreneurs."
The survey's margin for error is +\- 3.1 percentage points for 1,026 adults. This is the first of several small business surveys that Leadpages.net and Drip.co plan to release on various trends and industry topics related to digital marketing.
Drip is email marketing and automation software for online businesses. Drip is ideal for individuals and companies that sell software, ebooks, courses, and consulting services. It's grass-fed, organic software lovingly handcrafted in Minneapolis. With a visual approach to email automation, extreme ease-of-use and surprisingly reasonable pricing, Drip has made marketing automation accessible to individuals and organizations that don't have the time or budget for more expensive, enterprise-level systems.
For more information about Drip visit our website at Drip.co
Contact Information: Josh Purdy
Public Relations Manager
July/August - 2018
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